Your credit score is crucial to your financial success. The higher your score, the more options you may have. And using credit cards the right way can help you build your credit -- via on-time payments, low credit utilization, and even just keeping your cards open longer (and keeping them in good standing).
But before you start building your credit, you need to have the right resources in place.
If you have existing high-interest debt -- whether it’s credit card debt, various loans, medical, or a combination of debts -- and your credit score is above 580, you may be able to slash your interest rate with a personal loan to help pay off your debt faster.
Or, if you’re looking for a credit card to help reach your goals, there are a few options for those with lower credit scores between 320 and 670.
Below are some of our top picks for both of these scenarios, as well as a few more tips on how to raise your credit score once you find an option that works for you.
Personal loan for credit of 580+ to help pay off credit card debt
Credit cards for fair credit
Credit card for building credit
Personal loan for credit of 580+ to help pay off credit card debt
If you have credit card debt, but are not able to qualify for a balance transfer credit card, a personal loan could be a good tool to get a lower interest rate to pay off your debt, faster. Here’s why:
- You can consolidate debt by using one personal loan to pay off multiple credit cards.
- Personal loans typically have lower interest rates than credit cards, so you can save money on interest.
- Personal loans have fixed repayment schedules (credit cards don’t), so you can get a definite debt-free date.
- You can choose a fixed-rate personal loan, which locks your interest rate in place, while most credit cards charge interest at a variable rate.
Want to get started with a personal loan to help work towards building your credit? Here’s one of our top picks:
Upstart Personal Loans
BEST FOR: REDUCING HIGH INTEREST DEBTUpstart Personal Loans
Apply Now
Apply for an Upstart Personal Loan if you…
… Have a credit score of 580 or above and want to reduce high interest debt
… Want to have a choice of a three-year or five-year loan repayment term
… Think you might want to pay off your loan early without being penalized
Whether you're consolidating debt or making a big purchase, Upstart Personal Loans have got you covered. Upstart's personal loans have some big advantages, including fast funding, flexible loan amounts, and credit score requirements are more flexible than other lenders. Upstart's unique underwriting process takes things like education and career history into account, as well as other factors unrelated to credit score.
Credit cards for fair credit between 630-670
You just missed the approval range for a premium card, but you can still get a decent one. Below are our top three picks for those with a fair credit score.
Capital One Platinum Credit Card
4.00 out of 5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor4.00 out of 5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = PoorIntro APR
Purchases: N/A
Balance Transfers: N/A
Regular APR
29.99% (Variable)
Rewards
Annual Fee
$0
Welcome Offer N/A
N/A
- No annual or hidden fees. See if you're approved in seconds
- Be automatically considered for a higher credit line in as little as 6 months
- Help build your credit through responsible use of a card like this
- Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
- Monitor your credit score with CreditWise from Capital One. It's free for everyone
- Get access to your account 24 hours a day, 7 days a week with online banking from your desktop or smartphone, with Capital One's mobile app
- Check out quickly and securely with a contactless card, without touching a terminal or handing your card to a cashier. Just hover your card over a contactless reader, wait for the confirmation, and you're all set
- Pay by check, online or at a local branch, all with no fee - and pick the monthly due date that works best for you
Apply for the Capital One Platinum Credit Card if you…
… Want to be able to pay by check, online or at a local branch, all with no fee to do so
… Want to help strengthen your credit for the future with responsible card use
… Don’t want to pay an annual fee
The Capital One Platinum Credit Card is a solid choice if you have average credit and need a credit card. And if you use it properly, it can be a useful stepping stone to boost your credit score and help you qualify for a wider range of cards. If you don't have a long credit history or your history has some negative marks on it, and you’re ready to build your credit score.
Capital One QuicksilverOne Cash Rewards Credit Card
Apply Now for Capital One QuicksilverOne Cash Rewards Credit Card
On Capital One's Secure Website.
4.00 out of 5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor4.00 out of 5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor
Apply Now for Capital One QuicksilverOne Cash Rewards Credit Card
On Capital One's Secure Website.
Intro APR
Purchases: N/A
Balance Transfers: N/A
Regular APR
29.99% (Variable)
Rewards Earn unlimited 1.5% cash back on every purchase, every day. Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply.
1.5%-5% cash back
Annual Fee
$39
Welcome Offer Cash Back
Cash Back
- Earn unlimited 1.5% cash back on every purchase, every day
- No rotating categories or limits to how much you can earn, and cash back doesn't expire for the life of the account. It's that simple
- Be automatically considered for a higher credit line in as little as 6 months
- Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
- Help strengthen your credit for the future with responsible card use
- Enjoy up to 6 months of complimentary Uber One membership statement credits through 11/14/2024
- Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply
- Monitor your credit score with CreditWise from Capital One. It's free for everyone
- Check out quickly and securely with a contactless card, without touching a terminal or handing your card to a cashier. Just hover your card over a contactless reader, wait for the confirmation, and you're all set
Apply for the Capital One QuicksilverOne Cash Rewards Credit Card if you…
… Want to earn unlimited 1.5% cash back on purchases
… Want the chance to get access to a higher credit line
… Want to help strengthen your credit for the future with responsible card use
The Capital One QuicksilverOne Cash Rewards Credit Card fills the gap for people with limited credit histories who want to earn credit card rewards. This card offers unlimited 1.5% cash back on purchases. What’s more, when you pay off your balances each month to avoid interest charges you may get access to a higher credit line which will help you reap the most value with this card. One thing to keep in mind with this card is that even though you get the benefit of cash back rewards, it does have an annual fee of $39. So, you’ll have to make sure that you can earn that or more in rewards to make it worth the fee.
Credit card for building/bad credit
Discover it® Secured Credit Card
5.00 out of 5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor5.00 out of 5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = PoorIntro APR
Purchases: n/a
Balance Transfers: 10.99%, 6 months
Regular APR
28.24% Variable APR
Rewards 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically
1% - 2% Cashback
Annual Fee
$0
Welcome Offer
Discover will match all the cash back you’ve earned at the end of your first year.
- No credit score required to apply.
- No Annual Fee, earn cash back, and build your credit history.
- Your secured credit card requires a refundable security deposit, and your credit line will equal your deposit amount, starting at $200. Bank information must be provided when submitting your deposit.
- Automatic reviews starting at 7 months to see if we can transition you to an unsecured line of credit and return your deposit.
- Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.
- Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
- Get an alert if we find your Social Security number on any of thousands of Dark Web sites. Activate for free.
- Terms and conditions apply.
Apply for the Discover it® Secured Credit Card if you…
… Want a secured card that earns cash back with no annual fee
… Want the chance to earn up to 2% cash back at gas stations and restaurants ($1,000 quarterly spending cap)
… Want to have Discover match all the cash back you earn in the first year for new cardholders
The Discover it® Secured Credit Card has everything you need without paying unnecessary costs. There's free FICO® Score monitoring and no annual fee. This is also one of the only secured credit cards with a rewards program and offering cash back on purchases. Discover will also automatically match all the cash back you’ve earned at the end of your first year. This sign-up bonus is only available during the first year and for new cardholders, but it can be particularly lucrative since the match is unlimited.
How to raise your credit score when you have bad credit
The best way to raise your credit score when you have bad credit is by understanding the factors that contribute to your score. Here are the five factors used to calculate your FICO® Score and how you can get high marks in each one:
- Payment history (35%): On-time payments are the key to excellent credit. While you can't undo previous late payments on your credit file, you can avoid late payments in the future. That's the number one habit you need to raise your credit score.
- Credit utilization (30%): Your credit utilization is the sum of your credit balances divided by your combined credit limit. For example, if you have one credit card with a balance of $200 and a limit of $500, then your credit utilization is 40%. The lower you can keep this number, the better. A good goal is to always have your credit utilization below 30%. If yours is higher, then you should focus on paying off debt.
- Length of credit history (15%): Creditors will obviously consider a borrower who has had a credit card for 20 years to be less risky than one who has only been using credit for three months. The best way to improve in this area is to open a no-annual-fee card and keep it open forever.
- Credit mix (10%): It gives you a slight credit score advantage if you have both revolving credit, such as credit cards, and an installment loan on your credit file, instead of just one of the two. But since this has only a small impact on your credit score, you shouldn't take out a loan solely to boost your credit. You can attain an excellent credit score even if you only use credit cards.
- New credit inquiries (10%): When a company looks at your credit report to make a credit decision, this inquiry is reported on your credit report for two years. Credit inquiries only affect your FICO® Score for one year, though. Don't avoid opening a new account just because of the small impact to your credit score, but don't open a bunch of accounts in quick succession, either.
There's a right way to swipe
Credit cards with rewards and 0% intro APR offers are excellent, but remember, they are a tool to help you get the most out of your spending. The Ascent motto to follow:
- Pay off your card in full each month.
- Choose a card whose rewards are a good fit for you.
- Don't spend more than you already would.
Follow this and you'll be making your money work overtime for you. Live richly, not risky.
Our Credit Cards Experts
The Ascent brings financial expertise, trusted advice, and unbiased analysis to the world of daily personal finance decisions. Our mission is to help you live more richly.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Target, Uber Technologies, and Upstart. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.