FICO scores are used by creditors to determine the overall risk levels of customers. The score is calculated using a proprietary tool developed in 1989 by Fair Isaac Corporation. Major credit bureaus in the US such as Transunion, Equifax and Experian use this tool to determine FICO scores for borrowers. In most cases, the more information a credit agency has about you, the more accurate the score will be. Today, FICO has become the most acceptable standard for measuring credit risk in banking, retail business, mortgage and credit card application. The scores range from a low of 300 to a high of 850. The FICO bankcard score and the FICO auto-enhanced scores are set between 250 and 900. FICO scores can only be accessed, if a credit report meets the following minimal requirements:

• An account was opened for 6 months or more
• The queried account has been reported to the credit bureau in the past 6-months
• If there is no deceased notification on the credit report

FICO scores are calculated based on 5 itemized categories; the borrower’s history of payment, amounts owed, the length of your credit history, types of credit used and new lines of credit. Payment history is the most important factor, when it comes to determining FICO Scores. It is closely followed by the amounts owed and the length of credit history. When it comes to credit cards; different credit cards come with different minimum FICO credit score requirements. FICO scores of 720 and higher are general considered excellent, scores of 670 to 719 are considered good and scores of 600 to 669 are considered average. On the other hand, a FICO score of 599 and below is considered bad or no credit.

Ultimately to determine what rewards card you may qualify into will depend on the specific underwriting and approval guidelines from Example Seven, Example Four, Example One and other prominent card offers. The good news is that companies like Example Five are now offering rewards credit cards for borrowers with Good to Above Average credit profiles and their are more companies targeting fair credit as this market on a daily basis!

Individuals who have credit scores of at least 710 can apply for a rewards credit card, although a score of 720 and above is preferable. It is important to note that, many credit card issuing institutions including banks can alter their terms of credit based on the applicant’s credit history. Individuals with an average credit score can obtain credit cards if they do not have a history of late payments within the past 6 months, and have at least one open line of credit running for at least one year. To keep your FICO scores higher, the most important thing is to keep your bills current or in good standing by avoiding late payments. Credit cards should be paid in full or above the required minimum balance. In general, a history of good payment will automatically result into a higher credit score.