If you’re aiming to get approved for a cashback credit card, your credit score is one of the most critical factors that banks and issuers consider.
Cashback cards often come with appealing benefits—earning money back on everyday purchases like groceries, gas, dining, or travel.
But here’s the catch: most issuers reserve the best cards for applicants with good to excellent credit scores.
The good news? You can take deliberate steps to improve your credit score and boost your chances of approval.
This guide walks you through how credit scores work, what lenders look for, and practical strategies you can implement today.
Why Credit Scores Matter for Cashback Cards
Credit scores are three-digit numbers that tell lenders how risky it might be to lend you money. In the U.S., the most widely used scoring model is FICO, which ranges from 300 to 850.
Here’s how the ranges are typically classified:
- Excellent (750–850): Best rates and highest approval odds
- Good (700–749): Strong approval odds for most cashback cards
- Fair (640–699): Limited approval odds; may qualify for beginner cashback cards
- Poor (300–639): Approval unlikely without rebuilding credit first
Since cashback cards often provide valuable rewards, issuers prefer applicants with strong credit histories.
Factors That Influence Your Credit Score
Understanding what makes up your score is the first step toward improving it:
- Payment History (35%) – Do you pay bills on time?
- Credit Utilization (30%) – How much of your credit limit are you using?
- Length of Credit History (15%) – How long have you been managing credit?
- Credit Mix (10%) – Do you have a mix of loans and revolving accounts?
- New Credit Inquiries (10%) – How often are you applying for new accounts?
By focusing on the two biggest factors—payment history and credit utilization—you can see improvements faster.
Steps to Improve Your Credit Score
1. Always Pay On Time
Even one late payment can stay on your credit report for seven years. Set up automatic payments or reminders to avoid missed due dates.
2. Reduce Credit Card Balances
Aim to use less than 30% of your available credit. For example, if your limit is $5,000, try to keep your balance under $1,500. Keeping utilization closer to 10% can give your score an extra boost.
3. Avoid Opening Too Many Accounts at Once
Each application creates a hard inquiry, which can temporarily lower your score. Apply strategically and only when necessary.
4. Keep Old Accounts Open
Your credit age improves as your accounts get older. Unless there’s an annual fee you can’t justify, keep older accounts open—even if you don’t use them often.
5. Diversify Your Credit Mix
If you only have credit cards, adding an installment loan (like a small personal loan or auto loan) could improve your mix over time.
6. Dispute Credit Report Errors
Request free reports from AnnualCreditReport.com and review them for mistakes. Errors like incorrect balances or late payments can drag down your score unfairly.
7. Become an Authorized User
If a trusted family member has excellent credit, ask if you can be added as an authorized user. Their positive history can reflect on your report.
8. Pay Off Collections Strategically
If you have accounts in collections, work with the creditor to settle or pay in full. Some newer scoring models ignore paid collections, which can improve your score.
How Long Does It Take to See Results?
Credit score improvement is not instant, but small changes can happen within 30–60 days if you:
- Pay down high balances
- Correct errors on your report
- Avoid new hard inquiries
More significant changes, like rebuilding from late payments or collections, may take 6–12 months of consistent positive behavior.
Recommended Credit Score for Cashback Card Approval
- Premium Cashback Cards (e.g., Chase Freedom Unlimited®, Citi Double Cash®): 700+ recommended
- Mid-Tier Cards (e.g., Capital One Quicksilver, Wells Fargo Active Cash®): 670+ recommended
- Beginner Cards (e.g., Discover it® Secured): 600+ can qualify
If you’re currently below 670, it’s better to work on building your credit before applying to avoid unnecessary denials.
Tips Before You Apply
- Check pre-qualification tools offered by banks—these do not affect your credit score.
- Time your application when your credit utilization is at its lowest.
- Freeze unnecessary spending a month or two before applying to keep balances down.
Improving your credit score is one of the smartest financial moves you can make, not just for cashback card approval but for your overall financial health.
By paying on time, keeping balances low, and building a positive credit history, you’ll position yourself to qualify for the best cashback cards—those that put real money back in your pocket.
FAQs
1. Can I get a cashback card with a 650 credit score?
Yes, but your options may be limited to entry-level or secured cashback cards.
2. Does paying off a loan improve my score immediately?
It can, but sometimes paying off a loan reduces your credit mix. The overall impact depends on your profile.
3. How often should I check my credit score?
At least once a month using free tools like Credit Karma or your bank’s credit monitoring services.
4. Will closing a card hurt my score?
Yes, if it reduces your total available credit or shortens your credit history.
5. How soon before applying for a cashback card should I prepare?
Ideally, 3–6 months in advance to allow time for noticeable score improvements.
6. How much will my score go up if I pay off all my credit card debt?
The increase varies, but many people see a jump of 20–100 points depending on how high their utilization was before.
7. Do cashback card issuers check both FICO and VantageScore?
Most major issuers use FICO scores, but some also consider VantageScore. It’s best to monitor both.
8. Can applying for multiple cards at once hurt my score?
Yes, each application triggers a hard inquiry. Multiple inquiries in a short time can reduce your score by several points.
9. How long do negative marks stay on my report?
- Late payments: up to 7 years
- Bankruptcies: up to 10 years
- Collections: usually 7 years
10. Will paying rent or utilities help my credit score?
Normally, these don’t count. But using services like Experian Boost can add positive payment history to your report.
11. What’s the minimum income for cashback card approval?
There’s no fixed rule, but issuers assess your debt-to-income ratio. A stable income increases approval chances.
12. Can I qualify for a cashback card if I only have a secured card now?
Yes, after 6–12 months of responsible use, you may qualify for an unsecured cashback card.
13. Does closing a secured card hurt my chances later?
If it’s your oldest account, closing it may reduce your score. Try to keep it open until you’re approved for a stronger card.
14. How often do credit scores update?
Typically once a month, but changes can appear sooner if creditors report updates more frequently.
15. What’s the fastest way to raise my credit score?
Paying down balances below 30% utilization and fixing errors on your credit report can yield quick results.
16. Should I pay my credit card in full or just the minimum?
Always pay at least the minimum to avoid late fees, but paying in full avoids interest and shows responsible use.
17. Can I improve my score without using credit cards?
Yes, through installment loans, rent reporting services, and on-time payments for any type of loan.
18. How long does it take to go from “fair” to “good” credit?
On average, 6–12 months of consistent positive activity can move you into the “good” range.
19. Do cashback cards approve people with no credit history?
It’s rare. Beginners usually need to start with student cards or secured cards before moving to cashback cards.
20. Can debt consolidation help me qualify for a cashback card?
Yes, consolidating high-interest debt into a single loan can lower utilization and improve approval chances.
