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What’s In A Number? Credit Score 101

Credit scores are a numerical expression of your credit history that credit card companies and other financial institutions use to determine how risky it is to lend you money. Credit history takes several different variables into account and, while some factors are weighed more heavily than others, the combined result is the figure that represents your creditworthiness. There are three main credit reporting bureaus: Equifax, Experian, and TransUnion, who report to card issuers and play a major role in determining whether you are approved (or denied) for a new card. Credit scores are determined by a variety of factors and range between 300 to 850, and fall into the following credit rankings:

Factors that Affect Credit Score

Repayment history has the highest impact on credit scores. Accounting for nearly one-third of your overall score, delinquency (a late or missed payment) can quickly devastate an otherwise stellar credit history. This negative mark typically lasts for up to seven years on financial records and can and can cause drops in scores up to 160 points. Fortunately, there are credit cards that can help rebuild poor scores and help borrowers get back into good graces.

The next most influential factor that determines credit score is your credit utilization percentage. This number is a ratio of the total amount of debt compared to the total amount of credit currently available to you. For example, if you have a $10,000 credit card limit and a current credit card balance of $1000 you are utilizing 10% of your credit limit.

Why do lenders care if you use all of the credit they offered you? Consistently having high utilization percentages is a red flag that to lenders, who will consider you to be of higher risk of defaulting on your debts. Just because you can spend that much doesn’t mean you should. The sweet spot of credit utilization is generally recommended to be 10% or less from each line of credit.

The remaining credit card factors are less impactful, but still extremely important to maintaining a healthy credit score: the average age of your accounts, the total number of accounts, total number of credit inquiries (within the past two years), the number of derogatory marks (being sent to collections or having a lien placed on your salary), and the overall ratio of your debts to your income.

Search Airline Cards by Credit Ranking

Understanding your credit score is essential to finding the best airline rewards card for you. Knowing the level of credit needed before applying will save time and your credit score from an unnecessary credit inquiry. Those with exceptional credit scores can select from the cream of the credit card crop, as cards that require Excellent credit scores often have the largest signup bonuses and the most lucrative reward structures. But for those whose credit scores may leave something to be desired, there are still plenty of leading airline rewards cards to choose from.

Finding a card to build up your credit while also earning airline rewards isn’t impossible – even for those with no credit history or less than stellar credit scores.  Browse leading airline rewards credit cards by credit needed and see which airline rewards cards are available to those with good credit, bad credit, or even no credit history.

Airline Credit Cards for Excellent Credit
Airline Credit Cards for Good Credit
Airline Credit Cards for Fair Credit
Airline Credit Cards for Bad Credit
Airline Credit Cards for No Credit