The credit score for tier two cards is upwards of 670, but a relationship with the bank can get you a tier two card even with a lower score. Credit limits for these cards are $500 and above.
It is quite possible that 2020 has seen you trash your credit score due to missed payments and high utilization. The bulk of this will not be your fault, but the next step is to find a way to find your way back. In response, the credit card industry players have adjusted the ranges and come out with new credit cards. With a low start and new tiers, follow this guide to move up the credit score ladder in 2020.
Tier One
In this tier are credit-builder cards which include secured and sub-prime cards that target people with low credit scores. These cards do not accumulate any kind of rewards like cash-backs. Except for some sub-prime cards, these cards also do not have annual fees.
A credit score below 680 falls into tier one and the credit limit is in the low $100s.
Tier Two
These cards offer some kind of reward, most probably cash-back and poins for some. They also have no annual fee. Cards in tier two will normally have a small sign up bonus of between $100 and $200 value. This is earned by spending $500 to $1000 within the first 3 months.
The credit score for tier two cards is upwards of 670, but a relationship with the bank can get you a tier two card even with a lower score. Credit limits for these cards are $500 and above.
Pretty in Pink
Tier Three
These cards have annual fees ranging from $95 to $250. Sign-up bonuses go up to about $500 in value when you spend between $3000 and $4000 within the first 3 months. The bonuses come in the form of transferable points, airline points, or hotel points. Tier 3 also has points multipliers up to 3 and 4x.
A credit score of above 700 is required with a credit limit of $5000 and above.
Tier Four
These are premium credit cards. They all have a minimum annual fee of about $450-$550. They do provide some travel credits that help recoup some of the annual fees. They all provide airport lounge access typically through priority pass, though for co-branded cards will be the lounge network that is part of that specific airline. The sign-up bonuses, however, match those of tier three with $500 to $1000. The required credit score is above 720 while the credit limit is $10,000 and above.
Tier four is the highest level most people will get to.
Tier Five
These are part of the exclusive, invite-only club. They cannot be applied for. Depending on the lender, certain requirements must be met to be considered, like having a certain deposit amount under management with the bank or just being a client, to begin with.
Most people end up in either tier two or three thanks to the lack of annual fees and the various perks and bonuses. People with multiple cards in tier two and three will have just one or no card at all in tier four because of the high annual fees. Frequent travelers, however, can take advantage of the airport benefits offered by tier four cards. Good luck working your way up the tiers!