Credit cards for people with a good credit score

There are many pieces of advice about credit cards for people with bad credit scores, but there are very few pieces of advice for people with a good credit score.  People with a good credit score have an advantage when it comes to getting a credit card, but they do not tend to use it well.

Credit card providers like lending to people with a good credit score.  This is because people who have a good credit score are, on average, far less likely to default on a credit card debt.  In turn defaults are a major cost to credit card companies.  If the credit card companies are able to get by without having to write off credit card debt then they will be in a strong position.  This will mean that in order to attract people with a good credit rating they are prepared to offer a number of deals to them.

Low interest credit cards are a particular example of the types of cards that credit card providers aim towards credit card applicants with a good credit score.  There are two types of low interest credit cards, long term low interest rate credit cards and introductory rate credit cards.

The long term low interest rate credit card tends to be aimed at credit card users with a good credit score as they are aiming at being a profitable credit card and so are dependent on lending to people who are less likely to default.  This means that long term low interest rate credit cards will tend to be quite careful with which applicants they accept for their cards.

The other type of low interest credit card is the credit card with a low introductory rate.  Unlike long term low interest rate credit cards the introductory rate credit cards are designed to attract card applicants who are going to be paying the standard rate of interest within a few months.  These cards tend to accept many applicants, and credit ratings although helpful are not all important.

No annual fee credit cards are another card that tends to be aimed at people with a high credit rating.  Instead of saving money on the interest that is charged on the card, these cards save money on the annual fee that is charged.

Prestige cards are another area where credit card providers carefully check for the credit rating of the person.  These are the cards such as gold, silver and platinum cards that offer higher credit limits and superior service in return for higher annual fees.