Your credit score doesn't just affect loan approvals—it directly impacts how much you pay for everyday purchases. From credit card rewards to Buy Now Pay Later approvals, a higher score can save you $2,000+ annually on shopping alone.
Credit Score Ranges (FICO)
800-850: Exceptional 740-799: Very Good 670-739: Good 580-669: Fair 300-579: PoorHow Credit Score Affects Shopping
1. Credit Card Rewards Access
The best rewards credit cards require good to excellent credit. Here's what you're missing with a lower score:
| Credit Score | Cards Available | Typical Rewards | Annual Value Lost |
|---|---|---|---|
| 800+ | All premium cards | 5-6% categories, big bonuses | $0 (baseline) |
| 740-799 | Most rewards cards | 3-5% categories | ~$200/year |
| 670-739 | Basic rewards cards | 1-2% cashback | ~$500/year |
| 580-669 | Secured/basic cards | 0-1% cashback | ~$800/year |
| Under 580 | Secured cards only | No rewards | ~$1,000+/year |
2. Buy Now Pay Later (BNPL) Approval
BNPL services like Affirm, Klarna, and Afterpay use credit scores to determine:
- Approval rates: Higher scores = more approvals
- Interest rates: Good credit may qualify for 0% APR
- Credit limits: Higher scores get larger purchase limits
- Payment terms: Better terms with good credit
3. Store Credit Card Benefits
Store cards often offer significant discounts but require credit checks:
Popular Store Cards & Requirements
- Amazon Prime Store Card: 5% back, needs 640+ score
- Target RedCard: 5% off everything, needs 620+ score
- Costco Anywhere Visa: 4% gas, 3% dining, needs 700+ score
- Apple Card: 3% Apple, 2% Apple Pay, needs 660+ score
Annual Shopping Savings by Credit Score
Potential Annual Savings
For someone spending $30,000/year on credit cards:
- Excellent Credit (800+): $1,800+ in rewards (6% average)
- Good Credit (700-799): $900-1,200 in rewards (3-4%)
- Fair Credit (650-699): $300-600 in rewards (1-2%)
- Poor Credit (under 650): $0-150 in rewards
Difference between excellent and poor credit: $1,650+/year
Quick Ways to Improve Your Credit Score
Immediate Impact (1-2 months)
- Pay down credit card balances: Keep utilization under 30% (ideally under 10%)
- Dispute errors on credit report: Check all three bureaus
- Become an authorized user: On a family member's old, good-standing card
- Pay bills on time: Set up autopay for minimum payments
Medium-Term (3-6 months)
- Open a secured credit card: Build history if you have thin credit
- Use credit builder loans: Self, MoneyLion, Chime offer these
- Request credit limit increases: Lowers utilization percentage
- Keep old accounts open: Average age of accounts matters
Credit Building Tools
| Service | Type | Cost | Typical Score Impact |
|---|---|---|---|
| Experian Boost | Utility bill reporting | Free | +10-30 points |
| Self Credit Builder | Credit builder loan | $25-150/month | +20-50 points |
| Chime Credit Builder | Secured card | Free (no fees) | +30-50 points |
| Authorized User | Piggyback credit | Free | +20-100 points |
Best Credit Cards by Score Range
Excellent Credit (750+)
- Chase Sapphire Preferred: $95 AF, 5x travel, 3x dining, 100K bonus
- Citi Double Cash: $0 AF, 2% on everything
- Amex Gold: $250 AF, 4x dining/groceries
Good Credit (670-749)
- Capital One Quicksilver: $0 AF, 1.5% on everything
- Discover it Cash Back: $0 AF, 5% rotating categories
- Chase Freedom Unlimited: $0 AF, 1.5% on everything, 5% travel
Fair Credit (580-669)
- Capital One QuicksilverOne: $39 AF, 1.5% cashback
- Credit One Bank Platinum: $0-99 AF, 1% cashback
- Petal 2: $0 AF, up to 1.5% cashback
Building Credit (under 580)
- Discover it Secured: $0 AF, 2% dining/gas, 1% everything
- Chime Credit Builder: $0 AF, no credit check
- OpenSky Secured: $35 AF, no credit check
Smart Shopping Strategies by Credit Level
If You Have Excellent Credit
- Use category cards strategically (5-6% back)
- Chase sign-up bonuses ($200-1,000+)
- Take advantage of purchase protections
- Use 0% APR offers for large purchases
If You're Building Credit
- Use debit cards or cash for most purchases
- Use secured card for small, recurring purchases
- Focus on building score before chasing rewards
- Use cashback apps (Ibotta, Rakuten) for rewards without credit
Protecting Your Credit While Shopping
Credit Protection Tips
- Monitor your credit: Free at Credit Karma, Credit Sesame
- Limit hard inquiries: Space out card applications (6+ months apart)
- Use virtual card numbers: Capital One Eno, Citi Virtual Numbers
- Set up fraud alerts: Free with all three bureaus
- Freeze credit when not needed: Prevents unauthorized accounts