best credit card for fair credit

Youll also usually keep the same account, often with the same card number, so theres no loss of credit history length. Each card was scored using WalletHubs proprietary 100-point credit card rating system, and you can check out the top options in a handful of popular categories below (some cards are from WalletHub partners). In this case, we have chosen five of the best credit cards for fair credit so that you will be able to choose the correct card for your personal finances. Like Upgrade's other cards, it works like a combination of a credit card and a personal loan, allowing you to make purchases and then pay down your balance in equal monthly installments at a fixed interest rate. Instantly access 50% of your credit while your card ships to you. If you like what you see, you can apply, at which point there will be a "hard" credit pull. Theres a 0% foreign transaction fee, too. A single "hard pull" can cause a temporary dip in your scores, but if you're continually applying for the wrong cards and being rejected, the damage can be much worse. You can be automatically considered for a higher credit limit in as little as six months. The Prosper Card doesn't offer rewards, and it charges an annual fee, but the issuer goes out of its way to encourage people with "less than perfect credit" to apply. Instead, it assesses your creditworthiness based on your income, expenses, savings and debts. Capital One Platinum Credit Card FAIR CREDIT RATING The $0-annual-fee Upgrade Cash Rewards Visa can be an ideal choice if you plan to carry a balance, want the convenience of equal monthly debt repayments and can pre-qualify for a favorable interest rate. Best Credit Cards for Fair Credit in February 2023. Pretty much all credit cards for fair credit are unsecured, though. The annual fee is $0. Capital One Platinum Credit Card at Capital One's secure website FAIR CREDIT RATING 4.7 OVERALL RATING 4.0/5.0 No annual or hidden fees. You can see and track your credit score for free through NerdWallet. There's also Discover's signature bonus for new cardholders. That is the low end of a range from 17.49% to 31.49% (V), however, so it might be optimistic to assume youll get a rate that low. In particular, we focused on cards with low annual fees and high rewards rates, including general-purpose credit cards as well as store credit cards. Credit utilization. You'll earn bonus cash back at restaurants and gas stations with no activation required and no rotating categories to keep track of. No touch payments with contactless technology built in. gives newcomers to credit a powerful incentive to develop responsible habits. Making only the minimum payment keeps you in debt longer and could ultimately drag down your credit scores. An average credit score wont be enough to qualify for some cards, and a rejection letter can hurt more than just your feelings. Petal's mobile app makes it easy to manage your money, track your spending, and automate payments. Discover it Student chrome: Best feature: Rewards for students. Capital One Platinum Credit Card. The Petal 2 Visa Credit Card is one of the best credit cards for people with fair credit, or even limited credit. This information may be different than what you see when you visit a financial institution, service provider or specific products site. The ongoing APR is 29.74% Variable APR, which is steep if you plan on carrying a balance. There's also Discover's signature bonus for new cardholders. Therefore, you typically dont have to worry about a hard pull on your credit report. A 700+ credit score is needed to get most Discover credit cards, but theres no minimum credit score needed for a few Discover cards. A fair credit score is usually defined as any score in the range of 640-699. Six months is a good rule of thumb. If you do make a late payment, the card doesn't impose a penalty APR. No interest on purchases when you pay in full and on time each month. See if you qualify in minutes without hurting your credit score. So its a great way to save money as you build credit, which should be your top priority until you have a good credit score. If you're crypto-crazy, or just crypto-curious, the $0-annual-fee Upgrade Bitcoin Rewards Visa Credit Card might appeal to you. Perhaps most importantly, though, this card will consider applicants with limited-to-fair credit history. If you are charged interest, the charge will be no less than $0.50. Who Should Get It: Apply for the Capital One Platinum Credit Cardif you want an inexpensive starter card to build credit with. You want your scores to go up, not down. shines with its no-maintenance rewards structure and student-friendly bonus categories. Youll be reviewed for regular credit line increases. The second-largest factor in your scores, credit utilization is the amount you owe as a percentage of your available credit. There are no rewards. With a product change, youre not applying for a new account; youre seeking an upgrade to the one youve already got. Top credit cards for fair credit in Canada Compare credit cards for fair credit by category Top regular rate cashback card: Neo Financial Mastercard Credit recommended (600-) Apply now on Neo Financial's secure site 600 Min. 1. If you still arent approved, it may be a sign you need to work on your credit scores before applying again. Theres no minimum spending or maximum rewards. A credit score in or above the recommended range means you have a higher chance of approval, but doesnt guarantee it. What is considered fair or average credit? OpenSky Secured Visa Credit Card. Try not to carry a balance: Interest rates on credit cards for average credit tend to be on the high side. Well give you a personalized card recommendation based on your latest credit score and financial priorities. The average adult has around 5 credit cards, including store credit cards, but theres no golden rule for how many credit cards you should have - or how many credit cards is too many. Use this link to create an account and connect your credit score with TransUnion to get an estimate of your approval odds based on your credit score and other factors. For example, you might need to consider one-time fees for application processing or transferring a balance, depending on what type of card youre looking for and how you plan to use it. And if you're approved, you can begin using your credit line immediately no need to wait for the physical card. You might be able to get a better card than you think. Alternatives to Consider:There are several really good credit cards for students available right now. Find & compare credit cards from Mastercard that offer a higher chance of approval for people with average credit. doesn't offer rewards, and it charges an annual fee, but the issuer goes out of its way to encourage people with "less than perfect credit" to apply. You can get the Discover it Secured Credit Card with a bad credit score (below 640). Using multiple credit cards for the wrong reasons, however, can get you into big trouble. Pay on time to boost your cash back to a total of 1.25% for that month, Enjoy no annual fee, foreign transaction fees, or hidden fees, Lock your card in the Capital One Mobile app if it's misplaced, lost or stolen, Earn up to $500 a year by referring friends and family when they're approved for a Capital One credit card, Pick the monthly due date that works best for you, Pay for Amazon.com purchases using your Capital One rewards, Pay for online purchases with virtual card numbers and keep your actual card number to yourself, Get notified via text, email, and phone if Capital One notices potential suspicious transactions on your account, Build your credit with responsible card use. The Capital One Platinum Credit Card is the perfect financial tool for your wallet because it provides low-cost access to credit, with the ability to improve your credit score with responsible behavior. Some rewards-earning options are listed above. Cardholders earn 1% back until they pay the accounts bill on time for six consecutive months, which boosts the earn rate to 1.25% cash back. Fair credit, also referred to as "average" credit, is a step up from bad credit but a notch below good credit. Using more than one credit card can help you save by allowing you to get the best terms for every transaction that you make. If your credit is at least fair, you can find cards that charge no annual fee at all. Credit cards for fair credit, sometimes called "average" credit, are aimed at those in the 630-689 FICO score range. The Capital One QuicksilverOne Cash Rewards Credit Card offers those with average credit a chance to both earn rewards and, potentially, gain access to a higher credit line. If youre not sure how your credit is doing, you can check your latest credit score for free on WalletHub, the only site where credit scores and reports update daily. Length of credit history. The Petal 2 Visa Credit Card, issued by WebBank, is the best high-limit credit card for individuals with average, fair, or limited credit -- typically a credit score between 580 and 669. Many major issuers offer free access to your scores, available once you sign in to your account, along with other budgeting and education tools. These cards can help you if you're just starting out with credit or are working to get back on track. 5. Another good unsecured card for fair credit is the Petal 2 Visa Credit Card. Fair credit, also referred to as "average" credit, is a step up from bad credit but a notch below good credit. Many or all of the products featured here are from our partners who compensate us. What We Dont Like:This card is not a good option for carrying a balance from month to month, thanks to a fairly high APR. Its lighter on the fees than some unsecured credit cards for less-than-perfect credit and it offers rewards. You would need to spend $2,600 per year on the card to make that back (not including any 5% travel categories). It also comes with a cool 1.5% cash back on every purchase and an annual fee of . Theres also no annual fee and no foreign transaction fee. You may be hit with an annual fee, a lower credit limit or higher interest rates, but some . The card is well-suited to travel with no foreign transaction fees and the globally accepted Visa network. In addition, it is not the financial institutions responsibility to ensure all posts and questions are answered.show more show less. if the card offers enough rewards and benefits to outstrip the cost of carrying it. 1. So whereas someone with excellent credit might receive a credit . Credit cards for fair credit target consumers with FICO scores between 580 and 669. If you can find a card that pays rewards while also providing a steppingstone from average credit to good or excellent credit, its a win-win. . You also get a free FICO score, low fees, and forgiveness for your first late payment. And after paying on time for 12 straight months, the rewards rate increases to 1.5% back across the board. Terms apply.) Dont settle: With fair credit, you wont be eligible for the highest-end credit cards but good cards are still available at this level. Credit scores also take into account how long you've been using credit, so the sooner you can find the right card, the better. When you have fair credit, getting the right credit card can be a key step to building a good or excellent credit score. Or turn $100 into $200. You earn cash back on every purchase, but when you pay your bill on time, the cash-back rate for that month gets a boost. Some offer rewards, perks, upgrade paths and even 0% introductory APR periods. 0% intro APR on Purchases for 6 months and 10.99% intro APR on Balance Transfers for 6 months. What are the easiest credit cards to get approved for? Furthermore, fair credit is far from a life sentence. The Capital One QuicksilverOne Cash Rewards Credit Card is one of the best credit cards for people with fair credit who plan to charge a fair amount to their new card. WalletHub makes it easy to find the easiest credit cards to get. 1. If you still arent approved, it may be a sign you need to work on your credit scores before applying again. Before applying for a credit card, its important to know your credit score. Apply for credit card with fair credit score. This content is not provided or commissioned by any issuer. , or a sign-up bonus or a 0% period. See what terms you'd qualify for without a hard credit inquiry. It also earns 1.5% cash back on all purchases. Who Should Get It:Apply for Capital One QuicksilverOne if you plan to spend about $2,600 per year, as thats where the cards rewards value can overcome the fixed cost. No security deposit required get started today! It also earns up to 10% cash back when you use the card to make purchases with select merchants. Therefore, you typically dont have to worry about a hard pull on your credit report. Ideally, youll have both installment loans (loans that require a specific number of equal payments, like a mortgage or auto loan), as well as revolving accounts (where the balance goes up and down, like with credit cards). The issuer's prequalification process lets you see the offer you're eligible for before you actually apply. Why We Like It:It has a $0 annual fee and rewards cardholders with 1 - 7 points per $1 on purchases. The Petal 1 "No Annual Fee" Visa Credit Card is a worthy contender for your wallet as you continue building credit. You would need to spend $2,600 per year on the card to make that back (not including any 5% travel categories). What are some low interest credit cards for fair credit? Heres the minimum credit score needed for each Discover card: There arent any Discover cards that flat-out require excellent credit, currently. What one issuer might see as a score on the low end of the fair credit range, another might consider bad credit. Before submitting an application, always verify all terms and conditions with the offering institution. The Prosper Card has a prequalification process that lets you see the offer you're eligible for without a "hard" credit check that can ding your scores. The average person with fair credit is 47 years old and has an annual income of $54,000 per year. But if you've got fair credit and you need a card you can use to build credit without paying an annual fee, it's definitely worth a look. But it also earns rewards, gives you a tool to monitor your credit profile, and offers the possibility of a higher credit line after making your first five monthly on-time payments. What to avoid with credit cards for fair credit. But it also earns rewards, gives you a tool to monitor your credit profile, and offers the possibility of a higher credit line after making your first five monthly on-time payments. No Credit Check. The Petal 2 Card also offers 1 - 1.5% cash back. It's free for everyone, Check out quickly and securely with a contactless card, without touching a terminal or handing your card to a cashier. See if you're approved in seconds, Help build your credit through responsible use of a card like this, Get access to your account 24 hours a day, 7 days a week with online banking from your desktop or smartphone, with Capital One's mobile app, Pay by check, online or at a local branch, all with no fee - and pick the monthly due date that works best for you. Please let us know if you notice any differences. , making it a good option for someone with average credit. Doing so also avoids costly late fees. It typically means your credit scores fall in the range of 630-689 on a, Credit scores indicate your level of risk to potential lenders and are based on. The card still reports account info to the major credit bureaus each month, though, so its a pretty dependable tool for building credit. Cards For Fair Credit With Instant Approval and No Annual Fee. Paying in full every month also helps keep utilization in check. , which is steep if you plan on carrying a balance. Fair 600-699. And unlike many of those cards, any unpaid balance is automatically converted into an installment loan with a fixed monthly payment. Cardholders earn 1 - 5% cash back on purchases, depending on the spending category, plus an initial bonus of $50 for spending $100 in the first 3 months. keeps you in debt longer and could ultimately drag down your credit scores. The annual fee is. That's because this entry-level card doesn't charge an annual fee or foreign transaction fees. Earn 1% cash back on all your purchases. Credit scoring formulas tend to reward people who show that they can handle different kinds of credit. $39. That's important to keep in mind as you work to build a positive credit history, especially if you carry a balance. OpenSky Secured Visa Credit Card. While there are no universal dividing lines between credit score bands, you can generally think of "fair credit" aka "average credit" as having credit scores in the range of 630 to 689. However, this does not influence our evaluations. Plus, Discover says there's no FICO history requirement for this card. And if you're approved, you can begin using your credit line immediately no need to wait for the physical card. If you feel you have a case, you can contact the issuer and ask for reconsideration. But there are unsecured cards for every credit level, including bad credit. But you should be careful with deferred interest deals if you dont pay the full amount by the time the deferred interest period is over, youll owe your balance plus all the interest you would have accrued since you made the purchase. You can be automatically considered for a higher credit limit in as little as six months. Instead, get a rewards card for everyday expenses that you can pay in full within a billing period, a card offering 0% on purchases for big-ticket spending or a 0% balance transfer card for reducing the cost of existing debt. Rewards arent necessarily a must for credit cards for fair credit, but they are within reach at this range. The key difference is that this version charges an annual fee while the regular one does not. Youll want pay your bill in full each month to avoid paying interest, which can get expensive and will eat into any rewards your card might earn. You want your scores to go up, not down. Who Should Get It:Apply for the Petal 2 Visa Card if you have limited to fair credit, plan to pay the bill on time and in full every month, and expect to keep the account open for more than a year. Paying in full every month also helps keep utilization in check. First Progress Platinum Prestige Mastercard Secured Credit Card. . . . Upgrade Credit Card is probably your best option overall because of its high cash back rate and no fees. Answer provided by user: Milvionne Chery Copeland, JD, LL.M., MBA, Director of Accountancy, Assistant Chair of Accountancy and Law and Assistant Professor of Accountancy and Law, School of Business, Eastern Illinois University, Ph.D., Assistant Professor of Finance, College of Business, University of Colorado Colorado Springs, CFP(R), ChFC(R), AIF(R), Lecturer, David Nazarian College of Business and Economics, California State University, Northridge, Assistant Professor of Finance, University of Alabama in Huntsville, Distinguished Professor of Finance, Goldyne and Irwin Hearsh Chair in Money and Banking, University of California, Los Angeles Anderson School of Management, Ph.D., Assistant Professor of Economics, Department of Finance and Economics, Wall College of Business Administration, Coastal Carolina University, Our picks for the best credit cards for fair credit in 2023, Tips for finding the best credit cards for fair credit, How we picked the best credit cards for fair credit, First Progress Platinum Elite Mastercard Secured Credit Card, check your latest credit score for free on WalletHub, checking your latest credit score for free on WalletHub, Credit Cards for Fair Credit with Instant Approval, High Limit Credit Cards for Average Credit, Credit Cards for Fair Credit with No Deposit, Do Not Sell or Share My Personal Information, Qualify with limited or no credit history, Available to people with bad credit, even after bankruptcy, Available to people with limited or fair credit. So pay your bill on time every month, dont max out your spending limit and track your credit scores progress over time to see when youre ready for an upgrade. isn't going to wow anyone; there's no sign-up bonus and the APR is high. So you could turn $50 cash back into $100. This card for people with fair or "average" credit pays the same cash-back rate as the regular Quicksilver card, which targets people with excellent credit. You can also borrow against your credit limit, much like a personal loan. Does each credit card company define "fair" credit the same way? MORE: Credit cards 101: Understanding the basics. Credit cards 101: Understanding the basics, How a credit card helps you improve fair credit, to good or excellent credit when you use them responsibly. $105. If you don't like the offer, walk away with no harm done. You earn cash back on every purchase, but when you pay your bill on time, the cash-back rate for that month gets a boost. That's pretty good for a student card. Roughly 13.5% of people have fair credit, according to WalletHub data. You can opt-out of sharing your personal info here. The 1.5% rewards rate is on par with that offered by many cards for good or excellent credit. It's possible to find some credit cards that offer decent ongoing rewards on common purchases instead of only with select merchants. Best unsecured cards for short credit histories. Our partners cannot pay us to guarantee favorable reviews of their products or services. We work hard to show you up-to-date product terms, however, this information does not originate from us and thus, we do not guarantee its accuracy. But there's still value to be had from fair-credit credit cards, and you dont have to stay in this particular creditworthiness tier for long. 0.99% intro APR on balance transfers for 12 months, followed by a regular APR of 10.24% - 18.00% variable on both purchases and . Experian, Equifax and TransUnion are the three major bureaus that compile the credit reports that inform your credit scores. N/A. See what terms you'd qualify for without a hard credit inquiry. Best Credit Cards for Fair Credit & Airfare in 2023 Best Overall: Upgrade Cash Rewards Visa Best Secured: Bank of America Customized Cash Rewards Secured Credit Card Best for Newcomers: Petal 2 Visa Credit Card Best for Students: Bank of America Travel Rewards Credit Card for Students Best for Business: Capital One Spark Classic for Business (The typical credit score scale runs from 300 at the low end to a maximum of 850.). Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). There are no rewards. You earn 2% cash back at restaurants and gas stations, on up to $1,000 in combined purchases per quarter, and 1% cash back on all other purchases.