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. That's important to keep in mind as you work to build a positive credit history, especially if you carry a balance. The. Please keep in mind that while some offers may come from WalletHub advertising partners, sponsorship status played no role in card selection. This may influence which products we write about and where and how the product appears on a page. 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. Well give you a personalized card recommendation based on your latest credit score and financial priorities. The card still reports account info to the major credit bureaus each month, though, so its a pretty dependable tool for building credit. The lower your utilization, the better; 30% or below is a good benchmark. Making only the minimum payment keeps you in debt longer and could ultimately drag down your credit scores. You can be automatically considered for a higher credit limit in as little as six months. You can see and track your credit score for free through NerdWallet. We encourage everyone to share their knowledge while respecting our content guidelines. News Summary: If your credit score is in the average or fair range of 580 to 669, these credit cards are among the best and some even offer rewards and benefits. It only has a $39 annual fee and gives you at least 1.5% cash back on every purchase. What's the difference between fair and average credit? 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. If you do make a late payment, the card doesn't impose a penalty APR. 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. There's also Discover's signature bonus for new cardholders. And college students dont need a credit score, or any credit experience, to get one of Discovers two student credit cards. . (The card also earns 5% back on hotels and rental cars booked through Capital One Travel. Learn how NerdWallet rates credit cards. Capital One QuicksilverOne Cash Rewards Credit Card. With the, , youll have the potential to gain access to a higher credit line. earns rewards on par with cards for good or excellent credit. 2. Or you can plan to request a. from your issuer on your own eventually. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. With that being said, its not just your credit score you should worry about. Many fees are avoidable, especially if you use the card responsibly. And while fair credit wont get you the very best unsecured cards, it should qualify you for an account with no annual fee, solid rewards or maybe even both. Best Credit Cards for Fair/Average Credit for March 2023 11 things you should know before getting your first credit card, How to choose a credit card for fair credit. has a prequalification process that lets you see the offer you're eligible for without a "hard" credit check that can ding your scores. , making it a good option for someone with average credit. Furthermore, fair credit is far from a life sentence. And if you're approved, you can begin using your credit line immediately no need to wait for the physical card. Pre-qualified offers are not binding. It also has a $35 annual fee. 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. So if you havent checked your credit score in a while, make sure to do so before applying. Annual fee of $0. (You can see and track your score for free through NerdWallet.) 1. A credit card application usually triggers a hard inquiry on your credit report. But we recommend a score of at least 700, which is toward the top of the good credit range, for the cards that require 700 credit for approval. And unlike some other cash-back cards, it doesn't allow you to boost your rewards earnings with bonus categories. Generally speaking, a FICO score that's considered "fair" will fall between . . Why We Like It:The Capital One Platinum Credit Cardhas a $0 annual fee. Experian, Equifax and TransUnion are the three major bureaus that compile the credit reports that inform your credit scores. 2023's Best Credit Cards for Fair Credit | SmartAsset.com And if you're approved, you can begin using your credit line immediately no need to wait for the physical card. Free credit score: As you work to push your scores into the good-to-excellent range, its important that youre able to track how youre doing. 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. Using multiple credit cards for the wrong reasons, however, can get you into big trouble. Best for earning cash back with fair credit Capital One QuicksilverOne Cash Rewards Credit Card Apply Now On Capital One's Website 2.3 Up to 5% Reward Rate Earn unlimited 1.5% cash back. $105. 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. If you like what you see, you can apply, at which point there will be a "hard" credit pull. When you pay in full, you don't get. Petals algorithm looks beyond credit scores by analyzing your bank information to determine how you manage income, savings and spending. Ideally, you wont be stuck in the fair credit score range forever, so look for a card that offers a route to improved terms. And unlike some other cash-back cards, it doesn't allow you to boost your rewards earnings with bonus categories. Pay with your phone or device by using Apple Pay or Google Pay. 6 Best Business Credit Cards for Fair Credit (2023) - WalletHub See if you're approved in seconds Be automatically considered for a higher credit line in as little as 6 months Help build your credit through responsible use of a card like this 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. Earn unlimited 1.5% back in bitcoin rewards after you make payments on your purchases. Bankrate's experts compare hundreds of top credit cards and credit card offers to select the best in cash back, rewards, travel, business, 0% APR, balance transfer and more. This card offers at least 1% cash back on all eligible purchases, up to 1.25% back after 6 months of on-time payments, and 1.5% cash back after 12 consecutive months of paying on time. If youre rejected for a credit card, the first thing to do is determine why. Fair credit, also referred to as "average" credit, is a step up from bad credit but a notch below good credit. Fair credit can feel a bit like borrower purgatory, as neither the heavenly perks associated with credit cards for people with good and excellent credit nor the devilishly high costs that accompany many credit cards for bad credit are available. No single credit card has the best rewards and the best rates, which means you shouldnt try to use one for both everyday purchases and carrying a balance. Many or all of the products featured here are from our partners who compensate us. Theres no minimum spending or maximum rewards. If you don't like the offer, walk away with no harm done. Best Credit Cards for Fair Credit | NextAdvisor with TIME And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free. But youve got the knowledgeable WalletHub community on your side. Heres the minimum credit score needed for each Discover card: There arent any Discover cards that flat-out require excellent credit, currently. Even small business owners with limited credit history can get Capital One Spark Classic, so applicants with fair/average credit should have solid approval odds. In fact, only 40 credit-score points separates the two tiers (fair credit means a credit score of 620 to 659, while good credit is 660 to 719). Do not sell or share my personal information, Earn unlimited 1.5% cash back on every purchase, every day, No rotating categories or limits to how much you can earn, and cash back doesn't expire for the life of the account. Before applying for a credit card, its important to know your credit score. See if you're pre-approved within minutes without impacting your credit score. Credit One Bank Platinum Visa for Rebuilding Credit, Capital One Quicksilver Secured Cash Rewards Credit Card, Bank of America Travel Rewards Credit Card for Students. You don't have to be a student to apply for the. 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 annual fee is. The card is well-suited to travel with no foreign transaction fees and the globally accepted Visa network. Compare Credit Cards for Fair Credit in 2023 | Finder Canada This card earns rewards in the form of Bitcoin when you pay your bill (although you are subject to holding requirements and transaction fees when you sell your crypto). 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. 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. The Best Credit Cards for Average or Fair Credit of March 2023 The card earns a decent rate of up to 10% cash back when you use the card to shop with select merchants. One of the best low interest credit cards for fair credit is the Petal 2 Visa Credit Card because it is possible to get an interest rate of 17.49% (V), depending on your overall creditworthiness. Bear in mind that not all lenders define fair credit the same way. Best Credit Cards for Fair Credit in February 2023. Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Why We Like It:This card is inexpensive to own and rewarding to use. Why dont more banks and credit unions offer credit cards to people with fair credit? Paying in full every month also helps keep utilization in check. Capital One Platinum Credit Card FAIR CREDIT RATING Cardholders also are eligible for a credit limit increase in as little as 6 months. It's important to note that definitions of credit score ranges can differ from one card issuer to the next. And after paying on time for 12 straight months, the rewards rate increases to 1.5% back across the board. The Best Credit Cards for Fair and Average Credit of March 2023 - CNBC Low or no fees: An annual fee can make sense if the card offers enough rewards and benefits to outstrip the cost of carrying it. Rewards: Rewards arent necessarily a must for credit cards for fair credit, but they are within reach at this range. Best Credit Cards of March 2023 | Bankrate And there's no annual fee, late fees or foreign transaction fees. Researcher. These cards have annual fees as low as $0 and report monthly to the 3 major credit bureaus. Plus, earn unlimited 1% cash back on all other purchases automatically. Even though its promotional interest rate is . Earn 1.5% unlimited cash back on card purchases every time you make a payment. It's that simple, Be automatically considered for a higher credit line in as little as 6 months, Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges, Help strengthen your credit for the future with responsible card use, Enjoy up to 6 months of complimentary Uber One membership statement credits through 11/14/2024, Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. (The typical credit score scale runs from 300 at the low end to a maximum of 850.). 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). That's important to keep in mind as you work to build a positive credit history, especially if you carry a balance. Alternatives to Consider:There are several really good credit cards for students available right now. Discover will automatically match all the cash back youve earned at the end of your first year! This information may be different than what you see when you visit a financial institution, service provider or specific products site. If your credit score is in the average or fair range of 580 to 669, these credit cards are among the best and some even offer rewards and benefits. - Business Insider - Fact Check and Transparency Report (United States) . Terms apply, Monitor your credit score with CreditWise from Capital One. You can be automatically considered for a higher credit limit in as little as six months. With a product change, youre not applying for a new account; youre seeking an upgrade to the one youve already got. Petals algorithm looks beyond credit scores by analyzing your bank information to determine how you manage income, savings and spending. At that point, youll probably have a good sense of why you were rejected. (If you go through with applying, then there's a hard check.) Best Credit Cards For Fair Credit Of March 2023 - Forbes Advisor INTRO OFFER: Unlimited Cashback Match only from Discover. Best Credit Cards for Fair/Average Credit of 2023 | CreditCards.com The ongoing APR is 29.74% Variable APR, which is steep if you plan on carrying a balance. What We Dont Like:If you dont have an active college email address, you may have a tough time qualifying. Making this decision early will help make your search more manageable, by cutting your options in half, in addition to helping you get better terms. The terms "fair credit" and "average credit" are used more or less interchangeably within the credit cards industry to describe scores in the middle ground between good credit and bad credit. There is a fine line between fair credit and good credit. The Petal 1 "No Annual Fee" Visa Credit Card, issued by WebBank, is an excellent option for those with less-than-perfect credit. A fair credit score is usually defined as any score in the range of 640-699. is a great option for people who aren't sure whether their credit is good enough to qualify for a rewards card. Navy Federal Credit Union Platinum Credit Card *. Credit scores also take into account how long you've been using credit, so the sooner you can find the right card, the better. And if you already have a long-serving credit account, keep it open and active. Its worth mentioning that when you have fair credit, getting a credit card with a low APR may not be the best option. If you have lousy credit and are looking for a way to build it back; the Milestone Mastercard is a strong option. Credit cards for fair credit target consumers with FICO scores between 580 and 669. Pretty much all credit cards for fair credit are unsecured, though. We also leverage data from the Bureau of Labor Statistics to develop cardholder profiles, used to estimate cards potential savings. For rewards cards, that means applying each cards earnings rates to your actual spending habits in order to determine how much youre likely to earn over your expected usage timeframe. Some may have slightly lower standards, for example, starting the fair credit range as 620 and ending it at 659. The best credit cards for fair credit can be a great tool in helping to build or rebuild your credit score. What's the minimum credit score needed for Discover cards? Here is a list of our partners. show more To help you find the best deal, WalletHubs editors compared all of the credit cards for fair credit in our database of 1,500+ credit card offers. You don't have to be a student to apply for the Journey Student Rewards from Capital One, making it a good option for someone with average credit. (If you go through with applying, then there's a hard check.) Opinions expressed here are the authors alone, not those of an issuer, and have not been reviewed, approved or otherwise endorsed by an issuer. $0 annual fee, $0 activation fees, $0 foreign transaction fees. And unlike many of those cards, any unpaid balance is automatically converted into an installment loan with a fixed monthly payment. Platinum Credit Card from Capital One Plus, people with fair credit should have high approval odds for the Capital One Platinum Card, since its a starter credit card available even to applicants with limited credit experience. Other credit cards may also allow you to change the minimum payment due date to one that better aligns with a direct deposit. If you're crypto-crazy, or just crypto-curious, the. 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. Once youve zeroed in on a credit card for fair or average credit, make sure you understand any fees it might charge: annual fees, balance transfer fees, foreign transaction fees, late-payment fees, etc.