Great for large purchases with predictable payments you can budget for. You might not qualify for 1.5% cash back. When you have fair credit, getting the right credit card can be a key step to building a good or excellent credit score. Before applying, confirm details on the issuers website. 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. Who Should Get It:Apply for the OpenSky Secured Visa Credit Card if youre rebuilding from credit damage and want high approval odds. Cardholders' accounts are reviewed for a potential credit line increase every three months. As you work to push your scores into the good-to-excellent range, its important that youre able to track how youre doing. Recent credit applications. By clicking "Accept All", you consent to our use of cookies. And thats great news, considering the best credit card deals require good or excellent credit for approval. So if you havent checked your credit score in a while, make sure to do so before applying. 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 because this entry-level card doesn't charge an annual fee or foreign transaction fees. The lower your utilization, the better; 30% or below is a good benchmark. An average credit score wont be enough to qualify for some cards, and a rejection letter can hurt more than just your feelings. MORE: Credit cards 101: Understanding the basics. Why this is one of the best credit cards for fair credit: When you pay this card on time, you can boost your cash back earnings. Experian, Equifax and TransUnion are the three major bureaus that compile the credit reports that inform your credit scores. 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 have lousy credit and are looking for a way to build it back; the Milestone Mastercard is a strong option. It also has a $35 annual fee. Paul Soucy Feb 27, 2023. Rejection stings, but you can learn from it. Or you can plan to request a. from your issuer on your own eventually. Cardholders also are eligible for a credit limit increase in as little as 6 months. With a product change, youre not applying for a new account; youre seeking an upgrade to the one youve already got. The Navy Federal Credit Union Platinum Credit Card is a balance transfer card where applicants with fair credit have a better chance of qualifying. That will help cardholders build positive credit history, as long as they manage the account responsibly. This reporting affects key elements of your scores: Payment history is the single biggest factor in your credit score, so it's essential to pay your bill on time every month. Best credit cards for fair and average credit Best for No Fees: Petal 2 "Cash Back, No Fees" Visa Credit Card Best for Cash Back: Capital One QuicksilverOne Cash Rewards Credit Card. If possible, pay off your balance in full each month. See if you qualify in minutes without hurting your credit score. Therefore, you typically dont have to worry about a hard pull on your credit report. It can help you build credit since payments are reported to all three major credit bureaus: TransUnion, Equifax and Experian. Some may have slightly lower standards, for example, starting the fair credit range as 620 and ending it at 659. 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). There's an annual fee, although you can avoid it in the first year by signing up for autopay before your first statement is issued. Banks are required to notify you if you were denied because of information in your credit report. (For example, if you have a $500 credit limit and a $200 balance, then your credit utilization is 40%.) The issuer automatically reviews your account for potential credit line increases. Build credit alongside hundreds of thousands of Petal card members. Best Credit Cards for Fair Credit in February 2023. 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. There's also Discover's signature bonus for new cardholders. Please let us know if you notice any differences. And the card doesn't charge foreign transaction fees. Discover it Student Chrome The Discover it Student Chrome is one of the best credit card options available for fair credit students. You may qualify for better terms with a traditional personal loan, depending on your financial situation. You'll earn bonus cash back at restaurants and gas stations with no activation required and no rotating categories to keep track of. Credit . 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 annual fee is $0. Platinum Credit Card from Capital One Apply for credit card with fair credit score. Get Credit Cards for Fair Credit Start with your FICO Score and get matched, based on your credit profile with offers for rewards or no annual fees, so you can strengthen your credit. Does each credit card company define "fair" credit the same way? Opinions expressed here are the authors alone, not those of an issuer, and have not been reviewed, approved or otherwise endorsed by an issuer. 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. The card earns a decent rate of up to 10% cash back when you use the card to shop with select merchants. 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. Capital One Platinum Credit Card FAIR CREDIT RATING offers those with average credit a chance to both earn rewards and, potentially, gain access to a higher credit line. so the list of such products is fairly short, and those that do exist lack the big sign-up bonuses you'd get with a card requiring excellent credit. 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. Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. The key difference is that this version charges an annual fee while the regular one does not. 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. What We Dont Like:If you dont have an active college email address, you may have a tough time qualifying. NerdWallet strives to keep its information accurate and up to date. annual fee. Both can make it easy and convenient to make purchases in stores or online, with one key difference. -annual-fee option with an incentive for responsible behavior. Theres also no annual fee and no foreign transaction fee. The card is well-suited to travel with no foreign transaction fees and the globally accepted Visa network. , including your payment history, the amount of available credit that youre using, how long youve had credit, and more. credit score $0 Annual fee Up to 4% Cash back Get $25.00 Welcome offer Info Pros & Cons Details is a great option for people who aren't sure whether their credit is good enough to qualify for a rewards card. The Capital One SavorOne Student Cash Rewards Credit Card is one of the best credit cards for students with fair credit. You can choose your own due date, which lets you schedule payment for the time of the month that best suits your cash flow. Read our review. Credit scores can fluctuate by 100 points in a single month, so graduating to a higher credit level doesnt have to take too long. 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. And while your initial credit limit may be lower than you'd like, you can earn quick credit limit increases with consecutive on-time payments. Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 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. 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. What to know before applying for a credit card, , its important to know your credit score. 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. There are no rewards. No annual fee and build your credit with responsible use. Actual terms may vary. The annual fee is. (Unlike with Discover's other student card, you don't have to "activate" your bonus rewards.) The issuer's prequalification process lets you see the offer you're eligible for before you actually apply. Try to put everything into dollar terms. Perhaps most importantly, though, this card will consider applicants with limited-to-fair credit history. There are good credit cards designed for people with fair credit, but you're unlikely to get approved for the. And unlike with those cards, any unpaid balance is automatically converted into an installment loan with a fixed monthly payment. 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. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. 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. The lower your utilization, the better; is a good benchmark. 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. Rewards: Rewards arent necessarily a must for credit cards for fair credit, but they are within reach at this range. The second-largest factor in your scores, credit utilization is the amount you owe as a percentage of your available credit. 5. The underlying data is compiled from credit card company websites or provided directly by the credit card issuers. It's possible to find some credit cards that offer decent ongoing rewards on common purchases instead of only with select merchants. 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. You can opt-out of sharing your personal info here. Graduating to good credit could take as little as one month, depending on your circumstances. Still not sure which credit card is best for building credit? If you still arent approved, it may be a sign you need to work on your credit scores before applying again. , the first thing to do is determine why. . That's not an issue if you pay in full every month, but look elsewhere if you expect to carry debt from month to month. The fee is $0 intro with auto pay, then $39 after first year. 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. is a great option for people who aren't sure whether their credit is good enough to qualify for a rewards card. And there's no annual fee, late fees or foreign transaction fees. If you're looking to beef up your credit, it's a decent place to start. 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. The Petal 1 "No Annual Fee" Visa Credit Card, issued by WebBank, is an excellent option for those with less-than-perfect credit. What's the difference between fair and average credit? gives newcomers to credit a powerful incentive to develop responsible habits. Before submitting an application, always verify all terms and conditions with the offering institution. You increase your odds of approval when you apply for a card. You don't have to be a student to apply for the. Interest rates on credit cards for average credit tend to be on the high side. 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). Our editors rate credit cards objectively based on the features the credit card offers consumers, the fees and interest rates, and how a credit card compares with other cards in its category. Depending on which offer you qualify for, you could get as much as 1.5% cash back on purchases. Here's why: Capital One advertises that this card is intended for people with fair credit, which can help make the application process less stressful if you have less-than-perfect credit. Six months is a good rule of thumb. You might be able to get a better card than you think. And with a fair credit score, you probably wont get the lowest APR available from any of the low interest credit cards. 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. Instead, it assesses your creditworthiness based on your income, expenses, savings and debts. You can be automatically considered for a higher credit limit in as little as six months. These cards lack the splashy rewards of credit cards for good or excellent credit, but they're a good option for those working to establish or rebuild their credit. What We Dont Like:This card does not offer rewards or a low interest rate. There are good credit cards designed for people with fair credit, but you're unlikely to get approved for the best credit cards until you can improve your credit. Using multiple credit cards for the wrong reasons, however, can get you into big trouble. What We Dont Like:You need to wait several months until youre able to qualify for a truly competitive rewards rate. From huge sign-up bonuses to generous rewards, NerdWallet's best credit cards outshine the rest. Capital One QuicksilverOne Cash Rewards Credit Card. When you apply for new credit, it's not uncommon to see your scores dip, at least temporarily. Access your account anytime, anywhere with our mobile app. Annual Percentage Rate (APR) for purchases: 23.49% - 34.49% variable based on Prime Rate. Theres a 0% foreign transaction fee, too. See what terms you'd qualify for without a hard credit inquiry. Simplicity makes the Discover it Student chrome a standout for students searching for their first credit card. And if you already have a long-serving credit account, keep it open and active. You want your scores to go up, not down. Prosper also doesn't have other cards to upgrade to once your credit improves, so you either have to keep paying the fee or close the card. A credit score in or above the recommended range means you have a higher chance of approval, but doesnt guarantee it. Navy Federal Credit Union Platinum Credit Card *. Plus, the Petal 2 Card reports account info to the three major credit bureaus each month. If youre more than 30 days late, it can start to affect your credit scores. Its lighter on the fees than some unsecured credit cards for less-than-perfect credit and it offers rewards. if the card offers enough rewards and benefits to outstrip the cost of carrying it. Heres the minimum credit score needed for each Discover card: There arent any Discover cards that flat-out require excellent credit, currently. 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. Our partners cannot pay us to guarantee favorable reviews of their products or services. Discover will automatically match all the cash back youve earned at the end of your first year! Find & compare credit cards from Mastercard that offer a higher chance of approval for people with average credit. And college students dont need a credit score, or any credit experience, to get one of Discovers two student credit cards. 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. Earn a credit limit increase in as little as 6 months. 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. When you pay in full, you don't get. Cards For Fair Credit With Instant Approval and No Annual Fee. Get pre-approved in seconds with no impact to your credit score. Alternatives to Consider:There are several really good credit cards for students available right now. Terms apply.) through NerdWallet.) , which compile the credit reports that form the basis of your credit scores. But youve got the knowledgeable WalletHub community on your side. Many fees are avoidable, especially if you use the card responsibly. 7 Best Credit Cards for a 600 Credit Score (With Approval Odds) - AllCards.com We value your privacy We use cookies to enhance your browsing experience, serve personalized ads or content, and analyze our traffic. Check out our expert picks for fair credit credit cards here! As a result, the card offers a potentially generous credit limit that ranges between $300 and $5,000, depending on eligibility. Try not to carry a balance: Interest rates on credit cards for average credit tend to be on the high side. 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. The top features: Earn 1% . You also have to use that card responsibly, by paying the bill on time every month and not maxing out your credit limit. 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. Journey Student Rewards from Capital One gives you 1% cash back on all your purchases, plus 0.25% back when you make your monthly payment on time, for a total of 1.25% cash back. 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. When you have fair credit, is it better to get a credit card with an annual fee or one that requires a refundable security deposit? Review that notice, then review your credit report to make sure there are no inaccuracies, and then do the same for the card application you submitted. When evaluating offers, please review the financial institutions Terms and Conditions. Take some time to decide whether you want to prioritize rewards, interest rates, fees or other aspects. You want your scores to go up, not down. . The Petal 1 "No Annual Fee" Visa Credit Card is a worthy contender for your wallet as you continue building credit. Petals algorithm looks beyond credit scores by analyzing your bank information to determine how you manage income, savings and spending. No credit score? Why We Like It:It has a $0 annual fee and rewards cardholders with 1 - 7 points per $1 on purchases. That's important to keep in mind as you work to build a positive credit history, especially if you carry a balance. 1. NerdWallet's ratings are determined by our editorial team. Why dont more banks and credit unions offer credit cards to people with fair credit? Unlike other sites that only promote cards they're paid by, WalletHub's editors focus on finding the best cards. These cards can help you if you're just starting out with credit. Here is a list of our partners. The Capital One QuicksilverOne Cash Rewards Credit Card, for example, charges an annual fee of $39. Terms apply.) NerdWallet's Credit Cards team selects the best credit cards for fair or average credit based on overall value, as evidenced by star ratings, as well as suitability for specific kinds of consumers. If you do make a late payment, the card doesn't impose a penalty APR. Many or all of the products featured here are from our partners who compensate us. is the amount you owe as a percentage of your available credit. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. Numerous credit card applications in a short period of time can hurt your credit score, and having too many credit cards can lead to overspending, expensive interest charges, missed payments and credit score damage. Theres no minimum spending or maximum rewards. 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. 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). Credit cards for fair credit are credit cards for people with credit scores from 640 to 699 who are building credit from scratch or rebuilding their credit after mistakes. 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. Generally speaking, a FICO score that's considered "fair" will fall between . What makes this card valuable is that it's available to business operators with fair credit (a FICO score between 630-689), who don't have a lot of options in business credit cards and it has no annual fee. Its free, activate with the mobile app. Roughly 13.5% of people have fair credit, according to WalletHub data. Alternatives to Consider: The First Progress Platinum Elite Mastercard Secured Credit Card is another option with no credit check. 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. You can also redeem rewards as a statement credit. , or a sign-up bonus or a 0% period. In addition, it is not the financial institutions responsibility to ensure all posts and questions are answered.show more show less. Journey Student Rewards from Capital One. 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. It only has a $39 annual fee and gives you at least 1.5% cash back on every purchase. 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. If youre a few days late, youll likely owe a late fee. Quick Summary. You can be automatically considered for a higher credit limit in as little as six months. You can choose your own due date, which lets you schedule payment for the time of the month that best suits your cash flow. 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. Earn unlimited 1.5% back in bitcoin rewards after you make payments on your purchases. . It typically means your credit scores fall in the range of 630-689 on a scale that runs from 300 to 850. Credit scores indicate your level of risk to potential lenders and are based on several factors, including your payment history, the amount of available credit that youre using, how long youve had credit, and more. If you still arent approved, it may be a sign you need to work on your credit scores before applying again. What to avoid with credit cards for fair credit. Capital One QuicksilverOne Cash Rewards Credit Card: Best for flat-rate rewards The Capital One QuicksilverOne card gives people with fair credit the chance to earn 5 percent cash back. As of this writing, the card is unavailable to residents of Iowa, West Virginia, Wisconsin, and Washington, D.C. That's not an issue if you pay in full every month, but look elsewhere if you expect to carry debt from month to month.
