And if you already have a long-serving credit account, keep it open and active. 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. Depending on which offer you qualify for, you could get as much as 1.5% cash back on purchases. Whether your finances arent so great or theyre right on track, you should be able to find a Discover card that works for you. (For example, if you have a $500 credit limit and a $200 balance, then your credit utilization is 40%.) The issuer's prequalification process lets you see the offer you're eligible for which could be up to 1.5% cash back before you actually apply. has a prequalification process that lets you see the offer you're eligible for without a "hard" credit check that can ding your scores. Youll also usually keep the same account, often with the same card number, so theres no loss of credit history length. This ensures that your on-time payments and other responsible credit habits will be recorded. Before applying, confirm details on the issuers website. The issuer's prequalification process lets you see the offer you're eligible for before you actually apply. 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. The Petal 2 Visa Credit Card is one of the best credit cards for people with fair credit, or even limited credit. It also earns 1.5% cash back on all purchases. Paying in full every month also helps keep utilization in check. 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 average person with fair credit is 47 years old and has an annual income of $54,000 per year. If you still arent approved, it may be a sign you need to work on your credit scores before applying again. The top features: Earn 1% . The Petal 1 "No Annual Fee" Visa Credit Card is a worthy contender for your wallet as you continue building credit. gives newcomers to credit a powerful incentive to develop responsible habits. The card issuer reports details about your account to the major credit bureaus, which compile the credit reports that form the basis of your credit scores. 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 is not a good option for carrying a balance from month to month, thanks to a fairly high APR. 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. Discover will automatically match all the cash back youve earned at the end of your first year! . Great for large purchases with predictable payments you can budget for. WalletHub makes it easy to find the easiest credit cards to get. The best credit cards for fair credit can be a great tool in helping to build or rebuild your credit score. That's important to keep in mind as you work to build a positive credit history, especially if you carry a balance. But you need at least good credit for all the other offers, including Discover it Miles and Discover it Cash Back, two of the most popular options. You increase your odds of approval when you apply for a card. Petals algorithm looks beyond credit scores by analyzing your bank information to determine how you manage income, savings and spending. Why We Like It:This card is inexpensive to own and rewarding to use. 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. The best cards from this segment include options that let you earn rewards/cash back and ones that do away with annual fees. Capital One QuicksilverOne Cash Rewards Credit Card. When you have fair credit, getting the right credit card can be a key step to building a good or excellent credit score. You can be automatically considered for a higher credit limit in as little as six months. Annual fees are the most prominent type of fee to watch out for, but theyre not alone. (The typical, runs from 300 at the low end to a maximum of 850.). 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 go through with applying, then there's a hard check.) 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 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. Credit scores can fluctuate by 100 points in a single month, so graduating to a higher credit level doesnt have to take too long. BEST CREDIT CARDS FOR FAIR OR AVERAGE CREDIT. Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. The Mission Lane Cash Back Visa Credit Card is a great option for people who aren't sure whether their credit is good enough to qualify for a rewards card. Do any issuers have a particularly good/bad reputation for offering decent fair-credit credit cards. WalletHub makes it easy to find the best credit cards for fair credit. Depending on which offer you qualify for, you could get as much as 1.5% cash back on purchases. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). Disclaimer: NerdWallet strives to keep its information accurate and up to date. Credit scoring formulas tend to reward people who show that they can handle different kinds of credit. 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. . Actual terms may vary. These companies collect the information used to calculate your credit scores. The card earns a decent rate of up to 10% cash back when you use the card to shop with select merchants. WalletHub may share your information with third-parties in order to show personalized offers, as well as enable you to interact more easily with pre-fill forms or applications. Using multiple credit cards for the wrong reasons, however, can get you into big trouble. So you could turn $50 cash back into $100. No security deposit required get started today! 11 things you should know before getting your first credit card, How to choose a credit card for fair credit. Doing so also avoids costly late fees. A fair credit score is usually defined as any score in the range of 640-699. Annual Percentage Rate (APR) for purchases: 23.49% - 34.49% variable based on Prime Rate. The lower your utilization, the better; 30% or below is a good benchmark. 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. Simplicity makes the Discover it Student chrome a standout for students searching for their first credit card. WalletHubs editors compared hundreds of credit cards for people with fair credit scores, searching for the top offers in the most popular categories. At that point, youll probably have a good sense of why you were rejected. NerdWallet's ratings are determined by our editorial team. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. Bear in mind that not all lenders define fair credit the same way. (Unlike with Discover's other student card, you don't have to "activate" your bonus rewards.) Earn unlimited 1.5% back in bitcoin rewards after you make payments on your purchases. There are plenty of cards to choose from, so check out WalletHubs editors picks for the best credit cards for fair credit to find the best one for you. Just hover your card over a contactless reader, wait for the confirmation, and you're all set. The card is well-suited to travel with no foreign transaction fees and the globally accepted Visa network. There are some notable restrictions on the Bitcoin rewards you earn, including holding requirements and transaction fees when you sell. You can also borrow against your credit limit, much like a personal loan. The. If you plan to travel internationally, make sure you have a backup plan. Let Bankrate, a leader . 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. 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. The Petal 2 Card also offers 1 - 1.5% cash back. Other credit cards may also allow you to change the minimum payment due date to one that better aligns with a direct deposit. through NerdWallet.) The card also lets you see what terms you'd qualify for before officially applying. might appeal to you. Paul Soucy Feb 27, 2023. If you do make a late payment, the card doesn't impose a penalty APR. 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. 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. Capital One . The lower your utilization, the better; is a good benchmark. It also earns up to 10% cash back when you use the card to make purchases with select merchants. The Brex Corporate Card for Startups is one of the best fair-credit credit cards for business. Petal's mobile app makes it easy to manage your money, track your spending, and automate payments. Who Should Get It:Apply for the OpenSky Secured Visa Credit Card if youre rebuilding from credit damage and want high approval odds. 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. Fair credit, also referred to as "average" credit, is a step up from bad credit but a notch below good credit. It earns 1.5% back in the form of Bitcoin when you pay your bill. Credit scores also take into account how long you've been using credit, so the sooner you can find the right card, the better. Banks are required to notify you if you were denied because of information in your credit report. What We Dont Like:You need to wait several months until youre able to qualify for a truly competitive rewards rate. The Capital One QuicksilverOne Cash Rewards Credit Card offers a solid ongoing rewards rate: You earn unlimited 1.5% cash back on purchases. And if you have more than one need, you can get multiple cards and use the Island Approach. There are lots of really good credit card for fair credit offers on the market right now. 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. Dont pay late: Make at least the minimum payment, and do so on time each month. One of the best unsecured credit cards for fair credit is Upgrade Cash Rewards Visa because it offers unlimited 1.5% cash back on all purchases (after you pay the bill) and a $0 annual fee. You can see and track your credit score for free through NerdWallet. When you pay in full, you don't get. is a cross between a credit card and a personal loan, and it can offer the best of both worlds: flexibility, but with predictable terms from month to month. 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. You can choose your own due date, which lets you schedule payment for the time of the month that best suits your cash flow. 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. Read our review. Minimum interest charge: no less than $1.00 (ME residents no more than $0.50). Capital One QuicksilverOne Cash Rewards Credit Card, Capital One SavorOne Student Cash Rewards Credit Card, First Tech Choice Rewards World Mastercard, Milestone Mastercard - Less Than Perfect Credit Considered, {{(bank.reviews == 1) ? Roughly 13.5% of people have fair credit, according to WalletHub data. We also leverage data from the Bureau of Labor Statistics to develop cardholder profiles, used to estimate cards potential savings. 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. We believe everyone should be able to make financial decisions with confidence. Some even give rewards of 1% or more. The issuer automatically reviews your account for potential credit line increases. Find & compare credit cards from Mastercard that offer a higher chance of approval for people with average credit. You would need to spend $2,600 per year on the card to make that back (not including any 5% travel categories). Lets take a look at Discovers offers and what score you need to get approved. 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. If you don't like the offer, walk away with no harm done. The OpenSky Secured Visa Credit Card is one of the easiest credit cards to get with fair credit. isn't going to wow anyone; there's no sign-up bonus and the APR is high. Annual Fee: $39 (waived for the first year if you sign up for AutoPay before your first statement). You can be automatically considered for a higher credit limit in as little as six months. So how do we make money? Credit mix. 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. offers a solid ongoing rewards rate: You earn unlimited 1.5% cash back on purchases. And unlike many of those cards, any unpaid balance is automatically converted into an installment loan with a fixed monthly payment. Best Credit Cards for Fair Credit in February 2023. The best credit cards for fair credit are ones that you may qualify for with a FICO score of 580 to 689. Theres a 0% foreign transaction fee, too. 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. Fair credit wont qualify you for too many of the 0% APR deals offered by a lot of credit cards these days. Here is a list of our partners and here's how we make money. No annual fees, no foreign transactions fees. Your web browser (Internet Explorer) is out of date and no longer supported. With a product change, youre not applying for a new account; youre seeking an upgrade to the one youve already got. Avianca LifeMiles: Receive 20% more miles when you transfer your Citi ThankYou Points to Avianca LifeMiles. Pre-qualified offers are not binding. Generally speaking, a FICO score that's considered "fair" will fall between . 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. Best Credit Cards of March 2023; Best Gas Credit Cards; Best Travel Credit Cards; Best Balance Transfer Credit Cards; Best 0% APR Credit Cards; Best Cash Back Credit Cards; Carrying a balance from month to month wont be cheap, either. Just answer a few questions and we'll narrow the search for you. You'll earn bonus cash back at restaurants and gas stations with no activation required and no rotating categories to keep track of. 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. The scoring formulas take into account multiple data points for each financial product and service. Read our review. And if you're approved, you can begin using your credit line immediately no need to wait for the physical card. People with fair credit are riskier applicants; and because of this higher risk, you might receive a credit card with a lower limit. The second-largest factor in your scores, credit utilization is the amount you owe as a percentage of your available credit. One the VantageScore scale developed by the credit bureaus, the average score in 2022 was 698. If you are charged interest, the charge will be no less than $0.50. Both of those numbers are actually a bit higher than the 630-689 range typically used to define "average" credit. A hallmark of cards for fair credit is high interest rates. What are the best unsecured credit cards for fair credit? If you feel you have a case, you can contact the issuer and ask for reconsideration. 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. 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. First Progress Platinum Prestige Mastercard Secured Credit Card. According toWalletHubs credit card experts, the best credit cards for fair credit usually have $0 annual fees and give at least 1% back in rewards. Earn 1.5% unlimited cash back on card purchases every time you make a payment. Best Credit Cards for Fair or Average Credit From Our Partners Our pick for Flat-rate cash back Compare this card Capital One QuicksilverOne Cash Rewards Credit Card 4.7 NerdWallet rating. earns rewards on par with cards for good or excellent credit. Pre-qualified offers are not binding. 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. . Rewards arent necessarily a must for credit cards for fair credit, but they are within reach at this range. Another good unsecured card for fair credit is the Petal 2 Visa Credit Card. Standard message rates apply. The simple way to earn bitcoin: make purchases on your card, make payments, earn bitcoin. The. 7. Our pick for: Rewards for college students. You can choose your own due date, which lets you schedule payment for the time of the month that best suits your cash flow. And unlike with those cards, any unpaid balance is automatically converted into an installment loan with a fixed monthly payment. - Business Insider (United States) . With the Capital One QuicksilverOne Cash Rewards Credit Card, youll have the potential to gain access to a higher credit line. 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 Both can make it easy and convenient to make purchases in stores or online, with one key difference. All financial products, shopping products and services are presented without warranty. A 700+ credit score is needed to get most Discover credit cards, but theres no minimum credit score needed for a few Discover cards. If you do make a late payment, the card doesn't impose a penalty APR. We're sorry, but after searching our extensive database, we were unable to locate any credit cards that match the following criteria: {{tag.tag}}{{$last ? '' But you can achieve that effect with a collection of cards that each excel in a particular area. . If you don't like the offer, walk away with no harm done. Please keep in mind that while some offers may come from WalletHub advertising partners, sponsorship status played no role in card selection. 0% intro APR on Purchases for 6 months and 10.99% intro APR on Balance Transfers for 6 months. The prequalification process allows you to check your offer without any effect on your credit score. Compare Capital One's options for every credit level to find the card that's right for you. You want your scores to go up, not down. 1. Many or all of the products featured here are from our partners who compensate us. : ', '}}. A hallmark of cards for fair credit is high interest rates. The key difference is that this version charges an annual fee while the regular one does not. 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. doesnt only rely on credit scores to determine eligibility. The 1.5% rewards rate is on par with that offered by many cards for good or excellent credit. doesn't offer rewards, as several other cards in the fair-credit category do, but for those looking to strengthen their credit, it's a simple, solid. Quick Summary. If possible, pay off your balance in full each month. Pay with your phone or device by using Apple Pay or Google Pay. 'Review' : 'Reviews'}}, . When you apply for new credit, it's not uncommon to see your scores dip, at least temporarily. Many fees are avoidable, especially if you use the card responsibly. 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. Ratings vary by category, and the same card may receive a certain number of stars in one category and a higher or lower number in another. You can get the Discover it Secured Credit Card with a bad credit score (below 640). The Capital One Platinum Credit Cardis the best credit card for fair credit overall. The fee is $0 intro with auto pay, then $39 after first year. 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. What to know before applying for a credit card, , its important to know your credit score. The Upgrade Cash Rewards Visa earns rewards on par with cards for good or excellent credit. , including your payment history, the amount of available credit that youre using, how long youve had credit, and more. If your credit is at least fair, you can find cards that charge no annual fee at all. 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. 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. 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). 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. 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. What one issuer might see as a score on the low end of the fair credit range, another might consider bad credit. You don't have to be a student to apply for the. Debit cards allow you to spend money by drawing on funds you have deposited at the bank. Some offer rewards, perks, upgrade paths and even 0% introductory APR periods. There's a $39 annual fee. The Capital One Platinum Credit Card doesn't offer rewards, as several other cards in the fair-credit category do, but for those looking to strengthen their credit, it's a simple, solid $0-annual-fee option with an incentive for responsible behavior. Please download one of these up-to-date, free and excellent browsers: Enter your cell phone number and well send you a link to install the WalletHub app. You also have to use that card responsibly, by paying the bill on time every month and not maxing out your credit limit. N/A. Theres no minimum spending or maximum rewards. An eventual upgrade path: Ideally, you wont be stuck in the fair credit score range forever, so look for a card that offers a route to improved terms. 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. These companies collect the information used to calculate your credit scores. As a result, the card offers a potentially generous credit limit that ranges between $300 and $5,000, depending on eligibility. The Capital One QuicksilverOne Cash Rewards Credit Card, for example, charges an annual fee of $39. It's possible to find some credit cards that offer decent ongoing rewards on common purchases instead of only with select merchants. Perhaps most importantly, though, this card will consider applicants with limited-to-fair credit history.