What's the difference between fair and average credit? a standout for students searching for their first credit card. Your goal should be to minimize the fees that are likely to apply to your usage habits and ignore those that arent. Rewards arent necessarily a must for credit cards for fair credit, but they are within reach at this range. That's a big reason why the term "fair credit" is often used to describe scores in the middle ground between bad and good. So if you havent checked your credit score in a while, make sure to do so before applying. Best unsecured cards for short credit histories. You want your scores to go up, not down. Still not sure which credit card is best for building credit? Our opinions are our own. If you're looking to beef up your credit, it's a decent place to start. , which is steep if you plan on carrying a balance. 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. Using multiple credit cards for the wrong reasons, however, can get you into big trouble. The prequalification process allows you to check your offer without any effect on your credit score. Best credit card overall for fair credit Petal 2 "Cash Back, No Fees" Visa Credit Card 9.5/10 CNET Rating Card Highlights Intro Offer N/A APR 17.49% - 31.49% (Variable) Intro. An average credit score wont be enough to qualify for some cards, and a rejection letter can hurt more than just your feelings. Before submitting an application, always verify all terms and conditions with the offering institution. It can help you build credit since payments are reported to all three major credit bureaus: TransUnion, Equifax and Experian. Dont settle: With fair credit, you wont be eligible for the highest-end credit cards but good cards are still available at this level. Who Should Get It: Apply for the Capital One Platinum Credit Cardif you want an inexpensive starter card to build credit with. 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. The annual fee is $0. (The card also earns 5% back on hotels and rental cars booked through Capital One Travel. And after paying on time for 12 straight months, the rewards rate increases to 1.5% back across the board. The best travel cards for fair credit, according to a YouTuber who's been to 20 countries and has 20 credit cards Select looks at what travel credit cards are available to people with. Opinions expressed here are the authors alone, not those of an issuer, and have not been reviewed, approved or otherwise endorsed by an issuer. Approval Odds are based on WalletHub data and are not provided or endorsed by the lender. 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 go through with applying, then there's a hard check.) You also get a free FICO score, low fees, and forgiveness for your first late payment. Who Should Get It:Apply for the OpenSky Secured Visa Credit Card if youre rebuilding from credit damage and want high approval odds. Navy Federal Credit Union Platinum Credit Card *. By clicking "Accept All", you consent to our use of cookies. 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. Promotion runs from March 1, 2023 to March 31, 2023. Its lighter on the fees than some unsecured credit cards for less-than-perfect credit and it offers rewards. Please let us know if you notice any differences. And with a fair credit score, you probably wont get the lowest APR available from any of the low interest credit cards. Chase doesn't offer credit cards specifically for fair or average credit, but it does have the Chase Freedom Student credit card, which can . Cards For Fair Credit With Instant Approval and No Annual Fee. The prequalification process allows you to check your offer without any effect on your credit score. MORE: Credit cards 101: Understanding the basics. 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. NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer Access|Licenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc. (CA resident license no. Alternatives to Consider:The Capital One Platinum Credit Card and the Petal 2 Visa Credit Card are both great options to consider. credit score $0 Annual fee Up to 4% Cash back Get $25.00 Welcome offer Info Pros & Cons Details Terms apply, Monitor your credit score with CreditWise from Capital One. Plus, Discover says there's no FICO history requirement for this card. 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 17.49% - 26.49% applies. Terms apply; Debit cards allow you to spend money by drawing on funds you have deposited at the bank. Although there's no foreign transaction fee, Discover isnt as widely accepted abroad as other cards. WalletHub actively maintains a database of 1,500+ credit card offers, from which we select the best credit cards for fair credit for different applicants as well as derive market-wide takeaways and trends. 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). Using these cards responsibly helps you improve your credit score, so you can then look for cards with better perks. Please keep in mind that while some offers may come from WalletHub advertising partners, sponsorship status played no role in card selection. Earn 1% cash back on all your purchases. Roughly 13.5% of people have fair credit, according to WalletHub data. 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. . Annual Percentage Rate (APR) for purchases: 23.49% - 34.49% variable based on Prime Rate. The. 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. If you have lousy credit and are looking for a way to build it back; the Milestone Mastercard is a strong option. You can choose your own due date, which lets you schedule payment for the time of the month that best suits your cash flow. Conversely, a higher score that one issuer still sees as fair credit might qualify as good credit to a different issuer. Build credit alongside hundreds of thousands of Petal card members. You can be automatically considered for a higher credit limit in as little as six months. If youre rejected for a credit card, the first thing to do is determine why. $0. 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. 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. It can help you build credit since payments are reported to all three major credit bureaus: TransUnion, Equifax and Experian. The best business credit card for fair credit is Capital One Spark Classic for Business because it has a $0 annual fee and gives 1% cash back on all purchases. What is the average credit score in the U.S.? And unlike some other cash-back cards, it doesn't allow you to boost your rewards earnings with bonus categories. You'll earn bonus cash back at restaurants and gas stations with no activation required and no rotating categories to keep track of. : ', '}}. Credit scores also take into account how long you've been using credit, so the sooner you can find the right card, the better. Compare All Credit Cards Explore Capital One credit card benefits 1 Account Management (6) Protection (6) Apps & Digital Services (3) Travel & Retail (5) Account Alerts Credit Score Requirements: Poor 500-599. Plus, the ongoing APR is on the high end at. 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. Credit scores can fluctuate by 100 points in a single month, so graduating to a higher credit level doesnt have to take too long. Theres a 0% foreign transaction fee, too. It also earns up to 10% cash back when you use the card to make purchases with select merchants. 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. doesnt only rely on credit scores to determine eligibility. And thats great news, considering the best credit card deals require good or excellent credit for approval. Although the name is a mouthful, this card is an excellent option for people with fair credit. Yes, you can get a credit card if you have fair credit. Theres no minimum spending or maximum rewards. FULL LIST OF EDITORIAL PICKS: Rejection stings, but you can learn from it. Dont pay late: Make at least the minimum payment, and do so on time each month. Pre-qualified offers are not binding. So you could turn $50 cash back into $100. What to avoid with credit cards for fair credit. . 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. keeps you in debt longer and could ultimately drag down your credit scores. At that point, youll probably have a good sense of why you were rejected. And unlike many of those cards, any unpaid balance is automatically converted into an installment loan with a fixed monthly payment. Youll be reviewed for regular credit line increases. Credit scoring formulas tend to reward people who show that they can handle different kinds of credit. People with fair credit are riskier applicants; and because of this higher risk, you might receive a credit card with a lower limit. Lets take a look at Discovers offers and what score you need to get approved. When you pay in full, you don't get. shines with its no-maintenance rewards structure and student-friendly bonus categories. $105. His work has been featured by major media outlets such as The Washington Post and The New York Times and has been cited by industry regulators such as the Consumer Financial Protection Bureau. Secured credit cards (those requiring a refundable security deposit) are meant for people with bad credit or no credit. 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. 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. Instead, it assesses your creditworthiness based on your income, expenses, savings and debts. And if you're approved, you can begin using your credit line immediately no need to wait for the physical card. Approval Odds are WalletHub estimates intended to gauge your likelihood of approval for a particular product. The ongoing APR is 29.74% Variable APR, which is steep if you plan on carrying a balance. 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. 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. First Progress Platinum Prestige Mastercard Secured Credit Card. If you still arent approved, it may be a sign you need to work on your credit scores before applying again. Best Low Interest Credit Cards for Fair Credit. Read review. The Best Credit Cards for Average or Fair Credit of March 2023. Business Insider 8h ago. 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. Its lighter on the fees than some unsecured credit cards for less-than-perfect credit and it offers rewards. 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. Credit cards for fair or average credit can help you move up to good or excellent credit when you use them responsibly. (For example, if you have a $500 credit limit and a $200 balance, then your credit utilization is 40%.) However, this does not influence our evaluations. The Petal 2 Card also offers 1 - 1.5% cash back. and cards for fair credit tend to have high interest rates. 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. $0 annual fee, $0 activation fees, $0 foreign transaction fees. , the first thing to do is determine why. If youre more than 30 days late, it can start to affect your credit scores. The issuer's prequalification process lets you see the offer you're eligible for before you actually apply. These companies collect the information used to calculate your credit scores. 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. Access your account anytime, anywhere with our mobile app. If your credit is at least fair, you can find cards that charge no annual fee at all. The card also lets you see what terms you'd qualify for before officially applying. $0 intro with auto pay, then $39 after first year. 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). Finally, if you want to make things really easy, just sign up for a free WalletHub account. Read our review. Some rewards-earning options are listed above. offers those with average credit a chance to both earn rewards and, potentially, gain access to a higher credit line. No problem. The OpenSky Secured Visa Credit Card is another great option for people with little to no credit history. 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. See what terms you'd qualify for without a hard credit inquiry. The Brex Corporate Card for Startups is one of the best fair-credit credit cards for business. 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. is the amount you owe as a percentage of your available credit. Cardholders' accounts are reviewed for a potential credit line increase every three months. 1. If possible, pay off your balance in full each month. (You can see and track your score for free through NerdWallet.) $39. The 1.5% rewards rate is on par with that offered by many cards for good or excellent credit. 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. The underlying data is compiled from credit card company websites or provided directly by the credit card issuers. What are the most important things to look for in a fair-credit credit card? It earns 1.5% back in the form of Bitcoin when you pay your bill. On top of that, the cards annual fee is $0. Compare these deals from our partners to find one that fits your needs. Discover it Student Chrome The Discover it Student Chrome is one of the best credit card options available for fair credit students. Why We Like It:The Capital One Platinum Credit Cardhas a $0 annual fee. An average credit score wont be enough to qualify for some cards, and a rejection letter can hurt more than just your feelings. If you don't like the offer, walk away with no harm done. 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. Read our review. If possible, pay off your balance in full each month. This card requires a security deposit, which will . There are lots of really good credit card for fair credit offers on the market right now. All financial products, shopping products and services are presented without warranty. has a prequalification process that lets you see the offer you're eligible for without a "hard" credit check that can ding your scores. Best Overall Unsecured Card For Fair Credit The Capital One Platinum Credit Card has everything that someone with average credit could want in a card. Rewards: 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. There's also Discover's signature bonus for new cardholders. Take some time to decide whether you want to prioritize rewards, interest rates, fees or other aspects. Best Credit Cards for Fair Credit in February 2023. 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. Best Credit Cards for Fair/Average Credit Capital One Platinum Credit Card - Best for building credit Mission Lane Cash Back Visa Credit Card - Best for building credit + earning rewards Capital One QuicksilverOne Cash Rewards Credit Card - Best for flat-rate rewards Capital One Walmart Rewards Mastercard - Best for Walmart purchases . See if you're pre-approved within minutes without impacting your credit score. See what terms you'd qualify for without a hard credit inquiry. If you've already built good credit, you can probably score a card with higher rewards than this card offers. The card is well-suited to travel with no foreign transaction fees and the globally accepted Visa network. Read our review. If you are charged interest, the charge will be no less than $0.50. It only has a $39 annual fee and gives you at least 1.5% cash back on every purchase. It's an underserved market, 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. As you work to push your scores into the good-to-excellent range, its important that youre able to track how youre doing. 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. You also get a free FICO score, low fees, and forgiveness for your first late payment. It also comes with a cool 1.5% cash back on every purchase and an annual fee of . . Some rewards-earning options are listed above. That will help cardholders build positive credit history, as long as they manage the account responsibly. A hallmark of cards for fair credit is high interest rates. Credit . Why We Like It:It has a $0 annual fee and gives at least 1% cash back on all eligible purchases. You don't get rewards with the Capital One Platinum Credit Card, or a sign-up bonus or a 0% period. The Petal 1 "No Annual Fee" Visa Credit Card is a worthy contender for your wallet as you continue building credit. The lower your utilization, the better; 30% or below is a good benchmark. WalletHub makes it easy to find the best 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. 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. 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. There's a quick pre-qualification process with no impact to your credit score, modest interest rate and an annual fee of $35 - $99. This may influence which products we write about and where and how the product appears on a page. We're sorry, but after searching our extensive database, we were unable to locate any credit cards that match the following criteria: {{tag.tag}}{{$last ? '' is a great option for people who aren't sure whether their credit is good enough to qualify for a rewards card. (Unlike with Discover's other student card, you don't have to "activate" your bonus rewards.) And the card doesn't charge foreign transaction fees. Heres the minimum credit score needed for each Discover card: There arent any Discover cards that flat-out require excellent credit, currently. (The typical, runs from 300 at the low end to a maximum of 850.). A hallmark of cards for fair credit is high interest rates. There's also Discover's signature bonus for new cardholders. With fair credit, you wont be eligible for the highest-end credit cards but good cards are still available at this level. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). 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. Terms apply.) Even though its promotional interest rate is . . 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. Just answer a few questions and we'll narrow the search for you. A 700+ credit score is needed to get most Discover credit cards, but theres no minimum credit score needed for a few Discover cards. The second-largest factor in your scores. 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. - Business Insider (United States) . Why dont more banks and credit unions offer credit cards to people with fair credit? Cardholders' accounts are reviewed for a potential credit line increase every three months. 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 Making only the minimum payment keeps you in debt longer and could ultimately drag down your credit scores. Alternatives to Consider:There are several really good credit cards for students available right now. Just hover your card over a contactless reader, wait for the confirmation, and you're all set. 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. That's pretty good for a student card. 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; 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 . Therefore, you typically dont have to worry about a hard pull on your credit report. 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. . And college students dont need a credit score, or any credit experience, to get one of Discovers two student credit cards. The key difference is that this version charges an annual fee while the regular one does not.
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