best credit card for fair credit

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. And unlike some other cash-back cards, it doesn't allow you to boost your rewards earnings with bonus categories. You also get a free FICO score, low fees, and forgiveness for your first late payment. You can see exactly where you stand and how long it will take to improve bychecking your latest credit score for free on WalletHub. We encourage everyone to share their knowledge while respecting our, Answer provided by user: {{ans.user_fullname}}. You may qualify for better terms with a traditional personal loan, depending on your financial situation. annual fee. Pre-qualified offers are not binding. Fair credit wont qualify you for too many of the 0% APR deals offered by a lot of credit cards these days. On top of that, the cards annual fee is $0. 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. Standard message rates apply. A 700+ credit score is needed to get most Discover credit cards, but theres no minimum credit score needed for a few Discover cards. But they may still offer rewards. Who Should Get It:Apply for the Petal 2 Visa Card if you have limited to fair credit, plan to pay the bill on time and in full every month, and expect to keep the account open for more than a year. Foreign transaction fee: 1% of the transaction amount. You can see and track your credit score for free through NerdWallet. The average person with fair credit is 47 years old and has an annual income of $54,000 per year. 1. 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. Many major issuers offer free access to your scores, available once you sign in to your account, along with other budgeting and education tools. 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. Get pre-approved in seconds with no impact to your credit score. Alternatives to Consider:The Petal 2 Visa Credit Card, the Capital One QuicksilverOne Cash Rewards Credit Card and the Upgrade Cash Rewards Visa are worth comparing. Petal's mobile app makes it easy to manage your money, track your spending, and automate payments. When evaluating offers, please review the financial institutions Terms and Conditions. Best Credit Cards for Fair Credit in February 2023. Plus, Discover says there's no FICO history requirement for this card. With that being said, its not just your credit score you should worry about. No problem. Quick Summary. It earns 1.5% back in the form of Bitcoin when you pay your bill. Some may have slightly lower standards, for example, starting the fair credit range as 620 and ending it at 659. Making only the minimum payment keeps you in debt longer and could ultimately drag down your credit scores. Approval Odds are based on WalletHub data and are not provided or endorsed by the lender. An average credit score wont be enough to qualify for some cards, and a rejection letter can hurt more than just your feelings. What are the most important things to look for in a fair-credit credit card? The prequalification process allows you to check your offer without any effect on your credit score. Or turn $100 into $200. You'll earn bonus cash back at restaurants and gas stations with no activation required and no rotating categories to keep track of. 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. 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. 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. 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. What We Dont Like:Youll have to pay the bill in full every month, which limits the cards value for some business owners. Or you can plan to request a. from your issuer on your own eventually. 'Review' : 'Reviews'}}, . (The card also earns 5% back on hotels and rental cars booked through Capital One Travel. The Journey Student Rewards from Capital One gives newcomers to credit a powerful incentive to develop responsible habits. The card issuer reports details about your account to the major. These cards can help you if you're just starting out with credit or are working to get back on track. Payment history is the single biggest factor in your credit score, so it's essential to pay your bill on time every month. or are working to get back on track. There are good credit cards designed for people with fair credit, but you're unlikely to get approved for the. Alternatives to Consider:The Capital One Spark Classic for Business is a low-cost rewards card for business owners with limited credit. Read our review. Banks are required to notify you if you were denied because of information in your credit report. New Credit Users. Factors in our evaluation include annual and other fees, interest rates, whether a card offers upgrade options, the availability of free credit scores and other credit education and tools, reporting to credit bureaus, and other noteworthy features such as a rewards program. ALSO CONSIDER: Best credit cards of 2023 || Best unsecured cards for short credit histories || Best starter cards for no credit || Best rewards credit cards. : ', '}}. With a product change, youre not applying for a new account; youre seeking an upgrade to the one youve already got. BEST CREDIT CARDS FOR FAIR OR AVERAGE CREDIT. 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. Using more than one credit card can help you save by allowing you to get the best terms for every transaction that you make. You can check out the panels bios and responses below. If eligible, we'll create your Cash Score instead. 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. 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. Its lighter on the fees than some unsecured credit cards for less-than-perfect credit and it offers rewards. If you've already built good credit, you can probably score a card with higher rewards than this card offers. So pay your bill on time every month, dont max out your spending limit and track your credit scores progress over time to see when youre ready for an upgrade. The Prosper Card doesn't offer rewards, and it charges an annual fee, but the issuer goes out of its way to encourage people with "less than perfect credit" to apply. That's pretty good for a student card. The prequalification process allows you to check your offer without any effect on your credit score. Earn 1% cash back on all your purchases. When you apply for new credit, it's not uncommon to see your scores dip, at least temporarily. See if you're pre-approved within minutes without impacting your credit score. Many or all of the products featured here are from our partners who compensate us. 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. Mobile app to access your account anytime, anywhere. Some offer rewards, perks, upgrade paths and even 0% introductory APR periods. , which is steep if you plan on carrying a balance. You also have to use that card responsibly, by paying the bill on time every month and not maxing out your credit limit. The. And if you already have a long-serving credit account, keep it open and active. , making it a good option for someone with average credit. Make at least the minimum payment, and do so on time each month. INTRO OFFER: Unlimited Cashback Match only from Discover. 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. Do any issuers have a particularly good/bad reputation for offering decent fair-credit credit cards. There are no rewards. Why We Like It : QuicksilverOne offers 1.5% cash back on all purchases - nearly 50% more than the average cash rewards card provides. Keep in mind, also, that credit scores are not the only thing that credit card issuers and other lenders look at when evaluating a credit application. These are only guidelines to help you narrow your selection, and additional factors from your application and credit history will also be considered. The simple way to earn bitcoin: make purchases on your card, make payments, earn bitcoin. Your goal should be to minimize the fees that are likely to apply to your usage habits and ignore those that arent. . What are some low interest credit cards for fair credit? You don't have to be a student to apply for the. This information may be different than what you see when you visit a financial institution, service provider or specific products site. Before submitting an application, always verify all terms and conditions with the offering institution. One the VantageScore scale developed by the credit bureaus, the average score in 2022 was 698. With the Capital One QuicksilverOne Cash Rewards Credit Card, youll have the potential to gain access to a higher credit line. These cards can help you if you're just starting out with credit. 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. Furthermore, fair credit is far from a life sentence. 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. You might be able to get a better card than you think. Annual Percentage Rate (APR) for purchases: 23.49% - 34.49% variable based on Prime Rate. 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. As a result, the card offers a potentially generous credit limit that ranges between $300 and $5,000, depending on eligibility. Capital One . Annual fees are the most prominent type of fee to watch out for, but theyre not alone. Credit utilization. The Petal 1 "No Annual Fee" Visa Credit Card doesnt offer this option. 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. 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. You can also borrow against your credit limit, much like a personal loan. You can also borrow against your credit limit, much like a personal loan. WalletHubs editors compared hundreds of credit cards for people with fair credit scores, searching for the top offers in the most popular categories. Why We Like It:There is no credit check when you apply, so a rocky credit history wont prevent you from getting approved. The best credit cards for people with fair credit scores of 640-699 come with $0 annual fees, rewards of at least 1% back on purchases and monthly credit-bureau reporting, making it easy to build credit and save money. 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. 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. Capital One Platinum Credit Card. Reviews show typical fair-credit applicants for the cards below start with a limit between $300 and $750, but see an increase after regular payments. The Petal 2 Visa Credit Card is one of the best credit cards for people with fair credit, or even limited credit. 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. If you do make a late payment, the card doesn't impose a penalty APR. 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 . 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 . Why We Like It:It has a $0 annual fee and gives at least 1% cash back on all eligible purchases. By clicking "Accept All", you consent to our use of cookies. Youll be reviewed for regular credit line increases. As of this writing, the card is unavailable to residents of Iowa, West Virginia, Wisconsin, and Washington, D.C. 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. (You can see and track your score for free through NerdWallet.) Answer provided by user: Milvionne Chery Copeland, JD, LL.M., MBA, Director of Accountancy, Assistant Chair of Accountancy and Law and Assistant Professor of Accountancy and Law, School of Business, Eastern Illinois University, Ph.D., Assistant Professor of Finance, College of Business, University of Colorado Colorado Springs, CFP(R), ChFC(R), AIF(R), Lecturer, David Nazarian College of Business and Economics, California State University, Northridge, Assistant Professor of Finance, University of Alabama in Huntsville, Distinguished Professor of Finance, Goldyne and Irwin Hearsh Chair in Money and Banking, University of California, Los Angeles Anderson School of Management, Ph.D., Assistant Professor of Economics, Department of Finance and Economics, Wall College of Business Administration, Coastal Carolina University, Our picks for the best credit cards for fair credit in 2023, Tips for finding the best credit cards for fair credit, How we picked the best credit cards for fair credit, First Progress Platinum Elite Mastercard Secured Credit Card, check your latest credit score for free on WalletHub, checking your latest credit score for free on WalletHub, Credit Cards for Fair Credit with Instant Approval, High Limit Credit Cards for Average Credit, Credit Cards for Fair Credit with No Deposit, Do Not Sell or Share My Personal Information, Qualify with limited or no credit history, Available to people with bad credit, even after bankruptcy, Available to people with limited or fair credit. 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. If you still arent approved, it may be a sign you need to work on your credit scores before applying again. Petals algorithm looks beyond credit scores by analyzing your bank information to determine how you manage income, savings and spending. 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 is well-suited to travel with no foreign transaction fees and the globally accepted Visa network. 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. 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. 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. But youve got the knowledgeable WalletHub community on your side. MORE: 11 things you should know before getting your first credit card. Roughly 13.5% of people have fair credit, according to WalletHub data. Annual fee of $0. Cardholders also are eligible for a credit limit increase in as little as 6 months. Minimum interest charge: no less than $1.00 (ME residents no more than $0.50). The Brex Corporate Card for Startups is one of the best fair-credit credit cards for business. Some Discover offers listed here are not currently available on WalletHub and may be out of date. 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. Both can make it easy and convenient to make purchases in stores or online, with one key difference. You want your scores to go up, not down. Plus, Discover says there's no FICO history requirement for this card. Therefore, you typically dont have to worry about a hard pull on your credit report. It also earns 1.5% cash back on all purchases. The best credit cards for fair credit can be a great tool in helping to build or rebuild your credit score. APR for cash advances: 34.49% variable based on Prime Rate. Perhaps most importantly, though, this card will consider applicants with limited-to-fair credit history. Whether you want to pay less interest or earn more rewards, the right card's out there. 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? Who Should Get It: Apply for the Capital One Platinum Credit Cardif you want an inexpensive starter card to build credit with. has a prequalification process that lets you see the offer you're eligible for without a "hard" credit check that can ding your scores. $0. Credit scoring formulas tend to reward people who show that they can handle different kinds of credit. Rewards arent necessarily a must for credit cards for fair credit, but they are within reach at this range. 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. Or you can plan to request a product change from your issuer on your own eventually. See what terms you'd qualify for without a hard credit inquiry. With fair credit, you wont be eligible for the highest-end credit cards but good cards are still available at this level. 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. And unlike many of those cards, any unpaid balance is automatically converted into an installment loan with a fixed monthly payment. So you could turn $50 cash back into $100. Finally, if you want to make things really easy, just sign up for a free WalletHub account. Before applying, confirm details on the issuers website. 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. At that point, youll probably have a good sense of why you were rejected. The Petal 1 "No Annual Fee" Visa Credit Card, issued by WebBank, is an excellent option for those with less-than-perfect credit. The scoring formula takes into account the type of card being reviewed (such as cash back, travel or balance transfer) and the card's rates, fees, rewards and other features. 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. 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. OpenSky Secured Visa Credit Card. Earn unlimited 1.5% back in bitcoin rewards after you make payments on your purchases. Plus, earn unlimited 1% cash back on all other purchases automatically. If you still arent approved, it may be a sign you need to work on your credit scores before applying again. 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 Find & compare credit cards from Mastercard that offer a higher chance of approval for people with average credit. Yes, you can get a credit card if you have fair credit. Read our review. Platinum Credit Card from Capital One 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. 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). Upgrade Credit Card is probably your best option overall because of its high cash back rate and no fees. , or a sign-up bonus or a 0% period. Instantly access 50% of your credit while your card ships to you. If youre rejected for a credit card, the first thing to do is determine why. 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 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. The card still reports account info to the major credit bureaus each month, though, so its a pretty dependable tool for building credit. Disclaimer: NerdWallet strives to keep its information accurate and up to date. This card requires a security deposit, which will . The average adult has around 5 credit cards, including store credit cards, but theres no golden rule for how many credit cards you should have - or how many credit cards is too many. Chase doesn't offer credit cards specifically for fair or average credit, but it does have the Chase Freedom Student credit card, which can . Youll also usually keep the same account, often with the same card number, so theres no loss of credit history length. And if you have more than one need, you can get multiple cards and use the Island Approach. offers those with average credit a chance to both earn rewards and, potentially, gain access to a higher credit line. 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. From huge sign-up bonuses to generous rewards, NerdWallet's best credit cards outshine the rest. 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. Even though its promotional interest rate is . Credit cards for fair credit target consumers with FICO scores between 580 and 669. 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). The. 5. It also earns 1.5% cash back on all purchases. You can also redeem rewards as a statement credit. Secured credit cards (those requiring a refundable security deposit) are meant for people with bad credit or no 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. Who Should Get It:Apply for the Brex Corporate Card for Startups if youre a small business owner with limited to fair credit who wants to earn rewards on everyday purchases. In addition, it is not the financial institutions responsibility to ensure all posts and questions are answered.show more show less. You would need to spend $2,600 per year on the card to make that back (not including any 5% travel categories). Other credit cards may also allow you to change the minimum payment due date to one that better aligns with a direct deposit. And if you're approved, you can begin using your credit line immediately no need to wait for the physical card. Doing so also avoids costly late fees. . To help people with no credit or bad credit maximize their odds of approval for a credit card, WalletHubs editors compared the approval requirements for more than 1,500 credit card offers, along with their fees, rates and rewards. If youre more than 30 days late, it can start to affect your credit scores. 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. 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. The Discover it Student chrome shines with its no-maintenance rewards structure and student-friendly bonus categories. 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. Our pick for: Crypto rewards + flexibility. Store credit cards can offer deferred interest to people with fair credit.

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