best credit card for fair credit

Graduating to good credit could take as little as one month, depending on your circumstances. Capital One Platinum Credit Card. When you apply for new credit, it's not uncommon to see your scores dip, at least temporarily. doesnt only rely on credit scores to determine eligibility. earns rewards on par with cards for good or excellent credit. Capital One QuicksilverOne Cash Rewards Credit Card. Well give you a personalized card recommendation based on your latest credit score and financial priorities. 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. Make sure the card youre considering reports to at least one but ideally all three of these companies. Some even give rewards of 1% or more. If you feel you have a case, you can contact the issuer and ask for reconsideration. Best Gas Credit Cards of March 2023 - Forbes Advisor 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 can get the Discover it Secured Credit Card with a bad credit score (below 640). Combine the flexibility of a credit card with the predictability of a personal loan. At that point, youll probably have a good sense of why you were rejected. You don't have to be a student to apply for the. MORE: Credit cards 101: Understanding the basics. 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. From huge sign-up bonuses to generous rewards, NerdWallet's best credit cards outshine the rest. 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. Earn a credit limit increase in as little as 6 months. You may be hit with an annual fee, a lower credit limit or higher interest rates, but some . 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. has a prequalification process that lets you see the offer you're eligible for without a "hard" credit check that can ding your scores. 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. Experian, Equifax and TransUnion are the three major bureaus that compile the credit reports that inform your credit scores. Conversely, a higher score that one issuer still sees as fair credit might qualify as good credit to a different issuer. INTRO OFFER: Unlimited Cashback Match only from Discover. BEST CREDIT CARDS FOR FAIR OR AVERAGE CREDIT. Disclaimer: NerdWallet strives to keep its information accurate and up to date. Capital One QuicksilverOne Cash Rewards Credit Card. See if you're pre-approved within minutes without impacting your credit score. If youre more than 30 days late, it can start to affect your credit scores. You might not qualify for 1.5% cash back. Our partners cannot pay us to guarantee favorable reviews of their products or services. Paying in full every month also helps keep utilization in check. 7 Best Credit Cards for a 600 Credit Score (With Approval Odds) 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. John Kiernan has covered the credit card industry for more than 10 years as a writer and editor for WalletHub. The. No annual fees, no foreign transactions fees. And unlike many of those cards, any unpaid balance is automatically converted into an installment loan with a fixed monthly payment. $39. Heres the minimum credit score needed for each Discover card: There arent any Discover cards that flat-out require excellent credit, currently. Earn 1.5% unlimited cash back on card purchases every time you make a payment. 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. credit score $0 Annual fee Up to 4% Cash back Get $25.00 Welcome offer Info Pros & Cons Details $0. There's also Discover's signature bonus for new cardholders. If you like what you see, you can apply, at which point there will be a "hard" credit pull. 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. We work hard to show you up-to-date product terms, however, this information does not originate from us and thus, we do not guarantee its accuracy. 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. And if you have more than one need, you can get multiple cards and use the Island Approach. WalletHubs editors compared hundreds of credit cards for people with fair credit scores, searching for the top offers in the most popular categories. This may influence which products we write about and where and how the product appears on a page. 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. Who Should Get It: Apply for the Capital One Platinum Credit Cardif you want an inexpensive starter card to build credit with. Read review. Read our review. And the card doesn't charge foreign transaction fees. 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. These are only guidelines to help you narrow your selection, and additional factors from your application and credit history will also be considered. So its a great way to save money as you build credit, which should be your top priority until you have a good credit score. Build credit alongside hundreds of thousands of Petal card members. 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. The best credit cards for fair credit can be a great tool in helping to build or rebuild your credit score. What's the minimum credit score needed for Discover cards? 6 Best Business Credit Cards for Fair Credit (2023) - WalletHub The average person with fair credit is 47 years old and has an annual income of $54,000 per year. That's a big reason why the term "fair credit" is often used to describe scores in the middle ground between bad and good. Many fees are avoidable, especially if you use the card responsibly. As of this writing, the card is unavailable to residents of Iowa, West Virginia, Wisconsin, and Washington, D.C. Approval Odds are based on WalletHub data and are not provided or endorsed by the lender. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. 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. The Capital One QuicksilverOne Cash Rewards Credit Card offers a solid ongoing rewards rate: You earn unlimited 1.5% cash back on purchases. The card still reports account info to the major credit bureaus each month, though, so its a pretty dependable tool for building credit. 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. 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. Making only the minimum payment keeps you in debt longer and could ultimately drag down your credit scores. Some rewards-earning options are listed above. Best Balance Transfer Card For Fair Credit - CNBC Petals algorithm looks beyond credit scores by analyzing your bank information to determine how you manage income, savings and spending. Both of those numbers are actually a bit higher than the 630-689 range typically used to define "average" credit. So whereas someone with excellent credit might receive a credit . 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. 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. Free, online credit score access for cardholders. Cardholders' accounts are reviewed for a potential credit line increase every three months. 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. Best Credit Cards for Fair and Average Credit for March 2023 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. 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. You can be automatically considered for a higher credit limit in as little as six months. Fair credit, also referred to as "average" credit, is a step up from bad credit but a notch below good credit. Can I get a credit card if my credit is fair? 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. The overall goal in comparing credit card offers for fair credit is to find the card that will maximize your savings, and WalletHub's selections were made with that in mind. 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. 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. Credit utilization. Secured credit cards (those requiring a refundable security deposit) are meant for people with bad credit or no credit. 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. No annual fee and build your credit with responsible use. There are some notable restrictions on the Bitcoin rewards you earn, including holding requirements and transaction fees when you sell. Carrying a balance from month to month wont be cheap, either. 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. But youve got the knowledgeable WalletHub community on your side. The card earns a decent rate of up to 10% cash back when you use the card to shop with select merchants. 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. 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). Both can make it easy and convenient to make purchases in stores or online, with one key difference. $0 intro with auto pay, then $39 after first year. With a product change, youre not applying for a new account; youre seeking an upgrade to the one youve already got. Some offer rewards, perks, upgrade paths and even 0% introductory APR periods. Compare these deals from our partners to find one that fits your needs. It also earns 1.5% cash back on all purchases. , or a sign-up bonus or a 0% period. Depending on which offer you qualify for, you could get as much as 1.5% cash back on purchases. What's the difference between fair and average credit? Using multiple credit cards for the wrong reasons, however, can get you into big trouble. When evaluating offers, please review the financial institutions Terms and Conditions. Alternatives to Consider:The Capital One Platinum Credit Card and the Petal 2 Visa Credit Card are both great options to consider. The higher your credit score on either model's scale, the more creditworthy you may appear to potential lenders. Plus, Discover says there's no FICO history requirement for this card. Other credit cards may also allow you to change the minimum payment due date to one that better aligns with a direct deposit. Read our review. 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. 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. Our pick for: Cash back with select merchants, Our pick for: Prequalification + up to 1.5% cash back, Our pick for: Help for 'less than perfect credit', Our pick for: College students and young adults. And if you already have a long-serving credit account. Best Low Interest Credit Cards for Fair Credit. (You can see and track your score for free through NerdWallet.) or are working to get back on track. We encourage everyone to share their knowledge while respecting our content guidelines. The Upgrade Cash Rewards Visa earns rewards on par with cards for good or excellent credit. Why We Like It:The Capital One Platinum Credit Cardhas a $0 annual fee. WalletHub makes it easy to find the easiest credit cards to get. 6 Best Credit Cards for Fair Credit (March 2023) - WalletHub You increase your odds of approval when you apply for a card. Wallethub doesnt charge for this service. Best travel credit cards for people with bad or fair credit Doing so also avoids costly late fees. The best cards from this segment include options that let you earn rewards/cash back and ones that do away with annual fees. Plus, the Petal 2 Card reports account info to the three major credit bureaus each month. OpenSky Secured Visa Credit Card. When you pay in full, you don't get charged interest and cards for fair credit tend to have high interest rates. You also get a free FICO score, low fees, and forgiveness for your first late payment. Discover it Student Cash Back: Best feature: Student rewards. 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. With the, , youll have the potential to gain access to a higher credit line. 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. 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. Before submitting an application, always verify all terms and conditions with the offering institution. Why We Like It:It has a $0 annual fee and rewards cardholders with 1 - 7 points per $1 on purchases. Youll also usually keep the same account, often with the same card number, so theres no loss of credit history length. Annual fees are the most prominent type of fee to watch out for, but theyre not alone. Length of credit history. This card offers at least 1% cash back on all eligible purchases, up to 1.25% back after 6 months of on-time payments, and 1.5% cash back after 12 consecutive months of paying on time. (The typical, runs from 300 at the low end to a maximum of 850.). The card is well-suited to travel with no foreign transaction fees and the globally accepted Visa network. If you do make a late payment, the card doesn't impose a penalty APR. But they may still offer rewards. The underlying data is compiled from credit card company websites or provided directly by the credit card issuers. Monthly Transfer Bonuses - Forbes Advisor Just answer a few questions and we'll narrow the search for you. NerdWallet's Credit Cards team selects the best credit cards for fair or average credit based on overall value, as evidenced by star ratings, as well as suitability for specific kinds of consumers. His work has been featured by major media outlets such as The Washington Post and The New York Times and has been cited by industry regulators such as the Consumer Financial Protection Bureau. , issued by WebBank, is an excellent option for those with less-than-perfect credit. You'll earn bonus cash back at restaurants and gas stations with no activation required and no rotating categories to keep track of. . 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 17.49% - 26.49% applies. (If you go through with applying, then there's a hard check.) We're sorry, but after searching our extensive database, we were unable to locate any credit cards that match the following criteria: {{tag.tag}}{{$last ? '' But 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. What are some low interest credit cards for fair credit? If your credit is at least fair, you can find cards that charge no annual fee at all. If you've already built good credit, you can probably score a card with higher rewards than this card offers. The issuer automatically reviews your account for potential credit line increases. Whether your finances arent so great or theyre right on track, you should be able to find a Discover card that works for you. The scoring formulas take into account multiple data points for each financial product and service. 0% intro APR on Purchases for 6 months and 10.99% intro APR on Balance Transfers for 6 months. Theres no minimum spending or maximum rewards. When evaluating offers, please review the financial institutions Terms and Conditions. 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 If youre more than 30 days late, it can start to affect your credit scores. It's possible to find some credit cards that offer decent ongoing rewards on common purchases instead of only with select merchants. That's important to keep in mind as you work to build a positive credit history, especially if you carry a balance. And unlike many of those cards, any unpaid balance is automatically converted into an installment loan with a fixed monthly payment. The Capital One Platinum Credit Card is the best credit card for fair credit, because, along with its lower credit requirements, it offers a $0 annual fee, access to Capital One benefits and the potential for credit line increases. Best Credit Cards for Fair Credit | NextAdvisor with TIME Interest rates on credit cards for average credit tend to be on the high side. The annual fee is $0. Let Bankrate, a leader . Rewards arent necessarily a must for credit cards for fair credit, but they are within reach at this range. If you've already built good credit, you can probably score a card with higher rewards than this card offers. 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. Many major issuers offer free access to your scores, available once you sign in to your account, along with other budgeting and education tools. Why dont more banks and credit unions offer credit cards to people with fair credit? 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. Credit cards for fair credit, sometimes called "average" credit, are aimed at those in the 630-689 FICO score range. Journey Student Rewards from Capital One. If eligible, we'll create your Cash Score instead. The annual fee is $0. The Petal 2 Visa Credit Card is one of the best credit cards for people with fair credit, or even limited credit. 14 Credit Cards for "Fair" Credit (2023) - BadCredit.org Fair 600-699. Whether you want to pay less interest or earn more rewards, the right card's out there. You can also borrow against your credit limit, much like a personal loan. 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. Get started with your free credit score. It also earns up to 10% cash back when you use the card to make purchases with select merchants. Banks are required to notify you if you were denied because of information in your credit report. 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. 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. The Best Credit Cards for Average or Fair Credit of March 2023 Doing so also avoids costly late fees. Cardholders also are eligible for a credit limit increase in as little as 6 months. 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. 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. At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products. is a worthy contender for your wallet as you continue building credit. No credit score? What to know before applying for a credit card, , its important to know your credit score. The second-largest factor in your scores. These cards can help you if you're just starting out with credit or are working to get back on track. Debit cards allow you to spend money by drawing on funds you have deposited at the bank. Make sure the card youre considering reports to at least one but ideally all three of these companies. 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. Using these cards responsibly helps you improve your credit score, so you can then look for cards with better perks. Best Credit Cards for Fair/Average Credit of 2023 | CreditCards.com Credit cards for fair credit, sometimes called "average" credit, are aimed at those in the 630-689 FICO score range. And after paying on time for 12 straight months, the rewards rate increases to 1.5% back across the board. Best Credit Cards for Fair Credit, 2022 - Joy Wallet 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). , including your payment history, the amount of available credit that youre using, how long youve had credit, and more. (Unlike with Discover's other student card, you don't have to "activate" your bonus rewards.) 11 things you should know before getting your first credit card, How to choose a credit card for fair credit. 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. 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. Plus, the ongoing APR is on the high end at. 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. As a result, the card offers a potentially generous credit limit that ranges between $300 and $5,000, depending on eligibility. Alternatives to Consider: The First Progress Platinum Elite Mastercard Secured Credit Card is another option with no credit check. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter.