is a great option for people who aren't sure whether their credit is good enough to qualify for a rewards card. 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. 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. N/A. The best credit cards for fair credit can be a great tool in helping to build or rebuild your credit score. Credit utilization. A hallmark of cards for fair credit is high interest rates. 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. , which is steep if you plan on carrying a balance. The underlying data is compiled from credit card company websites or provided directly by the credit card issuers. or are working to get back on track. Credit scoring formulas tend to reward people who show that they can handle different kinds of credit. . Why We Like It:It has a $0 annual fee and rewards cardholders with 1 - 7 points per $1 on purchases. Free, online credit score access for cardholders. NerdWallet's ratings are determined by our editorial team. The Petal 2 Visa Credit Card, issued by WebBank, is the best high-limit credit card for individuals with average, fair, or limited credit -- typically a credit score between 580 and 669. But they may still offer rewards. Annual Percentage Rate (APR) for purchases: 23.49% - 34.49% variable based on Prime Rate. Instead, it assesses your creditworthiness based on your income, expenses, savings and debts. Best credit cards for fair credit Capital One QuickSilverOne Cash Rewards credit card Discover it Cash Back Petal 2 "Cash Back, No Fees" Visa Credit Card Credit One Bank Platinum Rewards Visa Credit One Bank American Express Card Chase Freedom Flex Summary table of the best credit cards for fair credit FAQs 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. WalletHub experts track 1,500+ offers to help you get the right credit card for average credit, By John Kiernan, Credit Card Editor Feb 27, 2023, Fact Checked: Alina Comoreanu, Sr. When comparing credit cards for fair credit, look for some or all of these features: Reports to the major credit bureaus: Experian, Equifax and TransUnion are the three major bureaus that compile the credit reports that inform your credit scores. 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. The card also lets you see what terms you'd qualify for before officially applying. annual fee. 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; You'll earn bonus cash back at restaurants and gas stations with no activation required and no rotating categories to keep track of. The annual fee is $0. When you apply for new credit, it's not uncommon to see your scores dip, at least temporarily. The Capital One SavorOne Student Cash Rewards Credit Card is one of the best credit cards for students with fair credit. Many major issuers offer free access to your scores, available once you sign in to your account, along with other budgeting and education tools. Credit mix. Capital One QuicksilverOne Cash Rewards Credit Card (5) Apply Now on Capital One's secure site Rewards Rate 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply) If you don't like the offer, walk away with no harm done. 7. If youre more than 30 days late, it can start to affect your credit scores. , issued by WebBank, is an excellent option for those with less-than-perfect credit. Credit scores also take into account how long you've been using credit, so the sooner you can find the right card, the better. A fair credit score is usually defined as any score in the range of 640-699. Compare Capital One's options for every credit level to find the card that's right for you. Cardholders also are eligible for a credit limit increase in as little as 6 months. And if you're approved, you can begin using your credit line immediately no need to wait for the physical card. 1. And after paying on time for 12 straight months, the rewards rate increases to 1.5% back across the board. These companies collect the information used to calculate your credit scores. Build credit alongside hundreds of thousands of Petal card members. , making it a good option for someone with average credit. You can see exactly where you stand and how long it will take to improve bychecking your latest credit score for free on WalletHub. Generally speaking, a FICO score that's considered "fair" will fall between . You can check out WalletHub to get custom credit improvement advice to help you along the way. And there's no annual fee, late fees or foreign transaction fees. -annual-fee option with an incentive for responsible behavior. But youve got the knowledgeable WalletHub community on your side. With that being said, its not just your credit score you should worry about. No Credit Check. And if you're approved, you can begin using your credit line immediately no need to wait for the physical card. If you're crypto-crazy, or just crypto-curious, the $0-annual-fee Upgrade Bitcoin Rewards Visa Credit Card might appeal to you. Bankrate's experts compare hundreds of top credit cards and credit card offers to select the best in cash back, rewards, travel, business, 0% APR, balance transfer and more. You might qualify for less or no cash back at all. The annual fee is. . 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. Navy Federal Credit Union Platinum Credit Card *. 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. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. The issuer's prequalification process lets you see the offer you're eligible for before you actually apply. Pre-qualified offers are not binding. What We Dont Like:This card does not offer rewards or a low interest rate. Interest rates on credit cards for average credit tend to be on the high side. 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 APR for cash advances: 34.49% variable based on Prime Rate. Apply for credit card with fair credit score. If you're looking to beef up your credit, it's a decent place to start. Roughly 13.5% of people have fair credit, according to WalletHub data. You can check out the panels bios and responses below. What's the difference between fair and average credit? 25 Best "Fair Credit" Credit Cards (2023) - Fastest, Easiest Approval What to avoid with credit cards for fair credit. Best Unsecured Credit Cards of March 2023. 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. Click through to Discovers website to see terms and conditions. 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. Carrying a balance from month to month wont be cheap, either. Enjoy peace of mind with $0 Fraud liability. Some rewards-earning options are listed above. Although there's no foreign transaction fee, Discover isnt as widely accepted abroad as other cards. Unlike other sites that only promote cards they're paid by, WalletHub's editors focus on finding the best cards. It's possible to find some credit cards that offer decent ongoing rewards on common purchases instead of only with select merchants. 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. The Petal 2 Card also offers 1 - 1.5% cash back. The key difference is that this version charges an annual fee while the regular one does not. Plus, the Petal 2 Card reports account info to the three major credit bureaus each month. Capital One QuicksilverOne Cash Rewards Credit Card. 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 Bear in mind that not all lenders define fair credit the same way. 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. Plus, the ongoing APR is on the high end at. 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. If you still arent approved, it may be a sign you need to work on your credit scores before applying again. One the VantageScore scale developed by the credit bureaus, the average score in 2022 was 698. 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. The Petal 1 "No Annual Fee" Visa Credit Card doesnt offer this option. 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. And the card doesn't charge foreign transaction fees. If youre a few days late, youll likely owe a late fee. 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. There's also Discover's signature bonus for new cardholders. Credit cards for fair or average credit can help you move up to good or excellent credit when you use them responsibly. 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). The. Wallethub doesnt charge for this service. 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. 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. Who Should Get It: Apply for the Capital One Platinum Credit Cardif you want an inexpensive starter card to build credit with. Pay with your phone or device by using Apple Pay or Google Pay. Its lighter on the fees than some unsecured credit cards for less-than-perfect credit and it offers rewards. What to know before applying for a credit card, , its important to know your credit score. If you plan to travel internationally, make sure you have a backup plan. Credit scores also take into account how long you've been using credit, so the sooner you can find the right card, the better. 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. When you pay in full, you don't get charged interest and cards for fair credit tend to have high interest rates. The annual fee is $0. 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). Cardholders earn 1 - 5% cash back on purchases, depending on the spending category, plus an initial bonus of $50 for spending $100 in the first 3 months. Depending on which offer you qualify for, you could get as much as 1.5% cash back on purchases. We encourage everyone to share their knowledge while respecting our, Answer provided by user: {{ans.user_fullname}}. Let Bankrate, a leader . Best Credit Cards for Fair Credit in February 2023. 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. The Navy Federal Credit Union Platinum Credit Card is a balance transfer card where applicants with fair credit have a better chance of qualifying. Best Balance Transfer Card For Fair Credit - CNBC Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 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. Even though its promotional interest rate is . You can choose your own due date, which lets you schedule payment for the time of the month that best suits your cash flow. No problem. 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. Can I get a credit card if my credit is fair? Who Should Get It:Consider applying for the Capital One SavorOne Student Cash Rewards Credit Card if youre a college student with limited to fair credit whose spending habits match up well with the cards rewards. The only way to know exactly what you'll get is to go through prequalification. 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. FULL LIST OF EDITORIAL PICKS: Best Credit Cards of March 2023 | Bankrate Credit . 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. If you are charged interest, the charge will be no less than $0.50. Credit cards for fair credit, sometimes called "average" credit, are aimed at those in the 630-689 FICO score range. (For example, if you have a $500 credit limit and a $200 balance, then your credit utilization is 40%.) 10 Best Credit Cards for Fair Credit - Due Earn 1.5% unlimited cash back on card purchases every time you make a payment. If you've already built good credit, you can probably score a card with higher rewards than this card offers. Debit cards allow you to spend money by drawing on funds you have deposited at the bank. A credit score in or above the recommended range means you have a higher chance of approval, but doesnt guarantee it. Depending on which offer you qualify for, you could get as much as 1.5% cash back on purchases. 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. On top of that, the cards annual fee is $0. If you like what you see, you can apply, at which point there will be a "hard" credit pull. Capital One Platinum Credit Card FAIR CREDIT RATING keeps you in debt longer and could ultimately drag down your credit scores. Great for large purchases with predictable payments you can budget for. An average credit score wont be enough to qualify for some cards, and a rejection letter can hurt more than just your feelings. 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. You might be able to get a better card than you think. Capital One QuicksilverOne Cash Rewards Credit Card. The card earns a decent rate of up to 10% cash back when you use the card to shop with select merchants. 2023's Best Airline Credit Cards for Fair Credit - WalletHub 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. If youre more than 30 days late, it can start to affect your credit scores. It can help you build credit since payments are reported to all three major credit bureaus: TransUnion, Equifax and Experian. It also has a $35 annual fee. Does each credit card company define "fair" credit the same way? Credit cards for fair credit target consumers with FICO scores between 580 and 669. That's because this entry-level card doesn't charge an annual fee or foreign transaction fees. You can opt-out of sharing your personal info here. Journey Student Rewards from Capital One. 1. If you don't like the offer, walk away with no harm done. If you like what you see, you can apply, at which point there will be a "hard" credit pull. The simple way to earn bitcoin: make purchases on your card, make payments, earn bitcoin. 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/Average Credit of March 2023 - Bankrate , which compile the credit reports that form the basis of your credit scores. 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. Zero fraud liability (which offers protection against unauthorized purchases). Approval Odds are based on WalletHub data and are not provided or endorsed by the lender. doesnt only rely on credit scores to determine eligibility. . 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. And unlike many of those cards, any unpaid balance is automatically converted into an installment loan with a fixed monthly payment. 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. Credit Level Guidelines Terms apply; A credit card application usually triggers a hard inquiry on your credit report. Youll be reviewed for regular credit line increases. Dont settle: With fair credit, you wont be eligible for the highest-end credit cards but good cards are still available at this level. Best Credit Cards for Fair Credit | NextAdvisor with TIME Just hover your card over a contactless reader, wait for the confirmation, and you're all set. 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. Why We Like It:This card is inexpensive to own and rewarding to use. The fee is $0 intro with auto pay, then $39 after first year. Best Credit Cards for Fair Credit in 2023 - MoneyGeek.com Making this decision early will help make your search more manageable, by cutting your options in half, in addition to helping you get better terms. Read our review. That's pretty good for a student card. The Best Credit Cards for Average or Fair Credit of March 2023 The best credit cards for fair credit are ones that you may qualify for with a FICO score of 580 to 689. Best Credit Cards for Fair Credit, 2022 - Joy Wallet It also earns up to 10% cash back when you use the card to make purchases with select merchants. Editorial and user-generated content on this page is not provided, commissioned, reviewed, approved or otherwise endorsed by any issuer. Some offer rewards, perks, upgrade paths and even 0% introductory APR periods. Credit One Bank Platinum Visa for Rebuilding Credit, Capital One Quicksilver Secured Cash Rewards Credit Card, Bank of America Travel Rewards Credit Card for Students. Petals algorithm looks beyond credit scores by analyzing your bank information to determine how you manage income, savings and spending. Why We Like It : QuicksilverOne offers 1.5% cash back on all purchases - nearly 50% more than the average cash rewards card provides. Many fees are avoidable, especially if you use the card responsibly. As a result, the card offers a potentially generous credit limit that ranges between $300 and $5,000, depending on eligibility. If you do make a late payment, the card doesn't impose a penalty APR. Another good unsecured card for fair credit is the Petal 2 Visa Credit Card. Its always a good idea to shop around before picking out an unsecured credit card for fair credit. Although the name is a mouthful, this card is an excellent option for people with fair credit. 7 Best Credit Cards for a 600 Credit Score (With Approval Odds) 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. Heres the minimum credit score needed for each Discover card: There arent any Discover cards that flat-out require excellent credit, currently. If eligible, we'll create your Cash Score instead. 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. The OpenSky Secured Visa Credit Card is another great option for people with little to no credit history. 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. 2. Actual terms may vary. , including your payment history, the amount of available credit that youre using, how long youve had credit, and more. 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. Make at least the minimum payment, and do so on time each month. $39. It's possible to find some credit cards that offer decent ongoing rewards on common purchases instead of only with select merchants. 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. What are the best unsecured credit cards for fair credit? WalletHubs editors compared hundreds of credit cards for people with fair credit scores, searching for the top offers in the most popular categories. Rewards arent necessarily a must for credit cards for fair credit, but they are within reach at this range. An average credit score wont be enough to qualify for some cards, and a rejection letter can hurt more than just your feelings. The higher your credit score on either model's scale, the more creditworthy you may appear to potential lenders. The second-largest factor in your scores. Try not to carry a balance: Interest rates on credit cards for average credit tend to be on the high side. Finally, if you want to make things really easy, just sign up for a free WalletHub account. When evaluating offers, please review the financial institutions Terms and Conditions. Pretty much all credit cards for fair credit are unsecured, though. Why We Like It:It has a $0 annual fee and gives at least 1% cash back on all eligible purchases. Unlike other sites that only promote cards they're paid by, WalletHub's editors focus on finding the best cards. This card earns rewards in the form of Bitcoin when you pay your bill (although you are subject to holding requirements and transaction fees when you sell your crypto). The lower your utilization, the better; is a good benchmark. (If you go through with applying, then there's a hard check.) 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. Best Low Interest Credit Cards for Fair Credit. $0 intro with auto pay, then $39 after first year. If you feel you have a case, you can contact the issuer and. Theres no minimum spending or maximum rewards. 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. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free. 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. 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. Annual Fee: $39 (waived for the first year if you sign up for AutoPay before your first statement). 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. The second-largest factor in your scores, credit utilization is the amount you owe as a percentage of your available credit. You increase your odds of approval when you apply for a card. and cards for fair credit tend to have high interest rates. See if you qualify in minutes without hurting your credit score. The issuer automatically reviews your account for potential credit line increases.