In addition, it is not the financial institutions responsibility to ensure all posts and questions are answered.show more show less. This information may be different than what you see when you visit a financial institution, service provider or specific products site. 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. It also earns up to 10% cash back when you use the card to make purchases with select merchants. 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. Its free, activate with the mobile app. Comparing credit cards for fair credit can be tough. But you can achieve that effect with a collection of cards that each excel in a particular area. 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. It also comes with a cool 1.5% cash back on every purchase and an annual fee of . Who Should Get It: Apply for the Capital One Platinum Credit Cardif you want an inexpensive starter card to build credit with. You also have to use that card responsibly, by paying the bill on time every month and not maxing out your credit limit. If youre a few days late, youll likely owe a late fee. A fair credit score is usually defined as any score in the range of 640-699. Here is a list of our partners and here's how we make money. Petal reports to all 3 major credit bureaus. 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. 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. (Unlike with Discover's other student card, you don't have to "activate" your bonus rewards.) And on top of all that, it earns cash back, too. OpenSky Secured Visa Credit Card. Best Credit Cards for Fair Credit in February 2023. 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. Credit scores also take into account how long you've been using credit, so the sooner you can find the right card, the better. Discover will automatically match all the cash back youve earned at the end of your first year! Plus, the Petal 2 Card reports account info to the three major credit bureaus each month. And unlike many of those cards, any unpaid balance is automatically converted into an installment loan with a fixed monthly payment. If possible, pay off your balance in full each month. That's important to keep in mind as you work to build a positive credit history, especially if you carry a balance. You might qualify for less or no cash back at all. 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. The higher your credit score on either model's scale, the more creditworthy you may appear to potential lenders. The card also lets you see what terms you'd qualify for before officially applying. Credit cards for fair credit, sometimes called "average" credit, are aimed at those in the 630-689 FICO score range. When evaluating offers, please review the financial institutions Terms and Conditions. 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. . If you feel you have a case, you can contact the issuer and ask for reconsideration. The OpenSky Secured Visa Credit Card is another great option for people with little to no credit history. gives newcomers to credit a powerful incentive to develop responsible habits. And thats great news, considering the best credit card deals require good or excellent credit for approval. 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 . Free, online credit score access for cardholders. 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. It's that simple, Be automatically considered for a higher credit line in as little as 6 months, Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges, Help strengthen your credit for the future with responsible card use, Enjoy up to 6 months of complimentary Uber One membership statement credits through 11/14/2024, Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. (If you go through with applying, then there's a hard check.) This ensures that your on-time payments and other responsible credit habits will be recorded. 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. Pay with your phone or device by using Apple Pay or Google Pay. The annual fee is $0. Debit cards allow you to spend money by drawing on funds you have deposited at the bank. The Mission Lane Cash Back Visa Credit Card is a great option for people who aren't sure whether their credit is good enough to qualify for a rewards card. Credit Score Requirements: Poor 500-599. And college students dont need a credit score, or any credit experience, to get one of Discovers two student credit cards. 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. 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. Banks are required to notify you if you were denied because of information in your credit report. The scoring formulas take into account multiple data points for each financial product and service. . 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. There are good credit cards designed for people with fair credit, but you're unlikely to get approved for the. The Discover it Student chrome shines with its no-maintenance rewards structure and student-friendly bonus categories. What are some low interest credit cards for fair credit? Discover it Student Chrome The Discover it Student Chrome is one of the best credit card options available for fair credit students. Petal 1 Visa Credit Card. And if you're approved, you can begin using your credit line immediately no need to wait for the physical card. 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. The Petal 1 "No Annual Fee" Visa Credit Card is a worthy contender for your wallet as you continue building credit. Our partners compensate us. Rewards: Rewards arent necessarily a must for credit cards for fair credit, but they are within reach at this range. 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. Credit scoring formulas tend to reward people who show that they can handle different kinds of credit. Theres a 0% foreign transaction fee, too. . 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. . You can choose your own due date, which lets you schedule payment for the time of the month that best suits your cash flow. It also earns 1.5% cash back on all purchases. Earn 1.5% unlimited cash back on card purchases every time you make a payment. 1. 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. What is considered fair or average credit? What are the easiest credit cards to get approved for? You can choose your own due date, which lets you schedule payment for the time of the month that best suits your cash flow. 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. The issuer automatically reviews your account for potential credit line increases. These are only guidelines to help you narrow your selection, and additional factors from your application and credit history will also be considered. 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. . Whether you want to pay less interest or earn more rewards, the right card's out there. 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. Rewards arent necessarily a must for credit cards for fair credit, but they are within reach at this range. 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. Credit . The Best Credit Cards for Average or Fair Credit of March 2023. Business Insider 8h ago. INTRO OFFER: Unlimited Cashback Match only from Discover. If you're crypto-crazy, or just crypto-curious, the. 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. Access your account anytime, anywhere with our mobile app. However, this does not influence our evaluations. The best cards from this segment include options that let you earn rewards/cash back and ones that do away with annual fees. What We Dont Like:If you dont have an active college email address, you may have a tough time qualifying. This card requires a security deposit, which will . These cards can help you if you're just starting out with credit or are working to get back on track. Approval Odds are not meant to imply or guarantee that you will be approved by the lender or that credit will be extended. No touch payments with contactless technology built in. Review that notice, then review your credit report to make sure there are no inaccuracies, and then do the same for the card application you submitted. 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. Other credit cards may also allow you to change the minimum payment due date to one that better aligns with a direct deposit. No annual or hidden fees. Its lighter on the fees than some unsecured credit cards for less-than-perfect credit and it offers rewards. If you still arent approved, it may be a sign you need to work on your credit scores before applying again. Navy Federal Credit Union Platinum Credit Card *. The issuer's prequalification process lets you see the offer you're eligible for before you actually apply. credit score $0 Annual fee Up to 4% Cash back Get $25.00 Welcome offer Info Pros & Cons Details Why We Like It:This card is inexpensive to own and rewarding to use. The card is well-suited to travel with no foreign transaction fees and the globally accepted Visa network. As a result, the card offers a potentially generous credit limit that ranges between $300 and $5,000, depending on eligibility. 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. -annual-fee option with an incentive for responsible behavior. 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. It can help you build credit since payments are reported to all three major credit bureaus: TransUnion, Equifax and Experian. Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. When you pay in full, you don't get. 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. N/A. Payment history is the single biggest factor in your credit score, so it's essential to pay your bill on time every month. Instead, it assesses your creditworthiness based on your income, expenses, savings and debts. Dont settle: With fair credit, you wont be eligible for the highest-end credit cards but good cards are still available at this level. Many major issuers offer free access to your scores, available once you sign in to your account, along with other budgeting and education tools. We believe everyone should be able to make financial decisions with confidence. With a product change, youre not applying for a new account; youre seeking an upgrade to the one youve already got. Plus, the ongoing APR is on the high end at 29.74% Variable APR. 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. 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). Just a dollar-for-dollar match. 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. Terms and conditions apply. Read our review. Read our review. Length of credit history. Although the name is a mouthful, this card is an excellent option for people with fair credit. Still not sure which credit card is best for building credit? 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 Click through to Discovers website to see terms and conditions. Best Low Interest Credit Cards for Fair Credit. Plus, Discover says there's no FICO history requirement for this card. Issued by Coastal Community Bank, Member FDIC pursuant to a license by Mastercard International. You also get a free FICO score, low fees, and forgiveness for your first late payment. 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. Fair credit, also referred to as "average" credit, is a step up from bad credit but a notch below good credit. Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offers details page using the designation "Sponsored", where applicable. Who Should Get It:Apply for the OpenSky Secured Visa Credit Card if youre rebuilding from credit damage and want high approval odds. Fair 600-699. $105. You can see and track your credit score for free through NerdWallet. show more To help you find the best deal, WalletHubs editors compared all of the credit cards for fair credit in our database of 1,500+ credit card offers. These companies collect the information used to calculate your credit scores. You can check out the panels bios and responses below. 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. See if you qualify in minutes without hurting your credit score. Credit scoring formulas tend to reward people who show that they can handle different kinds of credit. (For example, if you have a $500 credit limit and a $200 balance, then your credit utilization is 40%.) Best Travel Card for Fair Credit The Platinum Credit Card from Capital One can help pave your way to better vacations. But youve got the knowledgeable WalletHub community on your side. Petals algorithm looks beyond credit scores by analyzing your bank information to determine how you manage income, savings and spending. Some rewards-earning options are listed above. No interest on purchases when you pay in full and on time each month. Does each credit card company define "fair" credit the same way? The Capital One Platinum Credit Cardis the best credit card for fair credit overall. - Business Insider (United States) . And if you already have a long-serving credit account, keep it open and active. 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 youre rejected for a credit card, the first thing to do is determine why. 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 The average FICO credit score in the United States in 2022 was 716, according to the company that manages the FICO scoring model. WalletHubs editors compared hundreds of credit cards for people with fair credit scores, searching for the top offers in the most popular categories. (The typical, runs from 300 at the low end to a maximum of 850.). 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. First Progress Platinum Prestige Mastercard Secured Credit Card. At that point, youll probably have a good sense of why you were rejected. The OpenSky Secured Visa Credit Card is one of the easiest credit cards to get with fair credit. For example, you might need to consider one-time fees for application processing or transferring a balance, depending on what type of card youre looking for and how you plan to use it. You can also borrow against your credit limit, much like a personal loan. Ideally, you wont be stuck in the fair credit score range forever, so look for a card that offers a route to improved terms. Our pick for: Rewards for college students. . is the amount you owe as a percentage of your available credit. The issuer automatically reviews your account for potential credit line increases. Credit cards for fair credit target consumers with FICO scores between 580 and 669. 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. Pretty much all credit cards for fair credit are unsecured, though. Do any issuers have a particularly good/bad reputation for offering decent fair-credit credit cards. Petal's mobile app makes it easy to manage your money, track your spending, and automate payments. Even though its promotional interest rate is . There are no rewards. No annual fees, no foreign transactions fees. 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 You don't have to be a student to apply for the. 1. You can get the Discover it Secured Credit Card with a bad credit score (below 640). 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 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. 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. 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. There's also Discover's signature bonus for new cardholders. 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. 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.