There's also Discover's signature bonus for new cardholders. You may qualify for better terms with a traditional personal loan, depending on your financial situation. What to know before applying for a credit card, , its important to know your credit score. Even though its promotional interest rate is . It also earns up to 10% cash back when you use the card to make purchases with select merchants. If youre more than 30 days late, it can start to affect your credit scores. Best Credit Cards for Fair Credit, 2022 - Joy Wallet 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 The Capital One Platinum Credit Cardis the best credit card for fair credit overall. Read our review. 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. Why We Like It:QuicksilverOne offers 1.5% cash back on all purchases nearly 50% more than the average cash rewards card provides. Fair 600-699. Compare Capital One's options for every credit level to find the card that's right for you. Depending on which offer you qualify for, you could get as much as 1.5% cash back on purchases. So whereas someone with excellent credit might receive a credit . These cards can help you if you're just starting out with credit or are working to get back on track. 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. U.S. News' Best Credit Cards for Fair Credit of 2022 | U.S. News Youll also usually keep the same account, often with the same card number, so theres no loss of credit history length. Many major issuers offer free access to your scores, available once you sign in to your account, along with other budgeting and education tools. New Credit Users. Combine the flexibility of a credit card with the predictability of a personal loan. Its free, activate with the mobile app. Paul Soucy Feb 27, 2023. And thats great news, considering the best credit card deals require good or excellent credit for approval. Free, online credit score access for cardholders. Lets take a look at Discovers offers and what score you need to get approved. 5 Best Credit Cards for Fair Credit (All Latest Information 2023) With fair credit, you wont be eligible for the highest-end credit cards but good cards are still available at this level. Credit . This may influence which products we write about and where and how the product appears on a page. What We Dont Like:If you dont have an active college email address, you may have a tough time qualifying. For 0% cards, it means seeing what monthly debt payments you can comfortably afford to make, how large of a balance you will therefore have remaining at the end of each cards 0% intro term, and what interest charges you would incur thereafter. You can be automatically considered for a higher credit limit in as little as six months. On top of that, the cards annual fee is $0. Fair credit, also referred to as "average" credit, is a step up from bad credit but a notch below good credit. See if you're pre-approved within minutes without impacting your credit score. Get pre-approved in seconds with no impact to your credit score. It's possible to find some credit cards that offer decent ongoing rewards on common purchases instead of only with select merchants. The annual fee is $0. It also comes with a cool 1.5% cash back on every purchase and an annual fee of . 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. Earn 1.5% unlimited cash back on card purchases every time you make a payment. 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. With the Capital One QuicksilverOne Cash Rewards Credit Card, youll have the potential to gain access to a higher credit line. The second-largest factor in your scores, credit utilization is the amount you owe as a percentage of your available credit. It also earns up to 10% cash back when you use the card to make purchases with select merchants. Best for entry-level fair credit Mission Lane Visa Credit Card Apply now On Mission Lane's secure site Add to compare 3.4 Bankrate review Rewards Rate N/A Intro offer N/A Annual fee $0 -. FULL LIST OF EDITORIAL PICKS: By clicking "Accept All", you consent to our use of cookies. Debit cards allow you to spend money by drawing on funds you have deposited at the bank. (Unlike with Discover's other student card, you don't have to "activate" your bonus rewards.) Chase doesn't offer credit cards specifically for fair or average credit, but it does have the Chase Freedom Student credit card, which can . You also get a free FICO score, low fees, and forgiveness for your first late payment. Credit cards for fair credit, sometimes called "average" credit, are aimed at those in the 630-689 FICO score range. It's free for everyone, Check out quickly and securely with a contactless card, without touching a terminal or handing your card to a cashier. is the amount you owe as a percentage of your available credit. Check out our expert picks for fair credit credit cards here! If you're crypto-crazy, or just crypto-curious, the $0-annual-fee Upgrade Bitcoin Rewards Visa Credit Card might appeal to you. 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. $0 intro with auto pay, then $39 after first year. The Best Credit Cards for Average or Fair Credit of March 2023 Paying in full every month also helps keep utilization in check. : ', '}}. Pay with your phone or device by using Apple Pay or Google Pay. Some offer rewards, perks, upgrade paths and even 0% introductory APR periods. If possible, pay off your balance in full each month. One the VantageScore scale developed by the credit bureaus, the average score in 2022 was 698. (The typical, runs from 300 at the low end to a maximum of 850.). 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. Many or all of the products featured here are from our partners who compensate us. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. These companies collect the information used to calculate your credit scores. Credit utilization. The underlying data is compiled from credit card company websites or provided directly by the credit card issuers. Disclaimer: NerdWallet strives to keep its information accurate and up to date. If your credit is at least fair, you can find cards that charge no annual fee at all. And college students dont need a credit score, or any credit experience, to get one of Discovers two student credit cards. offers a solid ongoing rewards rate: You earn unlimited 1.5% cash back on purchases. And if you already have a long-serving credit account, keep it open and active. Do any issuers have a particularly good/bad reputation for offering decent fair-credit credit cards. The card is well-suited to travel with no foreign transaction fees and the globally accepted Visa network. Petals algorithm looks beyond credit scores by analyzing your bank information to determine how you manage income, savings and spending. Interest rates on credit cards for average credit tend to be on the high side. Rewards arent necessarily a must for credit cards for fair credit, but they are within reach at this range. The prequalification process allows you to check your offer without any effect on your credit score. People with fair credit are riskier applicants; and because of this higher risk, you might receive a credit card with a lower limit. And unlike many of those cards, any unpaid balance is automatically converted into an installment loan with a fixed monthly payment. Best Credit Cards for Fair/Average Credit of March 2023 - Bankrate Doing so also avoids costly late fees. The scoring formulas take into account multiple data points for each financial product and service. 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. 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 best credit cards for fair credit can be a great tool in helping to build or rebuild your credit score. And unlike with those cards, any unpaid balance is automatically converted into an installment loan with a fixed monthly payment. Best unsecured cards for short credit histories. Fair credit, also referred to as "average" credit, is a step up from bad credit but a notch below good credit. For example, Discover will consider other factors, such as how your income compares to your debt, along with your employment status, whether you own or rent your home, how many loans and lines of credit you already have open, and more. Theres a 0% foreign transaction fee, too. What is the average credit score in the U.S.? That is the low end of a range from 17.49% to 31.49% (V), however, so it might be optimistic to assume youll get a rate that low. 1. , which compile the credit reports that form the basis of your credit scores. But youve got the knowledgeable WalletHub community on your side. Credit scores also take into account how long you've been using credit, so the sooner you can find the right card, the better. When you pay in full, you don't get charged interest and cards for fair credit tend to have high interest rates. Earn a credit limit increase in as little as 6 months. All financial products, shopping products and services are presented without warranty. If you plan to travel internationally, make sure you have a backup plan. 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. might appeal to you. The Capital One QuicksilverOne Cash Rewards Credit Card offers a solid ongoing rewards rate: You earn unlimited 1.5% cash back on purchases. Capital One QuicksilverOne Cash Rewards Credit Card. Banks are required to notify you if you were denied because of information in your credit report. It also earns 1.5% cash back on all purchases. 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. Cards For Fair Credit With Instant Approval and No Annual Fee. The best credit cards for fair credit are ones that you may qualify for with a FICO score of 580 to 689. (Unlike with Discover's other student card, you don't have to "activate" your bonus rewards.) This reporting affects key elements of your scores: Payment history. Annual Fee: $39 (waived for the first year if you sign up for AutoPay before your first statement). Before applying, confirm details on the issuers website. Our pick for: Rewards for college students. (The typical credit score scale runs from 300 at the low end to a maximum of 850.). 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. 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. It earns 1.5% back in the form of Bitcoin when you pay your bill. If you are charged interest, the charge will be no less than $0.50. Perhaps most importantly, though, this card will consider applicants with limited-to-fair credit history. That's a big reason why the term "fair credit" is often used to describe scores in the middle ground between bad and good. WalletHub makes it easy to find the best credit cards for fair credit. Pre-qualified offers are not binding. Customize Reject All Accept All Customize Consent Preferences 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. is a great option for people who aren't sure whether their credit is good enough to qualify for a rewards card. , making it a good option for someone with average credit. The simple way to earn bitcoin: make purchases on your card, make payments, earn bitcoin. Annual fees are the most prominent type of fee to watch out for, but theyre not alone. Petal reports to all 3 major credit bureaus. 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 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. 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. If you've already built good credit, you can probably score a card with higher rewards than this card offers. 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. With a product change, youre not applying for a new account; youre seeking an upgrade to the one youve already got. That's important to keep in mind as you work to build a positive credit history, especially if you carry a balance. What to avoid with credit cards for fair credit. 2023's Best Credit Cards for Fair Credit | SmartAsset.com 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. Terms apply.) A hallmark of cards for fair credit is high interest rates. 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. Make at least the minimum payment, and do so on time each month. At that point, youll probably have a good sense of why you were rejected. Or you can plan to request a. from your issuer on your own eventually. Best Credit Cards for Fair/Average Credit March 2023 - Credit Karma 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 . 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. Plus, people with fair credit should have high approval odds for the Capital One Platinum Card, since its a starter credit card available even to applicants with limited credit experience. The easiest credit cards to get approved for with no credit or bad credit are secured credit cards. Alternatives to Consider:There are several really good credit cards for students available right now. 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. And if you're approved, you can begin using your credit line immediately no need to wait for the physical card. 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. 2023's Best Airline Credit Cards for Fair Credit - WalletHub 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. When evaluating offers, please review the financial institutions Terms and Conditions. Why dont more banks and credit unions offer credit cards to people with fair credit? Doing so also avoids costly late fees. You can get the Discover it Secured Credit Card with a bad credit score (below 640). through NerdWallet.) If you still arent approved, it may be a sign you need to work on your credit scores before applying again. It only has a $39 annual fee and gives you at least 1.5% cash back on every purchase. Plus, the ongoing APR is on the high end at 29.74% Variable APR. Best Credit Cards for Fair and Average Credit for March 2023 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. What makes this card valuable is that it's available to business operators with fair credit (a FICO score between 630-689), who don't have a lot of options in business credit cards and it has no annual fee. Discover it Student Chrome The Discover it Student Chrome is one of the best credit card options available for fair credit students. Although there's no foreign transaction fee, Discover isnt as widely accepted abroad as other cards. (The card also earns 5% back on hotels and rental cars booked through Capital One Travel. 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. Compare these deals from our partners to find one that fits your needs. That's because this entry-level card doesn't charge an annual fee or foreign transaction fees. Read review. With responsible use, you can be considered for a higher credit line in as little as six months. Therefore, you typically dont have to worry about a hard pull on your credit report. NerdWallet strives to keep its information accurate and up to date. Avianca LifeMiles: Receive 20% more miles when you transfer your Citi ThankYou Points to Avianca LifeMiles. You might qualify for less or no cash back at all. And unlike some other cash-back cards, it doesn't allow you to boost your rewards earnings with bonus categories. There are no rewards. And if you have more than one need, you can get multiple cards and use the Island Approach. See what terms you'd qualify for without a hard credit inquiry. A single "hard pull" can cause a temporary dip in your scores, but if you're continually applying for the wrong cards and being rejected, the damage can be much worse. Its always a good idea to shop around before picking out an unsecured credit card for fair credit. You would need to spend $2,600 per year on the card to make that back (not including any 5% travel categories). is a great option for people who aren't sure whether their credit is good enough to qualify for a rewards card. Pre-qualified offers are not binding. 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. That will help cardholders build positive credit history, as long as they manage the account responsibly. Bear in mind that not all lenders define fair credit the same way. The Brex Corporate Card for Startups is one of the best fair-credit credit cards for business. NerdWallet's ratings are determined by our editorial team. You can also borrow against your credit limit, much like a personal loan. Its worth mentioning that when you have fair credit, getting a credit card with a low APR may not be the best option. credit score $0 Annual fee Up to 4% Cash back Get $25.00 Welcome offer Info Pros & Cons Details 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. It typically means your credit scores fall in the range of 630-689 on a scale that runs from 300 to 850. Credit scores indicate your level of risk to potential lenders and are based on several factors, including your payment history, the amount of available credit that youre using, how long youve had credit, and more. 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. 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 they may still offer rewards. See what terms you'd qualify for without a hard credit inquiry. $0. These cards can help you if you're just starting out with credit. Try to put everything into dollar terms. Learn how NerdWallet rates credit cards. . No annual fees, no foreign transactions fees. You can see and track your credit score for free through NerdWallet. 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. Discover it Student Cash Back: Best feature: Student rewards. If youre rejected for a credit card, the first thing to do is determine why. Instead, it assesses your creditworthiness based on your income, expenses, savings and debts. The fee is $0 intro with auto pay, then $39 after first year. OpenSky Secured Visa Credit 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. This card requires a security deposit, which will . 1. Standard message rates apply. shines with its no-maintenance rewards structure and student-friendly bonus categories. 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. Cardholders' accounts are reviewed for a potential credit line increase every three months. or are working to get back on track. Some offer rewards, perks, upgrade paths and even 0% introductory APR periods. Quick Summary. When you have fair credit, getting the right credit card can be a key step to building a good or excellent credit score. Credit cards for fair or average credit can help you move up to good or excellent credit when you use them responsibly. If you have lousy credit and are looking for a way to build it back; the Milestone Mastercard is a strong option. Credit Level Guidelines You may also qualify for better terms with a traditional personal loan, depending on your financial situation. The top features: Earn 1% . Alternatives to Consider:The Capital One Spark Classic for Business is a low-cost rewards card for business owners with limited credit. Best Credit Cards for Fair Credit | NextAdvisor with TIME Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). . The average person with fair credit is 47 years old and has an annual income of $54,000 per year. What's the minimum credit score needed for Discover cards? While there are no universal dividing lines between credit score bands, you can generally think of "fair credit" aka "average credit" as having credit scores in the range of 630 to 689. The Petal 1 "No Annual Fee" Visa Credit Card is a worthy contender for your wallet as you continue building credit. It can help you build credit since payments are reported to all three major credit bureaus: TransUnion, Equifax and Experian. 14 Credit Cards for "Fair" Credit (2023) - BadCredit.org This ensures that your on-time payments and other responsible credit habits will be recorded.