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An average credit score wont be enough to qualify for some cards, and a rejection letter can hurt more than just your feelings. 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. Platinum Credit Card from Capital One WalletHub makes it easy to find the best credit cards for fair credit. 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. 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. Our partners compensate us. might appeal to you. (Unlike with Discover's other student card, you don't have to "activate" your bonus rewards.) 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. Cards For Fair Credit With Instant Approval and No Annual Fee. FULL LIST OF EDITORIAL PICKS: Plus, Discover says there's no FICO history requirement for this card. The prequalification process allows you to check your offer without any effect on your credit score. 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. What to know before applying for a credit card, , its important to know your credit score. 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. 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. Even though its promotional interest rate is . Learn how NerdWallet rates credit cards. The key difference is that this version charges an annual fee while the regular one does not. 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. Credit utilization. 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. What's the minimum credit score needed for Discover cards? If you still arent approved, it may be a sign you need to work on your credit scores before applying again. At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products. John Kiernan has covered the credit card industry for more than 10 years as a writer and editor for WalletHub. 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. You can check out WalletHub to get custom credit improvement advice to help you along the way. What We Dont Like:Youll have to pay the bill in full every month, which limits the cards value for some business owners. -annual-fee option with an incentive for responsible behavior. What one issuer might see as a score on the low end of the fair credit range, another might consider bad credit. Credit cards for fair credit, sometimes called "average" credit, are aimed at those in the 630-689 FICO score range. Conversely, a higher score that one issuer still sees as fair credit might qualify as good credit to a different issuer. (If you go through with applying, then there's a hard check.) Or you can plan to request a. from your issuer on your own eventually. You'll earn bonus cash back at restaurants and gas stations with no activation required and no rotating categories to keep track of. Plus, the ongoing APR is on the high end at. 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. has a prequalification process that lets you see the offer you're eligible for without a "hard" credit check that can ding your scores. Let Bankrate, a leader . 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. Disclaimer: NerdWallet strives to keep its information accurate and up to date. - Business Insider (United States) . We did not select any cards with especially low regular APRs because we recommend paying your monthly credit card bills in full when you have fair credit. There are no rewards. Why We Like It:It has a $0 annual fee and rewards cardholders with 1 - 7 points per $1 on purchases. An average credit score wont be enough to qualify for some cards, and a rejection letter can hurt more than just your feelings. No annual fees, no foreign transactions fees. 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. You may also qualify for better terms with a traditional personal loan, depending on your financial situation. You might qualify for less or no cash back at all. The Capital One Platinum Credit Cardis the best credit card for fair credit overall. Comparing credit cards for fair credit can be tough. offers those with average credit a chance to both earn rewards and, potentially, gain access to a higher credit line. Alternatives to Consider: The First Progress Platinum Elite Mastercard Secured Credit Card is another option with no credit check. You can then choose up to four cards and get a side-by-side comparison to make the best pick for your needs to get a credit card with fair credit. Alternatives to Consider:The Capital One Spark Classic for Business is a low-cost rewards card for business owners with limited credit. It depends on personal preference as well as your credit standing and organizational skills. Why We Like It:There is no credit check when you apply, so a rocky credit history wont prevent you from getting approved. 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. 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. (Unlike with Discover's other student card, you don't have to "activate" your bonus rewards.) And if you have more than one need, you can get multiple cards and use the Island Approach. 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. Best credit card overall for fair credit Petal 2 "Cash Back, No Fees" Visa Credit Card 9.5/10 CNET Rating Card Highlights Intro Offer N/A APR 17.49% - 31.49% (Variable) Intro. 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. The Best Credit Cards for Average or Fair Credit of March 2023. Business Insider 8h ago. Well give you a personalized card recommendation based on your latest credit score and financial priorities. If you do make a late payment, the card doesn't impose a penalty APR. Some even give rewards of 1% or more. 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. Why We Like It:It has a $0 annual fee and gives at least 1% cash back on all eligible purchases. Cardholders' accounts are reviewed for a potential credit line increase every three months. 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. OK92033) Property & Casualty Licenses, NerdWallet | 55 Hawthorne St. - 11th Floor, San Francisco, CA 94105, Best Credit Cards for Fair or Average Credit of March 2023. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. Editorial and user-generated content on this page is not provided, commissioned, reviewed, approved or otherwise endorsed by any issuer. 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. 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. 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 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. Depending on which offer you qualify for, you could get as much as 1.5% cash back on purchases. Best For Credit Score Annual Fee Welcome Bonus Citi Premier Card Best Overall Card for Gas Excellent, Good $95 60,000 bonus points Platinum Rewards Visa Signature Card Best. 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. Approval Odds are WalletHub estimates intended to gauge your likelihood of approval for a particular product. No annual or hidden fees. ALSO CONSIDER: Best credit cards of 2023 || Best unsecured cards for short credit histories || Best starter cards for no credit || Best rewards credit cards. First Progress Platinum Prestige Mastercard Secured Credit Card. NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer Access|Licenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc. (CA resident license no. This information may be different than what you see when you visit a financial institution, service provider or specific products site. gives newcomers to credit a powerful incentive to develop responsible habits. 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. Banks are required to notify you if you were denied because of information in your credit report. Therefore, you typically dont have to worry about a hard pull on your credit report. 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. What are the most important things to look for in a fair-credit credit card? There is a fine line between fair credit and good credit. 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. Credit cards for fair or average credit can help you move up to good or excellent credit when you use them responsibly. It also earns 1.5% cash back on all purchases. Who Should Get It: Apply for the Capital One Platinum Credit Cardif you want an inexpensive starter card to build credit with. 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. 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 Avianca LifeMiles: Receive 20% more miles when you transfer your Citi ThankYou Points to Avianca LifeMiles. The Petal 1 "No Annual Fee" Visa Credit Card is a worthy contender for your wallet as you continue building credit. A hallmark of cards for fair credit is high interest rates. The best credit cards for fair credit are ones that you may qualify for with a FICO score of 580 to 689. Its free, activate with the mobile app. Its always a good idea to shop around before picking out an unsecured credit card for fair credit. Here's why: Capital One advertises that this card is intended for people with fair credit, which can help make the application process less stressful if you have less-than-perfect credit. You can see and track your credit score for free through NerdWallet. The annual fee is $0. Unlike other sites that only promote cards they're paid by, WalletHub's editors focus on finding the best cards. Lets take a look at Discovers offers and what score you need to get approved. . Actual terms may vary. Before applying, confirm details on the issuers website. . Therefore, you typically dont have to worry about a hard pull on your credit report. And if you already have a long-serving credit account, keep it open and active. And on top of all that, it earns cash back, too. $39. Plus, Discover says there's no FICO history requirement for this card. But they may still offer rewards. Does each credit card company define "fair" credit the same way? And unlike many of those cards, any unpaid balance is automatically converted into an installment loan with a fixed monthly payment. And college students dont need a credit score, or any credit experience, to get one of Discovers two student credit cards. 5. . If your credit is at least fair, you can find cards that charge no annual fee at all. It's important to note that definitions of credit score ranges can differ from one card issuer to the next. Banks are required to notify you if you were denied because of information in your credit report. BEST CREDIT CARDS FOR FAIR OR AVERAGE CREDIT. Credit scoring formulas tend to reward people who show that they can handle different kinds of credit. The card is well-suited to travel with no foreign transaction fees and the globally accepted Visa network. 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. Capital One QuicksilverOne Cash Rewards Credit Card: Best for flat-rate rewards The Capital One QuicksilverOne card gives people with fair credit the chance to earn 5 percent cash back. Dont pay late: Make at least the minimum payment, and do so on time each month. 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 Fair credit wont qualify you for too many of the 0% APR deals offered by a lot of credit cards these days. You can choose your own due date, which lets you schedule payment for the time of the month that best suits your cash flow. Best Unsecured Credit Cards of March 2023. 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. doesnt only rely on credit scores to determine eligibility. That's important to keep in mind as you work to build a positive credit history, especially if you carry a balance. Rejection stings, but you can learn from it. 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. The annual fee is. Best credit cards for fair and average credit Best for No Fees: Petal 2 "Cash Back, No Fees" Visa Credit Card Best for Cash Back: Capital One QuicksilverOne Cash Rewards Credit Card. if the card offers enough rewards and benefits to outstrip the cost of carrying it. You want your scores to go up, not down. Before submitting an application, always verify all terms and conditions with the offering institution. 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. Experian, Equifax and TransUnion are the three major bureaus that compile the credit reports that inform your credit scores. : ', '}}. Or turn $100 into $200. 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. Access your account anytime, anywhere with our mobile app. 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. Its lighter on the fees than some unsecured credit cards for less-than-perfect credit and it offers rewards. And unlike some other cash-back cards, it doesn't allow you to boost your rewards earnings with bonus categories. From huge sign-up bonuses to generous rewards, NerdWallet's best credit cards outshine the rest. If you're looking to beef up your credit, it's a decent place to start. earns rewards on par with cards for good or excellent credit. Instead, it assesses your creditworthiness based on your income, expenses, savings and debts. The. The Capital One QuicksilverOne Cash Rewards Credit Card offers those with average credit a chance to both earn rewards and, potentially, gain access to a higher credit line. We encourage everyone to share their knowledge while respecting our content guidelines. If youre more than 30 days late, it can start to affect your credit scores. If you feel you have a case, you can contact the issuer and. And unlike some other cash-back cards, it doesn't allow you to boost your rewards earnings with bonus categories. 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. shines with its no-maintenance rewards structure and student-friendly bonus categories. 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. 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. Approval Odds are based on WalletHub data and are not provided or endorsed by the lender. Or you can plan to request a product change from your issuer on your own eventually. Who Should Get It:Apply for the OpenSky Secured Visa Credit Card if youre rebuilding from credit damage and want high approval odds. Read our review. Can I get a credit card if my credit is fair? . This reporting affects key elements of your scores: Payment history. APR for cash advances: 34.49% variable based on Prime Rate. Find & compare credit cards from Mastercard that offer a higher chance of approval for people with average credit. Paul Soucy Feb 27, 2023. If you've already built good credit, you can probably score a card with higher rewards than this card offers. Issued by Coastal Community Bank, Member FDIC pursuant to a license by Mastercard International. You can also borrow against your credit limit, much like a personal loan. Earn 1.5% unlimited cash back on card purchases every time you make a payment. Alternatives to Consider:The Capital One Platinum Credit Card and the Petal 2 Visa Credit Card are both great options to consider. Minimum interest charge: no less than $1.00 (ME residents no more than $0.50). What We Dont Like:This card does not offer rewards or a low interest rate. $0 intro with auto pay, then $39 after first year. You can opt-out of sharing your personal info here. Pay on time to boost your cash back to a total of 1.25% for that month, Enjoy no annual fee, foreign transaction fees, or hidden fees, Lock your card in the Capital One Mobile app if it's misplaced, lost or stolen, Earn up to $500 a year by referring friends and family when they're approved for a Capital One credit card, Pick the monthly due date that works best for you, Pay for Amazon.com purchases using your Capital One rewards, Pay for online purchases with virtual card numbers and keep your actual card number to yourself, Get notified via text, email, and phone if Capital One notices potential suspicious transactions on your account, Build your credit with responsible card use. With that in mind, we asked a panel of experts for insights into the best way to navigate fair credit now and escape it later. Why We Like It:QuicksilverOne offers 1.5% cash back on all purchases nearly 50% more than the average cash rewards card provides. And if you're approved, you can begin using your credit line immediately no need to wait for the physical card. 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. The lower your utilization, the better; is a good benchmark. credit score $0 Annual fee Up to 4% Cash back Get $25.00 Welcome offer Info Pros & Cons Details Fair credit, also referred to as "average" credit, is a step up from bad credit but a notch below good credit. And while fair credit wont get you the very best unsecured cards, it should qualify you for an account with no annual fee, solid rewards or maybe even both. At that point, youll probably have a good sense of why you were rejected. 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. Make sure the card youre considering reports to at least one but ideally all three of these companies. Enjoy peace of mind with $0 Fraud liability. Try not to carry a balance: Interest rates on credit cards for average credit tend to be on the high side. Youll also usually keep the same account, often with the same card number, so theres no loss of credit history length. If you've already built good credit, you can probably score a card with higher rewards than this card offers. By clicking "Accept All", you consent to our use of cookies. The annual fee is. Our editors rate credit cards objectively based on the features the credit card offers consumers, the fees and interest rates, and how a credit card compares with other cards in its category. 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. Foreign transaction fee: 1% of the transaction amount. Why dont more banks and credit unions offer credit cards to people with fair credit? Earn a credit limit increase in as little as 6 months. These cards have annual fees as low as $0 and report monthly to the 3 major credit bureaus. . Please let us know if you notice any differences. And if you're approved, you can begin using your credit line immediately no need to wait for the physical card. Promotion runs from March 1, 2023 to March 31, 2023. The fee is $0 intro with auto pay, then $39 after first year. The issuer's prequalification process lets you see the offer you're eligible for before you actually apply. Best unsecured cards for short credit histories. is a worthy contender for your wallet as you continue building 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. It also earns 1.5% cash back on all purchases. 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. Graduating to good credit could take as little as one month, depending on your circumstances. Researcher. The annual fee is $0. With that being said, its not just your credit score you should worry about. If youre rejected for a credit card, the first thing to do is determine why. What is the average credit score in the U.S.? 1. Many major issuers offer free access to your scores, available once you sign in to your account, along with other budgeting and education tools. 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. Pretty much all credit cards for fair credit are unsecured, though. As a result, the card offers a potentially generous credit limit that ranges between $300 and $5,000, depending on eligibility. Some may have slightly lower standards, for example, starting the fair credit range as 620 and ending it at 659. The card is well-suited to travel with no foreign transaction fees and the globally accepted Visa network. , the first thing to do is determine why. But there's still value to be had from fair-credit credit cards, and you dont have to stay in this particular creditworthiness tier for long.