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NerdWallet strives to keep its information accurate and up to date. 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. What is considered fair or average credit? Or turn $100 into $200. Who Should Get It: Apply for the Capital One Platinum Credit Cardif you want an inexpensive starter card to build credit with. New Credit Users. These companies collect the information used to calculate your credit scores. gives newcomers to credit a powerful incentive to develop responsible habits. Recent credit applications. (You can see and track your score for free through NerdWallet.) Learn how NerdWallet rates credit cards. Before applying, confirm details on the issuers website. It also earns up to 10% cash back when you use the card to make purchases with select merchants. No annual fees, no foreign transactions fees. Discover it Student Cash Back: Best feature: Student rewards. Simplicity makes the Discover it Student chrome a standout for students searching for their first credit card. Earn 1.5% unlimited cash back on card purchases every time you make a payment. The Discover it Student chrome shines with its no-maintenance rewards structure and student-friendly bonus categories. Plus, Discover says there's no FICO history requirement for this card. Using multiple credit cards for the wrong reasons, however, can get you into big trouble. Its lighter on the fees than some unsecured credit cards for less-than-perfect credit and it offers rewards. a standout for students searching for their first credit card. Many major issuers offer free access to your scores, available once you sign in to your account, along with other budgeting and education tools. Before applying for a credit card, its important to know your credit score. With the Capital One QuicksilverOne Cash Rewards Credit Card, youll have the potential to gain access to a higher credit line. In fact, only 40 credit-score points separates the two tiers (fair credit means a credit score of 620 to 659, while good credit is 660 to 719). Other credit cards may also allow you to change the minimum payment due date to one that better aligns with a direct deposit. But youve got the knowledgeable WalletHub community on your side. Why dont more banks and credit unions offer credit cards to people with fair credit? An average credit score wont be enough to qualify for some cards, and a rejection letter can hurt more than just your feelings. 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. Depending on which offer you qualify for, you could get as much as 1.5% cash back on purchases. You can be automatically considered for a higher credit limit in as little as six months. , issued by WebBank, is an excellent option for those with less-than-perfect credit. isn't going to wow anyone; there's no sign-up bonus and the APR is high. Just a dollar-for-dollar match. You also have to use that card responsibly, by paying the bill on time every month and not maxing out your credit limit. N/A. Petals algorithm looks beyond credit scores by analyzing your bank information to determine how you manage income, savings and spending. $0. OpenSky Secured Visa Credit Card. But you can achieve that effect with a collection of cards that each excel in a particular area. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. 7. 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. The second-largest factor in your scores, credit utilization is the amount you owe as a percentage of your available credit. If your credit is at least fair, you can find cards that charge no annual fee at all. That's pretty good for a student card. Why We Like It : QuicksilverOne offers 1.5% cash back on all purchases - nearly 50% more than the average cash rewards card provides. If you like what you see, you can apply, at which point there will be a "hard" credit pull. has a prequalification process that lets you see the offer you're eligible for without a "hard" credit check that can ding your scores. What We Dont Like:You need to wait several months until youre able to qualify for a truly competitive rewards rate. Customize Reject All Accept All Customize Consent Preferences Best Credit Cards for Fair Credit in February 2023. There are good credit cards designed for people with fair credit, but you're unlikely to get approved for the. Please let us know if you notice any differences. If you feel you have a case, you can contact the issuer and ask for reconsideration. When you have fair credit, is it better to get a credit card with an annual fee or one that requires a refundable security deposit? Apply for credit card with fair credit score. If you feel you have a case, you can contact the issuer and. There's also Discover's signature bonus for new cardholders. You may be hit with an annual fee, a lower credit limit or higher interest rates, but some . Plus, earn unlimited 1% cash back on all other purchases automatically. 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. So how do we make money? The average person with fair credit is 47 years old and has an annual income of $54,000 per year. Credit Score Requirements: Poor 500-599. Earn a credit limit increase in as little as 6 months. and cards for fair credit tend to have high interest rates. 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. Furthermore, fair credit is far from a life sentence. Theres also no annual fee and no foreign transaction fee. 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. Using more than one credit card can help you save by allowing you to get the best terms for every transaction that you make. Best for earning cash back with fair credit Capital One QuicksilverOne Cash Rewards Credit Card Apply Now On Capital One's Website 2.3 Up to 5% Reward Rate Earn unlimited 1.5% cash back. 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. Terms apply; 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. Capital One Platinum Credit 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. . Avianca LifeMiles: Receive 20% more miles when you transfer your Citi ThankYou Points to Avianca LifeMiles. 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. Debit cards allow you to spend money by drawing on funds you have deposited at the bank. Some Discover offers listed here are not currently available on WalletHub and may be out of date. 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. Carrying a balance from month to month wont be cheap, either. Comparing credit cards for fair credit can be tough. 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 Petal reports to all 3 major credit bureaus. And with a fair credit score, you probably wont get the lowest APR available from any of the low interest credit cards. Try not to carry a balance: Interest rates on credit cards for average credit tend to be on the high side. That's pretty good for a student card. Our partners compensate us. 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. Lets take a look at Discovers offers and what score you need to get approved. When you pay in full, you don't get. Plus, Discover says there's no FICO history requirement for this card. In addition, it is not the financial institutions responsibility to ensure all posts and questions are answered.show more show less. Bear in mind that not all lenders define fair credit the same way. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. These cards can help you if you're just starting out with credit. What's the minimum credit score needed for Discover cards? Great for large purchases with predictable payments you can budget for. You would need to spend $2,600 per year on the card to make that back (not including any 5% travel categories). The annual fee is $0. Build credit alongside hundreds of thousands of Petal card members. There are no rewards. 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. And unlike some other cash-back cards, it doesn't allow you to boost your rewards earnings with bonus categories. The lower your utilization, the better; 30% or below is a good benchmark. 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. 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. 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). If possible, pay off your balance in full each month. The top features: Earn 1% . Payment history is the single biggest factor in your credit score, so it's essential to pay your bill on time every month. Earn unlimited 1.5% back in bitcoin rewards after you make payments on your purchases. FULL LIST OF EDITORIAL PICKS: Capital One QuicksilverOne Cash Rewards Credit Card. Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Actual terms may vary. The 1.5% rewards rate is on par with that offered by many cards for good or excellent credit. 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. 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. Cards For Fair Credit With Instant Approval and No Annual Fee. 1. 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. 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 Capital One Platinum Credit Cardis the best credit card for fair credit overall. If youre more than 30 days late, it can start to affect your credit scores. Enjoy peace of mind with $0 Fraud liability. The scoring formula takes into account the type of card being reviewed (such as cash back, travel or balance transfer) and the card's rates, fees, rewards and other features. So whereas someone with excellent credit might receive a credit . 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. Our partners cannot pay us to guarantee favorable reviews of their products or services. . 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. With fair credit, you wont be eligible for the highest-end credit cards but good cards are still available at this level. This information may be different than what you see when you visit a financial institution, service provider or specific products site. The $0-annual-fee Upgrade Cash Rewards Visa can be an ideal choice if you plan to carry a balance, want the convenience of equal monthly debt repayments and can pre-qualify for a favorable interest rate. Paul Soucy Feb 27, 2023. The OpenSky Secured Visa Credit Card is one of the easiest credit cards to get with fair credit. Journey Student Rewards from Capital One 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. 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. The second-largest factor in your scores. Best unsecured cards for short credit histories. 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. (Unlike with Discover's other student card, you don't have to "activate" your bonus rewards.) Researcher. NerdWallet's ratings are determined by our editorial team. 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. The. 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 17.49% - 26.49% applies. Make at least the minimum payment, and do so on time each month. You can also borrow against your credit limit, much like a personal loan. Fair credit, also referred to as "average" credit, is a step up from bad credit but a notch below good credit. The prequalification process allows you to check your offer without any effect on your credit score. When you pay in full, you don't get charged interest and cards for fair credit tend to have high interest rates. Our opinions are our own. The easiest credit cards to get approved for with no credit or bad credit are secured credit cards. We encourage everyone to share their knowledge while respecting our content guidelines. . Plus, the ongoing APR is on the high end at 29.74% Variable APR. What is the average credit score in the U.S.? As you work to push your scores into the good-to-excellent range, its important that youre able to track how youre doing. If possible, pay off your balance in full each month. When evaluating offers, please review the financial institutions Terms and Conditions. Alternatives to Consider:There are several really good credit cards for students available right now. 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. 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. Its lighter on the fees than some unsecured credit cards for less-than-perfect credit and it offers rewards. 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). Credit . As a result, the card offers a potentially generous credit limit that ranges between $300 and $5,000, depending on eligibility. 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. It earns 1.5% back in the form of Bitcoin when you pay your bill. 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 -. The overall goal in comparing credit card offers for fair credit is to find the card that will maximize your savings, and WalletHub's selections were made with that in mind. You might be able to get a better card than you think. 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. 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. But they may still offer rewards. Interest rates on credit cards for average credit tend to be on the high side. Please keep in mind that while some offers may come from WalletHub advertising partners, sponsorship status played no role in card selection. Platinum Credit Card from Capital One There's also Discover's signature bonus for new cardholders. This reporting affects key elements of your scores: Payment history is the single biggest factor in your credit score, so it's essential to pay your bill on time every month. Length of credit history. 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. With the, , youll have the potential to gain access to a higher credit line. Our pick for: Crypto rewards + flexibility. 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. Many or all of the products featured here are from our partners who compensate us. 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. The best cards from this segment include options that let you earn rewards/cash back and ones that do away with annual fees. And unlike many of those cards, any unpaid balance is automatically converted into an installment loan with a fixed monthly payment. Unlike other sites that only promote cards they're paid by, WalletHub's editors focus on finding the best cards. 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. 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. The card still reports account info to the major credit bureaus each month, though, so its a pretty dependable tool for building credit. If you've already built good credit, you can probably score a card with higher rewards than this card offers. 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. 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. OpenSky Secured Visa Credit Card. . Discover it Student chrome: Best feature: Rewards for students. It also comes with a cool 1.5% cash back on every purchase and an annual fee of . You also get a free FICO score, low fees, and forgiveness for your first late payment. $105. Upgrade Credit Card is probably your best option overall because of its high cash back rate and no fees. is a great option for people who aren't sure whether their credit is good enough to qualify for a rewards card. Credit utilization. Both can make it easy and convenient to make purchases in stores or online, with one key difference. Approval Odds are based on WalletHub data and are not provided or endorsed by the lender. That's important to keep in mind as you work to build a positive credit history, especially if you carry a balance. Read our review. 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. You want your scores to go up, not down. A hallmark of cards for fair credit is high interest rates. Ratings vary by category, and the same card may receive a certain number of stars in one category and a higher or lower number in another. Before submitting an application, always verify all terms and conditions with the offering institution. The lower your utilization, the better; is a good benchmark. On top of that, the cards annual fee is $0. 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. 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 higher your credit score on either model's scale, the more creditworthy you may appear to potential lenders. The Capital One QuicksilverOne Cash Rewards Credit Card, for example, charges an annual fee of $39. The prequalification process allows you to check your offer without any effect on your credit score. , which compile the credit reports that form the basis of your credit scores. 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. is a great option for people who aren't sure whether their credit is good enough to qualify for a rewards card. Compare Capital One's options for every credit level to find the card that's right for you. Roughly 13.5% of people have fair credit, according to WalletHub data. Cardholders' accounts are reviewed for a potential credit line increase every three months. Alternatives to Consider:The Capital One Platinum Credit Card and the Petal 2 Visa Credit Card are both great options to consider. And if you already have a long-serving credit account. Navy Federal Credit Union Platinum Credit Card *. 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. The card is well-suited to travel with no foreign transaction fees and the globally accepted Visa network. You can also borrow against your credit limit, much like a personal loan. If youre a few days late, youll likely owe a late fee. Credit scoring formulas tend to reward people who show that they can handle different kinds of credit. And unlike many of those cards, any unpaid balance is automatically converted into an installment loan with a fixed monthly payment. If you do make a late payment, the card doesn't impose a penalty APR. You can also redeem rewards as a statement credit. Many fees are avoidable, especially if you use the card responsibly. And unlike some other cash-back cards, it doesn't allow you to boost your rewards earnings with bonus categories. Dont pay late: Make at least the minimum payment, and do so on time each month. The annual fee is. 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. This reporting affects key elements of your scores: Payment history. The annual fee is $0.