The. However, this does not influence our evaluations. Another good unsecured card for fair credit is the Petal 2 Visa Credit Card. There are no rewards. The card also lets you see what terms you'd qualify for before officially applying. The average FICO credit score in the United States in 2022 was 716, according to the company that manages the FICO scoring model. The fee is. Some rewards-earning options are listed above. You may also qualify for better terms with a traditional personal loan, depending on your financial situation. 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. 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. (The card also earns 5% back on hotels and rental cars booked through Capital One Travel. People with fair credit are riskier applicants; and because of this higher risk, you might receive a credit card with a lower limit. , or a sign-up bonus or a 0% period. The card still reports account info to the major credit bureaus each month, though, so its a pretty dependable tool for building credit. Terms and conditions apply. 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. 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. The annual fee is $0. It's possible to find some credit cards that offer decent ongoing rewards on common purchases instead of only with select merchants. When you pay in full, you don't get. With a product change, youre not applying for a new account; youre seeking an upgrade to the one youve already got. 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. 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. Fair credit, also referred to as "average" credit, is a step up from bad credit but a notch below good credit. 11 things you should know before getting your first credit card, How to choose a credit card for fair credit. Great for large purchases with predictable payments you can budget for. 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 A hallmark of cards for fair credit is high interest rates. Learn how NerdWallet rates credit cards. Earn unlimited 1.5% back in bitcoin rewards after you make payments on your purchases. Before applying for a credit card, its important to know your credit score. But youve got the knowledgeable WalletHub community on your side. A credit score in or above the recommended range means you have a higher chance of approval, but doesnt guarantee it. 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. 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. At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products. Pretty much all credit cards for fair credit are unsecured, though. If you still arent approved, it may be a sign you need to work on your credit scores before applying again. Plus, the ongoing APR is on the high end at. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. We encourage everyone to share their knowledge while respecting our content guidelines. You might qualify for less or no cash back at all. What are the most important things to look for in a fair-credit credit card? 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. See what terms you'd qualify for without a hard credit inquiry. Other credit cards may also allow you to change the minimum payment due date to one that better aligns with a direct deposit. A 700+ credit score is needed to get most Discover credit cards, but theres no minimum credit score needed for a few Discover cards. If you plan to travel internationally, make sure you have a backup plan. The underlying data is compiled from credit card company websites or provided directly by the credit card issuers. 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. 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. At that point, youll probably have a good sense of why you were rejected. WalletHub actively maintains a database of 1,500+ credit card offers, from which we select the best credit cards for fair credit for different applicants as well as derive market-wide takeaways and trends. Many fees are avoidable, especially if you use the card responsibly. What is the average credit score in the U.S.? You can be automatically considered for a higher credit limit in as little as six months. 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. 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. You increase your odds of approval when you apply for a card tailored for your score range. 'Review' : 'Reviews'}}, . Why dont more banks and credit unions offer credit cards to people with fair credit? Customize Reject All Accept All Customize Consent Preferences 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 Score Requirements: Poor 500-599. So if you havent checked your credit score in a while, make sure to do so before applying. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. Some may have slightly lower standards, for example, starting the fair credit range as 620 and ending it at 659. Some rewards-earning options are listed above. $0 intro with auto pay, then $39 after first year. On top of that, the cards annual fee is $0. 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. Capital One . Roughly 13.5% of people have fair credit, according to WalletHub data. It's an underserved market, 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 average person with fair credit is 47 years old and has an annual income of $54,000 per year. You want your scores to go up, not down. The annual fee is. The best credit cards for fair credit can be a great tool in helping to build or rebuild your credit score. No Credit Check. And unlike some other cash-back cards, it doesn't allow you to boost your rewards earnings with bonus categories. You can get the Discover it Secured Credit Card with a bad credit score (below 640). Youll be reviewed for regular credit line increases. See if you're approved in seconds, Help build your credit through responsible use of a card like this, Get access to your account 24 hours a day, 7 days a week with online banking from your desktop or smartphone, with Capital One's mobile app, Pay by check, online or at a local branch, all with no fee - and pick the monthly due date that works best for you. 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 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. WalletHubs editors compared hundreds of credit cards for people with fair credit scores, searching for the top offers in the most popular categories. 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. Many major issuers offer free access to your scores, available once you sign in to your account, along with other budgeting and education tools. As a result, the card offers a potentially generous credit limit that ranges between $300 and $5,000, depending on eligibility. But they may still offer rewards. You'll earn bonus cash back at restaurants and gas stations with no activation required and no rotating categories to keep track of. The issuer automatically reviews your account for potential credit line increases. 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. $105. : ', '}}. . 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. 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. 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. All financial products, shopping products and services are presented without warranty. Both of those numbers are actually a bit higher than the 630-689 range typically used to define "average" credit. You can check out WalletHub to get custom credit improvement advice to help you along the way. In addition, it is not the financial institutions responsibility to ensure all posts and questions are answered.show more show less. WalletHub makes it easy to find the easiest credit cards to get. And if you have more than one need, you can get multiple cards and use the Island Approach. Its worth mentioning that when you have fair credit, getting a credit card with a low APR may not be the best option. WalletHub makes it easy to find the best credit cards for fair credit. 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. There are good credit cards designed for people with fair credit, but you're unlikely to get approved for the best credit cards until you can improve your credit. The Prosper 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. - Business Insider (United States) . Discover will automatically match all the cash back youve earned at the end of your first year! You can be automatically considered for a higher credit limit in as little as six months. Issued by Coastal Community Bank, Member FDIC pursuant to a license by Mastercard International. What We Dont Like:There is a $39 annual fee, and paying the cards bill in full every month is essential, given its high APR. If possible, pay off your balance in full each month. Paul Soucy Feb 27, 2023. 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. A fair credit score is usually defined as any score in the range of 640-699. The ongoing APR is 29.74% Variable APR, which is steep if you plan on carrying a balance. Read our review. These cards can help you if you're just starting out with credit. If you feel you have a case, you can contact the issuer and. What one issuer might see as a score on the low end of the fair credit range, another might consider bad credit. Why We Like It : QuicksilverOne offers 1.5% cash back on all purchases - nearly 50% more than the average cash rewards card provides. 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 The card is well-suited to travel with no foreign transaction fees and the globally accepted Visa network. 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. And college students dont need a credit score, or any credit experience, to get one of Discovers two student credit cards. 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 . Plus, the ongoing APR is on the high end at 29.74% Variable APR. . See what terms you'd qualify for without a hard credit inquiry. Discover it Student Chrome The Discover it Student Chrome is one of the best credit card options available for fair credit students. 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. If you've already built good credit, you can probably score a card with higher rewards than this card offers. Our partners compensate us. Whether you want to pay less interest or earn more rewards, the right card's out there. Please keep in mind that while some offers may come from WalletHub advertising partners, sponsorship status played no role in card selection. We're sorry, but after searching our extensive database, we were unable to locate any credit cards that match the following criteria: {{tag.tag}}{{$last ? '' You can see exactly where you stand and how long it will take to improve bychecking your latest credit score for free on WalletHub. You don't have to be a student to apply for the. Journey Student Rewards from Capital One. Earn 1.5% unlimited cash back on card purchases every time you make a payment. If possible, pay off your balance in full each month. (The card also earns 5% back on hotels and rental cars booked through Capital One Travel. MORE: Credit cards 101: Understanding the basics. Read our review. , issued by WebBank, is an excellent option for those with less-than-perfect credit. The fee is $0 intro with auto pay, then $39 after first year. You can be automatically considered for a higher credit limit in as little as six months. The Upgrade Cash Rewards Visa earns rewards on par with cards for good or excellent credit. The key difference is that this version charges an annual fee while the regular one does not. (You can see and track your score for free through NerdWallet.) Quick Summary. There are good credit cards designed for people with fair credit, but you're unlikely to get approved for the. Compare these deals from our partners to find one that fits your needs. Depending on which offer you qualify for, you could get as much as 1.5% cash back on purchases. 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. 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. Discover it Student chrome: Best feature: Rewards for students. Credit cards for fair or average credit can help you move up to good or excellent credit when you use them responsibly. WalletHub may share your information with third-parties in order to show personalized offers, as well as enable you to interact more easily with pre-fill forms or applications. By clicking "Accept All", you consent to our use of cookies. If youre more than 30 days late, it can start to affect your credit scores. There are some notable restrictions on the Bitcoin rewards you earn, including holding requirements and transaction fees when you sell. Before applying, confirm details on the issuers website. . 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. Find & compare credit cards from Mastercard that offer a higher chance of approval for people with average credit. There's a quick pre-qualification process with no impact to your credit score, modest interest rate and an annual fee of $35 - $99. Comparing credit cards for fair credit can be tough. 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. Just hover your card over a contactless reader, wait for the confirmation, and you're all set. 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. There's a $39 annual fee. Opinions expressed here are the authors alone, not those of an issuer, and have not been reviewed, approved or otherwise endorsed by an issuer. NerdWallet's ratings are determined by our editorial team. Terms apply.) Or you can plan to request a. from your issuer on your own eventually. 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? Still not sure which credit card is best for building credit? Credit scores also take into account how long you've been using credit, so the sooner you can find the right card, the better. What's the minimum credit score needed for Discover cards? The following offers didnt quite make the cut for our editors best-card selections, but they can still save cardholders a lot of money. It also earns up to 10% cash back when you use the card to make purchases with select merchants. You can choose your own due date, which lets you schedule payment for the time of the month that best suits your cash flow. (For example, if you have a $500 credit limit and a $200 balance, then your credit utilization is 40%.) That's important to keep in mind as you work to build a positive credit history, especially if you carry a balance. You can also borrow against your credit limit, much like a personal loan. It also comes with a cool 1.5% cash back on every purchase and an annual fee of . These cards lack the splashy rewards of credit cards for good or excellent credit, but they're a good option for those working to establish or rebuild their credit. (For example, if you have a $500 credit limit and a $200 balance, then your credit utilization is 40%.) 5. 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. Take some time to decide whether you want to prioritize rewards, interest rates, fees or other aspects. What to avoid with credit cards for 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. Its lighter on the fees than some unsecured credit cards for less-than-perfect credit and it offers rewards. 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 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. 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. You can check out the panels bios and responses below. Wallethub doesnt charge for this service. Cardholders' accounts are reviewed for a potential credit line increase every three months. is a great option for people who aren't sure whether their credit is good enough to qualify for a rewards card. 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. (If you go through with applying, then there's a hard check.) Youll also usually keep the same account, often with the same card number, so theres no loss of credit history length. 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 -. What to know before applying for a credit card, , its important to know your credit score. Alternatives to Consider:The Capital One Platinum Credit Card and the Petal 2 Visa Credit Card are both great options to consider. If your credit is at least fair, you can find cards that charge no annual fee at all. The Capital One QuicksilverOne Cash Rewards Credit Card, for example, charges an annual fee of $39. The key difference is that this version charges an annual fee while the regular one does not. a standout for students searching for their first credit card. From huge sign-up bonuses to generous rewards, NerdWallet's best credit cards outshine the rest. A credit card application usually triggers a. on your credit report. Using more than one credit card can help you save by allowing you to get the best terms for every transaction that you make. Can I get a credit card if my credit is fair? It can help you build credit since payments are reported to all three major credit bureaus: TransUnion, Equifax and Experian. These cards have annual fees as low as $0 and report monthly to the 3 major credit bureaus. You can also redeem rewards as a statement credit. Best unsecured cards for short credit histories.