Best Credit Cards for Fair or Average Credit of March 2023 What's the difference between fair and average credit? . The Petal 1 "No Annual Fee" Visa Credit Card is a worthy contender for your wallet as you continue building credit. Both of those numbers are actually a bit higher than the 630-689 range typically used to define "average" credit. (Unlike with Discover's other student card, you don't have to "activate" your bonus rewards.) And if you're approved, you can begin using your credit line immediately no need to wait for the physical card. earns rewards on par with cards for good or excellent credit. There is a fine line between fair credit and good credit. Some Discover offers listed here are not currently available on WalletHub and may be out of date. You also get a free FICO score, low fees, and forgiveness for your first late payment. 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. As you work to push your scores into the good-to-excellent range, its important that youre able to track how youre doing. The Petal 2 Card also offers 1 - 1.5% cash back. See what terms you'd qualify for without a hard credit inquiry. Navy Federal Credit Union Platinum Credit Card *. The issuer automatically reviews your account for potential credit line increases. When you apply for new credit, it's not uncommon to see your scores dip, at least temporarily. Disclaimer: NerdWallet strives to keep its information accurate and up to date. So if you havent checked your credit score in a while, make sure to do so before applying. 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. No annual or hidden fees. Annual fees are the most prominent type of fee to watch out for, but theyre not alone. The best credit cards for fair credit can be a great tool in helping to build or rebuild your credit score. See what terms you'd qualify for without a hard credit inquiry. Best Unsecured Credit Cards for Fair Credit of March 2023 The higher your credit score on either model's scale, the more creditworthy you may appear to potential lenders. Top credit cards for fair credit in Canada Compare credit cards for fair credit by category Top regular rate cashback card: Neo Financial Mastercard Credit recommended (600-) Apply now on Neo Financial's secure site 600 Min. You can check out the panels bios and responses below. If you're crypto-crazy, or just crypto-curious, the. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. If youre more than 30 days late, it can start to affect your credit scores. Best Credit Cards for Fair Credit | NextAdvisor with TIME But they may still offer rewards. 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. Terms apply.) The Journey Student Rewards from Capital One gives newcomers to credit a powerful incentive to develop responsible habits. Opinions expressed here are the authors alone, not those of an issuer, and have not been reviewed, approved or otherwise endorsed by an issuer. and cards for fair credit tend to have high interest rates. Best High-Limit Credit Cards for March 2023 - CNET Doing so also avoids costly late fees. Petals algorithm looks beyond credit scores by analyzing your bank information to determine how you manage income, savings and spending. The issuer's prequalification process lets you see the offer you're eligible for before you actually apply. 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. 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. Best Credit Cards for Fair/Average Credit March 2023 - Credit Karma Enjoy peace of mind with $0 Fraud liability. 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. There's a quick pre-qualification process with no impact to your credit score, modest interest rate and an annual fee of $35 - $99. Alternatives to Consider:There are several really good credit cards for students available right now. You'll earn bonus cash back at restaurants and gas stations with no activation required and no rotating categories to keep track of. 7 Best Credit Cards for a 600 Credit Score (With Approval Odds) - AllCards.com We value your privacy We use cookies to enhance your browsing experience, serve personalized ads or content, and analyze our traffic. If youre a few days late, youll likely owe a late fee. Mobile app to access your account anytime, anywhere. (The card also earns 5% back on hotels and rental cars booked through Capital One Travel. . On top of that, the cards annual fee is $0. 2023's Best Airline Credit Cards for Fair Credit - WalletHub . The average person with fair credit is 47 years old and has an annual income of $54,000 per year. Capital One Platinum Credit Card FAIR CREDIT RATING 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. If possible, pay off your balance in full each month. 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. It also earns up to 10% cash back when you use the card to make purchases with select merchants. Roughly 13.5% of people have fair credit, according to WalletHub data. And the card doesn't charge foreign transaction fees. Best Credit Cards of March 2023; Best Gas Credit Cards; Best Travel Credit Cards; Best Balance Transfer Credit Cards; Best 0% APR Credit Cards; Best Cash Back Credit Cards; If you still arent approved, it may be a sign you need to work on your credit scores before applying again. credit score $0 Annual fee Up to 4% Cash back Get $25.00 Welcome offer Info Pros & Cons Details What are the easiest credit cards to get approved for? There are no rewards. An average credit score wont be enough to qualify for some cards, and a rejection letter can hurt more than just your feelings. 10 Best Credit Cards for Fair Credit - Due You can be automatically considered for a higher credit limit in as little as six months. Dont settle: With fair credit, you wont be eligible for the highest-end credit cards but good cards are still available at this level. is the amount you owe as a percentage of your available credit. The Capital One Platinum Credit Cardis the best credit card for fair credit overall. 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). 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 issuer automatically reviews your account for potential credit line increases. 5. Free, online credit score access for cardholders. 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. What to avoid with credit cards for fair credit. The card still reports account info to the major credit bureaus each month, though, so its a pretty dependable tool for building credit. Dont pay late: Make at least the minimum payment, and do so on time each month. 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. Conversely, a higher score that one issuer still sees as fair credit might qualify as good credit to a different issuer. Its lighter on the fees than some unsecured credit cards for less-than-perfect credit and it offers rewards. Virgin Atlantic Flying Club: Get a . There's also Discover's signature bonus for new cardholders. 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. (The typical, runs from 300 at the low end to a maximum of 850.). Terms apply.) Alternatives to Consider: The First Progress Platinum Elite Mastercard Secured Credit Card is another option with no credit check. The annual fee is $0. 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 . You increase your odds of approval when you apply for a card. These companies collect the information used to calculate your credit scores. Credit Cards for Fair Credit: Ultimate Guide | Credit.com 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. 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. Before applying for a credit card, its important to know your credit score. Why We Like It:The Capital One Platinum Credit Cardhas a $0 annual fee. Best Balance Transfer Card For Fair Credit - CNBC You might not qualify for 1.5% cash back. 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. 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. 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. Best Balance Transfer Cards For Fair Credit Of March 2023 Some rewards-earning options are listed above. When evaluating offers, please review the financial institutions Terms and Conditions. Best Credit Cards for Fair Credit in February 2023 | LendingTree Get started with your free credit score. These cards can help you if you're just starting out with credit. With the, , youll have the potential to gain access to a higher credit line. Although there's no foreign transaction fee, Discover isnt as widely accepted abroad as other cards. We also leverage data from the Bureau of Labor Statistics to develop cardholder profiles, used to estimate cards potential savings. 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 -. 2. WalletHub makes it easy to find the easiest credit cards to get. You may be hit with an annual fee, a lower credit limit or higher interest rates, but some . There are some notable restrictions on the Bitcoin rewards you earn, including holding requirements and transaction fees when you sell. When you pay in full, you don't get charged interest and cards for fair credit tend to have high interest rates. Actual terms may vary. 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. Or turn $100 into $200. Read review. -annual-fee option with an incentive for responsible behavior. 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. Get Your Credit Life Started With These 5 Credit Cards Unlike other sites that only promote cards they're paid by, WalletHub's editors focus on finding the best cards. That's pretty good for a student card. Does each credit card company define "fair" credit the same way? Be automatically considered for a higher credit line in as few as 7 months. When you pay in full, you don't get. Cardholders' accounts are reviewed for a potential credit line increase every three months. 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. Answer provided by user: Milvionne Chery Copeland, JD, LL.M., MBA, Director of Accountancy, Assistant Chair of Accountancy and Law and Assistant Professor of Accountancy and Law, School of Business, Eastern Illinois University, Ph.D., Assistant Professor of Finance, College of Business, University of Colorado Colorado Springs, CFP(R), ChFC(R), AIF(R), Lecturer, David Nazarian College of Business and Economics, California State University, Northridge, Assistant Professor of Finance, University of Alabama in Huntsville, Distinguished Professor of Finance, Goldyne and Irwin Hearsh Chair in Money and Banking, University of California, Los Angeles Anderson School of Management, Ph.D., Assistant Professor of Economics, Department of Finance and Economics, Wall College of Business Administration, Coastal Carolina University, Our picks for the best credit cards for fair credit in 2023, Tips for finding the best credit cards for fair credit, How we picked the best credit cards for fair credit, First Progress Platinum Elite Mastercard Secured Credit Card, check your latest credit score for free on WalletHub, checking your latest credit score for free on WalletHub, Credit Cards for Fair Credit with Instant Approval, High Limit Credit Cards for Average Credit, Credit Cards for Fair Credit with No Deposit, Do Not Sell or Share My Personal Information, Qualify with limited or no credit history, Available to people with bad credit, even after bankruptcy, Available to people with limited or fair credit. 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. And unlike with those cards, any unpaid balance is automatically converted into an installment loan with a fixed monthly payment. 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. It can help you build credit since payments are reported to all three major credit bureaus: TransUnion, Equifax and Experian. The average FICO credit score in the United States in 2022 was 716, according to the company that manages the FICO scoring model. Youll also usually keep the same account, often with the same card number, so theres no loss of credit history length. The second-largest factor in your scores, credit utilization is the amount you owe as a percentage of your available credit. The only way to know exactly what you'll get is to go through prequalification. 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. You might be able to get a better card than you think. You can also borrow against your credit limit, much like a personal loan. These cards can help you if you're just starting out with credit or are working to get back on track. The annual fee is $0. Who Should Get It:Consider applying for the Capital One SavorOne Student Cash Rewards Credit Card if youre a college student with limited to fair credit whose spending habits match up well with the cards rewards. At that point, youll probably have a good sense of why you were rejected. You also have to use that card responsibly, by paying the bill on time every month and not maxing out your credit limit. See if you qualify in minutes without hurting your credit score. 11 things you should know before getting your first credit card, How to choose a credit card for fair credit. If possible, pay off your balance in full each month. 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. Approval Odds are based on WalletHub data and are not provided or endorsed by the lender. If you still arent approved, it may be a sign you need to work on your credit scores before applying again. The Upgrade Cash Rewards Visa earns rewards on par with cards for good or excellent credit. , which is steep if you plan on carrying a balance. Let Bankrate, a leader . If you like what you see, you can apply, at which point there will be a "hard" credit pull. 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. 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. FULL LIST OF EDITORIAL PICKS: There are good credit cards designed for people with fair credit, but you're unlikely to get approved for the. $0 annual fee, $0 activation fees, $0 foreign transaction fees. $39. A credit card application usually triggers a hard inquiry on your credit report. Why We Like It:There is no credit check when you apply, so a rocky credit history wont prevent you from getting approved. Instead, it assesses your creditworthiness based on your income, expenses, savings and debts. 1. The fee is $0 intro with auto pay, then $39 after first year. . Who Should Get It: Apply for the Capital One Platinum Credit Cardif you want an inexpensive starter card to build credit with. Using these cards responsibly helps you improve your credit score, so you can then look for cards with better perks. Heres the minimum credit score needed for each Discover card: There arent any Discover cards that flat-out require excellent credit, currently. gives newcomers to credit a powerful incentive to develop responsible habits. 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. Both can make it easy and convenient to make purchases in stores or online, with one key difference. 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. Numerous credit card applications in a short period of time can hurt your credit score, and having too many credit cards can lead to overspending, expensive interest charges, missed payments and credit score damage. No touch payments with contactless technology built in. There's a $39 annual fee. Pretty much all credit cards for fair credit are unsecured, though. You increase your odds of approval when you apply for a card tailored for your score range. Minimum interest charge: no less than $1.00 (ME residents no more than $0.50). 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. This reporting affects key elements of your scores: Payment history. Credit . 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. U.S. News' Best Credit Cards for Fair Credit of 2022 | U.S. News 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. (You can see and track your score for free through NerdWallet.) Other credit cards may also allow you to change the minimum payment due date to one that better aligns with a direct deposit. , issued by WebBank, is an excellent option for those with less-than-perfect credit. 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. Best Credit Cards for Fair Credit, 2022 - Joy Wallet Foreign transaction fee: 1% of the transaction amount. With the Capital One QuicksilverOne Cash Rewards Credit Card, youll have the potential to gain access to a higher credit line. 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. By clicking "Accept All", you consent to our use of cookies. The OpenSky Secured Visa Credit Card is another great option for people with little to no credit history. Try not to carry a balance: Interest rates on credit cards for average credit tend to be on the high side. Click through to Discovers website to see terms and conditions. Credit mix. keeps you in debt longer and could ultimately drag down your credit scores. 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. At that point, youll probably have a good sense of why you were rejected. (The card also earns 5% back on hotels and rental cars booked through Capital One Travel. Just a dollar-for-dollar match. All financial products, shopping products and services are presented without warranty. Theres a 0% foreign transaction fee, too. 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 are charged interest, the charge will be no less than $0.50. And if you have more than one need, you can get multiple cards and use the Island Approach. 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. Capital One Platinum Credit Card. MORE: 11 things you should know before getting your first credit card. You may also qualify for better terms with a traditional personal loan, depending on your financial situation. This information may be different than what you see when you visit a financial institution, service provider or specific products site. 1. Zero fraud liability (which offers protection against unauthorized purchases). You don't have to be a student to apply for the. Here is a list of our partners and here's how we make money. Annual Percentage Rate (APR) for purchases: 23.49% - 34.49% variable based on Prime Rate. So pay your bill on time every month, dont max out your spending limit and track your credit scores progress over time to see when youre ready for an upgrade. With responsible use, you can be considered for a higher credit line in as little as six months. Credit cards for fair credit are credit cards for people with credit scores from 640 to 699 who are building credit from scratch or rebuilding their credit after mistakes. You may qualify for better terms with a traditional personal loan, depending on your financial situation. 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. People with fair credit are riskier applicants; and because of this higher risk, you might receive a credit card with a lower limit. Fair 600-699. In addition, it is not the financial institutions responsibility to ensure all posts and questions are answered.show more show less. Ideally, you wont be stuck in the fair credit score range forever, so look for a card that offers a route to improved terms. You can get the Discover it Secured Credit Card with a bad credit score (below 640). Discover it Student chrome: Best feature: Rewards for students. We believe everyone should be able to make financial decisions with confidence. 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. Credit cards for fair credit, sometimes called "average" credit, are aimed at those in the 630-689 FICO score range. Finally, if you want to make things really easy, just sign up for a free WalletHub account. What is the average credit score in the U.S.? Can I get a credit card if my credit is fair? 14 Credit Cards for "Fair" Credit (2023) - BadCredit.org If you don't like the offer, walk away with no harm done. If your credit is at least fair, you can find cards that charge no annual fee at all. (The typical credit score scale runs from 300 at the low end to a maximum of 850.). Read our review. Approval Odds are not meant to imply or guarantee that you will be approved by the lender or that credit will be extended. 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. Experian, Equifax and TransUnion are the three major bureaus that compile the credit reports that inform your credit scores. Customize Reject All Accept All Customize Consent Preferences Editorial and user-generated content on this page is not provided, commissioned, reviewed, approved or otherwise endorsed by any issuer. $105. Credit scores also take into account how long you've been using credit, so the sooner you can find the right card, the better. 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 This information may be different than what you see when you visit a financial institution, service provider or specific products site. Try to put everything into dollar terms. . The lower your utilization, the better; is a good benchmark. 2023's Best Credit Cards for Fair Credit | SmartAsset.com Plus, earn unlimited 1% cash back on all other purchases automatically. 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. And unlike many of those cards, any unpaid balance is automatically converted into an installment loan with a fixed monthly payment. Length of credit history. 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. We encourage everyone to share their knowledge while respecting our, Answer provided by user: {{ans.user_fullname}}. 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. 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. But you can achieve that effect with a collection of cards that each excel in a particular area. Do not sell or share my personal information, Earn unlimited 1.5% cash back on every purchase, every day, No rotating categories or limits to how much you can earn, and cash back doesn't expire for the life of the account.