What's the difference between fair and average credit? Customize Reject All Accept All Customize Consent Preferences 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. Minimum interest charge: no less than $1.00 (ME residents no more than $0.50). Try to put everything into dollar terms. 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 also has a $35 annual fee. There's also Discover's signature bonus for new cardholders. An average credit score wont be enough to qualify for some cards, and a rejection letter can hurt more than just your feelings. 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. Enjoy peace of mind with $0 Fraud liability. Our pick for: Cash back with select merchants, Our pick for: Prequalification + up to 1.5% cash back, Our pick for: Help for 'less than perfect credit', Our pick for: College students and young adults. Terms apply.) And unlike some other cash-back cards, it doesn't allow you to boost your rewards earnings with bonus categories. 10 Best Credit Cards for Fair Credit - Due Although there's no foreign transaction fee, Discover isnt as widely accepted abroad as other cards. See what terms you'd qualify for without a hard credit inquiry. NerdWallet's ratings are determined by our editorial team. It depends on personal preference as well as your credit standing and organizational skills. Credit cards 101: Understanding the basics, How a credit card helps you improve fair credit, to good or excellent credit when you use them responsibly. Although the name is a mouthful, this card is an excellent option for people with fair credit. And unlike many of those cards, any unpaid balance is automatically converted into an installment loan with a fixed monthly payment. You earn cash back on every purchase, but when you pay your bill on time, the cash-back rate for that month gets a boost. But you can achieve that effect with a collection of cards that each excel in a particular area. Both of those numbers are actually a bit higher than the 630-689 range typically used to define "average" credit. The 1.5% rewards rate is on par with that offered by many cards for good or excellent credit. Many or all of the products featured here are from our partners who compensate us. Credit Cards vs. Debit Cards: What's the Difference? - Investopedia We also leverage data from the Bureau of Labor Statistics to develop cardholder profiles, used to estimate cards potential savings. The second-largest factor in your scores, credit utilization is the amount you owe as a percentage of your available credit. Read review. . Best Credit Cards for Fair or Average Credit of March 2023 Compare these deals from our partners to find one that fits your needs. 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. Capital One . Debit cards allow you to spend money by drawing on funds you have deposited at the bank. At that point, youll probably have a good sense of why you were rejected. 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 best credit cards for people with fair credit scores of 640-699 come with $0 annual fees, rewards of at least 1% back on purchases and monthly credit-bureau reporting, making it easy to build credit and save money. A single "hard pull" can cause a temporary dip in your scores, but if you're continually applying for the wrong cards and being rejected, the damage can be much worse. It only has a $39 annual fee and gives you at least 1.5% cash back on every purchase. Capital One QuicksilverOne Cash Rewards Credit Card, Capital One SavorOne Student Cash Rewards Credit Card, First Tech Choice Rewards World Mastercard, Milestone Mastercard - Less Than Perfect Credit Considered, {{(bank.reviews == 1) ? 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. (The typical, runs from 300 at the low end to a maximum of 850.). What are the most important things to look for in a fair-credit credit card? $0 annual fee, $0 activation fees, $0 foreign transaction fees. The annual fee is. That's important to keep in mind as you work to build a positive credit history, especially if you carry a balance. John Kiernan has covered the credit card industry for more than 10 years as a writer and editor for WalletHub. The average FICO credit score in the United States in 2022 was 716, according to the company that manages the FICO scoring model. Another good unsecured card for fair credit is the Petal 2 Visa Credit Card. 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. Chase doesn't offer credit cards specifically for fair or average credit, but it does have the Chase Freedom Student credit card, which can . offers a solid ongoing rewards rate: You earn unlimited 1.5% cash back on purchases. What We Dont Like:There is a $39 annual fee, and paying the cards bill in full every month is essential, given its high APR. A fair credit score is usually defined as any score in the range of 640-699. It also comes with a cool 1.5% cash back on every purchase and an annual fee of . If you plan to travel internationally, make sure you have a backup plan. We're sorry, but after searching our extensive database, we were unable to locate any credit cards that match the following criteria: {{tag.tag}}{{$last ? '' doesnt only rely on credit scores to determine eligibility. Why We Like It:There is no credit check when you apply, so a rocky credit history wont prevent you from getting approved. Experian, Equifax and TransUnion are the three major bureaus that compile the credit reports that inform your credit scores. Capital One Platinum Credit Card FAIR CREDIT RATING Earn 1% cash back on all your purchases. 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. The Petal 1 "No Annual Fee" Visa Credit Card doesnt offer this option. When you pay in full, you don't get charged interest and cards for fair credit tend to have high interest rates. There is a fine line between fair credit and good credit. If you like what you see, you can apply, at which point there will be a "hard" credit pull. Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. You can see exactly where you stand and how long it will take to improve bychecking your latest credit score for free on WalletHub. 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. NerdWallet's ratings are determined by our editorial team. Paying in full every month also helps keep utilization in check. if the card offers enough rewards and benefits to outstrip the cost of carrying it. With fair credit, you wont be eligible for the highest-end credit cards but good cards are still available at this level. The simple way to earn bitcoin: make purchases on your card, make payments, earn bitcoin. Standard message rates apply. Read our review. 1. The annual fee is $0. MORE: 11 things you should know before getting your first 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. This ensures that your on-time payments and other responsible credit habits will be recorded. Approval Odds are WalletHub estimates intended to gauge your likelihood of approval for a particular product. When you apply for new credit, it's not uncommon to see your scores dip, at least temporarily. Best Credit Cards for Fair Credit in February 2023 | LendingTree People with fair credit are riskier applicants; and because of this higher risk, you might receive a credit card with a lower limit. You want your scores to go up, not down. Yes, you can get a credit card if you have fair credit. Quick Summary. The key difference is that this version charges an annual fee while the regular one does not. 10 Best Credit Cards for Fair Credit with High Limits So you could turn $50 cash back into $100. Foreign transaction fee: 1% of the transaction amount. 'Review' : 'Reviews'}}, . Best Credit Cards for Fair/Average Credit of March 2023 - Bankrate Opinions expressed here are the authors alone, not those of an issuer, and have not been reviewed, approved or otherwise endorsed by an issuer. FULL LIST OF EDITORIAL PICKS: There are some notable restrictions on the Bitcoin rewards you earn, including holding requirements and transaction fees when you sell. Some may have slightly lower standards, for example, starting the fair credit range as 620 and ending it at 659. The best credit cards for fair credit are ones that you may qualify for with a FICO score of 580 to 689. Best Credit Cards - NerdWallet Credit utilization. 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. Credit One Bank Platinum Visa for Rebuilding Credit, Capital One Quicksilver Secured Cash Rewards Credit Card, Bank of America Travel Rewards Credit Card for Students. The following offers didnt quite make the cut for our editors best-card selections, but they can still save cardholders a lot of money. On top of that, the cards annual fee is $0. is a great option for people who aren't sure whether their credit is good enough to qualify for a rewards card. It earns 1.5% back in the form of Bitcoin when you pay your bill. Best Credit Cards for Fair Credit | CompareCards.com What's the minimum credit score needed for Discover cards? 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. Bear in mind that not all lenders define fair credit the same way. Promotion runs from March 1, 2023 to March 31, 2023. 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. Why this is one of the best credit cards for fair credit: When you pay this card on time, you can boost your cash back earnings. 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. No Credit Check. It can help you build credit since payments are reported to all three major credit bureaus: TransUnion, Equifax and Experian. You can choose your own due date, which lets you schedule payment for the time of the month that best suits your cash flow. Its lighter on the fees than some unsecured credit cards for less-than-perfect credit and it offers rewards. The card earns a decent rate of up to 10% cash back when you use the card to shop with select merchants. 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. Credit cards for fair or average credit can help you move up to good or excellent credit when you use them responsibly. At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products. WalletHub experts track 1,500+ offers to help you get the right credit card for average credit, By John Kiernan, Credit Card Editor Feb 27, 2023, Fact Checked: Alina Comoreanu, Sr. No annual fees, no foreign transactions fees. Therefore, you typically dont have to worry about a hard pull on your credit report. , which is steep if you plan on carrying a balance. Alternatives to Consider: The First Progress Platinum Elite Mastercard Secured Credit Card is another option with no credit check. Credit cards for fair credit target consumers with FICO scores between 580 and 669. 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. That's a big reason why the term "fair credit" is often used to describe scores in the middle ground between bad and good. 1. Other credit cards may also allow you to change the minimum payment due date to one that better aligns with a direct deposit. 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 the Capital One QuicksilverOne Cash Rewards Credit Card, youll have the potential to gain access to a higher credit line. These companies collect the information used to calculate your credit scores. Mobile app to access your account anytime, anywhere. 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. If you've already built good credit, you can probably score a card with higher rewards than this card offers. Plus, the ongoing APR is on the high end at 29.74% Variable APR. 2. 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. 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. Youll also usually keep the same account, often with the same card number, so theres no loss of credit history length. We believe everyone should be able to make financial decisions with confidence. 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. Best for cash back: Capital One QuicksilverOne Cash Rewards Credit Card. 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. If youre a few days late, youll likely owe a late fee. Ideally, you wont be stuck in the fair credit score range forever, so look for a card that offers a route to improved terms. 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. That's because this entry-level card doesn't charge an annual fee or foreign transaction fees. Annual fee of $0. Access your account anytime, anywhere with our mobile app. NerdWallet strives to keep its information accurate and up to date. There's a $39 annual fee. Why dont more banks and credit unions offer credit cards to people with fair credit? You can see and track your credit score for free through NerdWallet.