If youre rejected for a credit card, the first thing to do is determine why. There are good credit cards designed for people with fair credit, but you're unlikely to get approved for the. 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. 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. There's a quick pre-qualification process with no impact to your credit score, modest interest rate and an annual fee of $35 - $99. Best Unsecured Credit Cards of March 2023. The issuer automatically reviews your account for potential credit line increases. No annual fee and build your credit with responsible use. At that point, youll probably have a good sense of why you were rejected. Why We Like It:There is no credit check when you apply, so a rocky credit history wont prevent you from getting approved. Banks are required to notify you if you were denied because of information in your credit report. Capital One QuicksilverOne Cash Rewards Credit Card BEST OVERALL RATING 4.5 OVERALL RATING 4.5/5.0 Earn unlimited 1.5% cash back on every purchase, every day 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. With the Capital One QuicksilverOne Cash Rewards Credit Card, youll have the potential to gain access to a higher credit line. Rewards: Rewards arent necessarily a must for credit cards for fair credit, but they are within reach at this range. Quick Summary. Credit cards for fair or average credit can help you move up to good or excellent credit when you use them responsibly. WalletHub makes it easy to find the easiest credit cards to get. What is the average credit score in the U.S.? - Business Insider - Fact Check and Transparency Report (United States) . When you have fair credit, getting the right credit card can be a key step to building a good or excellent credit score. And unlike many of those cards, any unpaid balance is automatically converted into an installment loan with a fixed monthly payment. Capital One Platinum Credit Card at Capital One's secure website FAIR CREDIT RATING 4.7 OVERALL RATING 4.0/5.0 No annual or hidden fees. What's the difference between fair and average credit? gives newcomers to credit a powerful incentive to develop responsible habits. 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. The second-largest factor in your scores, credit utilization is the amount you owe as a percentage of your available credit. Promotion runs from March 1, 2023 to March 31, 2023. 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 if you're approved, you can begin using your credit line immediately no need to wait for the physical card. Please keep in mind that while some offers may come from WalletHub advertising partners, sponsorship status played no role in card selection. Terms apply.) 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. In particular, we focused on cards with low annual fees and high rewards rates, including general-purpose credit cards as well as store credit cards. Compare these deals from our partners to find one that fits your needs. Get pre-approved in seconds with no impact to your credit score. The best cards from this segment include options that let you earn rewards/cash back and ones that do away with annual fees. 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. 1. When you apply for new credit, it's not uncommon to see your scores dip, at least temporarily. And unlike some other cash-back cards, it doesn't allow you to boost your rewards earnings with bonus categories. 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. 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. You may be hit with an annual fee, a lower credit limit or higher interest rates, but some . No annual fees, no foreign transactions fees. When evaluating offers, please review the financial institutions Terms and Conditions. Its always a good idea to shop around before picking out an unsecured credit card for fair credit. 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. A credit card application usually triggers a hard inquiry on your credit report. 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. The card earns a decent rate of up to 10% cash back when you use the card to shop with select merchants. Navy Federal Credit Union Platinum Credit Card *. Cardholders' accounts are reviewed for a potential credit line increase every three months. 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. Or you can plan to request a product change from your issuer on your own eventually. 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. In addition, it is not the financial institutions responsibility to ensure all posts and questions are answered.show more show less. Perhaps most importantly, though, this card will consider applicants with limited-to-fair credit history. Read our review. These companies collect the information used to calculate your credit scores. 1. Bear in mind that not all lenders define fair credit the same way. 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. If you plan to travel internationally, make sure you have a backup plan. 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. 2. Chase doesn't offer credit cards specifically for fair or average credit, but it does have the Chase Freedom Student credit card, which can . The Petal 2 Visa Credit Card is one of the best credit cards for people with fair credit, or even limited credit. 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. Try to put everything into dollar terms. 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. Who Should Get It: Apply for the Capital One Platinum Credit Cardif you want an inexpensive starter card to build credit with. And with a fair credit score, you probably wont get the lowest APR available from any of the low interest credit cards. 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. 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. 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. We also leverage data from the Bureau of Labor Statistics to develop cardholder profiles, used to estimate cards potential savings. Rejection stings, but you can learn from it. If you are charged interest, the charge will be no less than $0.50. You can be automatically considered for a higher credit limit in as little as six months. Doing so also avoids costly late fees. 5. Depending on which offer you qualify for, you could get as much as 1.5% cash back on purchases. It's possible to find some credit cards that offer decent ongoing rewards on common purchases instead of only with select merchants. 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. But you need at least good credit for all the other offers, including Discover it Miles and Discover it Cash Back, two of the most popular options. The OpenSky Secured Visa Credit Card is another great option for people with little to no credit history. $0 annual fee, $0 activation fees, $0 foreign transaction fees. through NerdWallet.) Although the name is a mouthful, this card is an excellent option for people with fair credit. As you work to push your scores into the good-to-excellent range, its important that youre able to track how youre doing. Capital One QuicksilverOne Cash Rewards Credit Card, Petal 1 "No Annual Fee" Visa Credit Card, Best for Cash back earned with select merchants, on Discover's website, or call 800-347-0264, Best for College students and young adults, Best for Prequalification + up to 1.5% cash back, Best for Help for 'less than perfect credit', Upgrade Bitcoin Rewards Visa Credit Card. Try not to carry a balance: Interest rates on credit cards for average credit tend to be on the high side. With the, , youll have the potential to gain access to a higher credit line. The simple way to earn bitcoin: make purchases on your card, make payments, earn bitcoin. The Brex Corporate Card for Startups is one of the best fair-credit credit cards for business. And if you're approved, you can begin using your credit line immediately no need to wait for the physical card. 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. Find & compare credit cards from Mastercard that offer a higher chance of approval for people with average credit. (The card also earns 5% back on hotels and rental cars booked through Capital One Travel. Some even give rewards of 1% or more. Youll also usually keep the same account, often with the same card number, so theres no loss of credit history length. Payment history is the single biggest factor in your credit score, so it's essential to pay your bill on time every month. . The issuer's prequalification process lets you see the offer you're eligible for before you actually apply. 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. 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. 0% intro APR on Purchases for 6 months and 10.99% intro APR on Balance Transfers for 6 months. Instantly access 50% of your credit while your card ships to you. There's a $39 annual fee. This information may be different than what you see when you visit a financial institution, service provider or specific products site. Credit cards for fair credit, sometimes called "average" credit, are aimed at those in the 630-689 FICO score range. Youll also usually keep the same account, often with the same card number, so theres no loss of credit history length. (The typical credit score scale runs from 300 at the low end to a maximum of 850.). You can also borrow against your credit limit, much like a personal loan. ALSO CONSIDER: Best credit cards of 2023 || Best unsecured cards for short credit histories || Best starter cards for no credit || Best rewards credit cards. The annual fee is. . Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 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. OpenSky Secured Visa Credit Card. 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. The Discover it Student chrome shines with its no-maintenance rewards structure and student-friendly bonus categories. And the card doesn't charge foreign transaction fees. Credit scores also take into account how long you've been using credit, so the sooner you can find the right card, the better. is a worthy contender for your wallet as you continue building credit. If you do make a late payment, the card doesn't impose a penalty APR. 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. 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 WalletHubs editors compared hundreds of credit cards for people with fair credit scores, searching for the top offers in the most popular categories. . Who Should Get It:Apply for the OpenSky Secured Visa Credit Card if youre rebuilding from credit damage and want high approval odds. There are some notable restrictions on the Bitcoin rewards you earn, including holding requirements and transaction fees when you sell. Fair 600-699. 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. is a great option for people who aren't sure whether their credit is good enough to qualify for a rewards card. Why We Like It : QuicksilverOne offers 1.5% cash back on all purchases - nearly 50% more than the average cash rewards card provides. Secured credit cards (those requiring a refundable security deposit) are meant for people with bad credit or no credit. 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. 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. As of this writing, the card is unavailable to residents of Iowa, West Virginia, Wisconsin, and Washington, D.C. Our opinions are our own. a standout for students searching for their first credit card. You might be able to get a better card than you think. The card issuer reports details about your account to the major. 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. And the card doesn't charge foreign transaction fees. Our pick for: Rewards for college students. 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. keeps you in debt longer and could ultimately drag down your credit scores. 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 can see and track your credit score for free through NerdWallet. 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. earns rewards on par with cards for good or excellent credit. And unlike many of those cards, any unpaid balance is automatically converted into an installment loan with a fixed monthly payment. So whereas someone with excellent credit might receive a credit . Terms apply, Monitor your credit score with CreditWise from Capital One. You would need to spend $2,600 per year on the card to make that back (not including any 5% travel categories). Free, online credit score access for cardholders. Platinum Credit Card from Capital One , the first thing to do is determine why. Customize Reject All Accept All Customize Consent Preferences Plus, the ongoing APR is on the high end at. 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. 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 , issued by WebBank, is an excellent option for those with less-than-perfect credit. $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. Many or all of the products featured here are from our partners who compensate us. NerdWallet's ratings are determined by our editorial team. No Credit Check. Apply for credit card with fair credit score. Read our review. With a product change, youre not applying for a new account; youre seeking an upgrade to the one youve already got. On top of that, the cards annual fee is $0. Simplicity makes the Discover it Student chrome a standout for students searching for their first credit card. You can also redeem rewards as a statement credit. 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. All financial products, shopping products and services are presented without warranty. 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. 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) ? You can see and track your credit score for free through NerdWallet. The Petal 1 "No Annual Fee" Visa Credit Card is a worthy contender for your wallet as you continue building credit. Why We Like It:The Capital One Platinum Credit Cardhas a $0 annual fee. 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. Making this decision early will help make your search more manageable, by cutting your options in half, in addition to helping you get better terms. The second-largest factor in your scores. Petal's mobile app makes it easy to manage your money, track your spending, and automate payments. By clicking "Accept All", you consent to our use of cookies. 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. Approval Odds are not meant to imply or guarantee that you will be approved by the lender or that credit will be extended. Wallethub doesnt charge for this service. 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 -. A hallmark of cards for fair credit is high interest rates. Alternatives to Consider:There are several really good credit cards for students available right now. 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. Many major issuers offer free access to your scores, available once you sign in to your account, along with other budgeting and education tools. An eventual upgrade path: Ideally, you wont be stuck in the fair credit score range forever, so look for a card that offers a route to improved terms. This card requires a security deposit, which will . Other credit cards may also allow you to change the minimum payment due date to one that better aligns with a direct deposit. might appeal to you. First Progress Platinum Prestige Mastercard Secured Credit Card. shines with its no-maintenance rewards structure and student-friendly bonus categories. This ensures that your on-time payments and other responsible credit habits will be recorded. 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. Some offer rewards, perks, upgrade paths and even 0% introductory APR periods. That will help cardholders build positive credit history, as long as they manage the account responsibly. Roughly 13.5% of people have fair credit, according to WalletHub data. . It earns 1.5% back in the form of Bitcoin when you pay your bill. When you pay in full, you don't get. 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. Credit Score Requirements: Poor 500-599. What are the best unsecured credit cards for fair credit? The Best Credit Cards for Average or Fair Credit of March 2023. Business Insider 8h ago. Pre-qualified offers are not binding. 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. The average person with fair credit is 47 years old and has an annual income of $54,000 per year. The annual fee is $0. But you can achieve that effect with a collection of cards that each excel in a particular area. Upgrade Credit Card is probably your best option overall because of its high cash back rate and no fees. The annual fee is $0. or are working to get back on track. That's a big reason why the term "fair credit" is often used to describe scores in the middle ground between bad and good. Earn 1.5% unlimited cash back on card purchases every time you make a payment. 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. It also comes with a cool 1.5% cash back on every purchase and an annual fee of . 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. Its lighter on the fees than some unsecured credit cards for less-than-perfect credit and it offers rewards. An average credit score wont be enough to qualify for some cards, and a rejection letter can hurt more than just your feelings. Annual fees are the most prominent type of fee to watch out for, but theyre not alone. Paying in full every month also helps keep utilization in check. 'Review' : 'Reviews'}}, . MORE: 11 things you should know before getting your first credit card. Terms apply.) This information may be different than what you see when you visit a financial institution, service provider or specific products site. Foreign transaction fee: 1% of the transaction amount. Enjoy peace of mind with $0 Fraud liability. 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 fee is $0 intro with auto pay, then $39 after first year. Capital One QuicksilverOne Cash Rewards Credit Card (5) Apply Now on Capital One's secure site Rewards Rate 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply) 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 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. 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. Plus, Discover says there's no FICO history requirement for this card. 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. 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. 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. Our partners compensate us. You can check out WalletHub to get custom credit improvement advice to help you along the way. The card is well-suited to travel with no foreign transaction fees and the globally accepted Visa network. -annual-fee option with an incentive for responsible behavior. Credit scores can fluctuate by 100 points in a single month, so graduating to a higher credit level doesnt have to take too long. 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. 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. The Petal 2 Card also offers 1 - 1.5% cash back.