Best credit cards for fair/average credit: Editorial reviews
If you want a card with a solid rewards program, the Capital One QuicksilverOne Cash Rewards Credit Card is a great option. You’ll earn 1.5% cash back for every purchase you make.
If you want a no-fee card, this might not be the best option as the card comes with an annual fee of $39.
Notable perks: Up to 6 months of complimentary Uber One membership statement credits through 11/14/2024, $0 fraud liability, higher credit line consideration after 6 months.
The Chime Credit Builder Secured Visa® Credit Card doesn’t run a credit check, so it’s easy to get approved even if you have no or low credit. However, you’ll need to open a Chime Checking Account and set up a direct deposit of at least $200 — which could be a hassle if your direct deposits already go to a different bank account.
Notable perks: No annual fee or APR, no minimum security deposit, easy qualification, safer credit building
▶︎ Read more: Chime Credit Builder review
The Capital One SavorOne Student Cash Rewards Credit Card is open to accepted and enrolled college students. It offers 3% cash back on entertainment, grocery store and restaurant purchases, meaning this card is a great choice if your expenditures fall into these categories.
If your spending is more varied, consider a different student option — other purchases earn just 1% cash back. Spend $100 within the first three months, and you’ll also get a $50 cash bonus as a nice perk.
Notable perks: No foreign transaction fee, up to 6 months free Uber One membership, $0 fraud liability
▶︎ Read more: Capital One SavorOne Student card review
Looking to reduce fees while you build credit? The Capital One Platinum Credit Card has no annual fee. It has a variable annual percentage rate (APR) of 29.99%, however, so you can save on interest charges by paying down the balance each month. Responsible users may also get a credit line increase as early as 6 months in.
Notable perks: No foreign transaction fees, potentially high credit limit, doesn’t require a security deposit, automatic credit line reviews
▶︎ Read more: Capital One Platinum review
Most secured cards don’t earn rewards, but the Capital One Quicksilver Secured Cash Rewards Credit Card breaks the mold; all purchases earn 1.5% cash back.
You’ll need to put up a minimum $200 security deposit to open the card, making it a poor choice if the budget is tight, but Capital One will conduct automatic credit line reviews and reward you with a higher limit if your usage is responsible.
Notable perks: Up to 6 months of complimentary Uber One membership statement credits through 11/14/2024, no foreign transaction fees, $0 fraud liability
If you have at least $300 for a security deposit, the OpenSky® Plus Secured Visa® Credit Card is worth considering. It doesn’t require a credit check, and you’ll earn cash-back rewards at a rate of up to 10%.
Deposit up to $3,000 in total to increase your credit limit accordingly. If $300 is too steep, the Chime Credit Builder might be a viable alternative.
Notable perks: No annual fee, possible high-value rewards, can qualify with no credit history
What is fair credit?
For FICO®, a fair credit score falls between 580 and 669, although each credit bureau uses its own standards. Since credit scores typically range from 300 to 850, fair credit puts you right in the middle of the spectrum. However, when you’re applying for the best credit cards, it’s usually considered a low score.
What causes fair credit?
You might have a fair credit score if you’re new to credit or you have negative marks on your credit report, such as late payments, accounts sent to collections or defaulted loans. A high credit utilization rate can also reduce your credit score.
How fair credit can impact you
If your credit score is considered fair, it can be challenging to get approved for credit cards, loans and other types of financing. That’s because lenders see you as more of a risk than borrowers with higher scores. The good news? With responsible use, the best cards for fair credit can help you build a better credit score.
The importance of good credit
A good credit score makes it easier to get credit cards with higher limits, lower interest rates, generous welcome bonuses and valuable perks and rewards. You’ll also have an easier time getting personal loans, business loans and financing for auto and home purchases.
Good credit can even improve your chances of getting a job. If you’re planning to rent an apartment, you’ll likely need a solid credit score to get approved, and a higher score could result in a lower security deposit.
What is a credit card for fair credit?
Credit cards for fair credit offer a more relaxed eligibility criteria than traditional credit cards. You may be able to get approved even if you have no credit or a low score. These cards are designed to help you build better credit, as long as you make payments on time and avoid maxing out the card limit.
Expect the best fair credit cards to have relatively low credit limits and high annual percentage rates (APR). In other words, you’ll be paying more to use credit.
Who should get a credit card for fair credit?
You should consider applying for a credit card for OK or fair credit if your credit score is between 580 and 669, and you’re looking for a way to increase it. It can also help you establish a credit history if you’re a student or simply never used credit before.
With responsible and regular use, the card can boost your score and help you qualify for higher-tier cards. There are many starter credit cards available to begin building credit if you have no credit history.
Pros and cons of credit cards for fair credit
Types of credit cards for fair credit
There are a few types of credit cards you can choose from if your credit score falls into the fair category:
- Traditional. These cards use a traditional model; you apply, and if you’re approved, you receive a card with a credit limit. You can charge up to that limit, and you’ll pay interest on the balance.
- Secured. If your credit is on the lower end of the spectrum, a secured card might be your best bet. You’ll make a security deposit, and the card issuer will determine your credit limit. Depending on the issuer, it might be the amount of the deposit or another amount. These cards don’t usually require a credit check.
- Student. Student credit cards are available if you’re enrolled in or accepted to an accredited university. They often have lower credit score requirements.
How to choose a credit card when you have fair credit
As you decide between the best credit cards for fair credit, consider the following factors.
Annual fee
If the card has an annual fee, make sure you can afford it easily. Most credit card issuers simply add that fee to your balance each year without advance notice, so it’s important to have enough available credit to cover the full amount. A low or no annual fee card is best; however, you might need to pay a fee to get a card with rewards and other perks.
APR
The APR tells you how much you’ll pay in interest for using your credit card. The higher the rate, the more expensive it is to carry a balance. In general, credit cards for fair credit have higher APRs than cards for people with good or excellent credit.
Rewards
Some of the best rewards credit cards for average credit come with rewards programs that let you earn miles, points or cash back for eligible purchases. When your main goal is to build your credit, a rewards program isn’t a deal-breaker — however, it can be a nice perk if you’re planning to make regular purchases using the card.
Benefits
As you’re comparing cards, take a look at the benefits.
Common extras include:
- Travel insurance
- Rental car insurance
- Free credit score monitoring
- Discounts on online shopping
- Travel portal deals
Like rewards, benefits are nice perks but not necessary.
How to apply for a credit card for fair credit
Applying for a credit card designed for fair credit is quick and easy; the process usually takes only a few minutes.
Here’s what you can expect:
- Provide personal information, such as your name, address, Social Security number and contact details.
- Enter employment and income details.
- Submit the application for a quick decision.
For secured credit cards, you’ll need to connect an external bank account to make a security deposit. It may take a couple of weeks to receive the physical card.
Is a credit card for fair credit worth it?
A credit card for fair credit can be worth it if you want to improve your credit score or you’re looking to establish a credit history.
To maximize the positive impact of using your credit, take care to:
- Minimize your credit utilization.
- Pay off the balance each month.
- Make payments on time.
Alternatives to a credit card for fair credit
A credit card isn’t the only way to manage your finances. Not sure you’re able to use a credit card responsibly? Consider looking into these other options; late or unpaid payments can reduce your score leaving you with bad credit score, making it more difficult to access credit in the future.
Debit card
A debit card allows you to withdraw cash from ATMs and make purchases online and in person; you can also add it to a digital wallet such as Apple Pay to access tap-to-pay capabilities. Your spending power is limited to the amount of money you have available in the account, which is helpful if you struggle with credit.
Arranged overdraft
An arranged overdraft is an overdraft limit that your bank agrees to in advance. It allows you to make purchases that exceed the balance in your account, up to a certain amount. You’ll need to pay it off, of course, and usually with added interest.
This type of overdraft gives you some wiggle room when bills are due or you have an unexpected expense, but you don’t yet have the funds to cover it.
Buy now, pay later
A buy now, pay later agreement is an arrangement where you make a purchase with the promise to pay off the balance in increments. Typically, you’ll pay for a portion of the full purchase price upfront; the bank will charge the remaining payments automatically.
It’s effectively a short-term loan but usually doesn’t come with interest charges. This service is offered by third-party lenders including Klarna and Affirm.
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