Credit cards for fair credit, often known as “average” credit, are geared at persons with FICO scores ranging from 630 to 689. Because it is an underserved market, the number of such cards is limited, and existing ones do not offer the large sign-up bonuses that a card requiring excellent credit would. However, they may still provide rewards.
These cards help if you’re getting started with credit or getting back on track. High-interest rates are a defining characteristic of fair credit cards. That’s vital to remember while establishing a good credit history, especially if you have a balance.
To grow credit, you must first obtain credit, which can be challenging for borrowers with fair credit. However, credit card options are accessible for those with fair credit. Some are from large financial institutions, while others are from startups. Using these cards properly will improve your credit score.
What Is Fair Or Average Credit?
Your FICO score ranges between 580 and 669 when you have fair or medium credit. This score is significantly higher than someone with low credit or credit-invisible, yet lenders may still consider you a poor borrower. That means your credit report indicates you have a more significant risk of failing on a credit card than someone with solid credit.
Borrowing money is more expensive for subprime borrowers. To offset the risk, lenders generally issue loans and credit cards at higher interest rates.
Best Credit Cards For Fair To Good Credit
Here are some of the finest credit cards for fair to mediocre credit.
1. Citi Double Cash Card.
Pros:
- Cash-back opportunities for average credit borrowers.
- Introductory balance transfer APR allows you to transfer another debt without a fee.
- New customers receive a generous monetary welcome bonus.
- Cash-back can be earned as a statement credit, via electronic deposit, gift cards, or by shopping at partner shops such as Amazon.com, CVS, and Walmart.
Cons:
- No 0% introductory APR on purchases.
While you will not receive top-tier cash-back rewards like those who qualify for cards that require good credit, the Citi Double Cash® Card is not to be overlooked. The 2% cash back potential rewards you for both purchases and payments. It’s an additional incentive for making payments, improving your credit score, and helping you qualify for other credit cards.
Other perks include the Citi Double Cash Card. The “double cash” refers to 2% cash back: 1% when you place the purchase and an additional 1% as you pay. You can also get 5% cash back on some Citi travel reservations.
2. Secured Chime Credit Builder Visa Credit Card.
Pros:
- There is no hard credit check to apply.
- Reports to major credit bureaus.
- There is no predetermined spending restriction; your limit is determined by the amount you deposit into your account.
- There are more than 60,000 free-of-charge ATMs nationwide.
Cons:
- Before applying, you must have a Chime checking account and deposit a minimum of $200.
- There is no way to upgrade to an unsecured card.
A credit check is one of the most common barriers to qualifying for a credit card, but the Secured Chime Credit Builder Visa® Credit Card does not require one. This is a significant deal for anyone who needs a break to start building credit. The key to this card is its unique function as a secured credit card.
You open a Chime Checking account and a protected Chime Credit Builder Visa® Credit Card simultaneously and then transfer funds from your checking account to your protected account. Your Chime credit card’s credit limit equals the amount you deposit in the secured account.
This is an excellent choice for those who don’t want to put down a minimum amount (typically $200 or more) for a secured credit card. The only disadvantage is that when Chime discloses your good credit practices to the credit agencies, you lose the benefit of low credit use as part of your score.
3. The OpenSky® Secured Visa® Credit Card
Pros:
- Reports to the major credit bureaus.
- No credit check is required to apply.
Cons:
- Charges a yearly fee.
People just starting with credit can apply for the OpenSky® Secured Visa® Credit Card. This is because no credit check is required when applying, and you do not need to worry about having any credit history. Your credit limit is determined by the amount of money you deposit into your deposit account, ranging from $200 to $3,000.
The $35 annual fee is a minor disadvantage if you need to establish credit immediately, and your deposit is refunded when you close the card. Other secured credit cards do not have an annual fee, and the OpenSky Secured offers no additional benefits.
4. The OpenSky® Plus Secured Visa® Credit Card
Pros:
- There is no annual charge.
- There is no hard credit pull.
Cons:
- The minimum amount required is higher than for a standard card.
- Higher APR than other OpenSky credit cards.
Unlike the ordinary OpenSky card, the OpenSky® Plus Secured Visa® Credit Card does not require an annual fee. There is still no harsh credit draw as long as you have enough cash to match the higher minimum deposit requirement, and you can avoid the yearly fee.
The OpenSky® Plus Secured Visa® Credit Card also automatically analyzes you for a credit limit increase after six months without requiring you to submit additional funds to your security deposit, and you can pay off your security deposit in installments over 60 days.
5. Capital One Platinum Credit Card.
Pros:
- Review of credit limit increases in as little as 6 months.
- There is no annual charge.
- Credit score and monitoring tools are available for free, without restriction.
Cons:
- There are no awards.
- The APR is high.
Getting a secured or credit-builder card may require you to use it for a period of time—sometimes a year or more—before being eligible to upgrade. The Capital One Platinum Credit Card allows you to boost your credit limit faster than others in as little as 6 months. That’s ideal for people who want to start making more or larger purchases but are hampered by the constraints of these types of cards.
This card also does not require a security deposit, making it a viable alternative for those with credit scores in the “fair” category. However, there aren’t many benefits to having this card besides credit growth, so if your credit is better than fair, you should look into getting an unsecured card that offers rewards or other extras.
6. Avant Credit Cards
Pros:
- A reasonable credit limit for borrowers with fair credit.
- Not a secured card that requires a deposit.
- You can check prequalification without triggering a rigorous credit check.
Cons:
- There is an annual cost to use.
- Higher-than-average yearly percentage rate.
The Avant Credit Card has a significant advantage in that it offers a free pre-check for qualifying, which means you may apply without having to perform a hard credit pull, and your credit score will not suffer.
Furthermore, there is no minimum deposit because it is not a secured credit card. The Avant Credit Card also includes an app that allows you to manage your credit using your phone.
This card has a higher annual fee ($59) and a high-interest rate. It also does not provide any incentives or cash-back. If you have enough money to deposit a secured card, you can save on fees.
How Did We Select The Top Credit Cards?
We analyzed card offers using the following criteria: cards that accept fair or average credit, rewards rates (where applicable), welcome offers, promotional deals, and annual fees.
Finally, we searched for credit cards that provide the best value to clients with fair or average credit, as well as those that can help users improve their credit via responsible use. In all cases, benefits such as consumer protection and travel insurance perks were considered.
1. Choosing The Best Credit Card: Where To Start
Credit cards are all produced or administered in different ways. If you’re looking for your first or new credit card to help increase your credit score, here’s how to get started.
2. Check Your Credit.
Whether you’ve never had a line of credit before or made some mistakes in the past, the first step is to determine what potential credit issuers will see, including verifying your credit score.
AnnualCreditReport.com offers a free credit report from every one of the three major credit bureaus – Transunion, Experian, and Equifax. Use services like Credit Karma to check your credit score for free.
3. See If You Are Eligible.
There is no minimum threshold for all credit cards, so you must check each one individually to see if you are eligible.
Some credit card issuers offer prequalification, while others allow you to submit a complete application without affecting your credit score. Many issuers will tell you what kind of credit you should have before you apply so you save time if you are qualified.
4. Review The Costs And Terms.
Cards make money by charging interest and fees. So, be aware of how you will be charged for using a card. Carrying the debt from month to month incurs interest costs, so if you want to prevent these expenses, pay off your balance each month.
Consider a variety of fees and when they may be incurred. For example, is there an annual cost for using the card? How about a late payment fee? Some issuers charge you a fee immediately if you miss a payment, while others wait a few days.
In conclusion, your financial goals and credit position heavily influence deciding on the best credit card for fair to good credit. Whether you want to earn rewards, improve credit, or avoid costs, there is a card for you. Always analyze the fees, interest rates, and perks, and remember that responsible use is essential for increasing your credit score.
Thank you for reading…
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