Credit utilization. . 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. The lower your utilization, the better; is a good benchmark. Try not to carry a balance: Interest rates on credit cards for average credit tend to be on the high side. With responsible use, you can be considered for a higher credit line in as little as six months. You can also redeem rewards as a statement 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. You don't have to be a student to apply for the Journey Student Rewards from Capital One, making it a good option for someone with average credit. 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. It's important to note that definitions of credit score ranges can differ from one card issuer to the next. You can also borrow against your credit limit, much like a personal loan. 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. It also earns up to 10% cash back when you use the card to make purchases with select merchants. There's also Discover's signature bonus for new cardholders. Who Should Get It: Apply for the Capital One Platinum Credit Cardif you want an inexpensive starter card to build credit with. Credit Score Requirements: Poor 500-599. Fair credit, also referred to as "average" credit, is a step up from bad credit but a notch below good credit. You would need to spend $2,600 per year on the card to make that back (not including any 5% travel categories). You can be automatically considered for a higher credit limit in as little as six months. Our pick for: Crypto rewards + flexibility. Our opinions are our own. 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. That's a big reason why the term "fair credit" is often used to describe scores in the middle ground between bad and good. 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. Get started with your free credit score. There's a quick pre-qualification process with no impact to your credit score, modest interest rate and an annual fee of $35 - $99. 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. is a great option for people who aren't sure whether their credit is good enough to qualify for a rewards card. 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. Its lighter on the fees than some unsecured credit cards for less-than-perfect credit and it offers rewards. Minimum interest charge: no less than $1.00 (ME residents no more than $0.50). 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. You may be hit with an annual fee, a lower credit limit or higher interest rates, but some . Promotion runs from March 1, 2023 to March 31, 2023. The fee is. Dont settle: With fair credit, you wont be eligible for the highest-end credit cards but good cards are still available at this level. With a product change, youre not applying for a new account; youre seeking an upgrade to the one youve already got. Just hover your card over a contactless reader, wait for the confirmation, and you're all set. 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. If you like what you see, you can apply, at which point there will be a "hard" credit pull. Fair credit wont qualify you for too many of the 0% APR deals offered by a lot of credit cards these days. 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. The key difference is that this version charges an annual fee while the regular one does not. Alternatives to Consider:The Capital One Platinum Credit Card, the Capital One QuicksilverOne Cash Rewards Credit Card and the Upgrade Cash Rewards Visa are all great options. . The Brex Corporate Card for Startups is one of the best fair-credit credit cards for business. Credit cards for fair or average credit can help you move up to good or excellent credit when you use them responsibly. 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. FULL LIST OF EDITORIAL PICKS: -annual-fee option with an incentive for responsible behavior. 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. Theres also no annual fee and no foreign transaction fee. All financial products, shopping products and services are presented without warranty. Heres the minimum credit score needed for each Discover card: There arent any Discover cards that flat-out require excellent credit, currently. Capital One QuicksilverOne Cash Rewards Credit Card. 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. So if you havent checked your credit score in a while, make sure to do so before applying. The Capital One Platinum Credit Card is the perfect financial tool for your wallet because it provides low-cost access to credit, with the ability to improve your credit score with responsible behavior. Platinum Credit Card from Capital One 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. Experian, Equifax and TransUnion are the three major bureaus that compile the credit reports that inform your credit scores. You'll earn bonus cash back at restaurants and gas stations with no activation required and no rotating categories to keep track of. 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. 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. 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. Read our review. What's the difference between fair and average credit? Credit scoring formulas tend to reward people who show that they can handle different kinds of credit. Read review. A hallmark of cards for fair credit is high interest rates. 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. With fair credit, you wont be eligible for the highest-end credit cards but good cards are still available at this level. The annual fee is $0. Making only the minimum payment keeps you in debt longer and could ultimately drag down your credit scores. offers a solid ongoing rewards rate: You earn unlimited 1.5% cash back on purchases. At that point, youll probably have a good sense of why you were rejected. 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. 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. No credit score? What is the average credit score in the U.S.? Cards For Fair Credit With Instant Approval and No Annual Fee. But they may still offer rewards. And if you have more than one need, you can get multiple cards and use the Island Approach. The lower your utilization, the better; 30% or below is a good benchmark. Our partners compensate us. There's also Discover's signature bonus for new cardholders. The easiest credit cards to get approved for with no credit or bad credit are secured credit cards. But we recommend a score of at least 700, which is toward the top of the good credit range, for the cards that require 700 credit for approval. You don't get rewards with the Capital One Platinum Credit Card, or a sign-up bonus or a 0% period. A hallmark of cards for fair credit is high interest rates. 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) This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Whether your finances arent so great or theyre right on track, you should be able to find a Discover card that works for you. . 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. You increase your odds of approval when you apply for a card. 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) ? 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. Take some time to decide whether you want to prioritize rewards, interest rates, fees or other aspects. Click through to Discovers website to see terms and conditions. Finally, if you want to make things really easy, just sign up for a free WalletHub account. Best for cash back: Capital One QuicksilverOne Cash Rewards Credit Card. Why We Like It : QuicksilverOne offers 1.5% cash back on all purchases - nearly 50% more than the average cash rewards card provides. . 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. An average credit score wont be enough to qualify for some cards, and a rejection letter can hurt more than just your feelings. Credit . MORE: Credit cards 101: Understanding the basics. The annual fee is $0. Here is a list of our partners and here's how we make money. If you like what you see, you can apply, at which point there will be a "hard" credit pull. 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. Store credit cards can offer deferred interest to people with fair credit. When you apply for new credit, it's not uncommon to see your scores dip, at least temporarily. In addition, it is not the financial institutions responsibility to ensure all posts and questions are answered.show more show less. 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. Discover it Student Chrome The Discover it Student Chrome is one of the best credit card options available for fair credit students. Cardholders' accounts are reviewed for a potential credit line increase every three months. Six months is a good rule of thumb. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. The 1.5% rewards rate is on par with that offered by many cards for good or excellent credit. You can also borrow against your credit limit, much like a personal loan. Still not sure which credit card is best for building credit? Learn how NerdWallet rates credit cards. 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. Best credit cards for fair and average credit Best for No Fees: Petal 2 "Cash Back, No Fees" Visa Credit Card Best for Cash Back: Capital One QuicksilverOne Cash Rewards Credit Card. Be automatically considered for a higher credit line in as few as 7 months. 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. 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. Conversely, a higher score that one issuer still sees as fair credit might qualify as good credit to a different issuer. No single credit card has the best rewards and the best rates, which means you shouldnt try to use one for both everyday purchases and carrying a balance. 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.