Fair credit is a credit score range that falls in the 580 to 669 range on a FICO score, or 601 to 660 on a VantageScore model. This credit range is below average for most American consumers, and it tells lenders that a borrower is more likely to default on their obligations. Therefore, most borrowers in this credit score range may miss out on most credit card offers since they are considered subprime.
A fair credit score is a few points lower than a good credit score, but these two credit score groups vary considerably in terms of the borrowing opportunities available and the terms of the loan. Borrowers with good credit are considered to be less likely to default on a loan, and can therefore get approved for a credit card and get a better APR than a borrower with fair credit.
Credit cards are some of the best credit-building tools that can help you add more points to your credit score. In addition, there are a couple of cards that provide cash back and other rewards also for fair credit.
Here are The Smart Investor select's picks of top credit cards for fair credit:
Card | Rewards | Bonus | Annual Fee | Best For |
| 1.5%
unlimited 1.5% cashback on every purchase
| None
| $39 | Cash Back |
|---|---|---|---|---|---|
| 1-5%
5% cash back on activated rotating category purchases (up to $1,500 in purchases each quarter, then 1%) and 1% on all other purchases
| Match Bonus
Match Bonus for the first 12 months
| $0 | Students | |
| None | None | 0% | Beginners | |
| 1.5%
1% cash back on all purchases, 1.25% after 6 months of on time payments, and 1.5% after 12 months of on time payments
| None | $0 | Limited Credit Score | |
| 1-5%
5% cash back at Walmart.com (including pickup and delivery), 2% cash back in Walmart stores and gas stations, at restaurants and on travel plus 1% cash back everywhere else Mastercard is accepted
|
5%
5% cash back for the first 12 months when you use your card with Walmart Pay for in-store purchases, upon approval
| None | Online Shopping | |
| 1.5%
1.5% cash back on payments
| $200 | $0 | Build Credit |
What Should I Look For if I Have Fair Credit?
When comparing credit cards for fair or average credit, here are things you should consider:
- Credit card fees – If you have fair credit, you should pick the least expensive card. Compare the various cards you are interested in to know the annual fee, annual percentage rate, penalty fees, and other charges that add up to the overall cost of owning a card.
- Annual fees – Paying an annual fee makes sense if the card earns enough rewards to pay off the annual fee. For a fair credit, you should go for a low or no-annual-fee credit card to keep fees on the lower side.
- Free credit score check – As you build your credit, it is important to track your progress using free credit score tools. Most credit card companies allow users to monitor their credit scores using inbuilt free credit score tools.
- Low APR – The APR is the total cost of borrowing from a lender, and it includes the interest rate and other fees. Lender charge an APR on credit card balance. With fair credit, go for a low-APR credit card to keep costs to the minimum.
- Introductory offer – Some credit cards for fair credit have a 0% introductory offer for 6 to 15 months. Getting a card with this feature can help you save money in interests incurred on balance transfers and large purchases.
- Reports to credit bureaus – When comparing credit cards for fair credit, consider cards that report to at least one or all the three credit bureaus. This ensures that your account activity is recorded on your credit report so that your on-time payments and other good credit habits are considered when calculating your credit score.
Capital One QuicksilverOne Cash Rewards
Reward Details
Current Offer
Credit Rating
Annual Fee
0% Intro
APR
The Capital One Quicksilverone Cash Rewards card earns unlimited 1.5% cashback on every purchase, without requiring category activations while it's one of the few cash back credit cards that require a fair credit. However, make sure to pay on time since the variable APR is quite high.
QuicksilverOne Cash Rewards card charges an annual fee of $39 and can be a good choice if you are looking for a credit card for fair credit to earn cashback rewards across all purchase categories at a low annual cost.
- APR: 29.99% (Variable)
- Annual fee: $39
- Balance Transfer Fee: None
- Foreign Transaction Fee: 3%
- Rewards Plan: unlimited 1.5% cashback on every purchase
- Sign Up bonus: None
- 0% APR Introductory Rate period: None
- 1.5% Cash Back
- Build Your Credit
- No Rewards Limits
- No Transfer Fees
- No-Cost Fraud Liability
- Annual Fee
- Redemption Limits
- Foreign Transaction Fee
- High APR
Is there a limit to cash back rewards?
There is no sort of limit in place as to how many rewards you are able to get when using the Capital One QuicksilverOne Card to make purchases.
Can I get car rental insurance with QuicksilverOne Card? how?
Yes, if you decline the insurance from the car rental company and pay for the entire rental with your Capital One QuicksilverOne Card you will be able to get coverage.
Does card QuicksilverOne Card travel rewards points expire?
Once you keep your account open, the rewards that you earn through making purchases with the Capital One QuicksilverOne Card will not expire.
What are QuicksilverOne Card income requirements?
There are no income requirements that you will need to meet when you are applying to get your hands on a Capital One QuicksilverOne Card.
What is the initial credit limit?
You will get at least $300 in credit limit straight away with the QuicksilverOne Card. Higher limits are possible and will depend on your personal financial situation.
How do I redeem cash back on QuicksilverOne Card?
You can redeem the rewards that you earn when using the QuicksilverOne Card for cash, a statement credit, or gift cards from certain retailers.
How hard is it to get QuicksilverOne Card?
You often need to have a credit score of at least 620 in order to get the Capital One QuicksilverOne Card. The rest of the requirements are quite straightforward.
Discover it® Student Cash Back
Reward Details
Current Offer
Credit Rating
Annual Fee
0% Intro
APR
The Discover it® Student Cash Back card designed for students alone with fair credit score. It is one of the best products for those in higher institutions in the US. It is ideal for clients starting their credit journey and wish to earn cashback rewards. The rewards plan includes 5% cash back on activated rotating category purchases (up to $1,500 in purchases each quarter, then 1%) and 1% on all other purchases.
There is a match bonus on all cash backs after your first year, as well as o% intro APR for 6 months on purchases. The card is widely accepted across the US, and it offers a series of benefits, including good grade rewards for students with a gpa of 3.0 and higher.
- APR: 17.74% - 26.74% Variable APR
- Annual fee: $0
- Balance Transfer Fee: %5
- Foreign Transaction Fee: $0
- Rewards Plan: 5% cash back on activated rotating category purchases (up to $1,500 in purchases each quarter, then 1%) and 1% on all other purchases
- Sign Up bonus: Match Bonus for the first 12 months
- 0% APR Introductory Rate period: 6 months on purchases
- Introductory Rates
- Cash Back Rewards
- No Annual Fee
- Limited Use outside the US
- No International Students
- Activate Bonus Categories Every Quarter
- Is there a limit to cash back rewards? Bonus categories capped at $1,500 in total relevant purchases per quarter.
- Can I get car rental insurance with Discover it Student Cash Back? how? No
- What is the initial credit limit? It is often $500
- How do I redeem cash back? The rewards can be redeemed at any time for the likes of electronic deposits, statements credits, charitable donations or to pay at certain retailers like Aamzon.com.
- What purchases don't earn cash back? All purchases earn cashback
- How hard is it to get Discover it Student Cash Back Card? Not hard, no credit/fair score needed.
- How to maximize rewards? Activate and maximize the bonus categories each quarter..
- Does Discover ask for proof of income? No
- Can I get pre-approved ? Yes
Chime® Credit Builder
Reward details
Current Offer
Credit Rating
Annual Fee
0% Intro
APR
Building credit after a credit blunder or establishing credit for the first time can be difficult. To qualify for most cards, you must be able to demonstrate your ability to manage credit, which can be a catch.The Chime Credit Builder card was created to address this issue. It is intended to be used in conjunction with a Chime Spending Account.
You can fund your Credit Builder card with funds from your account. You can then use your card at any retailer or store that accepts Visa. Chime will notify Equifax, TransUnion, and Experian about your card activity. There is also the option to enable the Safe Credit Building feature. This automatically pays your card's balance on time.
The main limitation of the card is that your card limit is determined by the balance in your account. So, if you have $300 in your account and spend $150 on your Chime Credit Builder Card, your limit will be $150 for the next month until you add more funds to your account.
- Rewards Plan: None
- APR: 0%
- Annual fee: $0
- Balance Transfer Fee: N/A
- Foreign Transaction Fee: 0%
- Sign Up bonus:None
- 0% APR Introductory Rate:N/A
- No Minimum Deposit
- No Fees
- No Credit Check
- Auto Payment Option Available
- You Need a Chime Spending Account
- Need Funds to Set Your Credit Limit
- Card Limit Can Vary
- No Credit Utilization Score
- No Option to Upgrade to Another Card
What are the Card Income Requirements?
Chime does not have any income requirements for the Credit Builder credit card. You will need to open a Chime Spending account, but this does not require a credit check. This means that you will not need to prove your income to access the Chime banking services.
Does the Card Ask for Proof of Income?
This is not necessary for Chime, but to determine your credit limit, Upgrade may require that you provide proof of income.
Can I Get Pre Approved?
The only pre approval you need for the Chime card is to open up a Chime Spending account, but this does not require a credit check. It is not possible to open a Chime card account without having a Spending account.
What is the Initial Card Credit Limit?
Your initial Chime credit limit will be determined by how much you transfer to your Credit Builder account. You can transfer as little or as much as you like and then use the card as you would a prepaid debit card.
What are the top reasons not to get it?
The top reason not to get the Chime card is that you don’t want to open a Spending account. The Chime card is an integrated product, which requires transfers from a Chime Spending account. So, if you are happy with your current checking account and simply want a credit card, this is not the right choice for you.
Does the card report payments to all credit bureaus?
Chime does report payment activity to all the credit bureaus, which helps to build or rebuild your credit.
Petal 2 Visa
Reward Details
Current Offer
Credit Rating
Annual Fee
0% Intro
APR
Petal 2 Visa Credit Card offers you the benefits of a rewards card, no fees attached and great for those who have fair-average credit score. This card does not charge annual fees, maintenances fees, foreign transaction fees, over limit fees, late payment fees or any kind of fee. It is a great choice for people who want to build their credit up without forgoing rewards. These rewards are offered as cash backs which will increase depending on your level of financial responsibility.
While using this card does not attract any direct fees, users who have a habit of defaulting in monthly payments will not get the best value out of this card. Considering that the upper limit of the APR is high, poor account management may have you paying considerably higher than you would expect to.
- APR: 17.49% - 31.49% Variable
- Annual fee: $0
- Balance Transfer Fee: N/A
- Foreign Transaction Fee: $0
- Rewards Plan: 1% cash back on all purchases, 1.25% after 6 months of on time payments, and 1.5% after 12 months of on time payments
- Sign Up bonus: None
- 0% APR Introductory Rate period: None
- No Fees
- Cash Back Rewards
- Reports to all Three Major Credit Bureaus
- No Deposit Required
- No Balance Transfer or Cash Advance
- No Intro APR
- Quite High APR
How long should I use the card to increase my credit score?
There is no set amount of time to increase your credit score, as this will depend on your circumstances. However, a good rule of thumb is three to six months. After this time, you should be able to see an increase in your FICO score.
Can I add an authorized user?
No, the petal 2 card issuer permits adding another user to your account.
How long does it take to get approval?
Petal has a similar time frame for its application approval. You’ll get an email decision quite quickly and should receive your new card within 10 days.
How is the card customer service availability?
The Petal customer support hours are 8 am to 10 pm EST Monday to Friday and 9 am to 6 pm on Saturdays.
Do the cards report payments to all credit bureaus?
Yes, Petal reports its account activity to all three of the credit bureaus.
Does the card ask for proof of income?
Petal does typically verify your bank account and need confirmation of some key expenses. So, you may need to have proof of income to support your application.
Capital One Walmart
Reward Details
Current Offer
Credit Rating
Annual Fee
0% Intro
APR
Capital One Walmart Credit Card is one of the credit cards on the market that is a store card that allows borrowers who do not have perfect credit to apply and be approved. The Walmart Credit Card earns 5% cash back at Walmart.com (including pickup and delivery), 2% cash back in Walmart stores and gas stations, at restaurants and on travel plus 1% cash back everywhere else Mastercard is accepted.
The card sign up bonus includes 5% cash back for the first 12 months when you use your card with Walmart Pay for in-store purchases, upon approval. The card has no annual fee and the fact that average credit is also accepted, it can be good for those who have fair credit and want to build or rebuild their credit.
- APR: 17.99% - 28.99% (Variable)
- Annual fee: None
- Balance Transfer Fee: 3%
- Foreign Transaction Fee: Unknown
- Rewards Plan: 5% cash back at Walmart.com (including pickup and delivery), 2% cash back in Walmart stores and gas stations, at restaurants and on travel plus 1% cash back everywhere else Mastercard is accepted
- Sign Up bonus: 5% cash back for the first 12 months when you use your card with Walmart Pay for in-store purchases, upon approval
- 0% APR Introductory Rate period: N/A
- High Cash Back on Walmart
- No Annual Fee
- Sign Up Bonus
- Foreign Transaction Fee
- High APR
Does Walmart limit the amount of rewards I can get?
There are no rewards limits on the Capital One Walmart Rewards card, so you don’t need to worry about monitoring how much you’re spending in each category.
What are the top reasons not to get the Walmart card?
The top reason not to get the Capital One Walmart Rewards is if you prefer to shop in store. The card prioritizes Walmart.com purchases. If this doesn’t apply to you, you may find other reward cards offering a high percentage on groceries will be better suited to your spending habits.
How much should I spend to cover the card fees?
The Walmart card doesn't charge an annual fee, so you don’t need to worry about spending a certain amount to cover the costs. In this case, unlike other store cards, you won't need any membership plan to enjoy benefits.
What’s the initial credit limit?
The initial credit limit for the Capital One Walmart Rewards card is $150, but it is more common to be offered a higher credit limit, depending on your credit.
What are the card income requirements?
You can qualify for the Capital One Walmart Rewards card with average to excellent credit, so this could be a little easier. However, the card issuers may require you to verify your income, so it could be a good idea to have a couple of pay slips on hand to support your application.
Upgrade Visa® Card with Cash Rewards
Reward Details
Current Offer
Credit Rating
Annual Fee
0% Intro
APR
The Upgrade Visa® Card with Cash Rewards is a good pick if you are looking for a no-annual-fee credit card with a flat-rate cashback reward while having a fair-average score. A particularly attractive feature of the Upgrade Visa Card in relation to similar credit cards is the complete absence of fees, transactional or otherwise, on the card.
It offers 1.5% cash back on payments, but you should be aware that the cash backs on all your purchases with this card are only given when you make payments, not before. This is the only reward you get; so if you want intro rates or welcome bonuses, consider other alternatives.
Unlike conventional credit cards which charge you daily interest for carrying a balance, this card practically gives you a personal line of credit ($500 – $25,000 or more). This will be split into equal installments which you pay every month. You may use your credit line on purchases online, at retail stores, or even transfer the funds from your card to your personal bank account at no extra cost.
- APR: 14.99% - 29.99%
- Annual fee: $0
- Balance Transfer Fee: Up to 5%
- Foreign Transaction Fee: Up to 3%
- Rewards Plan: 1.5% cash back on payments
- Sign Up bonus: Earn a $200 bonus after you open & fund a Rewards Checking Plus account & make 3 debit card transactions within 60 days. If you previously opened a checking account through Upgrade or do not do so as part of this process, you are not eligible. Payout made within 60 days of meeting the conditions.
- 0% APR Introductory Rate period: N/A
- Unlimited 1.5% Cash Back
- No Fees
- Reports to Three Major Credit Bureaus
- No Deposit Required
- No Grace Period
- Inflexible Payments
- No Signup Bonus
- Limited Availability
What are the Upgrade Card Income Requirements?
Upgrade does run a credit check for its credit cards, so your income-to-debt ratio will be a deciding factor. However, you can obtain pre-approval for the cards, so you can confirm that you have sufficient income to qualify for the minimum credit limit.
Does the Card Ask for Proof of Income?
Upgrade will use your application information to determine pre approval, but to confirm your application, you may need to provide copies of paystubs or other proof of income.
What are the top reasons not to get the Upgrade card?
The top reason for not getting an Upgrade card is that you don’t want the card company to run your credit. If you already know you have a bad score or no credit history, a hard credit pull could have detrimental effects.
Can I add an authorized user?
Upgrade doesn't allow second users on their credit cards, so it is not possible to add an authorized user on these accounts.
How is Upgrade customer service availability?
If you want to speak to the Upgrade customer service team, there is a toll free number open Monday to Friday, 6 am to 6 pm and 6 am to 5 pm on weekends (Pacific Time). Alternatively, you can email the support team, but you’ll need to wait for a response
Compare the Best Credit Cards For Fair Credit
How to Use Credit Cards to Build Your Credit?
Credit cards are some of the best credit-building tools that can help you add more points to your credit score.
Here are ways you can use your credit card to build credit:
- Pay Bills on Time
Making bill payments on time can help prove that you are responsible with debt and that you can be trusted to make loan payments on time. You can set up automatic minimum bill payments to ensure you make timely payments. One or more late payments can cause a dip in your credit score.
- Get a Secured Credit Card
Applicants with little or no credit record are less likely to be approved for most credit cards. If lenders are unwilling to approve your credit card application, you can start by getting a secured credit card.
These credit cards require cardholders to put down a deposit, which also acts as a credit limit. Making payments on time and keeping the card open for a long time can help you establish a long credit history, and improve your credit scores.
- Keep Credit Card Balance Low
You should maintain a low credit utilization ratio, which compares the combined credit card balances and the credit line available. Keep a credit utilization ratio of below 30% by paying off a majority of the balances or not owing any credit card debt.
This chart created with Experian data shows that those with an average to good credit score have an average credit utilization ratio of the optimum 33%. This ratio drops significantly for those with very good and excellent scores.
At the other end of the scale, the chart shows that those with poor credit scores typically have a very high credit utilization ratio, with an average of 73%. This will be a massive factor in lending decisions for those in this group.
- Keep old Credit Cards Open
Credit scoring companies consider the age of your credit accounts when calculating credit scores. Keeping the credit card open for long can age your credit and boost your credit scores.
- Become an authorized user
You can give your credit scores a boost by becoming an authorized user in a friend’s credit card. The user privilege must be at the same level as the account owner to benefit from their credit reputation. The credit card account activity will appear on your credit report by virtual of being an authorized user.
How Long Does it Take to Build Good Credit?
If you are building credit from scratch, it takes at least 6 months of on-time payments for your file to become thick enough to calculate your credit score. Depending on your credit history, FICO assigns users a credit score of at least 300 to 850.
For new users, the credit score can be in the poor to fair credit score range, and it will take another 6 to 12 months to accumulate enough history to move to the next credit score category.
However, getting a good to excellent credit score takes years of good credit habits such as on-time bill payments, keeping a low credit utilization ratio, and only taking new credit cards when need arises.
If your fair credit score is in the upper limits, you can move to the good credit score range in 3 to 6 months. Maintaining good credit habits and fixing errors on your credit report can help you accumulate more points to push you into the good credit score category.
For example, if the credit report contains old debts that were paid but remain open or active debts that you did take, you can dispute these entries with the credit bureau and have the transactions removed.
How Do You Pick the Best Fair Credit Card For Your Specific Needs?
When comparing credit cards, it is important to find the best credit card that matches your specific needs. Consider the following factors:
1. Determine Your Card Goals
When comparing credit card offers, pick the credit card with the features that matter most to you. If you are looking for a credit card for building credit, find a card with the lowest cost such as a low APR and no annual fee. Also, find credit cards that submit monthly credit card activity to the three credit bureaus to help you build credit.
2. Check Credit Limit
Know the size of the credit line that the issuer is willing to give you. A higher credit limit allows you to use the card for making purchases without worrying that you will exhaust the limit and affect your credit score.
This chart created with Experian data, highlights the significant increase in the average credit card limits in the last decade. Credit card limits have consistently increased with an overall increase in the recent 10 years.
3. Understand Fees and Penalties
If your credit score is below average, you want a credit card with the lowest or at least reasonable fees. Common credit card fees include interest charges, late payment fees, over-limit fees, and transaction fees on balance transfers and cash advances. If you want a balance transfer credit card, find credit cards with 0% APR for an introductory period, and low transfer fees.
What's The Best Credit Card Company?
The JD Power Study 2020 ranked American Express as the best credit card company based on a customer satisfaction survey conducted from September 2019 to June 2020. A majority of American Express customers were satisfied with the company’s response during the COVID-19 pandemic.
American Express scored highest among National Issuers with a score of 838, followed by Discover at 837 and Bank of America at 812. In the regional bank issuer’s category, Regions Bank topped the list with 816, followed by BB&T and PNC, each with a score of 815.
The JD Power study received responses from 29,106 credit card customers, and it measured customer satisfaction based on 6 key factors such as interaction, communication, rewards, credit card terms, benefits and services, and key moments.
Overall, the JD Power study showed there was a decline in customer satisfaction since the pandemic started, with customers being more unsatisfied with credit card terms and communication. The decline in customer satisfaction was unique to the credit card industry, with other financial services such as retail banking and primary mortgages recording an improvement in customer satisfaction.
In this chart compiled using Consumer Financial Protection Bureau data, we can see that Capital One had 11.8 complaints per billion dollars charged. This is followed by CitiBank at 10.55. At the other end of the scale, Amex appears to have the fewest complaints at just 1.59 complaints per billion dollars.
Benefits and Drawbacks of Cards For Average Credit
Credit cards offer convenience and quick access to cash to pay for emergencies and large purchases. However, credit cards can be dangerous when used irresponsibly. In spite of cards for fair credit are limited in terms of rewards, there are a couple of important benefits they can provide for cardholders :
- Build Credit
Credit cards for fair credit are an invaluable tool for establishing a solid credit history and credit score. Keeping your credit card open for a long time and making on-time payments can help you build a good credit score and increase your odds of getting a mortgage, personal loan, or even a job.
- Quick Access to Cash
Credit cards give you a major purchasing power both locally and abroad. You can use your card to pay for airfare, rideshare, hotel stays, roof replacement, groceries, and fuel, and these cards are accepted almost everywhere. It also saves you the need to carry large bundles of cash.
- Earn Rewards
Some credit cards for fair credit allow users to earn points, miles, or cashback on their purchases. These rewards can be redeemed for cash, gift cards, statement credit, transfers to travel partners, and other redemption options.
- Finance Large Purchases
If you want to make a large purchase but you don’t have enough money to pay for it all at once, you can use a credit card to pay the purchase now and pay for it over time at a small interest.
- Protections
If your card gets lost or stolen, the credit card issuer offers $0 liability protection to protect you from unauthorized credit card transactions. The issuer is responsible for any losses incurred.
Drawbacks
Credit cards for fair credit don't have many options such as cards for good and excellent credit. Here are the main drawbacks to consider:
- Fall Into Debt
Using credit cards to pay for purchases puts you at risk of overspending beyond the allowed limit. If you don’t pay the outstanding balance, the balance will keep growing every month until you don’t have control over the debts.
Your credit score can influence not only your credit card rate, but also your available credit limit. This chart using Experian data shows the average credit card debt by credit score. It shows that those with an average to good credit score have the highest amount of credit card debt.
- High-Interest Costs
Credit cards charge high-interest costs on the outstanding balance each month. However, if you pay the balances for each month, you won’t have to deal with high interest rates.
- Negative Impact on Credit Scores
Any irresponsible credit habits such as late payments, high account balances, and new credit card applications can easily damage your credit scores. When these records appear on your credit report, lenders will reject your credit card application, or offer punitive interest rates and loan terms.
- Intimidating Fine Print
The credit card’s fine print is written in an industry jargon that may be difficult to interpret for the average credit card user. The information may be confusing to understand, and it may deter some users from signing up for a card, while others may sign up without knowing everything about the credit card.
Best No Annual Fee Credit Cards for Fair Credit
Most of the cards for fair credit don't charge an annual fee. Here are our two suggestions:
Capital One Platinum Credit Card
If you are looking to improve your credit at a minimal cost, this credit card is a good pick. Capital One Platinum credit card is available for borrowers with a limited credit history, and a fair credit score increases your chances of getting approved for this credit card.
You may be considered for credit line review if you use this card responsibly for at least 6 months. This card gives you the flexibility to choose the due dates so that you can schedule repayments when you have enough cash flows.
Upgrade Visa Card with Cash Rewards
The Upgrade Card is a good pick if you are looking for a no-annual-fee credit card with a flat-rate cashback reward. This credit card is also a good fit if you are looking to make large purchases with predictable monthly payments.
Any outstanding balances are converted into an installment loan with equal monthly payment. The Upgrade card also earns a 1.5% cash back on payments, and this means you get rewarded as you build your credit.
Best High Limit Cards for Fair Credit
A fair credit score gives borrowers slightly better rates than subprime, but below borrowers with good credit. Still, there are a few high limit cards for fair credit in the market. Here are high-limit credit cards to consider:
Discover it® Student Cash Back
Once approved for the Discover it® Student Cash Back, you get a minimum credit line off $500, and some student cardholders have reported getting credit limits of up to $3,500. This no-annual-fee card earns a 5% cash back on activated rotating category purchases (up to $1,500 in purchases each quarter, then 1%) and 1% on all other purchases.
You also get an unlimited cashback match for all the cashback you've earned your first anniversary with the card. Discover it® Student Cash Back is a good pick if you are looking to build credit at minimal cost while enjoying rich cashback rewards.
US Bank Secured Visa Card
The US Bank Secured Visa Card comes with a credit limit of $300 to $5,000, which is a relatively high limit for a secured credit card. However, you will need to make a security deposit that matches the credit line.
The security deposit is held in an interest-earning account at a US bank, and you will earn interest as long the credit card is open. US Bank Secured Visa Card is a good option if you are looking for a higher credit line as you build your credit.
Best Easy Credit Cards for Fair Credit
A fair credit score limits the number of credit cards you can get, but there are credit cards with easy approval requirements. Some of these cards include:
Discover it® Secured
This is one of the easiest credit cards you can get approved for with fair credit. You just need to show that your current income can support the monthly repayments and that you have not been declared bankrupt in the past. You need to put down at least $200 in security deposit to be approved for the Discover It Secured credit card.
It is also one of the few secured credit cards with rewards, and it earns 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter and unlimited 1% cash back on all other purchases. If you are looking for a low cost starter credit card with easy approval, Discover It Secured credit card is a good option.
Capital One Platinum Rewards Visa
This $0 annual fee credit card is designed as a credit-building credit card. If you are new to credit cards or have average credit, you can easily get approved for Capital One Platinum Rewards Visa, thanks to the reasonable approval requirements.
Capital One reports your credit account activity to all three credit bureaus to help you create a record of good credit habits. Using this credit card responsibly for at least 6 months can help you get a higher credit line. Capital One Platinum Rewards Visa Credit Card makes a good choice if you are looking to build credit at a minimal cost.
Cashback Cards For Fair Credit
The following are our top picks for cashback credit cards if you have a fair or average credit:
Capital One QuicksilverOne Cash Rewards
This is one of the few cash back credit cards that require a fair credit. Quicksilverone Cash Rewards card earns unlimited 1.5% cashback on every purchase.
This card has a $0 annual fee. QuicksilverOne Cash Rewards card is a good choice if you are looking for a credit card for fair credit to earn cashback rewards across all purchase categories at a low annual cost.
Petal® 1 "No Annual Fee" Visa® Credit Card
If you are looking to earn cash backs on local purchases, consider Petal® 1 “No Annual Fee” Visa® Credit Card. This credit card earns 2% to 10% from select merchants in your area. Petal does not charge an annual fee or foreign transaction fees for this card, and you can build your credit from fair to good at a minimal cost.
Credit cardholders are allowed a credit limit of $500 to $5,000 without requiring a security deposit. If you are looking for a beginner no-annual-fee credit card with cashback rewards, Petal 1 card may be a good option for you.
Best Rewards Cards for Fair Credit?
If you are looking for credit card with generous rewards, here are some options you can consider:
Petal® 2 Visa® Credit Card
If you are looking for a rewards credit card to help you build credit at the lowest cost, Petal® 2 Visa® Credit Card is a good pick. This credit card does not charge any fees whatsoever, including annual fees and late payment fees.
You earn 1% cash back on all purchases, 1.25% after 6 months of on time payments, and 1.5% after 12 months of on time payments .
Discover it® Student Chrome
Discover it® Student Chrome offers 2% cashback at gas and restaurants (up to $1,000 every quarter) and 1% on groceries and other student related products. There is no annual fee, and new cardholders enjoy a 0% APR for 6 months on purchases (17.74% – 26.74% Variable APR after that).
This card also rewards you with a cashback match by doubling all the cashback you've accumulated in the first year.This means that $100 could turn to $200, which you could redeem for statement credit, gift cards, and other options.
What are the Expected Credit Card Rates for Fair credit?
The average credit card APR for fair credit is 23.13%, according to the Credit Card Landscape Report by WalletHub. The APR represents the amount of interest that a credit card balance will accrue every month if it is not repaid. Here's another research mentioned by US News, we can see the average APR per category
According to LendingTree data, the average APR offered with a new credit card is 22.91%, as of December 2022:
Also, the average APRs for fair credit varies depending on the type of credit card, with issues charging different rates for travel cards, rewards cards, no-annual-fee cards, etc. Some other rates charged on credit cards for fair credit include:
- Purchase APR: Credit cards charge 0% APR for an average of 10.5 months, and the APR changes to an average ongoing rate of about 18.33% when the promotional period ends.
- Balance Transfer APR: Credit cards charge a 0% APR for an average of 12.21 months, and the rate changes to an ongoing APR of about 17.96% after the promotional period ends.
- Cash Advance APR: Using the credit card as a debit card to withdraw funds from an ATM attracts an average interest of about 20.32%
- Penalty APR: If you fall behind in your monthly loan payments or exceed the allowed credit limit, credit cards charge an average APR of about 25.66%.
Best Cards with Instant Approval
Instant approval credit card issues evaluate credit card applications in real-time, often within minutes. Here are credit cards that give instant approval:
Discover it® Secured
When you apply for the Discover it® Secured, Discover runs a preliminary check to determine if you are creditworthy. If your file is clear, you will get an instant response within a few minutes. Once approved, the card takes 5 to 7 days to arrive in your mail and you can start earning 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter and unlimited 1% cash back on all other purchases.
Discover also doubles all the cashback rewards earned in the first year i.e. $50 turns into $100. It has a $0 annual fee. Discover it® Secured makes a good choice for a $0 annual fee credit card with instant approval.
Indigo Platinum Mastercard
The Indigo Platinum Mastercard is one of the few credit cards that approve applicants with a bankruptcy record and other less than perfect credit history. This credit card has no annual fee.
You can prequalify for the Indigo Unsecured Mastercard without affecting your credit scores. If you are looking for a credit card with no security deposit to help you rebuild your credit, consider Indigo Unsecured Mastercard.
Are there Credit Cards with Guaranteed Approval?
If your credit is in really bad shape, you are unlikely to qualify for a credit card. However, you may still apply for credit cards without a credit check that almost guarantees approval. Most credit cards with guaranteed approval require a security deposit, which is equivalent to the allowed credit line. For example, a deposit of $1,000 gives you a $1,000 credit limit.
OpenSky® Secured Visa®
OpenSky® Secured Visa® Credit Card is one of the few credit cards with guaranteed approval. There is no credit check when you apply for this card, and you can get approved quickly when you make a security deposit. You can deposit anywhere from $200 to $3,000, and the size of the deposit is equal to your credit line.
OpenSky reports the credit card activity to credit bureaus, and a history of on-time payments can help you rebuild your credit and qualify for better credit cards.
What are the Best Cards for Fair Credit with No Deposit?
If you have fair credit and don’t want to pay a security deposit on your credit card, here are some options you can consider:
Capital One Platinum Credit Card
If your top priority is building credit, Capital One Platinum can help you improve your credit without paying an annual fee. This credit card is designed for people with average credit, and it can help you get a good credit score without put down a deposit.
When using this credit card, you may qualify for a higher credit limit within 6 months of on-time payments. If you are looking for a low cost credit card with no deposit, Capital One Platinum Credit Card is a good pick.
Surge Mastercard
Surge Mastercard markets itself as a credit builder tool. This credit card gives you a credit limit of $300 to $1,000 without requiring a security deposit, with an automatic credit limit review in 6 months. However, it doesn't guarantee a credit limit increase.
On the downside, this card is heavy on fees, and you will be required to pay $75 to $99 in annual fees, $10 in monthly maintenance fees from the second year, and $30 for every authorized user. Surge Mastercard may be a good fit if you are looking for a high credit limit credit card for fair credit that does not require a security deposit.
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