Credit cards easy to get with fair credit

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When you're building your credit history, it makes sense to apply for credit cards designed to help grow your credit score. While the average FICO score is 711, people with fair credit are just below that, with scores ranging from 580 to 669.

MoneyGeek’s Take: Top 10 Credit Cards for Fair Credit

Several of the top credit cards for fair credit we’ve selected do not charge any annual fees. Examples include the Navy Federal Credit Union Platinum Card, the Navy Federal More Rewards American Express Card and the Discontinued. Some of the cards we’ve listed here let you earn cash back or rewards. Other aspects that require your attention when choosing a card include welcome offers, APRs and added perks.

The links in the table below will take you to one of our partner's sites where you can compare and apply for a selected credit card.

• Navy Federal Credit Union cashRewards World Mastercard®

Best Credit Card Offers for Fair Credit

Our experts at MoneyGeek studied all of the credit card offers for fair credit to find those that they consider the best. For each credit card, we'll share the pros and cons of the card and its offer so you can pick the one that best fits your goals.

The best credit cards for fair credit are ones that you may qualify for with a FICO score of 580 to 689. Using these cards responsibly helps you improve your credit score, so you can then look for cards with better perks. The best cards from this segment include options that let you earn rewards/cash back and ones that do away with annual fees. Some of these cards come with no foreign transaction fees as well.

The Best Credit Cards for Fair Credit at a Glance

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HOW WE RANK CREDIT CARDS FOR FAIR CREDIT

MoneyGeek experts collect 57 data points from issuer websites, our partners and the Consumer Finance Protection Bureau to ensure you get access to the most accurate information possible. We then rely on our unique ranking methodology to arrive at and regularly update our list of the top 10 credit cards for fair credit. In doing so, we weigh parameters according to their level of importance. Some examples include:

• Average APR: 10%
• Rewards rate: 7%
• Annual fee: 5%

5 Questions to Ask When Comparing Credit Cards for Fair Credit

When choosing among the best credit cards for consumers with fair credit scores, it helps to compare them side by side so that you can select the one that fits your lifestyle. Pay special attention to these features when comparing cards:

Does the card charge an annual fee? What fees are there for going over your credit limit, having a late payment or if your payment is returned?

Is there an APR promotion on purchases, balance transfers or both when your account is first opened? What is the interest rate on purchases if you carry a balance, and how long is the grace period before interest is charged? What rate is charged for balance transfers and cash advances?

What rewards does it earn, and are there bonus categories that earn more? How easy is it to redeem your earnings, and do they expire?

Does the card offer a bonus for new cardholders? If so, how much do you have to spend over what period of time to earn it?

Are there special benefits that you would use?

After you've answered these questions about the credit cards that you're considering, you can more easily compare the cards to determine which one works best for the way you use your cards.

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When comparing credit cards with fair credit, be sure to look for any additional fees like annual fees, late fees, etc. Having a card without these additional payments is a great way to keep cash in your pocket.

MoneyGeek’s Guide to Improving Fair Credit Scores Efficiently

To improve your credit score quickly, it helps to know where you stand and what actions to take for the greatest impact. Understanding what moves your credit score immediately versus over the long term allows you to prioritize where to start first.

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Depending on your financial situation or goals, a secured credit card may be another option to consider since you can only spend as much as your security deposit. This is helpful if you need a card for cash flow purposes but don’t want to spend above your credit limit or means. Learn more about secured credit cards and view our recommendations for the best secured cards.

Where Does Fair Credit Stack Against the Rest?

A fair credit score is one step above the lowest FICO score ratings. According to Experian, approximately 17% of credit scores fall into the range of 580 to 669. The ranges of credit scores for each grade are as follows:

It’s possible that, due to the coronavirus pandemic, these numbers have risen since many Americans have suffered from job losses, reduced hours at work and family illnesses. These events beyond our control resulted in higher debt loads, missed or late payments, defaults, foreclosures and other negative impacts on credit scores. If your credit score has been affected, all is not lost. Credit scores improve over time with positive credit behaviors.

How Long Does It Take to Improve Credit Scores?

Credit scores change regularly as new data is reported to the credit bureaus from banks and other agencies. Depending on how much the details of each account change every month, the impact could be small or large. When trying to improve your credit score, you have to play both the short and the long game because each factor affects your credit score differently.

Factors That Impact Your Credit Score

There are five factors that impact your credit score. Some have an immediate impact, while others take time to see improvement.

Payment history (35% of your score)

It takes months to establish a track record of on-time payments that shows creditors that you can handle credit responsibly. However, missing one payment and being 30 days or more late can erase all of that positive history. Setting up an automatic payment of the minimum amount due can eliminate the risk of missing a payment.

Length of credit history (15%)

This factor takes time to build as well. Keeping your oldest accounts open is a good way to increase the average age of your accounts. Having a long history shows lenders that you can maintain a positive credit history with a creditor.

By keeping the balances on your credit cards low, you show lenders that you can be trusted not to max out your credit. The lower your credit utilization is (balances versus credit limit), the better your score will be. A rule of thumb is to keep balances below 30% of your credit limit, but below 10% is best.

Every time you apply for a new loan or credit card, a hard inquiry is added to your credit report. This reduces your score a few points for 6 to 12 months, then falls off your report entirely after two years. Keep your applications to a minimum to avoid this impact.

Lenders want to see that borrowers can handle various types of debt, such as loans and credit cards. Loans show that you can handle repeat payments each month, while credit cards show that you can resist maxing out your available credit.

Of course, besides these five factors, you should avoid having a tax lien, judgment, foreclosure or another major negative item post to your credit report.

PERKS TO HAVING BETTER CREDIT

When you have better credit, many doors of opportunity open up for you. In today's society, not only are credit applications affected by your credit score, but rental applications, insurance rates and job applications may also be impacted. Some utility companies and cell phone providers may even require a security deposit if you don't have a high enough credit score.

As your credit improves, you'll receive better terms, interest rates and benefits on applications for loans and credit cards. Many people take pride in their credit scores and use them to measure their progress towards financial success.

What Not to Do If You Have Fair Credit & Want to Improve

People who have fair credit have an opportunity to improve their credit score to Good or Very Good quickly by being smart with how they use credit. If you want to improve your credit score, avoid these behaviors:

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1. Applying for multiple credit cards in a short period of time. Every time you apply for credit, your credit score drops a few points. Banks may see your multiple applications in a short time frame as a sign that you are in financial distress. That will make them hesitant to approve your application or offer favorable terms.
2. Max out your credit cards. Maxing out your credit cards harms you in several ways. Your credit score will drop because your utilization is so high. The monthly minimum amount due on higher balances can be tough to pay if your budget is tight. Plus, you won't have the ability to use the card in case of an emergency since there is no credit available.
3. Miss a payment. Missing payments on your obligations can be disastrous in many ways. The bank will charge a late fee and can report it to the credit bureaus. This will cause your credit score to fall, and the missed payment will be on your credit report for up to seven years. Although the late payment stays on your record for years, the impact lessens over time by making all of your other payments on time.

Many lenders watch your credit score and how you handle your other accounts. If your credit score falls and you aren't managing your other accounts responsibly, a bank can reduce your credit limit, increase your interest rate or even close your account.

How to Use Current Credit Cards or a New One to Improve Credit Scores

Whether you apply for a new credit card or use one of your existing cards, responsible usage can improve your credit score. A few simple steps are all you need to take to boost your credit score over time.

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1. Set up an automatic payment of the minimum due. Ideally, you'll pay your card balance in full each month, but that isn't possible for everyone. You need to at least pay the minimum due to avoid late fees that increase your debt and put a negative mark on your credit report.
2. Spread your purchases across multiple credit cards. By using multiple credit cards for your purchases, you'll keep the utilization ratio lower on each card. If you use one card for all purchases, the balance could go higher than 30% of your credit limit.
3. Make multiple payments to your credit card throughout the month. When you make extra payments, it reduces your average daily balance, which lowers the interest the bank may charge you. Many people find making smaller payments easier on their budget versus one large payment.
4. Pay extra before your statement closes. The balance that most banks report to the credit bureaus is the balance on your statement. By paying extra to reduce your balance, you can lower your utilization ratio and boost your score.
5. Keep your oldest accounts open. You may have found a new favorite card. While it may be tempting to close an unused older card, don't do it. Your older card is helping increase the average age of your accounts, which improves your credit score.

Other Ways to Get Financial Assistance or Build Credit Without A Card

If you aren't ready to apply for a new credit card to build your credit, don't give up because there are other options available:

Alternative to Credit Cards

• Become an authorized user. Someone with an existing credit card can add you to their account as an authorized user. That account's history and continued use will reflect on your credit report as if it is your account.
• Pay bills on time. If you have existing accounts on your credit report, pay them on time to build a track record of responsible use of credit. Payment history makes up the largest percent (35%) of your credit score, so this is critical.

• Use Experian Boost. This feature can raise your FICO score instantly by giving you credit for paying phone, utility and streaming service bills on time.
• Get a credit builder loan. Credit builder loans build credit by reporting your payments to all three credit bureaus for a fee. The loan is actually a modified savings account where your "loan" payments are returned to you when the loan term is over.

After you've developed a longer credit history and improved your score, you can always apply again for potential approval.

Questions About Credit Cards for Fair Credit

After reading about credit cards for fair credit and how to build your credit history, you may have additional questions. Learning how to manage your credit history is something that takes time. Getting one question answered often leads to more questions on the topic.

Do pre-qualifications hurt your credit score?

No, when you check to see if you are prequalified for a credit card, the inquiry does not affect your credit score. When you click to apply and provide your information, that is when a hard inquiry will post to your credit report.

Is fair credit considered good credit?

No, fair credit is defined by FICO as a score of 580 to 669, while good credit is 670 to 739.

Can I get a store credit card with average credit?

Yes, many store cards have lower credit requirements than credit cards that can be used anywhere. Store cards can only be used at that retailer. However, they may entitle you to discounts and other benefits when you shop.

What can fair credit get you?

Fair credit in the range of FICO 580 to 669 can get you approved for many credit cards that can build your credit. Some of these cards also earn valuable rewards like cash back on all of your purchases.

Are there any high-limit credit cards for average credit?

People with average credit typically aren't eligible for most high-limit credit cards. However, there are some credit cards for fair credit with high limits, such as the Jasper Cash Back Mastercard. This card earns up to 6% cash back and offers a credit limit of up to $5,000.

Are there business credit cards for fair credit?

While most business credit cards require good credit (FICO 670 to 739), banks do offer credit cards for fair credit for both consumers and business owners.

If I have excellent credit and then file for bankruptcy, will I have fair credit?

When you file for bankruptcy, the impact on your credit score can be devastating. Your credit score will decrease immediately, but the exact change varies from person to person. However, it is most likely that your score will rank as poor (FICO 300 to 579) after filing.

What are the best credit cards for a 650 credit score?

Can you actually improve your credit score in 30 days?

Yes, credit scores can change each time data is reported to the credit bureaus. Lowering your utilization ratio by reducing your credit card balances can improve your score quickly.

Can you get a credit card with a 600 credit score?

Yes, there are many credit card options for customers of all ranges of credit scores. Having a 600 FICO score means that you qualify for credit cards for fair credit.

What bills help build credit?

Most loans and credit cards report your account details to the credit bureaus to build your credit history. Experian Boost allows your payments to Netflix, Disney+, AT&T, Verizon and others to grow your credit.

Does each credit card company define "fair" credit the same way?

No, FICO and VantageScore define their credit ranges differently. FICO defines fair credit at 580 to 669, while VantageScore's range is 601 to 660.

Now that you know what the best credit cards for fair credit have to offer, look for one based on your individual preferences and factors such as annual fees and rewards. Once you settle on the right card for you, using your card responsibly will help improve your creditworthiness.

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