Credit card companies often offer credit card plans according to a person’s credit rating. A fair credit rating means that you pose an average level of risk for most lenders and that your score is between 580 to 669.
Unlike those with bad credit ratings, a fair credit score means that you can often avail of credit cards that offer rewards programs, annual perks and even zero fees. While these perks may pale in comparison to what you can get if you have excellent credit scores, it still beats credit card options open to those with bad credit, which are often basic credit card plans with no perks and very high fees.
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Credit Cards for Fair Credit in 2020: Are They Worth It?
Credit cards for fair credit can come with high fees but signing up for one can be good for you in the long run. If you can pay off your bills in full and on time, you can slowly improve your credit score so you can be upgraded to an excellent rating and be eligible for cards that offer better rates and perks.
Top Cards for People with Fair Credit
1Discover It Secured
This card is a card designed for those looking to build up their credit scores. There’s a 2% cash back for gas and dining purchases and a 1% cash back on all other purchases. You can also double your total cash back earned in the first year which is awarded at the end of that year. There is no annual fee and the security deposit is refundable.
2Capital One® Platinum Credit Card
This is an ideal travel card because it has 0% annual fee and 0% foreign transaction fee. This card can offer a limit of up to $10,000. Although it does not offer rewards, this card doesn’t require a security deposit, making it available for anyone who likes to travel and has a less-than-good credit score.
3Capital One QuicksilverOne
Capital One QuicksilverOne is another good option for those with fair or average credit. It offers 1.5% cash back on purchases and does not charge a foreign transaction fee. While it does have a $39 annual fee, it’s one of the few credit cards for people with fair credit that offers at least one reward. You also get access to a higher credit line if you manage to pay your bill on time for 5 months.
4Petal® Visa® Credit Card
The Petal Visa is one of the best starter credit cards out there, making it a good option for those with fair credit. It doesn’t have add-on fees and offers cash back rewards. However, it may have high-interest rates which means you need to make your payments on time if you want to take full advantage of the perks this card has to offer. You also don’t need to have existing credit or put down a security deposit to be approved for this card. This Fintech-backed card is a great starter card for students. It may even be useful for those who like to travel because it doesn’t charge international fees.
This card is suited for those with bad to fair credit scores. If you are looking for a card that is useful for building credit, this is a good card for that purpose. One great feature of this card is that it reports your activity to the credit bureau so that you can create a record of timely payments. Use this card the right way and you’ll be on your way to raising your credit card scores so you can qualify for a better card. However, since this card is designed for those with poor or fair credit, don’t expect any rewards or perks.
6Deserve Edu Mastercard
Students are likely to have fair or average credit which makes the Deserve Edu Mastercard an ideal card for this demographic. While it is tailored for those with no credit history, this card is also a great option for those with fair credit who want to improve their credit scores. It also offers a 1% cash back on purchases and 0 annual fees.
Don’t be discourage if credit cards for fair ratings are all you’re eligible for now. These cards offer several rewards and they can be useful if you want to raise your credit.
Top Credit Cards for Fair Credit in 2020
1. Discover It Secured
2. Capital One® Platinum Credit Card
3. Petal® Visa® Credit Card
4. Indigo Platinum
5. Deserve EDU Mastercard
Credit scores start at 300 and are generally considered as bad credit scores all the way to 650. That said, there are some credit cards that will consider scores of 550-650. If the credit card provider offers a pre-approval process, take it in order to avoid getting a hard pull if your pre-approval is denied.