Best credit cards for fair or average credit for July 2024

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Think a fair credit score means settling for a mediocre credit card? Think again..

If you have a credit score between 580 and 669, you can still access a surprising array of credit cards offering valuable perks, rewards, and the chance to boost your credit score. 

But with so many options, how do you choose the right card for your financial goals? We've done the legwork, comparing features, benefits, and fine print to bring you this curated list of the best credit cards for fair credit. 
 

Whether you want to build credit, earn cash back, or enjoy travel perks, we've got you covered. 

Best credit cards for fair or average credit

• Best for no-frills credit building: Capital One Platinum Credit Card
• Best for high credit limits and cash back potential: Petal® 2 "Cash Back, No Fees" Visa® Credit Card
• Best for flat-rate cash back: Capital One QuicksilverOne Cash Rewards Credit Card
• Best for no credit check: OpenSky® Secured Visa® Credit Card
• Best for predictable payments: Upgrade Cash Rewards Visa®
• Best for no security deposit: Mission Lane Cash Back Visa® Credit Card

Best for no-frills credit building: Capital One Platinum Credit Card

The Capital One Platinum Credit Card is an excellent starter option for those with fair credit. It offers the potential for credit line increases without requiring a security deposit. That makes this card a solid choice for those looking to build credit without tying up their cash.

The Capital One Platinum Credit Card can help you build credit without the bells and whistles of other rewards cards. Its straightforward approach makes it an excellent choice for credit beginners or those recovering from past credit issues.

One of the card's key features is the automatic consideration for a higher credit line starting at six months. This can be beneficial for improving your credit utilization ratio, which accounts for 30% of your FICO score. 

While the lack of rewards may be a drawback for some, it allows users to focus on responsible use without the temptation to overspend to earn rewards. The absence of an annual fee also means you're not paying for the privilege of building credit.

The card's no foreign transaction fee feature is a nice touch, particularly for a card in the fair credit category. 

Best for high credit limits and cash back potential: Petal® 2 "Cash Back, No Fees" Visa® Credit Card

The Petal® 2 "Cash Back, No Fees" Visa® Credit Card stands out for its innovation, high credit limit potential, and cash back rewards. It's particularly great for those with limited credit history who might struggle to qualify for traditional credit cards.

The Petal 2 Card is a unique offering in the fair credit market, designed to provide opportunities for those who traditional card issuers might overlook. You don’t need a credit score or a deposit to apply for this card, making it an excellent option for those with limited credit history. Plus, the card's tiered rewards structure encourages responsible credit use.

One of the most attractive features of this card is its $10,000 maximum credit limit. This is unusually high for a card in the fair credit category and can help you manage your credit utilization, a key factor in credit scoring.

The complete absence of fees is another significant advantage. With no annual, late, or foreign transaction fees, this card minimizes the cost of building credit. While the card doesn't offer a sign-up bonus or balance transfer option, these are less common features in the fair credit market. 
 

Best for flat-rate cash back: Capital One QuicksilverOne Cash Rewards Credit Card

The Capital One QuicksilverOne Cash Rewards Credit Card offers unlimited 1.5% cash back on all purchases, a rate typically found on cards requiring good or excellent credit.

The Capital One QuicksilverOne is an upgrade from the Platinum card. With this card, you can earn cash back on your purchases. While the annual fee is $39, it can be offset by spending $2,600 on the card annually (around $220 monthly). 

The QuicksilverOne Cash Rewards Credit Card is best for those who want to earn cash back rewards while building their credit. It's particularly ideal for those who can spend enough to offset the annual fee and are committed to paying their balance in full each month to avoid high interest charges.

Best for no credit check: OpenSky® Secured Visa® Credit Card

The OpenSky® Secured Visa® Credit Card doesn’t require a credit check for approval, making it accessible even to those with poor credit or no credit history.

The OpenSky Secured card is meant for those who may have difficulty qualifying for other credit cards due to poor credit or lack of credit history. The card requires a refundable security deposit, which becomes your credit limit. This deposit can range from $200 to $3,000. 

One of the primary benefits of this card is its credit-building potential. OpenSky reports to all three major credit bureaus, which can help you establish or rebuild your history with responsible use. 

The card does come with some drawbacks. While not excessive, the $35 annual fee is an extra cost to consider, especially given that this is a secured card with no rewards.

Plus, unlike some secured cards, the OpenSky® Secured Visa® doesn't offer a clear path to graduate to an unsecured card. This means you'd likely need to apply for a new card with a different issuer once your credit has improved.

Best for predictable payments: Upgrade Cash Rewards Visa®

The Upgrade Cash Rewards Visa® combines elements of a personal loan with a credit card, offering predictable payments and rewards.

The Upgrade Cash Rewards Visa® is a unique hybrid product, ideally for those with fair credit who want the flexibility of a credit card with the predictability of a loan.

Unlike traditional credit cards, which allow you to choose to pay a minimum amount each month, the Upgrade card sets a fixed monthly payment for a predetermined term, similar to a personal loan. This can help users avoid the trap of minimum payments and pay off their balance more quickly.

You’ll also earn unlimited 1.5% cash back every time you make a payment. It’s important to note that you're not earning rewards on purchases at the time they're made but rather when you pay them off.

There’s the potential for a high credit limit, up to $25,000. This can be particularly beneficial for managing your credit utilization. However, the actual limit you receive will depend on your creditworthiness.

Best for cash back rewards and no security deposit: Mission Lane Cash Back Visa® Credit Card

The Mission Lane Cash Back Card offers cash back rewards without requiring a security deposit, which is relatively uncommon.
 

The Mission Lane Cash Back Card is an attractive option for those who want to build credit but lack the funds for a secured card. 

The card's primary appeal is its simplicity. It offers a straightforward 1% cash back on all purchases with no annual fee. While this reward rate isn't the highest available, it's competitive for a card in the fair credit category.

One of the card's other strengths is its potential for credit limit increases over time. Mission Lane will review your account and may offer credit limit increases based on your payment history and creditworthiness. You can also check your likelihood of approval without impacting your credit score via the card’s prequalification feature.  

What is a fair credit score?

A fair credit score is one of five credit score ranges in the FICO scoring system, the most widely used credit scoring model. FICO scores range from 300 to 850, with fair credit typically falling between 580 and 669.

Here's a breakdown of FICO score ranges:

• Excellent: 800-850
• Very Good: 740-799
• Good: 670-739
• Fair: 580-669
• Poor: 300-579

Individuals with fair credit scores may have faced financial challenges or have a limited credit history. Common reasons for a fair credit score include:

• Missed or late payments on loans or credit cards
• High credit utilization (using a large portion of available credit)
• Limited credit history
• Recent credit applications resulting in multiple hard inquiries

While a fair credit score opens doors to certain financial products, it often has limitations. 

"Some lenders only allow access to their cards, rates, or perks to those with a good to excellent score,” says Daniel Cohen, founding partner at Consumer Attorneys. “So, consumers can access less-enticing offers as their credit ratings decrease. Someone with a fair score likely won't get the best rates available or the best perks, but there are still some really good options out there,”

Having a fair credit score typically means:

• Higher interest rates on loans and credit cards
• Lower credit limits
• Fewer rewards and perks on credit cards
• Potentially higher insurance premiums
• Difficulty renting apartments or securing certain jobs 

However, a fair credit score is not a permanent state. By using credit responsibly, you can improve your score over time. 

You'll gain access to better financial products as your credit score improves. 

How to build credit with a credit card

“For a credit card to help build your credit, it must be used responsibly. To have a healthy mix of credit, there are a few basic rules you should know about,” explains Ben Alvarado, Executive Vice President and Director of Core Banking at California Bank & Trust. 

Alvarado outlines some steps to build credit with a credit card:

• Make on-time payments: Payment history accounts for 35% of your FICO score, making it the most crucial factor in building credit. Set up automatic payments or reminders to ensure you never miss a due date. Even one late payment can significantly impact your credit score.
• Keep your credit utilization low: Credit utilization, or the amount of credit you use compared to your credit limits, accounts for 30% of your FICO score. Aim to use no more than 30% of your available credit. For example, if your credit limit is $1,000, keep your balance below $300.
• Avoid applying for multiple cards at once: Each application typically results in a hard inquiry on your credit report, which can temporarily lower your score. Space out applications by at least six months. Focus on using and managing one card responsibly before considering additional products.
• Keep old accounts open: The length of your credit history matters, accounting for 15% of your FICO score. Keeping an old card open can benefit your score even if you're not using it frequently. 
• Request a credit limit increase: After several months of on-time payments, ask your issuer for a credit limit increase. If your spending remains the same, this can lower your credit utilization ratio. 
• Be patient: Building good credit is a marathon, not a sprint. Consistency and patience are key as you work towards improving your credit score.

How to choose the right credit card 

With the right approach, you can find a card that suits your needs and helps you build credit. Here's a step-by-step guide to choosing the right credit card:

1. Assess your financial situation: Review your monthly income and expenses and determine how much you can responsibly spend on a card. Consider whether you can afford a security deposit for a secured card.
2. Identify your primary goal: Do you want to build credit, earn rewards, or both? Look for cards that report to all three major credit bureaus. Bonus points if they offer cash back and don’t have an annual fee. 
3. Understand your approval odds: Use pre-qualification tools to gauge your chances of approval without a hard credit inquiry 
4. Compare card features: Consider factors like annual fees, APR, rewards, credit limits, and added perks like credit score monitoring or cellphone insurance.
5. Read the fine print: Understand all fees, including late payment and foreign transaction fees. Check for penalty APRs triggered by late payments, and look for cards with opportunities for credit limit increases. 
6. Consider the long-term value: Choose a card that can grow with you as your credit improves. This includes cards that offer a path to upgrade to better terms or unsecured status.
7. Balance building your credit with rewards: While rewards are attractive, prioritize cards that will help improve your credit score. Remember that responsible use is more important than rewards in the long run. 

Frequently asked questions about credit cards for fair credit 

The bottom line 

There are plenty of credit card options tailored to those looking to build their credit while enjoying some of the benefits typically reserved for higher credit tiers. When choosing a credit card for fair credit, consider your specific financial situation. Some cards offer rewards, allowing you to earn cash back on your everyday spending. Others focus on credit-building features, such as regular account reviews for credit limit increases or paths to graduate to unsecured cards. 

Remember, responsible use is the key to maximizing any credit card's benefits. Making on-time payments and keeping your credit utilization low can help you improve your credit score over time. As your score increases, you'll gain access to even better financial products, including cards with higher rewards and lower interest rates.

Editorial disclosure: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.