Credit Cards for Fair Credit | An Expert Guide
Consumers with fair credit still have credit card options but these cards tend to come with an annual fee and a lower credit limit. Even still, they can be a good option if you have fair credit as it will allow you to establish payment history. Below our experts highlight factors you should consider when evaluating these credit cards and are approaching the application process. Click on the images below to get specific advice from our experts.
Browse ALL Expert Guides
Featured {{$root.currentSeoUrl.headertext}}
There are no cards that match your search
criteria.
Please revise your search criteria above and try again.
-
CREDIT RANGE:
CREDIT NEEDED:
What To Look For When Applying
If you are applying for a credit card and you have fair credit, then you should look for a basic card with competitive rates and fees. For example, there are many cards with no annual fees, and there are some more simple cards that have reduced or eliminated late fees, foreign transaction fees and penalty interest rates. It can also be a good idea to apply for a card issued by a company that you already have a banking relationship with, so that payments and other account information can all be accessed from one site. Finally, look for a card that offers valuable benefits such as purchase protection, travel insurance and rental car collision damage waiver policies.
What To Avoid When Applying
If you have fair credit, then you should avoid applying for cards that require good or excellent credit, as a denied application will not help you. You should also be aware that some products can cost you more over time, and you need to determine whether the benefits are worth the cost. That includes cards with less favorable terms, such as those that carry a monthly fee or lack a grace period. Also consider whether reward cards that earn points, miles, or cash back serve your needs best, as these cards will have higher interest rates than other non-reward cards. Finally, if you're thinking of applying for a card with an annual fee, weigh the benefits of that card, as there are plenty of cards for fair credit that have no annual fee. In addition, those with fair credit may not need to consider secured cards, since they can typically qualify for a standard card.
Should You Apply For More Than One?
If you have fair credit, then it's ideal to focus on finding the best credit card for your needs and using it responsibly. Once cardholders have a record of on-time payments and little debt, then it might be time to consider getting a second card that offers better rates and terms, or additional features and benefits. However, those who will use an additional credit card to incur more debt (rather than keeping a low balance or paying it in full each month) are better off having just one card. Only you can build a good credit history. Make your payments on time each month, and keep your balance low relative to the credit limit, for positive marks on your credit report.
When Is The Best Time To Apply?
If you have fair credit, then your credit is considered flawed, but not to the point of being considered poor. Before applying for a new credit card, you should make sure that any new credit card application will serve to help, rather than hurt your credit. This means that you should wait until you have been responsibly managing your finances and paying your bills on time. Next, take the time to find the best credit card for your needs, rather than applying for the first offer you see. Finally, consider waiting until your debt levels are low enough and you have enough income to be approved for a standard credit card.
Our credit experts would love to know what you think. Just remember to keep it clean, civil, honest, and avoid posting sensitive, private information. These responses are not provided or commissioned by the bank advertiser.
It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered. Please note that any Credit.com comments below are, of course, completely independent (not reviewed or endorsed by people representing financial institutions).
Okay, fire away!
*For complete information,
see the terms and conditions on the credit card issuer’s
website. Once you click apply for this card, you will be directed to
the issuer’s website where you may review the terms and
conditions of the card before applying. While Credit.com always
strives to present the most accurate information, we show a summary
to help you choose a product, not the full legal terms - and before
applying you should understand the full terms of products as stated
by the issuer itself.
†Advertiser Disclosure: The credit card
offers that appear on the website are from credit card companies
which Credit.com receives compensation. This compensation may impact
how and where products appear on this site (including, for example,
the order in which they appear). The site does not include all
credit card companies or all available credit card offers.
