What are the best credit cards for people with fair credit?
The credit utilization ratio, which measures how much of your available credit you're using, is one of the most important factors in determining your credit score.
Credit cards for fair credit often have lower credit limits, so it's crucial to keep your balances low to maintain a healthy utilization ratio.
Many credit cards designed for fair credit offer automatic credit limit increases over time.
This can help improve your credit utilization and boost your credit score, without requiring a new credit application.
Secured credit cards, where you make a refundable security deposit that becomes your credit limit, can be an effective way for people with fair credit to build credit.
The Discover it Secured Credit Card is a popular option.
The Capital One Platinum Credit Card is one of the few unsecured credit cards that's widely available to those with fair credit.
It has no annual fee and reports your payment history to all three major credit bureaus.
The Citi Custom Cash Card offers 5% cash back in your top spending category each billing cycle (up to $500 in purchases), which can be a valuable perk for consumers with fair credit who want to maximize rewards.
The credit scoring model used by most lenders, FICO, considers your credit mix - the different types of credit accounts you have - as a factor.
Having a mix of credit cards, loans, and other accounts can help improve your score.
The annual fee charged by credit cards is often lower for those with fair credit compared to excellent credit.
This can make cards more accessible, though fees should still be considered when choosing the best option.
Many credit card issuers offer free credit score monitoring and reporting to cardholders.
This can help those with fair credit track their progress and identify areas for improvement.
Becoming an authorized user on someone else's credit card can be a way for people with fair credit to piggyback on the account holder's positive credit history and potentially boost their own scores.
The Upgrade Cash Rewards Visa Card is unique in that it allows users to pay off purchases over time with fixed monthly payments, which can be helpful for those managing their credit utilization.
The Capital One SavorOne Student Cash Rewards Credit Card is designed for college students with fair credit, offering 3% cash back on dining and entertainment and no annual fee.
The Credit One Bank Platinum Visa is one of the few unsecured credit cards available to those with fair credit, though it does come with an annual fee and potentially higher interest rates.
The Indigo Mastercard is marketed as a credit card for rebuilding credit, with no security deposit required and the potential for a higher credit limit after the first year of use.
The Milestone Mastercard is another option for those with fair credit, offering the ability to build credit with a starting credit limit of $300 and no security deposit.
The Wells Fargo Active Cash Card, while not specifically targeted at those with fair credit, can be a good option with its 2% cash back on all purchases and no annual fee.
The Bank of America Customized Cash Rewards Credit Card allows users to choose their own 3% cash back category, providing flexibility for those with fair credit who want to maximize rewards.
The Chase Freedom Unlimited is a popular cash back card that may be accessible to those with fair credit, offering 1.5% cash back on all purchases with no annual fee.
The Amex EveryDay Credit Card from American Express is a no-annual-fee card that can be a good choice for fair credit consumers, with the potential to earn Membership Rewards points.
The Citi Double Cash Card, while typically associated with excellent credit, can still be a viable option for fair credit consumers due to its straightforward 2% cash back structure.
The Petal 2 "Cash Back, No Fees" Visa Card is a unique card that considers an applicant's banking history and cashflow in addition to credit score, making it a potential option for those with fair credit.