Best Credit Cards for Fair Credit – Top Cards to Build Your Score

According to the FICO and VantageScore models, if your score is 580 to 669 in the U.S, you fall in the fair credit category. Which means you really need the best credit cards for fair credit to increase your score. Consumers with fair credit scores are often treated as subprime by lenders, meaning higher approval hurdles, higher APR, and fewer premium rewards than borrowers with good credit scores. 

As we have reviewed several credit cards for a fair credit score, these will help you to elevate your score and build a good one. In the coming article, we will discuss in detail. So stay with us to know everything. 

List of Best Credit Cards For Fair Credit 

Below, we have listed some of the best credit cards for fair credit score users. Have a look to understand it better. 

Petal 2 Visa Credit Card 

The Petal 2 Visa Credit Card is a popular unsecured credit card for people or students with limited or fair credit. Petal 2 doesn’t require a security deposit or existing credit history. Instead of this, it uses alternative data like your banking history to evaluate applicants and offer simple rewards. 

• Pros
  • No security deposit required.
  • Comes with no annual fee.
  • Offer cash back on every purchase. 
  • Uses banking history to help with approval. 
• Cons
  • The rewards are moderate, not high, compared to premium cards. 
  • The cards are not ideal for high spenders. 
  • The credit limit may be low at first. 
• Best For
  • The card is ideal for people with fair or limited credit who want an unsecured card without a deposit and easy approval.

Capital One QuicksilverOne Cash Rewards Credit Card

The Capital One QuicksilverOne is a cash back credit card tailored to people with fair credit. The card offers simple rewards on purchase, but it charges a modest annual fee. 

• Pros
  • Offer unlimited 1.5% cash back on all purchases.
  • No foreign transaction fees.
  • It offers to increase the credit limit if users use it responsibly. 
• Cons
  • The card applies an annual fee.
  • The card requires fair credit, not guaranteed approval. 
  • APR can be high. 
• Best For
  • Ideal for users with fair credit who want simple cashback without complicated categories. 

Upgrade Cash Rewards Visa

The upgraded Cash Rewards Visa is a card that combines cash-back rewards with personal loan features. The card is especially designed for people with fair to good credit and helps to build credit with responsible use. 

• Pros
  • 1.5% cash back on every purchase. 
  • It offers the option to get a credit-building personal loan. 
  • Comes with no annual fee. 
• Cons
  • Comes with flat rewards and offers no bonus categories. 
  • The credit limit may be lower compared to other unsecured credit cards. 
  • APR may be high for some users. 
• Best For
  • Ideal for users with fair credit who are looking for both cashback and credit-building help.

Discover it Secured Credit Card

The Discover it Secured card is the best secured card for fair or limited credit. The card requires a security deposit but offers good rewards and strong benefits like a free FICO score and cashback match. 

• Pros
  • It offers rewards on everyday purchases. 
  • Cashback match first year.
  • It reports to all three major credit bureaus in the U.S.
  • Comes with no annual fee. 
• Cons
  • It requires a security deposit. 
  • It offers a lower initial credit limit tied to a deposit. 
  • The card is not ideal if you dislike secured cards. 
• Best For
  • An ideal choice for people with fair or limited credit who are serious about building or rebuilding credit. 

OpenSky Secured Visa Credit Card

The OpenSky Secured Visa is a simple and secured card that doesn’t require a credit check. This makes it easier for people with poor or no credit to get approved. However, you must provide a security deposit. 

• Pros
  • It doesn’t require a credit check for approval. 
  • It helps to build credit if users use it responsibly. 
  • Offer an easy application. 
• Cons
  • The card requires a security deposit. 
  • Offer no rewards or cash back.
  • The APR can be high. 
• Best For
  • The card is an ideal choice for beginners with poor or no credit history who are looking for an easy-approval secured card to start building credit. 

These are some of the ideal credit cards for fair credit score. This gives individuals a chance to build good credit. 

Tips to Find Credit Cards for Fair Credit Score

Below, we have mentioned some of the best tips to find the best credit cards for fair credit. Have a look at it to understand it. 

Begin with issuers known to approve fair-credit

Some banks in the U.S are considered flexible with approval, like 

• Capital one 
• Discover 
• Petal one and two
• OpenSky
• Upgrade Visa

These are considered to design products for the best credit cards for fair credit.

Use Pre-Qualification 

Most of the issuers in the US allow a soft-pull prequalification, which

• doesn’t affect your credit
• Tells about the chances of approval
• Helps to avoid unnecessary queries

Reports to all major credit bureaus-

Check if the card reports to all major credit bureaus-

• Experian
• Equifax 
• TransUnion

Reporting is crucial for improving your credit score from fair to good. 

Compare unsecured vs secured options

• Unsecured Card – Comes with no deposit and is easier than prime cards
• Secured Cards – Known for easier approval, a refundable deposit, and considered a fast improvement in many cases. 

Avoid High Annual Fee Cards

Some fair cards come with- 

• High annual fees 
• Monthly maintenance fees 
• Program fees 
• Activation fees

Avoid a card that comes with too many charges.

Apply for One Card at a Time 

If you apply for multiple cards at a time, it can

• drop your credit score.
• 3 to 10 points per hard inquiry. 

Apply for one card at a time to avoid such issues.

These were some of the best tips to obtain the best credit cards for fair credit. 

How a Credit Card Helps to Improve Credit Score

A credit cards for fair credit with high limits is one of the best tools for building or improving your credit score in the USA. Below are some points for you. Have a look. 

• Always Pay On Time – When one pays their credit card bill on time or before the due date every month, their credit score goes up steadily. Even if you pay the minimum amount, you can still push your credit score. 

• Reduce Credit Utilization – Remember, your credit utilization is the percentage of your credit limit you use. Always keep your usage below 30%. To boost your score quickly, stay under 10%. 

• Build Long Credit History – When you keep a credit card open for years, your account age increases and your credit score strengthens. 

• Create a Mix of Credit Types – Usually, credit bureaus reward you for having different types of credit, like
  • Credit card 
  • Loans 
  • Installment Plans

• Helps Increase Your Credit Limit – If one uses a credit card responsibly, the bank increases their credit limit, and a higher credit limit helps to build a better credit score. 

• Reports to All Major Credit Bureaus – Reporting your activity to credit bureaus helps to increase your credit score. If your company does not report to all major bureaus, you will not be able to elevate your credit score even after paying bills on time. 

This is how the best credit cards for fair credit help individuals to elevate their credit score. 

Eligibility Criteria for Fair Credit Cards (U.S.)

To avoid any potential issues, we have mentioned the eligibility criteria below for you. Have a look at it to understand: 

• Credit Score Range — Most of the credit cards approve individual applicants with a credit score between 580 and 669.  

• U.S. Residency — The applicant must be a legal resident of the United States with a valid U.S. address. 

• SSN or ITIN — In the U.S., most issuers require a valid Social Security Number (SSN) or ITIN. 

• Minimum Age Requirement —The applicant must be at least 18 years old (in some cases, 21 years old without independent income).

• Stable Income Source — Applicant should have a verifiable income source to show the ability to repay the credit card bill. 

• Clear Recent Credit Activity — Remember, too many recent hard inquiries or defaults can reduce the chance of approval, even if you have fair credit.

• Security Deposit (For Secured Cards) — Before applying for a secured credit card, you are required to make a refundable security deposit, which usually becomes your credit limit. 

These are the eligibility criteria for applying for the best credit cards with fair credit.

Documents Required to Apply for a Fair Credit Card

Before applying for the card, you need to prepare some documents to avoid any delay: 

• Social Security Number (SSN) or ITIN — A Social Security Number (SSN) or ITIN is required to accept your application. 

• Government-Issued Photo ID — A valid U.S. photo ID is required for identity verification. Like a driver’s license, state ID, or your passport. 

• Income Proof — Maybe the bank or card issuer can ask you for proof of income, like your pay stubs, bank statements, or tax returns. 

• U.S. Residential Address — A valid U.S. mailing address is required for your account verification and card delivery. 

• Security Deposit — Remember, if you apply for a secured credit, it requires a refundable cash deposit, which usually becomes your credit limit. 

• Contact Information — Your valid email address or phone number is required for account communication and verification. 

These are some of the documents that you need to prepare before applying. 

Secured vs Unsecured Credit Cards for Fair Credit

Secured Credit Cards

• Required a Security Deposit — It requires a refundable cash deposit, which usually becomes your credit limit. 

• Higher Approval Chances — Secured credit cards often come with higher approval chances. 

• Lower Risk for Issuers —Because of the security deposit, issuers face less risk and increase their approval chances. 

• Helps Build or Rebuild Credit — Most of the secured card issuers report to all major credit bureaus, which helps to improve your credit score.

• Limited Rewards and Benefits — Secured cards offer minimal rewards compared to unsecured cards. 

• Ideal for Beginners — Ideal for applicants who are looking for a safe and controlled way to improve their credit. 

Unsecured Credit Cards

• No Security Deposit Required — An unsecured card doesn’t require any security deposit. 

• Approval Based on Credit Profile — Your approval chances depend on your credit score, income, and credit history. 

• Higher Interest Rates — Unsecured cards often come with high APRs. 

• Better Rewards Options — The card often comes with better cashback and rewards points compared to most secured cards. 

• Lower Approval Chances — The card requires a good credit score and history to approve. Applicants with weak profiles have higher chances of rejection.

This is the difference between secured and unsecured credit cards.

Understanding APR, Fees, and Charges For Fair Credit

Understanding APR, fees, and charges is important to avoid any unwanted penalties: 

• APR (Annual Percentage Rate) — A fair credit card often comes with a higher APR, generally ranging between 20% and 30%, depending on the issuer and your credit profile.

• Variable APR — It is important to understand that most of the credit has a variable APR, meaning the interest rate can change based on the U.S. prime rate. 

• Interest Charges — If you fail to pay your full balance by the due date, interest is charged on the remaining amount. 

• Annual Fee — Some credit cards with fair credit come with no annual fee, while others come with an annual fee. So before moving forward, always check the fee. 

• Cash Advance Fee — Withdrawing cash from your credit card usually incurs a cash advance fee and a higher interest rate, which starts immediately. 

• Foreign Transaction Fees — Some cards come with foreign transaction fees (typically 2-3%) on international purchases.

• Balance Transfer Fee — Check whether your card charges for transferring a balance from another card.

Common Mistakes Fair Credit Users Should Avoid

There are some common mistakes that fair credit users should avoid. For better understanding, look at the points mentioned below: 

• Applying for Multiple Cards at Once — Do not apply for multiple cards at once. This lowers your credit score. 

• Maxing Out Your Credit Limit — Using too much of your available credit increases your utilization ratio, which affects your credit score negatively. 

• Missing or Late Payment — Late payment hurts your credit score badly, which leads to penalty fees and higher interest rates.

• Paying Only the Minimum Amount — Paying only the minimum amount keeps you in long-term debt. This increases the total interest paid. 

• Ignoring Statement Due Date — Ignoring or not tracking billing cycles may cause accidental late payments, even if you have money. 

• Using a Card for a Cash Advance — Remember, taking cash using your card comes with high fees and immediate interest, making it expensive. 

• Choosing Cards with High Fees — Choosing cards with high annual, maintenance, or activation fees can limit your financial progress. 

These are some of the common mistakes that individuals should avoid.

Final Thoughts

Having a credit cards for fair credit with high limits is one of the best chances to increase your credit score. Remember, a credit card with a fair score comes with a higher interest rate and fewer rewards options compared to a good credit score. Also, a fair score limits your finances. 
Moreover, using a credit card responsibly helps increase your credit score, and this increases your financial limits and allows you to enjoy your life. In addition, the best credit cards for fair credit help to build a good credit history that will help to secure the best deal in the future while applying for a car loan, home loan, or many more.

FAQ’s

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Discalimer

The information provided on this website is for general guidance on credit cards, loans, and insurance products. We do not provide financial, legal, or professional advice. Product features, eligibility, and terms may change anytime, so users should verify details directly with the provider before applying. We may earn commissions through affiliate links, but this does not influence our reviews or recommendations. Users are responsible for their own financial decisions based on their personal situation.