Fair credit makes it difficult for many borrowers to receive the loans or unsecured credit cards with great rates, but they’re not entirely hopeless. A fair credit score is typically considered anything between 630 and 689 by FICO. This means your score isn’t bad, but it’s not good. Reaching this point in your credit profile might motivate you to want to raise your score and improve your financial future.
Without a credit card, it’s difficult to make this happen. Unfortunately, there’s not a lot on the market for consumers with fair credit in terms of great rates and affordable loans. An unsecured card is what you want. This is a card that doesn’t require a down payment to allow access to a credit line, but you need to know which cards are the most affordable and how to use them responsibly.
With a low annual fee of only $39, this is a good card for anyone with fair credit. It’s designed to provide you an interest rate of 23.24% following a 0% interest rate for the first nine months you’re a cardholder. The rewards program is impressive for those with fair credit, allowing you to earn 1.5% cash back on all purchases.
Credit One Bank Unsecured Visa
This card is made for anyone with bad to fair credit, and it works. It comes with a low credit limit to start with, but it reports to all the major credit bureaus. On time payments allows you to become eligible for a credit line increase after so many months the card offers 1% cash back on all purchases at gas or grocery stores. Depending on your credit score, the annual fee is anywhere from $0 to $99. The better your fair score, the lower your annual fee is. This card comes with a higher than average APR, but that’s to be expected with low scores. Cardholders can expect to pay anywhere from 15.65% to 24.15% depending on creditworthiness.
This card is made for those with fair to excellent credit. It comes with an average APR of 13.24% to 23.24%, and there is no fee for balance transfers made within the first two months of opening the card. There is no annual fee, and you have the ability to check your FICO score each month with your statement.
Barclaycard Rewards MasterCard
There is no annual fee, and the APR is high. This card comes with a high APR of 25.24%, and you have to pay a 3% foreign transaction fee if you plan on traveling out of the country and spending money. There is an unlimited 2% cash back reward for any gas and grocery purchase as well as utility purchases. You get 1% cash back on all the other purchases you make with this card. The cash back offered on these typical purchase is significant, and worth looking into.
A fair credit score is important. It’s close to good, which means you can raise your score significantly in the course of a year. Once you apply and are approved for an unsecured card for your fair credit, it’s imperative you use your card wisely. Make purchases each month, but keep your balance less than 30% of the available credit. Pay the balance in full each month, and show responsibility with your usage. This provides you a better credit report, allows you to qualify for more credit, and it allows you to raise your score faster. Inside one year, you could see your fair score raised to a good score.