How to choose a credit card for fair credit
Fair credit customers are on the fence with most of the credit card consumers. Fair credit customers are people who have a credit score between 550-639 points. Approvals will be based on the credit score and other factors including income and credit card debts. However, small credit limits have small annual fee and a low credit limit. This is a great option if you have fair credit and you can improve your score with a fair credit card.
If you have fair credit, you can qualify for mortgages, car loans, and some credit cards if you have sufficient income. APR for fair credit might range from 13.24%-25.24 percent. These rates are variable and may increase or decrease depending on the lender. When applying for a fair credit card you need to know how to use it properly. Here are few tips –
This card can help you build your credit. The essential aspect is that a fair credit card might help you increase your credit score.
- Keep your utilization ratio as low as possible. By keeping it low, you can balance the available credit.
- Look for cards that have zero annual fees which allow you to minimize costs incurred with the card.
- Use the rewards like 1% cashback to the maximum. This will allow you to use the rewards down the road.
- However, one needs to care about carrying a balance as this will outweigh rewards.
- It is recommended not to close your fair credit card immediately after a rise in credit score. Wait till it has reached high enough for you to apply for better cards.
The top credit cards for fair credit are as below –
- Capital One® Platinum Credit Card
The card comes with zero annual fees along with fraud coverage if your card is lost or stolen. The credit line becomes higher after making on-time repayments for 5 months. You can pay by check or online banking or at a local branch. You can access online banking access on your smartphone with their app. The customer service is 24×7. The company offers a variable APR ranging from 19.99%-26.99% with additional cash advance fee of 3%. The late fees could range up to $38. - Discover It® Cashback Match
The company gives a 5% cashback on different places like gas stations, grocery stores, restaurants, Amazon, and wholesale stores. In addition, the card offers 1% cashback on all other purchases. The introductory offer of the card is that Discover will match the cashback earned at the end of the first year automatically. The introductory offer is 0% at 14 months along with 13.49% to 24.49% based on your credit score. The company has APR of 26.49% on cash advances. The late payment fees are up to $37. - American Veterans USAA Rewards™ Visa Signature® Card
This card was introduced to help American veterans and their families. USAA bank contributes when you open an account and make purchases. This is eligible for active cards. The card offers 2,500 bonus points on your first purchase with 1 point for every dollar spent. In addition, you can redeem points for 1% cashback or purchase of travel or gift cards. You can also redeem and donate to the families of your favorite military group. There is no introductory APR, however, there are zero annual fees. The regular APR for purchases is 12.15%-27.15% depending on your credit score. - Chase Slate® credit card
The card offers 0% introductory balance transfer fee made within 60 days of account opening. In addition, the company offers 0% introductory APR for 15 months for purchases as well as balance transfers. The best part of this card is that there is no penalty APR i.e. paying late fees won’t raise your APR. The regular APR is 16.24%-24.99% with zero annual fees. - Credit One Bank® Platinum Visa with Cash Back Rewards
The card offers 1% cash back on all eligible purchases. In case you want to extend your credit line, extra fees may apply. Rewards posts automatically to your account. The company offers fraud liability at $0. The annual fees may vary from $0-$99 with regular APR varying from 19.15%-25.24%.
Once you have the right credit card, it is important to maintain responsible card management. Repayments should be on time and in full without using more than what you must. If you are planning to repair damaged credit, it will take longer to recover i.e. 12-18 months. The length of time it takes to improve your credit depends on the credit score you have before you apply for the card. However, credit behavior and spending behavior also plays a role in improving or deteriorating your credit scores.