Best credit cards for fair or average credit for July 2024

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Think a fair credit score means settling for a mediocre credit card? Think again..

If you have a credit score between 580 and 669, you can still access a surprising array of credit cards offering valuable perks, rewards, and the chance to boost your credit score. 

But with so many options, how do you choose the right card for your financial goals? We've done the legwork, comparing features, benefits, and fine print to bring you this curated list of the best credit cards for fair credit. 
 

Whether you want to build credit, earn cash back, or enjoy travel perks, we've got you covered. 

• Best for no-frills credit building: Capital One Platinum Credit Card
• Best for high credit limits and cash back potential: Petal® 2 "Cash Back, No Fees" Visa® Credit Card
• Best for flat-rate cash back: Capital One QuicksilverOne Cash Rewards Credit Card
• Best for no credit check: OpenSky® Secured Visa® Credit Card
• Best for predictable payments: Upgrade Cash Rewards Visa®
• Best for no security deposit: Mission Lane Cash Back Visa® Credit Card

The Capital One Platinum Credit Card is an excellent starter option for those with fair credit. It offers the potential for credit line increases without requiring a security deposit. That makes this card a solid choice for those looking to build credit without tying up their cash.

The Capital One Platinum Credit Card can help you build credit without the bells and whistles of other rewards cards. Its straightforward approach makes it an excellent choice for credit beginners or those recovering from past credit issues.

One of the card's key features is the automatic consideration for a higher credit line starting at six months. This can be beneficial for improving your credit utilization ratio, which accounts for 30% of your FICO score. 

While the lack of rewards may be a drawback for some, it allows users to focus on responsible use without the temptation to overspend to earn rewards. The absence of an annual fee also means you're not paying for the privilege of building credit.

The card's no foreign transaction fee feature is a nice touch, particularly for a card in the fair credit category. 

Pros

• No annual fee
• No foreign transaction fees
• Potential for credit line increases
• Pre-qualification available
• Access to CreditWise monitoring tool
• No security deposit required
• Ability to choose your monthly due date
• $0 fraud liability

Cons

• No rewards
• Relatively high variable APR
• Initial credit limit may be low, typically starting at $300
• Balance transfer fee
• No introductory APR offer

Best for high credit limits and cash back potential: Petal® 2 "Cash Back, No Fees" Visa® Credit Card

The Petal® 2 "Cash Back, No Fees" Visa® Credit Card stands out for its innovation, high credit limit potential, and cash back rewards. It's particularly great for those with limited credit history who might struggle to qualify for traditional credit cards.

The Petal 2 Card is a unique offering in the fair credit market, designed to provide opportunities for those who traditional card issuers might overlook. You don’t need a credit score or a deposit to apply for this card, making it an excellent option for those with limited credit history. Plus, the card's tiered rewards structure encourages responsible credit use.

One of the most attractive features of this card is its $10,000 maximum credit limit. This is unusually high for a card in the fair credit category and can help you manage your credit utilization, a key factor in credit scoring.

The complete absence of fees is another significant advantage. With no annual, late, or foreign transaction fees, this card minimizes the cost of building credit. While the card doesn't offer a sign-up bonus or balance transfer option, these are less common features in the fair credit market. 
 

Pros

• No fees whatsoever (including no late fees or foreign transaction fees)
• High credit limit potential (up to $10,000)
• Cash back rewards that can increase with responsible use
• No security deposit required
• No credit score required to qualify
• Ability to freeze your card instantly if lost or stolen

Cons

• Annual fee of $35
• Potentially high variable APR
• May take a year to earn the maximum cash back rate
• No sign-up bonus
• No balance transfer option

The Capital One QuicksilverOne Cash Rewards Credit Card offers unlimited 1.5% cash back on all purchases, a rate typically found on cards requiring good or excellent credit.

The Capital One QuicksilverOne is an upgrade from the Platinum card. With this card, you can earn cash back on your purchases. While the annual fee is $39, it can be offset by spending $2,600 on the card annually (around $220 monthly). 

The QuicksilverOne Cash Rewards Credit Card is best for those who want to earn cash back rewards while building their credit. It's particularly ideal for those who can spend enough to offset the annual fee and are committed to paying their balance in full each month to avoid high interest charges.

Pros

• 1.5% unlimited cash back on all purchases
• Potential for credit line increases with responsible use
• No foreign transaction fees
• Access to Capital One's CreditWise monitoring tool
• Pick your monthly due date

Cons

• Annual fee of $39
• High variable APR
• No sign-up bonus
• Initial credit limit may be low
• No intro APR offer

The OpenSky® Secured Visa® Credit Card doesn’t require a credit check for approval, making it accessible even to those with poor credit or no credit history.

The OpenSky Secured card is meant for those who may have difficulty qualifying for other credit cards due to poor credit or lack of credit history. The card requires a refundable security deposit, which becomes your credit limit. This deposit can range from $200 to $3,000. 

One of the primary benefits of this card is its credit-building potential. OpenSky reports to all three major credit bureaus, which can help you establish or rebuild your history with responsible use. 

The card does come with some drawbacks. While not excessive, the $35 annual fee is an extra cost to consider, especially given that this is a secured card with no rewards.

Plus, unlike some secured cards, the OpenSky® Secured Visa® doesn't offer a clear path to graduate to an unsecured card. This means you'd likely need to apply for a new card with a different issuer once your credit has improved.

Pros

• No credit check required
• Available to those with poor credit or no credit history
• Security deposit is refundable
• Reports to all three major credit bureaus

Annual fee of $35

• No rewards
• Foreign transaction fees
• High variable APR
• No path to graduate to an unsecured card

The Upgrade Cash Rewards Visa® combines elements of a personal loan with a credit card, offering predictable payments and rewards.

The Upgrade Cash Rewards Visa® is a unique hybrid product, ideally for those with fair credit who want the flexibility of a credit card with the predictability of a loan.

Unlike traditional credit cards, which allow you to choose to pay a minimum amount each month, the Upgrade card sets a fixed monthly payment for a predetermined term, similar to a personal loan. This can help users avoid the trap of minimum payments and pay off their balance more quickly.

You’ll also earn unlimited 1.5% cash back every time you make a payment. It’s important to note that you're not earning rewards on purchases at the time they're made but rather when you pay them off.

There’s the potential for a high credit limit, up to $25,000. This can be particularly beneficial for managing your credit utilization. However, the actual limit you receive will depend on your creditworthiness.

Pros

• Unlimited 1.5% cash back
• Predictable fixed monthly payments
• No annual fee
• High potential credit limits (up to $25,000)

Cons

• High balance transfer fee
• Foreign transaction fee
• High variable APR
• No intro APR offer
• Foreign transaction fees

Best for cash back rewards and no security deposit: Mission Lane Cash Back Visa® Credit Card

The Mission Lane Cash Back Card offers cash back rewards without requiring a security deposit, which is relatively uncommon.
 

The Mission Lane Cash Back Card is an attractive option for those who want to build credit but lack the funds for a secured card. 

The card's primary appeal is its simplicity. It offers a straightforward 1% cash back on all purchases with no annual fee. While this reward rate isn't the highest available, it's competitive for a card in the fair credit category.

One of the card's other strengths is its potential for credit limit increases over time. Mission Lane will review your account and may offer credit limit increases based on your payment history and creditworthiness. You can also check your likelihood of approval without impacting your credit score via the card’s prequalification feature.  

Pros

• No annual fee
• 1% cash back on all purchases
• No security deposit required
• Potential for credit limit increases
• Pre-qualification available with no impact on credit score

Cons

• High variable APR
• Potential for a low initial credit limit
• Foreign transaction fee
• Limited additional benefits

A fair credit score is one of five credit score ranges in the FICO scoring system, the most widely used credit scoring model. FICO scores range from 300 to 850, with fair credit typically falling between 580 and 669.

Here's a breakdown of FICO score ranges:

• Excellent: 800-850
• Very Good: 740-799
• Good: 670-739
• Fair: 580-669
• Poor: 300-579

Individuals with fair credit scores may have faced financial challenges or have a limited credit history. Common reasons for a fair credit score include:

• Missed or late payments on loans or credit cards
• High credit utilization (using a large portion of available credit)
• Limited credit history
• Recent credit applications resulting in multiple hard inquiries

While a fair credit score opens doors to certain financial products, it often has limitations. 

"Some lenders only allow access to their cards, rates, or perks to those with a good to excellent score,” says Daniel Cohen, founding partner at Consumer Attorneys. “So, consumers can access less-enticing offers as their credit ratings decrease. Someone with a fair score likely won't get the best rates available or the best perks, but there are still some really good options out there,”

Having a fair credit score typically means:

• Higher interest rates on loans and credit cards
• Lower credit limits
• Fewer rewards and perks on credit cards
• Potentially higher insurance premiums
• Difficulty renting apartments or securing certain jobs 

However, a fair credit score is not a permanent state. By using credit responsibly, you can improve your score over time. 

You'll gain access to better financial products as your credit score improves. 

“For a credit card to help build your credit, it must be used responsibly. To have a healthy mix of credit, there are a few basic rules you should know about,” explains Ben Alvarado, Executive Vice President and Director of Core Banking at California Bank & Trust. 

Alvarado outlines some steps to build credit with a credit card:

• Make on-time payments: Payment history accounts for 35% of your FICO score, making it the most crucial factor in building credit. Set up automatic payments or reminders to ensure you never miss a due date. Even one late payment can significantly impact your credit score.
• Keep your credit utilization low: Credit utilization, or the amount of credit you use compared to your credit limits, accounts for 30% of your FICO score. Aim to use no more than 30% of your available credit. For example, if your credit limit is $1,000, keep your balance below $300.
• Avoid applying for multiple cards at once: Each application typically results in a hard inquiry on your credit report, which can temporarily lower your score. Space out applications by at least six months. Focus on using and managing one card responsibly before considering additional products.
• Keep old accounts open: The length of your credit history matters, accounting for 15% of your FICO score. Keeping an old card open can benefit your score even if you're not using it frequently. 
• Request a credit limit increase: After several months of on-time payments, ask your issuer for a credit limit increase. If your spending remains the same, this can lower your credit utilization ratio. 
• Be patient: Building good credit is a marathon, not a sprint. Consistency and patience are key as you work towards improving your credit score.

With the right approach, you can find a card that suits your needs and helps you build credit. Here's a step-by-step guide to choosing the right credit card:

There are plenty of credit card options tailored to those looking to build their credit while enjoying some of the benefits typically reserved for higher credit tiers.

When choosing a credit card for fair credit, consider your specific financial situation. Some cards offer rewards, allowing you to earn cash back on your everyday spending. Others focus on credit-building features, such as regular account reviews for credit limit increases or paths to graduate to unsecured cards.

Remember, responsible use is the key to maximizing any credit card's benefits. Making on-time payments and keeping your credit utilization low can help you improve your credit score over time. As your score increases, you'll gain access to even better financial products, including cards with higher rewards and lower interest rates.

What credit score is considered “fair credit”?

A FICO score between 580 and 669 is generally considered fair credit. This range falls between poor credit (300-579) and good credit (670-739). It's important to note that while FICO is the most widely used scoring model, some lenders may use different models or have their criteria for what constitutes fair credit.

Can I earn rewards with a fair credit card?

Yes, you can earn rewards with many fair credit cards. Some cards offer cash back rewards as high as 1.5% on all purchases, while others may have tiered rewards structures or bonus categories.

Keep in mind that rewards rates for fair credit cards are typically lower than those offered by cards requiring good or excellent credit. When choosing a card, it's important to balance the allure of rewards with other factors like annual fees and APRs.

How can I use a fair credit card to improve my credit score?

Using a fair credit card responsibly can significantly improve your credit score. Key strategies include:

• Making all payments on time, every time (payment history is 35% of your FICO score)
• Keeping your credit utilization ratio low (ideally below 30% of your credit limit)
• Maintaining the account in good standing over time to increase your average age of accounts
• Avoiding applying for multiple new credit lines in a short period 

Remember, consistency is key in credit building. It's not just about having the card; how you use it matters.

What should I look for when choosing a fair credit card?

When selecting a fair credit card, consider the following factors:

• Annual fee: Determine if the card's benefits justify any annual fee
• APR: Look for lower interest rates, especially if you might carry a balance
• Security deposit: Decide if you're comfortable with a secured card or prefer an unsecured option
• Rewards: Compare cashback rates or point systems
• Credit-building features: Look for cards that report to all three major credit bureaus and offer credit limit increase reviews
• Additional perks: Consider features like free credit score access or cellphone insurance
• Upgrade path: Some cards offer clear paths to better terms or unsecured status as your credit improves

Can I get a credit limit increase with a credit card for fair credit?

Many fair credit cards offer the possibility of credit limit increases over time. Some issuers conduct automatic reviews of your account, often starting 6 or 12 months after opening the account. Others may require you to request a review. 

Factors considered for an increase typically include your payment history with the card, overall credit profile, and income. Remember, consistently making on-time payments and keeping your credit utilization low can improve your chances of receiving a credit limit increase.

How long does improving my credit score with a fair credit card take?

The timeline for improving your credit score can vary widely depending on your circumstances. Some people may see improvements in as little as a few months with responsible use, while for others, it might take a year or more. Factors that can influence this timeline include:

• The reason for your fair credit score (ex., limited credit history or past credit problems)
• How consistently you make on-time payments
• Your credit utilization ratio
• The mix of credit types in your overall profile
• Any negative items on your credit report, and how recent they are 

Remember, credit building is a gradual process. Focus on consistent, responsible use rather than quick fixes.

Should I choose a secured or unsecured credit card for fair credit?

The choice between a secured and unsecured credit card depends on your specific situation:

Secured cards:

• Pros: Easier to qualify for, often have lower fees, can offer higher credit limits (based on your deposit)
• Cons: Require an upfront deposit, may have fewer rewards or perks

Unsecured cards:

• Pros: Don't require a deposit, may offer better rewards and benefits
• Cons: Can be harder to qualify for with fair credit, may have higher fees or APRs

A secured card might be a good starting point if you're new to credit or rebuilding after past issues. You might qualify for an unsecured card if you're on the higher end of the fair credit range or have some positive credit history. When making this decision, consider your financial situation, ability to provide a deposit, and long-term credit goals.

Editorial disclosure: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.

Marc Guberti

Marc Guberti is a Certified Personal Finance Counselor (CPFC) and Bankrate contributor. He also writes articles on finance and investing for US News & World Report, InvestorPlace, Benzinga, and other publications.

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