What are the best credit card for fair credit? Bankers and card issuers are the main institutions that give out credit cards. They use a lot of factors to evaluate individual suitable for a credit card. One of them is a credit score. The lender must look for a way of calculating the risk he is taking when giving you a loan. We can use so many ways of defining a fair credit score.
The most appropriate one is that a fair credit score is a score that is between 580-699, but most creditors set anything above 700 as a fair score.
Today, it is difficult to earn a living with the current economic situation. With so many bills to pay, we are left with no options but to turn to lenders. Lenders come with different products to make sure no customer is left behind even if your credit score is fair or average. What we must do is open an account and have a talk with them about what we want.
We all admit that credit cards are convenient and safe to have. They make things easier and it is almost a must-have in all individuals. For you to have one, you must please your lender and it can only happen through a good credit score. Since it is all about credit score, let us know what a credit score is before we find the best card for a fair score.
What is a Credit Score?
Well, it is simple. It is a number that represents the risk your bank takes when you borrow money from them. It represents your creditworthiness. Mostly, it ranges from 300-850. It is a risk to a lender when they lend money to you, they use the information to estimate and know your capability of paying the loan. Now that it is that vital, how about we know how to build up your credit score.
How to Build Up Your Credit Score
A credit score is one of the core things for you to get a credit card. It is important to have a good and steady score. For you to do that you need to;
- First, you need to get a credit card. That helps in proving that you can handle a debt responsibly.
- Use the credit card correctly. Use it to get all the rewards and pay before the grace period is over.
- You should stay consistent in your payment.
- Consider taking a credit builder loan. It is a loan that you pay a certain set amount of money per month for a certain period.
- Take one card at a time. Taking many cards at once send a financial instability signal.
Taking steps to build up your score sometimes is not enough, you need to know what factors contribute to your credit score. Once you know the factors, you will know what to do and what to avoid.
Factors Affecting Your Credit Score
It comprises 35% of your total FICO score. You should have a loan you are servicing for them to access your creditworthiness. Take a revolving loan like a credit card or you can have an installment loan, for example, a mortgage loan or a student loan. If you have one of this, it simply means you have the ability to service a loan hence it will be easy to acquire a loan or a credit card.
The level of debt that you have
Though this, they can be able to know how well you have been paying your loan. They check the credit utilization of an individual. That is the available credit that that has been borrowed. It makes up to 30% of total credit score. One should strive to maintain low credit card balance at all time to have a good credit score.
The age of your credit history
The longer your credit history, the higher your credit score and the shorter the history the lower the FICO. Creditors use the history to evaluate your capability of repaying your loan. A longer one gives satisfactory information about your financial status and your strength when it comes to paying your debt. A short one does not give enough history.
New and mixed credits
Avoid many cards of the same line. Applying for many cards at once shows desperation and lack of finance. Also applying for a card means you must request for a financial worthiness. This is not good at all. This shows desperation and should be avoided. On the other hand, customers with mixed cards have a good record because they prove they can handle the debts of a different kind. If you can be able to own and pay many credit cards, it will be good for your overall credit score.
Now that you have understood the essentials of a credit score, there are some other things you can do to increase the chances of your credit card approval. These are;
- Register on the electro roll.
- Demonstrate stability in your finances.
- Have a look at your credit report annually.
- It is good to close all the old unused accounts.
- You should break old financial partnerships that can hinder.
- You should have a credit builder card.
After close evaluation, your creditor approves your request to have a fair credit card. It is a card that is given to people with an improving credit score. You should know how to get the most out of it
How to Take Advantage of a Fair Credit Card
- First and foremost, use the card to build you’re your credit score. It is the aim of every customer to eventually have the best credit score, one of the most useful ways is to have a credit card, so, use that opportunity to scale high for your lender to grant you better lending products.
- Keep utilization ratio low to prove you can repay your loan. Keep your balances low at all time.
- Shop for a cad with no APR. This is to minimize the cost that comes with card membership.
- Use and work with rewards. They are there to be used. Also, remember not to carry balances as this may have a negative effect
- Do you have an old card? Yes, you might have convinced your lender enough to a point that they offer you card with high credit score. Don’t close the old account, keep the account active build your credit with it and increase your available credit.
So, before we look at the best credit card for fair credit score you should ask yourself,
What makes the card you own a fair credit card?
For you to term a fair credit card to be the best, it must;
- Have a cash back benefit.
- Should have a gas and restaurant rewards.
- It should best need your needs for example for a student or for a business.
- Should have no annual fee.
- Should not mind your previous financial situation for example bankruptcy.
The following are the best credit cards for fair credit we have in the market
Capital one quicksilver one credit card
It is a good credit card with cash back offer. For you to own this card, you should have an average credit score which is from 700 and above. The card has no sign-up bonus but with all the benefit it comes with, one cannot mind about that. when you have this card, your monitor your credit score through the credit wise program. It is a good chance to earn yourself trust by increasing your credit score for more lending products.
Once monitored for five months, you will have a chance of your credit line being increased. For the five months, pay promptly and on time to increase your chances. That credit card is best for travel.
Credit one bank platinum visa card
It is another good credit card which has cash back rewards. It has a very easy, fast and secure way of checking whether you qualify for a card instantly. You get a 1% cash back reward on an eligible purchase where terms and conditions favor. The reward that you get is automatically deposited in your account at the end of each month.
You have a chance of increasing your credit line at a fee if you pay promptly. They have a special way of minding their customer in that they cover all theft and fraud charges leaving the customer stress free. It also has an insurance cover here by the user is covered by travel accident and any auto rental collision. It is important to note that the card has a variable APR.
Indigo platinum Mastercard
With it, you automatically qualify with no effect on your credit score. The lender does not mind your past financial background, so you qualify even if you were previously bankrupt. You apply easily and get a quick response since it is mobile friendly. You are protected from fraud and theft so in case this occurs, there will be no worries. What makes it more convenient is that it is accepted in over 35 million locations worldwide.
Discover it secured credit card
The advantage of this card is that there is no annual fee paid. It is convenient since you will avoid the cost incurred when running a card and helps you in rebuilding your credit score. You get cash back on every purchase, 2% cash back on restaurant and fueling stations and 1% on any other purchases. A disadvantage is that you must produce your bank information and you will be monitored for the first 8 months. You also get a free social security number with this card.
Credit one bank credit card
It is a credit card that is not secured. Are you worried about fraud liabilities? well, the card has $10 guarantee for any frauds that might happen. It takes only 60 seconds whether you qualify for the card or not. It is good to note that you get to choose your own monthly payment due date, now this is interesting, right? You also get to view updates with free online access.
Southwest rapid reward plus card
They are branded airline credit cards. This is a card you want to keep even if you raise your credit score and have other choices. They have such great bonuses that are not found on any other card, for example, you get 3000 miles reward on your account anniversary. The point earned helps you to qualify for a companion pass with the same company.
Discover it for students
This may come as a surprise to you but most people with a low credit score opt to go for students’ credit cards. That is because they are convenient, and the reward is favorable. A good example is a student gets 5% cash back on up to $1,500 each quarter for set bonus category. You also get a 1% cash back on other purchases. Well, students also get their cash back doubled if they are new card members. You can never go wrong with this card.
Are you dealing with credit card debts? Get this card and you will have some peace. That is because it has 0% introductory APR on balance transfers and purchases in the first 15 billing cycle. It is the best credit transfer credit card found in the market. The lender waive balance transfer fee if you transfer the balance to the card within the 60 days after you open the account.
Capital One Spark
It is good news for business owners. That is because it is hard to find a credit card for business ownwers with average credit score. You get a 1% cash back benefit on all your purchases and build your credit score for better deals. You can issue employees with cards at no additional cost and get your card date for accountability free.
Capital one platinum credit card
This card has no annual fee. You get your credit line increased if you pay debt on time and promptly. No worries on theft and frauds they cover all that. It is mobile friendly, so you can access it anywhere through online services. When it comes to payments, they make it easy for you, you can make payments by check, online or at your local branch with no added cost. You get access to your account 24 hours in a day all days of the week.
First premier bank master card
It has no introductory and transfer fees.it is for people with a bad credit history. To get this card, a background check is required, and you will know your response in 30 seconds. They give you your monthly statement stating your score, quarterly FICO and consumer reporting each month. It is a good chance to start seeing good results. Once you have the card, pay on time and see your credit score rising and more offers coming from your lender.
First premier bank credit card
Just like the first premier bank credit card, checking your account is mandatory. There is a monthly reporting to consumer reporting agencies and no security deposit is required. You receive your response fast and the process of application is very easy.
Journey student reward credit card
It is a product of capital one and is one card with cash back reward. You earn 1% cash back on all purchases and if you pay on time, you get 1.25%cash back for that month. With this card, there is no limit to the amount of cash back reward you can get and guess what? The rewards do not expire for as long as you have the account.
Just like all the other best fair credit cards, you get a high credit line after faithfully paying your debt for the first 5 months. You don’t pay any annual or foreign free and you are covered against fraud. It makes it more convenient and less stressing.
Discover it chrome for students credit card
With this, you won’t pay any annual fee, no late fee only for the first payment and no APR for paying late. You get your recent inquiries for free. You can freeze it on or off to prevent new purchases.
Matters of finances should be taken seriously. That is because we depend on this finances for our day to day activities. Getting financial help can be tedious and frustrating, you need a lender who understands you and wants to walk with you towards your success. To make your lender trust you, you must have a good or average credit score. Get what is convenient for you without straining yourself. Remember you are the one who will pay the debt so borrow wisely then pay promptly. When all is set, have your card and please your lender through good credit score and you will see more offers coming your way.