I. Understanding Fair Credit
- Defining “Fair Credit”: A “fair” credit score typically falls within the FICO range of 580-669 and the VantageScore range of 601-660. It indicates you’ve had some credit history, but there’s room for improvement.
- Factors Influencing Your Score: Your credit score is determined by several factors:
- Payment History (35%): Making on-time payments is crucial.
- Credit Utilization (30%): How much of your available credit you’re using.
- Length of Credit History (15%): The longer you’ve had credit, the better.
- New Credit (10%): Opening too many accounts at once can hurt your score.
- Credit Mix (10%): Having a mix of credit types (credit cards, loans) can be beneficial.
- Fair Credit and Credit Cards: With fair credit, you’ll likely have fewer card choices, potentially lower credit limits, and possibly higher interest rates compared to those with good or excellent credit.
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Intro Rate: N/A – Intro (Purchases): N/A – Intro (Balance Transfers): N/A – Intro APR Period: N/A – Purchase APR Rate: 35.9% – Annual Fee: $175 – $199 – Credit Needed: Bad/Poor/Fair – Foreign Transaction Fee: 1% of each transaction in U.S. dollars Rates & Fees | |
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Purchase APR Rate: 24.64% (variable) – Annual Fee: $35 – Credit Needed: No credit, Poor, Fair – Credit Line: $200-$3000 at time of application – Late Payment Fee: Up to $41 | |
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Purchase APR Rate: 35.99%* – Annual Fee: See Terms* – Program Fee: $95.00* – Credit Needed: Fair/Bad Credit | |
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Purchase APR Rate: 28.99% (variable) – Annual Fee: $24 during the first year, paid in installments of $2 per month. $36 after the first year, – Credit Needed: No credit, Poor, Fair – Credit Line: $100- $1,000 – Return Payment Fee: See Terms* – Late Payment Fee: Up to $41 – Foreign Transaction Fee: 3% | |
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Purchase APR Rate: 28.99% – 33.99% Variable – Annual Fee: $0 – Credit Needed: Fair, Limited History, No History, Limited, No Cre – Return Payment Fee: Bounced payment fee up to $29. – Late Payment Fee: Late fees up to $29 for first late payment, $40 for second late payment. – Foreign Transaction Fee: $0 | |
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Purchase APR Rate: 36% Fixed – Annual Fee: $85-$175 first year, $229 thereafter – Credit Needed: Fair – Credit Line: Up to $1,000 credit limit subject to credit approval – Foreign Transaction Fee: 3% of each transaction amount in U.S. dollars | |
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Purchase APR Rate: 36% Fixed – Annual Fee: $85-$175 first year, $229 thereafter – Credit Needed: Fair – Credit Line: Up to $1,000 credit limit subject to credit approval – Foreign Transaction Fee: 3% of each transaction amount in U.S. dollars | |
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*See Card for Details Learn More |
Purchase APR Rate: 0% APR – Monthly Fee: See website for Details* – Credit Needed: Damaged credit to Fair credit – Credit Line: $750 Limit (Usable only at TheHorizonOutlet.com) | |
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Purchase APR Rate: 35.90% – Annual Fee: $250 the first year; $99 thereafter – Monthly Fee: $0 the first year (billed $0 each month); $231 annually thereafter (billed $19.25 each month) – Credit Needed: Fair – Late Payment Fee: Up To $41 – Foreign Transaction Fee: 1% of each transaction in U.S. dollars | |
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Purchase APR Rate: 35.90% – Annual Fee: $250 the first year; $99 thereafter – Monthly Fee: $0 the first year (billed $0 each month); $231 annually thereafter (billed $19.25 each month) – Credit Needed: Fair – Late Payment Fee: Up To $41 – Foreign Transaction Fee: 1% of each transaction in U.S. dollars | |
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Purchase APR Rate: 35.90% – Annual Fee: $175 the first year; $49 thereafter – Monthly Fee: $0 the first year (billed $0 each month); $150 annually thereafter (billed $12.50 each month) – Credit Needed: Fair – Late Payment Fee: Up to $41 – Foreign Transaction Fee: 1% of each transaction in U.S. dollars | |
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Purchase APR Rate: 35.90% – Annual Fee: $175 the first year; $49 thereafter – Monthly Fee: $0 the first year (billed $0 each month); $150 annually thereafter (billed $12.50 each month) – Credit Needed: Fair – Late Payment Fee: Up to $40 – Foreign Transaction Fee: 1% of each transaction in U.S. dollars | |
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*To qualify for the welcome bonus, you must open and fund a new Rewards Checking Plus account through Upgrade and make 3 qualifying debit card transactions from your Rewards Checking Plus account within 60 days of the date the Rewards Checking Plus account is opened. If you have previously opened a checking account through Upgrade or do not open a Rewards Checking Plus account as part of this application process, you are not eligible for this welcome bonus offer. Your Upgrade Card and Rewards Checking Plus account must be open and in good standing to receive a bonus. To qualify, debit card transactions must have settled and exclude ATM transactions. Please refer to the applicable Upgrade Visa® Debit Card Agreement and Disclosures for more information. Welcome bonus offers cannot be combined, substituted, or applied retroactively. The bonus will be applied to your Rewards Checking Plus account as a one-time payout credit within 60 days after meeting the conditions. This one-time bonus is available through this Upgrade Card offer and may not be available for other Upgrade Card offers. Learn More |
Intro (Purchases): N/A – Intro (Balance Transfers): N/A – Purchase APR Rate: 14.99% – 29.99% APR – Annual Fee: $0 – Credit Needed: (620+) Excellent, Good, Fair, Average – Credit Line: See website for Details* – Return Payment Fee: $0 – Late Payment Fee: May apply – Foreign Transaction Fee: Up to 3% Rates & Fees | |
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Purchase APR Rate: 35.99%* – Annual Fee: See Terms* – Program Fee: $95.00* – Credit Needed: Poor/Fair Rates & Fees | |
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Purchase APR Rate: 0% APR – Monthly Fee: See website for Details* – Credit Needed: Damaged/Fair | |
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Purchase APR Rate: 35.99%* – Annual Fee: See Terms* – Program Fee: $95.00* – Credit Needed: Fair | |
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*See site for details Learn More |
Purchase APR Rate: 0% APR – Monthly Fee: See website for Details* – Credit Needed: Damage credit to Fair credit – Credit Line: $750 Limit (Usable only at TheHorizonOutlet.com) Rates & Fees | |
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Intro Rate: See website for Details* – Intro (Purchases): See website for Details* – Transfers: See website for Details* – Intro (Balance Transfers): See website for Details* – Intro APR Period: See website for Details* – Purchase APR Rate: See website for Details* – Annual Fee: See website for Details* – Credit Needed: Average/Fair/Limited/Good/Excellent | |
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Intro Rate: N/A – Intro APR Period: N/A – Purchase APR Rate: 35.90% Fixed – Annual Fee: $75 – $125 – Credit Needed: Fair/Poor/Bad/Limited – Return Payment Fee: Up to $41.00 – Late Payment Fee: Up to $41.00 – Foreign Transaction Fee: 3% of each transaction in U.S. dollars Rates & Fees | |
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Intro Rate: N/A – Intro APR Period: N/A – Purchase APR Rate: 35.90% Fixed – Annual Fee: See terms – Credit Needed: Fair/Poor/Bad – Return Payment Fee: Up to $41.00 – Late Payment Fee: Up to $41.00 – Foreign Transaction Fee: 3% of each transaction in U.S. dollars | |
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Purchase APR Rate: See terms – Annual Fee: See terms – Credit Needed: Fair/Good – Foreign Transaction Fee: 1% of each transaction in U.S. dollars. | |
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Purchase APR Rate: 28.99% (variable) – Annual Fee: $0 – Credit Needed: No credit, Poor, Fair – Credit Line: $300-$3000 at time of application – Late Payment Fee: Up to $41 | |
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Intro Rate: See website for Details* – Intro (Purchases): See website for Details* – Transfers: See website for Details* – Intro (Balance Transfers): See website for Details* – Intro APR Period: See website for Details* – Purchase APR Rate: See website for Details* – Annual Fee: See website for Details* – Credit Needed: Average/Fair/Limited/Poor/Good/Excellent | |
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Purchase APR Rate: 35.99%* – Annual Fee: $75.00 1st year, $48.00 after* – Program Fee: $95.00* – Credit Needed: Poor/Damaged/Fair | |
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Purchase APR Rate: 35.90% – Annual Fee: $175 the first year; $49 thereafter – Monthly Fee: $0 the first year (billed $0 each month); $150 annually thereafter (billed $12.50 each month) – Credit Needed: Fair – Late Payment Fee: Up to $40 – Foreign Transaction Fee: 1% of each transaction in U.S. dollars. | |
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*To qualify for the welcome bonus, you must open and fund a new Rewards Checking Plus account through Upgrade and make 3 qualifying debit card transactions from your Rewards Checking Plus account within 60 days of the date the Rewards Checking Plus account is opened. If you have previously opened a checking account through Upgrade or do not open a Rewards Checking Plus account as part of this application process, you are not eligible for this welcome bonus offer. Your Upgrade Card and Rewards Checking Plus account must be open and in good standing to receive a bonus. To qualify, debit card transactions must have settled and exclude ATM transactions. Please refer to the applicable Upgrade Visa® Debit Card Agreement and Disclosures for more information. Welcome bonus offers cannot be combined, substituted, or applied retroactively. The bonus will be applied to your Rewards Checking Plus account as a one-time payout credit within 60 days after meeting the conditions. This one-time bonus is available through this Upgrade Card offer and may not be available for other Upgrade Card offers. Learn More |
Intro (Purchases): N/A – Intro (Balance Transfers): N/A – Purchase APR Rate: 14.99% – 29.99% APR – Annual Fee: $0 – Credit Needed: Excellent, Good, Fair, Average – Credit Line: $500 – $25,000 – Return Payment Fee: $0 – Late Payment Fee: May apply – Foreign Transaction Fee: Up to 3% Rates & Fees | |
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Purchase APR Rate: 36% Fixed – Annual Fee: As low as $99 – Credit Needed: Fair/Poor – Credit Line: Up to $1,000 credit limit subject to credit approval – Foreign Transaction Fee: 3% of each transaction amount in U.S. dollars | |
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 7.99%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade’s bank partners. Information on Upgrade’s bank partners can be found at https://www.upgrade.com/bank-partners/. **Accept your loan offer and your funds will be sent to your bank or designated account within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes the transaction. From the time of approval, funds sent directly to you should be available within one (1) business day. Funds sent directly to pay off your creditors may take up to 2 weeks to clear, depending on the creditor. Learn More | |
Purchase APR Rate: 7.99% – 35.99% – Credit Needed: Fair, Good, Excellent | |
II. Credit Card Options for Fair Credit
- Secured Credit Cards:
- How They Work: You provide a security deposit, which usually becomes your credit limit. This deposit protects the card issuer.
- Benefits: Easier approval with fair credit, helps build or rebuild credit.
- What to Look For: Low annual fees, reporting to all three major credit bureaus (Equifax, Experian, TransUnion), and the possibility of graduating to an unsecured card.
- Examples: The Capital One Platinum Secured Credit Card and the Discover it® Secured Credit Card are popular choices. The Discover card offers cash back rewards. Some secured cards, like the Chime Credit Builder Secured Visa® Credit Card, don’t require a credit check.
- Unsecured Credit Cards for Fair Credit:
- Availability: Some unsecured cards are specifically designed for fair credit, though options are fewer.
- Features: Might have lower credit limits, higher annual fees, and potentially less attractive or no rewards.
- What to Look For: Reasonable annual fees, reporting to all three major credit bureaus, and understanding the APR.
- Examples: The Capital One Platinum Credit Card and the Capital One Quicksilver Cash Rewards Credit Card are good options. The Petal® 2 “Cash Back, No Fees” Visa® Credit Card is another option with cash back and no fees.
- Store Credit Cards:
- Accessibility: Some store cards may be easier to get with fair credit.
- Limitations: Usually only usable at the specific store or affiliated retailers.
- Considerations: High interest rates are common, so only apply for cards from stores you frequent and can manage payments. Examples include the Target Circle™ Credit Card.
- Credit Builder Loans (Alternative): These loans, often from credit unions or community banks, can help improve credit, though they aren’t credit cards. You borrow a small amount and repay it in installments.
III. Getting a Credit Card with Fair Credit
- Check Your Credit Report: Get your free credit reports from AnnualCreditReport.com to check for errors.
- Know Your Credit Score: Understand your score to gauge your approval chances.
- Shop Around and Compare: Research cards for fair credit, comparing fees, APRs, and rewards.
- Consider Pre-Qualification: Some issuers offer pre-qualification to check your approval odds without impacting your score.
- Be Realistic: Approval isn’t guaranteed, and you might not get the best perks.
- Apply Carefully: Provide accurate information on your application.
- Consider a Co-signer (If Applicable): A co-signer with good credit might improve your chances (but understand the risks for the co-signer).
IV. Common Challenges
- Higher Interest Rates (APRs): Aim to pay your balance in full each month.
- Lower Credit Limits: Manage your credit utilization carefully.
- Annual Fees: Weigh the fees against any benefits.
- Limited Rewards: Don’t expect the same perks as cards for excellent credit.
- Difficulty Qualifying for Preferred Cards: This can be frustrating.
- Predatory Offers: Be cautious of cards with excessive fees and interest.
V. Building Credit with a Fair Credit Card
- Timely Payments: Consistent on-time payments are key.
- Low Credit Utilization: Keep your usage below 30% of your credit limit.
- Avoid Maxing Out: High utilization hurts your score.
- Regularly Review Credit Reports: Monitor for errors or identity theft.
- Patience and Consistency: Building good credit takes time.
- Graduating to Better Cards: With improved credit, you can qualify for better cards.
VI. Important Tips
- Only Apply for Cards You Need: Avoid opening multiple accounts quickly.
- Read the Fine Print: Understand all terms and conditions.
- Use Credit Responsibly: A credit card is a financial tool, not extra income.
- Consider a Budget: Ensure you can manage your spending.
- Seek Credit Counseling if Needed: Get help if you’re struggling with debt.
By following these guidelines, you can confidently navigate the world of credit cards with fair credit and work towards a brighter financial future.
For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.
Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
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