Best Card Summary
Capital One Platinum Credit Card
Why it is one of the best credit cards for fair credit: For consumers with fair credit, the Capital One Platinum Credit Card is a good starter product. You will not pay the annual card fee, and if you pay on time for six months, you will automatically be considered for a higher credit limit.
Capital One QuicksilverOne Cash Rewards Credit Card
Why it’s one of the best credit cards for fair credit: The Capital One QuickSilverOne Cash Rewards Card is a good product for people with fair credit. You will earn 1.5% cash on all your purchases: a solid mess that is above average for fair credit. The card charges a $ 39 annual fee, but with good credit behavior, you can eventually move to a card with no charge.
Journey Student Rewards from Capital One
Why it’s one of the best credit cards for fair credit: Journey Student Rewards from Capital One is designed for students with fair credit and earns 1% cash on everything. Timely paid students will get extra credit – and earn 1.25% back for that month.
What should you know about Fair Credit?
When you apply for a credit card, the card issuer will pull up your credit report and use the credit score to help you determine if you qualify. Many issuers use a base FICO score, which ranges from 300 to 850, or a FICO Bankcard score (A Industry specific Credit score for card issuers) whose screen ranges from 250 to 900 for applicants. With both scores, FICO Defines Proper credit as a score of 580 to 669.
“Generally speaking, consumers with fair credit have made some credit mistakes along the way,” says Heather Battison, vice president TransUnion, One of the three major consumer credit bureaus. “Simple actions such as paying bills every month and establishing a positive payment history, and maintaining a low debt-to-credit ratio demonstrate the credit management responsible for lenders.”
A credit card can help you build that positive payment history, as many cards report your activity to all three major consumer credit bureaus. If you have proper credit, you will not be able to get approved for every credit card. However, choosing a card with some fees, a low interest rate or a rewards program can save you money.
How can you use your new card to create credit?
Opening a new account can have a negligible negative impact on your score. But adding a new credit card with positive payment information and increasing your overall available credit will more than offset a temporary hit.
If you have decided to open a rewards card, beware of the temptation to shop only to get points or miles. Battison states that cardholders must remember that the rewards card “returns only a portion of what you spend and is never used as a justification for spending more than you can afford.” needed.”
Maintaining a balance can also affect your credit score as around 30% of your score depends on you Use Rate, the percentage of your credit limit you use. The lower your usage rate, the better, so try to use only a small portion of your available credit.
If you make a lot of purchases with your credit card, you can repay some part of the balance quickly. Doing so will reduce your statement balance, which reports to the card issuing bureau, and by extension, lowers your usage rate.
“Over time, a history of responsible lending and positive credit health can help consumers in a fair credit tier,” says Battison. As a result, you may be able to “secure more favorable interest rates and loan terms, and use subsequent credits down the line.”