7 Best Credit Cards For Fair/Average Credit In 2022

Shawn Manaher
Shawn Manaher
Updated on November 1, 2022
credit cards for fair credit

While there is still room for improvement with a fair credit score, you still have your choice of credit cards. There are options from major card issuers, so you can choose to prioritize balance transfers, cashback, a low APR, or another feature. We’ve gathered the best credit cards for fair credit, saving you the hassle of researching them yourself.

As you look at our list, consider your goals for getting a credit card, and you should be on your way to choosing which one to apply for.

What Are The Best Credit Cards For Fair Or Average Credit?

There is not necessarily a one-size-fits-all answer to the absolute best credit card, as it depends on your credit score, finances, and preferences. To figure out which of the credit cards for fair credit is best for you, you will want to consider a few crucial factors, including:

  • Annual Fees: Many Visa credit cards for fair credit charge annual fees, but not all do. Consider whether this is a deal-breaker for you. If you do choose a card with an annual fee, be sure to account for it in your financial planning.
  • APR: With a fair credit score, you are likely to have a higher-than-average interest rate, but it is still worth comparing the APRs of various cards. Some on our list, like the Navy Federal credit card, have highly competitive APRs.
  • Other Fees: You also want to look at other fees. Pay attention to late fees, returned payment fees, foreign transaction fees, and cash advance fees. While you will hopefully never make a late payment or use your credit card for a cash advance, you need to be prepared in case you do.
  • Balance Transfers: If you specifically want a balance transfer credit card for fair credit or have a balance to transfer, you also need to look at balance transfer fees. Some cards may not even offer the ability to transfer a balance. Be sure to pay attention to the initial fees for the transfer as well as interest rates for the transfer. Ideally, you will choose a card with a low introductory APR for balance transfers.
  • Approval Process: Consider the application and approval process as well. Several credit card issuers let you apply for a card and have a decision within minutes. Many options on our list also let you prequalify, sometimes without any impact on your credit score. That prequalification without a hard inquiry is especially helpful since hard inquiries will affect your credit score.
  • Credit Limit: People with fair credit should expect slightly lower credit limits, but there is still a great deal of variation. For example, some cards will only approve you for a limit of up to $300, while others will approve up to $1,000 or even $2,000. One on our list has a limit of $25,000. From a credit-building perspective, a higher credit limit helps you keep your credit utilization ratio low. But you also want to consider how you manage your money. If you are concerned about overspending and carrying a balance, stick to a card with a lower credit limit, or request a lower limit.
  • Credit Building: If you have fair credit, one of your long-term goals is to improve your score. Using a credit card responsibly will help with this in a few ways. It will do so by improving your on-time payment history, lowering your credit utilization ratio, and lengthening your credit history. But to get those benefits, you need to choose a card that reports to the credit bureaus. The best cards will report to all three major bureaus: Equifax, Experian, and TransUnion. Remember that credit building does more than help you get a better credit card. It also helps with renting or buying a home, insurance, and even phone plans or utilities.
  • Rewards: Most cards for those with fair credit don’t have rewards, but you can find a few with cashback. If this is a priority for you, pay attention to the details. Confirm you understand when you earn cashback and at what rate. And if the card has an annual fee, calculate how much you would have to spend to pay for the fee via cashback. If you would need to spend more than you are likely to, reconsider whether the card is a good fit.
  • Mobile Application: Most modern credit cards have mobile apps as well as online accounts on their website, but it is still worth confirming that this is the case. After all, one card on our list, Indigo, does not currently have a mobile app. Think about how you plan to access your account and whether the lack of a mobile app is a deal-breaker for you.
  • Additional Features: It is also worth considering the additional features you’ll get from a credit card or its mobile application. For example, many credit card mobile apps let you monitor your credit score. Some also have additional features to help you budget and manage your finances.
  • Customer Service: You don’t want to have to contact your credit card company, but you may have to at some point. You want that experience to be as stress-free as possible. So, read reviews about customer service and confirm that there are several ways of contacting them.
  • Secured vs. Unsecured: Traditional credit cards are unsecured, meaning they don’t require a deposit. Secured credit cards require a deposit, and that deposit becomes your credit limit. Secured cards are commonly the only option for those with bad credit, and they can help you build your credit score. All of the cards listed below are unsecured, but you may also want to consider a secured card if you have a lower credit score and want to avoid fees.

Any of the following credit card options for fair credit should be a good fit. You only have to decide which one you prefer.

1. Best Overall: Capital One Platinum Credit Card

Capital One Platinum Credit Card

Overview

The Capital One Platinum Credit Card is an excellent option if you don’t want an annual fee and don’t need to accumulate rewards. And after six months of on-time payments, Capital One will automatically consider giving you a higher credit limit. Just be aware that the APR is fairly high, so avoid carrying a balance.

Highlights

  • There is no annual fee.
  • Instant approval
  • Automatic consideration for an increased credit limit in six months with on-time payments
  • Use the free CreditWise credit-monitoring app from Capital One
  • Take advantage of contactless payments to transact without giving your card to the cashier or even touching the terminal
  • Get peace of mind from $0 fraud liability in case of a lost or stolen card
  • Add an authorized user and track the spending of each user
  • Activate personalized text or email account alerts
  • Get a virtual card number from Eno, so you don’t have to risk your real card number when buying online.
  • There are no foreign transaction fees.

Pricing

Capital One Platinum Credit Card pricing

There is no annual fee at all for this credit card. However, the APR is high, with a variable rate of 28.49%. The same APR applies for cash advances in addition to purchases and balance transfers.

Transfers carry a 3% fee. Cash advances have a fee of 3% or $3, whichever is larger. Late payment fees are up to $40.

If you have a balance of less than $25, the minimum payment for a billing cycle is the same as the balance. If the balance is over $25, your minimum payment is 1% of your balance plus late payment fees and new interest or $25, whichever is larger.

Bottom Line

The Capital One Platinum Credit Card is our pick for the best credit card for fair credit. Zero annual fees and instant approval make it highly appealing. The various protection measures, including from fraud and account alerts, are also incredibly useful. Just keep in mind that this card doesn’t have any rewards, and the APR is fairly high.

2. Best for Balance Transfers: Navy Federal Credit Union Platinum Credit Card

Navy Federal Credit Union Platinum Credit Card

Overview

You usually have to be on the lookout for credit cards that let you take advantage of balance transfers, especially with fair credit. The Navy Federal Credit Union Platinum Credit Card doesn’t charge balance transfer fees and has an introductory offer on balance transfers. It also has no annual fee and a very competitive APR. Keep in mind that you must be part of an eligible military sector to apply for this card.

Highlights

  • 0.99% APR introductory rate on balance transfers for the first 12 months
  • No fees for balance transfers, no annual fee, and no foreign transaction fee
  • The ongoing APR is just 8.24% to 18.00%, which is a highly competitive figure.
  • Zero liability for unauthorized transactions
  • You can check if you prequalify before applying without any effect on your credit score.
  • Get Collision Damage Waiver coverage when renting a car for less than 15 days, including physical damage, theft, towing, and more.
  • Enjoy travel and emergency assistance 24/7, including lost luggage locating service, prescription assistance, and medical referral.
  • Take advantage of tap-to-pay to enjoy contactless payments.
  • Open to members of the Armed Forces, National Guard, and Department of Defense, as well as family and household members of the qualifying person
  • Named the “Best Balance Transfer Credit Card” of 2019 by Banking Rates

Pricing

Navy Federal Credit Union Platinum Credit Card pricing

There are no annual fees. Also, enjoy no fees for balance transfers, foreign transactions, and cash advances. The only time you pay a fee on cash advances is if it is not done at a Navy Federal ATM or branch. In that case, the fee is a mere $0.50 domestically or $1.00 internationally.

The interest rate on this card is low, ranging from 8.24% to 18.00%. The introductory offer on balance transfers is 0.99% APR for the first 12 months. After that, the rate goes to your normal 8.24% to 18.00% rate. Cash advances come with a 2% APR above your variable APR.

The late fee is up to $20. The returned payment fee is also up to $20.

Bottom Line

For those who are qualifying members of the military or dependents of someone in the military, the Navy Federal Platinum Credit Card is an excellent option. It is especially good for balance transfers with its 0.99% APR introductory rate. The card also has a highly competitive regular interest rate, making it worth considering if you are eligible. While you will not earn any rewards, the low-interest rate and zero fees will save you money.

3. Best for Instant Approval: Capital One QuicksilverOne Cash Rewards Credit Card

Capital One QuicksilverOne Cash Rewards Credit Card

Overview

The Capital One QuicksilverOne Cash Rewards Credit Card is designed for those with fair credit, and it offers instant approval. While there is a small annual fee, most people who use the card regularly will easily earn more than that fee in the cashback rewards. That is especially true given that the cashback is unlimited and easy to redeem. However, you should be aware of the moderately high interest rate on this card.

Highlights

  • Earn unlimited 5% cash back on rental cars and hotels that you book via Capital One Travel.
  • Earn unlimited 1.5% cash back on every other purchase without restrictions or categories.
  • Easily redeem your rewards whenever you want in the form of a statement credit or spend rewards on gift cards.
  • Access CreditWise from Capital One to monitor your credit profile with unlimited access.
  • Automatically have your account reviewed after six months to see if you are eligible for a higher credit limit.
  • You are not liable for fraudulent purchases if your card is stolen or lost.
  • The Capital One digital assistant, Eno, monitors your accounts 24/7 and sends alerts when necessary.
  • Use the mobile application to view transactions, pay your bill, access CreditWise, redeem rewards, lock or unlock your card, and more.
  • Get access to Capital One Travel for the best prices on various types of bookings, along with the ability to pay with a combination of your rewards and credit card.
  • The credit card supports tap-to-pay for contactless payment, offering convenience and reduced health concerns.

Pricing

Capital One QuicksilverOne Cash Rewards Credit Card pricing

The Capital One QuickSilverOne credit card comes with an annual fee of $39. You will also pay a 28.49% variable APR.

Transfers have a fee of 3% of the transferred balance. Cash advances have a fee of 3% of the amount of the advance or $10, whichever is higher. Late payment fees are up to $40. There are no foreign transaction fees.

Bottom Line

The Capital One QuicksilverOne Credit Card is a good choice for those who want to take advantage of instant approval. You can even check if you are prequalified before applying, a process that will not affect your credit score. While the cashback rewards are good, keep in mind that there is an annual fee of $39. As such, you will need to spend at least $200 to $225 a month to earn enough rewards to pay for the fee.

4. Upgrade Cash Rewards Visa

Upgrade Cash Rewards Visa

Overview

The Upgrade Cash Rewards Visa lets you earn 1.5% unlimited cashback without an annual fee, a rare combination, especially in a card for those with fair credit. There is a wide range of APR rates, so they may be competitive or very high. You can also get near-instant approval within a matter of minutes without any impact on your credit score.

Highlights

  • Earn 1.5% cash back on every single purchase
  • Participate in Upgrade Shopping from Dosh and get up to 10% cash back in the form of a statement credit. This is in addition to the other rewards.
  • Receive a $200 bonus if you open a Rewards Checking account
  • Any carried-over balance automatically becomes an installment loan featuring a fixed monthly payment. This makes it a great choice if you will carry a balance.
  • Get a virtual card to use until you receive your physical card in the mail
  • Be approved for a limit of anywhere from $500 to $25,000

Pricing

Upgrade Cash Rewards Visa pricing

There are no fees with the Upgrade Card, including no maintenance, activation, or annual fees. And you can get a $200 bonus if you also get a Rewards Checking account and make qualifying debits.

The Upgrade Card has a unique approach to balances, acting as a hybrid between a personal loan and a credit card. If you carry a balance, it automatically becomes a personal loan at a fixed interest rate equal to your APR. That APR can be 14.99% to 29.99%.

Bottom Line

If you plan on occasionally carrying a balance, the Upgrade Cash Rewards Visa card can be a good option, depending on the interest rate that you qualify for. This is because any carried balance becomes a personal loan with a fixed rate, so your interest payments on it won’t increase in the future. The card also stands out with its unlimited 1.5% cash back and zero annual fees, as most cards with cashback charge a fee.

5. Petal 2 Cash Back, No Fees Visa Credit Card

Petal Cash Back No Fees Visa Credit Card

Overview

Petal 1 is a good option. If you are eligible for the Petal 2, though, it’s the better choice with its lower potential APR and the ability to earn cash back. This credit card for fair/average credit is a great choice if you want rewards while avoiding fees. Even better, shopping with some merchants gives you up to 10% cashback. The card is also good for building credit, and you will be approved quickly.

Highlights

  • The quick pre approval process does not impact your credit score.
  • Earn 1% cash back on all eligible purchases from the start. Earn 1.25% after six on-time payments and 1.5% after 12 on-time payments, or 2% to 10% from select merchants.
  • Get a credit limit of $300 to $10,000, depending on your creditworthiness.
  • In addition to your credit score, Petal looks at your income and expenses with its proprietary Cash Score. This can make it easier to be approved and get a higher limit.
  • Good for building your credit with on-time payments, as Petal reports to all three of the major credit bureaus.
  • Includes the ability to set a budget to help you control your spending and finances.
  • Petal card is compatible with both Google Pay and Apple Pay, so you don’t have to carry a physical card in your wallet.
  • Mobile application to control your credit card, view your credit score, use the payment calculator, set a budget, and find merchants with 2% to 10% cashback.
  • The mobile app highlights subscriptions you may want to cancel to save money.

Pricing

Petal Cash Back No Fees Visa Credit Card pricing

In addition to charging zero annual fees, the Petal 2 credit card doesn’t have any foreign transaction fees, late payment fees, or penalty APRs. The lack of late payment fees is noteworthy, as this is incredibly rare, especially among credit cards for fair credit. The APR is between 15.99% and 29.99%.

Bottom Line

Those in search of a credit card that doesn’t have fees, including for late payments, will appreciate the Petal 2. It is one of the rare cards that offer cash back without an annual fee or high credit requirement. This card is also good for building credit, as it reports to the major credit bureaus. The important caveat to remember is that your credit limit may be as low as $300. If that’s your limit, you have to keep spending very low to maintain a good credit utilization ratio of under 30%.

6. Avant Credit Card

Avant Credit Card

Overview

The Avant credit card is another good choice if you want a credit card for fair credit with instant approval. However, there is an annual fee of $59, and the APR is somewhat high. Note that there is no penalty APR and a required deposit. The lack of a deposit requirement makes it a good alternative to a secured credit card. It will also build your credit score with Avant reporting to all three major credit bureaus.

Highlights

  • A solid, no-frills alternative to a secured credit card
  • Checking if you qualify before applying will not result in a hard inquiry, so the process doesn’t affect your credit score.
  • The application process is quick and easy, with a decision in just 60 seconds for many people.
  • Making on-time payments boosts your credit score, as Avant reports to all major credit bureaus. You can set up AutoPay to prevent forgetting to make payments.
  • Your initial credit limit may be as high as $2,000, but it may just be $300.
  • Enjoy proactive credit line increases, as Avant will increase your limit when you qualify for a higher one. Most cards require you to request this type of increase.
  • You have zero fraud liability for any unauthorized charges, assuming you follow the proper procedure to report a lost or stolen card or the charges.
  • You also get Mastercard ID Theft Protection from Mastercard.
  • Access the online portal 24/7 to pay your card, view your account, and more.
  • Reach support via in-app messaging, chat, or on the phone.

Pricing

Avant Credit Card pricing

The variable APR on the Avant card is 25.74% to 29.99%, which is one of the higher rates on this list. So, be sure to always pay your balance in full. There is no penalty APR, so you don’t have to worry about the interest rate increasing beyond that. Keep in mind that whenever Avant charges interest, it will be at least $1.00. You should also be aware that the annual fee can be up to $59.

There is also a cash advance fee of 3%, with a minimum of $10. You cannot get a cash advance for more than 25% of your credit limit. There are no foreign transaction fees. The late payment fee is up to $39.

Bottom Line

If you would typically only qualify for a secured card but want an unsecured one, the Avant credit card is a good alternative. It will appeal to people who don’t mind paying an annual fee to have a credit card and are okay without earning rewards. This is especially true if your goal is to build your credit score. Because the APR is fairly high, it is not ideal for those who plan to carry a balance.

7. Indigo Platinum Mastercard

Indigo Platinum Mastercard

Overview

The Indigo Platinum Mastercard is a strong choice if your fair credit score includes a past bankruptcy. While this card has a low credit limit, it can be a useful stepping stone following bankruptcy. You could prequalify with this card even if you filed for bankruptcy previously. There is no security deposit required. Plus, you can use the card to build your credit history and transition to a card with a higher limit.

Highlights

  • You can qualify even with bad credit or a bankruptcy record, not just fair credit. You can apply with a score of just 300, so it has a high approval rate.
  • Depending on your credit score and finances, there may not be an annual fee.
  • Prequalify for the card without affecting your credit score.
  • Applying for the card only takes about a minute.
  • Use the card responsibly to increase your credit score.
  • Enjoy protections, including $0 liability on unauthorized charges, extended warranty coverage, and travel assistance.
  • Use the card to boost your credit score, as Indigo reports your account history to all three major bureaus.
  • Access your account on your smartphone via the browser.

Pricing

Indigo Platinum Mastercard pricing

The annual fee of the Indigo Platinum Mastercard can be anywhere from $0 to $99, depending on your credit score and finances. The APR is 24.90%, which is fairly high. Keep in mind that this credit card has 21 different cardholder agreements listed on its website, each of which has slightly different annual fees and APRs.

The annual fee on most agreements is $75 for the first year and $99 in the following years. But your annual fee may be $0, $35, $49, $59, $60 (billed as $5 a month), or $125, including the first year. The APR can be 24.9% to 29.9%.

The penalty APR is 29.9%. Both late payments and returned payments come with a fee of $40. Expect the same fee for going over your limit. Cash advances cost $5 or 5% of your transaction, whichever is greater. Foreign transaction fees are 1% of the transaction.

It is also worth noting that the maximum credit limit is just $300. As such, this card is better for smaller purchases and building credit. That low limit also means you have to keep spending extremely low to maintain a “good” credit utilization ratio of less than 30%.

Bottom Line

The Indigo Platinum Card will mostly appeal to people with a previous bankruptcy or a credit score on the lower side of fair. This is because there are no rewards, and the credit limit is only $300. You will also have to pay an annual fee of up to $125 and have a 29.9% APR, both of which are high in the industry. But if you don’t have other options for a secured credit card, this one is worth considering. And prequalifying does not affect your credit score. If you qualify for another option on this list, those will likely be a better fit.

Can You Apply for a Credit Card With Fair/Average Credit?

Yes. You can easily apply for a credit card even if your credit score is fair or average. You just need to specifically look for credit cards for fair credit. For reference, fair/average credit refers to a FICO score of 580 to 669.

Keep in mind that credit card offers for fair credit will usually have higher interest rates and fewer rewards than those for people with better credit scores. That said, you can still easily find plenty of options.

The process when you apply for a credit card with fair credit is similar to anyone applying with a better (or worse) credit score. You will have to submit basic information, including your name, address, social security number, and income.

Luckily, there are numerous options, so you can apply for a credit card with fair credit that fits your preferences. Decide whether you would rather have some rewards and pay an annual fee or would prefer to forego rewards but not have an annual fee.

How to Improve Your Credit Score With Responsible Credit Card Use

Because having a fair credit score means you will have fewer credit card options with higher fees and interest rates, you should do your best to build your credit score. The good news is that using your new credit card responsibly will help.

As you use your new credit card, keep the following tips in mind to get the most from its ability to improve your credit:

  • Pay on Time: Your payment history makes up 35% of your FICO credit score. So, be sure to pay your credit card on time to boost this portion of your score.
  • Keep Your Utilization Low: Your credit utilization ratio compares your available credit to the amount you are using. The credit utilization ratio makes up 30% of your credit score and should stay below 30%. So, if your credit limit is $1,000, try not to charge more than $300 a month.
  • Keep Older Accounts Open: As long as you can trust yourself not to use them (and there are no annual fees), keep your old credit card accounts open. This will help the average age of your credit history, which accounts for 25% of your FICO score. Keeping older accounts open can also increase your credit utilization ratio, assuming you don’t change your spending habits.
  • Don’t Open Too Many New Accounts: Opening new accounts can make it seem like you desperately need money. So, don’t apply for another credit card immediately after getting one on the above list. Ideally, wait six months before applying for another, but at a minimum, wait at least 90 days.
  • Monitor Your Credit Score: Keep an eye on your credit score and check the report for errors.

Once your credit score improves, consider applying for a credit card with better rewards or lower interest rates and transaction fees. You should keep your fair-credit-score credit card open as long as it does not have annual fees. This will help you maintain a longer credit history. However, if the credit card has annual fees, it’s better to cancel it when you upgrade, despite the potential impact on your credit score. You should also consider closing the old card if you cannot trust yourself not to use it or don’t think you will be able to pay off the balance.

Conclusion

There are plenty of options when it comes to credit cards for fair credit. First, think about your requirements and preferences. Then, look at factors like annual fees, interest rates, late fees, penalties, and rewards. Any of the credit cards with fair credit listed above is worthy of consideration.

Shawn Manaher

Shawn Manaher

Shawn Manaher is a former financial advisor, has founded 5 online businesses, and is a coach, speaker, podcast host, and author.

He's been featured on Forbes, The Consults Corner on TAE Radio, The Writing Biz, What's Your Story, and more.

He loves to share his personal finance tips and money management wisdom with others to help them find financial freedom.
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