Best Credit Cards for Fair Credit in December 2024

• LOOK FOR A CARD WITHOUT AN ANNUAL FEE

  You can find at least a few good no-annual-fee credit cards for fair credit, so you should try to avoid cards with annual fees. An annual fee can cut significantly into a card’s value, regardless of its rewards. Plus, you’ll likely have to close your account once your credit score improves and you graduate to better cards, to avoid paying the fee. Preferably, you want to find a card that you keep open over a long time to boost your average age of accounts — a major factor in credit scoring.

• WATCH OUT FOR OTHER HIDDEN FEES

  The annual fee isn’t the only fee you should worry about. Keep an eye out for these additional fees:

  • Monthly maintenance fee: Credit card companies sometimes charge a monthly fee for servicing the account which can add up to $100 or more per year. These fees are common on cards targeted to people with low credit scores, so make sure you check the fine print for this.
  • Set-up fee: An issuer may also charge a one-time fee to set up a new account. You won’t find this on cards targeted for people with high credit scores (nor with any of the top picks on this page). But cards geared toward subprime consumers do sometimes sneak this into the terms and conditions.
  • Fees to increase your credit limit: This fee is less common, but another hidden cost you should watch out for. Ideally, your issuer should boost your credit limit over time when you use your card responsibly, without charging you for it.
  • Returned payment fee: An issuer may charge you a penalty fee if your card payment is returned due to insufficient funds in your payment account or for other reasons.
  • Late fee: Card issuers charge late fees when you don’t make at least a minimum payment by the card’s due date. Late fees can be as high as $40 (or more) on some cards. This fee is common and hard to avoid — but it’s a major plus if you can find a card that doesn’t charge one.

   

  Tip: Use secured cards to build credit

  Secured credit cards can help you build or rebuild your credit, often at a lower cost than unsecured cards with annual fees. For example, the Capital One Platinum Secured Credit Card carries a $0 annual fee and offers a security deposit requirement as low as $49. (see rates & fees)

   

• FIND CARDS THAT OFFER REWARDS

  Credit cards for fair credit typically don’t provide the same bonus rewards rates as popular rewards credit cards that require good to excellent credit. Still, many cards in this category offer cash back or other rewards on every purchase you make.

• PRIORITIZE CARDS WITH A PATH TO UPGRADE TO A BETTER CARD

  As your credit improves, so do your chances of qualifying for more rewarding credit cards with better perks. Some credit card issuers automatically perform credit line reviews and allow you to upgrade from a secured credit card to an unsecured card with responsible use.

  If your card issuer doesn’t have an unsecured card, you can still improve your credit, opening the door to better credit card options.

   

Qualifying for a credit card with fair credit starts with knowing your credit score. Credit card issuers perform a hard credit inquiry when you apply for a credit card, which can cause your credit score to drop temporarily. Following these steps can limit the impact on your credit score and boost your approval odds:

1. Choose a credit card for applicants with fair credit
   You should search for cards within the fair credit range — a credit score between 580 and 669 according to FICO. Note that credit card issuers take additional factors into consideration, such as your current income and ability to repay, so there’s no guarantee of approval. But, applying for a card within your credit range reduces your chance of being rejected.
2. See if you can get prequalified
   To improve your chances of success, try to get prequalified for a credit card. The prequalification process involves a soft credit inquiry, which doesn’t affect your credit score. While prequalification is also not a guarantee that you’ll be approved for a card, it gives you a better idea of which cards you can qualify for.
3. Try applying in person in a bank
   If you’re having trouble getting approved for a credit card, try applying in person at your bank. As a bank customer, you already have an established relationship with your institution, potentially making them more inclined to approve your credit card request.

 

Some types of credit cards are easier to get with a fair credit score, including the following:

 

Quite a few banks offer credit cards for fair credit. Capital One and Discover offer the best selection of products in this niche. You can turn to either card issuer for secured cards or unsecured options for fair credit. Also note that all credit cards from both issuers come without any foreign transaction fees.

• Become an authorized user.

  One of the fastest ways to boost your credit score is to become an authorized user on someone else’s card. Look for a friend or relative with good credit who’s willing to add you to their account. They don’t even have to hand you a card or let you make purchases on the account. Most issuers will report the full payment history for the account to your credit report at the end of the billing cycle regardless of whether you use the card.

• Use a credit builder loan.

  A credit builder loan is a type of loan that lets you make payments into a savings account in your own name. Those payments are saved on your behalf throughout the process, and the monthly payments made are reported to the credit bureaus to build credit. The greatest benefit of a credit builder loan is that you don’t run the risk of charging up a large balance that you can’t pay off. Also, it’s an installment-type loan, so you can boost your credit score by improving your credit mix if you already have credit cards.

• Sign up for credit-building apps.

  Credit building services like Experian Boost can boost your score by looking at your payment history on items like subscription services, utility bills, insurance premiums and even your rent. Experian Boost is free to use — you just need to connect your bank accounts to see results.