Best credit cards for fair and average credit for February 2022 – CNET

Our top choice for people with fair credit, the Petal 2 Visa Card, issued by WebBank, Member FDIC, is distinctive among the field for having no annual fee, no late fees, no returned payment fees and no foreign transaction fees. Credit limits run from $300 to $10,000, based on creditworthiness. And it’s a good pick for anyone worried about eligibility, because Petal may use its own proprietary Cash Score — which analyzes your income and expenses — in addition to weighing your credit score. (Yes, you’ll have to provide some financial data.)

We’re also big fans of the 1% flat cash-back cardholders earn on all eligible purchases — which increases to 1.25% cash back on eligible purchases after making six on-time monthly payments in a row, and 1.5% after 12 on-time monthly payments. Cardholders can also earn 2% to 10% bonus cash back on purchases at select merchants. Though the Petal 2 doesn’t offer a welcome bonus, the credit requirements and absence of fees make it a solid choice.

Our top choice for a flat cash-back rewards card, the Capital One QuicksilverOne Cash Rewards Credit Card* offers a competitive cash back rate of 1.5%, which is especially noteworthy if you have some blemishes in your credit file. This cash-back rate is on par with the Capital One Quicksilver Cash Rewards Credit Card*, which is targeted to those with good to excellent credit. Also, if you make on-time payments for six months, you may be eligible for a higher credit line.

There is a $39 annual fee and there are no frills such as an intro APR or welcome bonus, but you don’t have to reach a minimum amount to redeem your rewards points, and there’s no limit to how much you can earn in a given year. 

If you’re less interested in cash-back rewards and looking for specific travel incentives, the Capital One Platinum Credit Card* is a solid option. Those with a fair credit score are eligible and you may get an automatic credit line increase after six months if you make on-time payments.

While there are no rewards or introductory bonuses, the card’s appeal lies in its travel benefits. Card holders won’t get dinged with a foreign transaction fee when traveling internationally, plus they can receive emergency card replacement if their card is lost or stolen. Beyond travel perks, the card features $0 fraud liability and security alerts.

Issued by WebBank, the Avant Credit Card* is a no-frills card that doesn’t offer many perks. There are no rewards, no welcome bonus and no option to make a balance transfer. However, you can get prequalified online without impacting your credit score. It’s an option worth considering if you’re looking for a bare-bones card for making headway toward improving your credit.

With a credit limit of $300 to $1,000, this card won’t give you access to a large line of credit — but that might be a benefit if you’re worried about racking up credit card debt. If you fall behind on payments, a penalty APR — which is higher than your standard APR — won’t kick in. But you will get dinged with up to a $39 late payment charge.

If you don’t want to pay for a secured card — which requires an initial deposit — and you don’t mind paying an annual fee of up to $59, the Avant Credit Card is a worthy one to consider.

With no annual fee and multiple ways to earn cash back, the Discover it® Student Cash Back* is our top contender in the student credit card category. Students who are building their credit can check their FICO scores for free. Plus, Discover does look beyond credit scores for those applying for student credit cards.

The Discover it Student Cash Back offers 5% cash back on rotating quarterly categories upon activation (on up to $1,500 in purchases each quarter, then 1%) and 1% cash back on all other purchases. Plus, for the first 12 months after opening an account, cardholders get a dollar-for-dollar match on all cash-back rewards, a benefit that can essentially double your cash-back rewards at the end of the first year in the form of a statement credit.

What credit score is considered fair?

According to Experian, a credit score that hovers between a 580 to 669 FICO score is considered “fair.” This sits between what’s considered a “poor” score, which ranges from 300 to 579, and a “good” score, which is anything from 670 and 739. Once you hit the threshold for a good credit score on your credit report, you’ll gain access to more credit card options with better rates and terms.

What are some ways to improve your credit score?

The best way to improve your credit score depends on why it’s lower in the first place, explains John Ulzheimer, a consumer credit expert and formerly of Equifax and FICO. “There is more than one path to a lower score, which means there is more than one path to a higher score,” he says. For example, if your score is low because you have limited credit history, using credit responsibly on a regular basis can help boost your score.

In general, to improve your score, you should:

• Pay all your bills on time.
• Keep lower amounts of credit card debt.
• Pay your card balance in full each month if possible.
• Avoid excessively applying for credit.
• Review your credit. You can order a free credit score every week from AnnualCreditReport.com.
• Monitor your credit. Some credit cards offer free credit monitoring or free credit scores.
• Set credit card alerts. This can help you stick to a spending limit and get alerts about fishy activity.

What are the benefits of a high credit score?

Having strong credit that falls in the good-to-exceptional range (670 to 850 FICO) comes with a number of advantages: more favorable rates and terms, higher credit limits, more perks and more options. You’ll also have an easier time finding a credit card that’s best suited to your needs and preferences.

What kind of credit card can you get with a fair credit score?

You can get the same types of cards that people with good or excellent credit can get: travel cards, cash-back rewards cards, student cards and ones with no annual fees, to name a few. However, the APRs might be higher if you have fair or average credit, or the credit limits may be modest.

What’s the minimum score needed to get approved for a credit card?

Typically, the minimum credit score needed to get approved for a credit card depends on the particular credit card and the type of card. Each card has different lending criteria. However, if you have a credit score below 600, you might have a tough time getting approved for a credit card. In this case, you’ll want to search for credit cards that either don’t require a FICO score or look at other factors to determine creditworthiness, or secured cards.

What are the easiest cards to get approved for?

Retail store cards and subprime cards are the easiest to get because they’re structured for people who are considered a higher risk for lenders, says Ulzheimer. 

“These aren’t really the cards you want to rely on for any extended period of time because the rates are punitive,” he adds.

A secured credit card might also be easier to get and is designed for people who are rebuilding their credit. With a secured credit card, you need to offer an initial security deposit that usually gets refunded. Credit limits tend to be low and usually match the amount of your security deposit.