What is the Easiest Credit Card to Get with Fair Credit?
Sep 26, 2023
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Credit cards exist for customers across the entire credit score spectrum. However, some cards are better for particular credit scores than others. If you have fair credit, several secured and unsecured card types are easy to qualify for. These can help you access credit regardless of your score, and allow you to raise that score over time. This article will explain some of the best credit cards for fair credit, then dive into some tips to boost your credit score so you can access the best loan and credit card opportunities.
Best credit cards for fair credit
There are two broad credit card types for people with fair credit: secured credit cards and fair-credit unsecured credit cards. Here’s how each works:
1. Secured credit cards
Secured credit cards require you to put down a deposit upfront, which becomes your credit limit. You can borrow up to this limit, then repay to continue borrowing. Since these cards require deposits, they generally have little to no credit requirements. Credit card issuers may check your income and employment information before making an approval decision. Many issuers also report to the credit bureaus, giving you an easy way to start building credit.
Using a secured credit card may eventually allow you to qualify for an unsecured credit card. For instance, some issuers may extend an offer to upgrade to an unsecured card after several months of on-time payments.
2. Fair-credit unsecured credit cards
Unsecured credit cards don’t require a deposit, so they may rely more on your credit score to approve you. However, plenty of credit cards are available to people with fair credit. You can qualify for these cards, along with ones designed for those with poor credit. Unsecured cards may have more benefits, such as rewards for your spending and purchase protection.
Tips to improve your credit score
Here are some tips for building your credit score so you can access the best credit card opportunities:
1. Pay all your bills on time
Timely bill payment is one of the most vital factors in calculating your credit score. Pay all your credit card bills on time to maximize this factor. You only have to make the minimum payment, but ideally, you should aim to repay the full balance each month to avoid debt as well.
2. Maintain a low credit utilization
Your credit utilization ratio measures your total and per-card balances against your total and per-card credit limits. For example, say you have two credit cards, each with a $5,000 limit. The first card has a $1,000 balance, and the second has a $500 balance. This means that your first card’s ratio is 20%, your second card’s ratio is 10%, and your total ratio is 15%.
A lower credit utilization ratio is generally better. A good rule of thumb is to keep all your utilization ratios under 30%. This can help boost your credit score and avoid interest.
3. Keep your accounts open
Account age and credit mix are two other factors that impact your score. Account age measures the average length all your accounts have been open and the age of each account. Meanwhile, credit mix measures the diversity of credit card accounts. So, keeping all your accounts open helps increase your account age and credit mix. Over time, this enables you to grow your credit score.
To keep accounts open, avoid closing them if unused. Use each card occasionally, even those that aren’t your primary card, so your issuer does not close them for inactivity.
4. Wait at least six months before applying for a new card
When you apply for a credit card, the issuer runs a hard inquiry, or formal credit check, on your account. Too many hard inquiries within a short time frame can result in a credit card application denial. Additionally, hard inquiries slightly damage your credit. However, the effects fade after a few months, and hard inquiries eventually disappear from your report. So, waiting at least six months between credit card applications can be best.
The bottom line
People with fair credit have plenty of excellent credit card opportunities to rebuild credit or get started on their credit-building journey. Secured cards can be the simplest option, allowing you to easily qualify in exchange for a deposit. Unsecured credit cards are also available for those with fair credit.
Once you have a credit card, pay your bills on time and keep your balance low. Don’t close any accounts, and wait at least six months before applying for a new card. Following these tips may help you grow your credit score and give you even better opportunities in the future.
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