You are growing your credit score and it is already not in a bad category, however it is not in a good credit range either. With ‘fair’ credit your credit score is right in between. Usually a credit in the 630-690 range is considered ‘fair’ or ‘average’. However real average credit in the U.S now is 695.
What are your credit card options with such credit rating? Do not worry, you have quite a few options to choose from, however you are not entitled to the lowest credit rates and best bonuses like the folks with a good or excellent credit.
You can compare the best credit cards for fair credit on CardsMix card suggestion service website. Here’s a short selection of the best cards for you.
Balance transfer and 0% APR options
You can get 15 months free of interest on your purchases and balance transfers with a Chase Slate credit card, available for people with fair credit.
This card has no annual fee and offers 0 balance transfer fee within first 60 days of your account. In combination with a 15 months 0% APR on purchases and balance transfers it makes a great option to transfer a balance from another credit card. Regular APR on the card is 12.99-22.99%, but with fair credit you should probably aim at the high end of the range.
One great feature of the card is that the bank offers free FICO score monitoring to cardholders. I cannot emphasize enough how important is to track your credit to grow it better over time.
Best rewards card with fair credit
One of the good options for earning rewards while growing your credit is the Barclaycard Rewards MasterCard.
This card offers double points on gas, utility and grocery purchases, and 1% on all other purchases.
The card doesn’t charge an annual fee and offers a free FICO score monitoring.
You can redeem points for statement credit or send them to your savings or checking account starting from 1,000 points for $10.
Cash back offers
One of the best cards for cash back with fair credit is Chase Freedom card.
It offers 5% cash back on quarterly rotating categories, and 1% regular cash back on all purchases. Decent $100 bonus is available if you spend $500 in the first 3 months of your card ownership. Add an authorized user on a card and you get another $25 bonus.
Another plus of the card is that is doesn’t charge an annual fee.
Capital One Quicksilver card utilizes a different approach to cashback. This no annual fee card will earn you 1.5% cash back on all purchases with no limits.
Usually flat rate cash back credit cards will earn you more than cards with high cash back on certain categories and low regular cash back.
How to improve your credit score?
You shouldn’t settle for an average credit and should work on improving your credit do graduate to a good or even excellent credit as soon as possible.
Here is an essential checklist for you:
- Always pay your bills on time. Make it a habit to send payment in a couple of days before the deadline.
- Never carry a balance on a card. Pay it off every month.
- Get as high credit limit as you can. Ask for a credit limit raise when possible. It will lower your credit utilization ratio.
- Use only 10-30% of your available credit limit. Refill your card several times a month if needed.
- Monitor your credit score – It will help understanding how it works and to have a hold on it.
Credit card expert and founder of CardsMix.com – credit card comparison and suggestion service.