Interested in growing your credit score? If you have a 650 credit score, you might want to look at credit cards for fair credit as these will help build your score.
Obtaining a card which is unsecured is one of the easiest ways to start building up credit.
Unfortunately, though, the best credit cards that offer top rewards and low APR are only for those who have excellent credit scores.
However, by applying to credit cards for fair credit, you can build your score to an acceptable number.
Even if your credit history is short or you’ve had issues with your credit report, you can still qualify for a credit card with no cosigner.
Credit Cards for Fair Credit
According to CreditCards.com, these are the top credit cards for fair credit.
1) Capital One® Platinum Credit Card
- No Annual Fee
- Regular APR: 24.99%
- Late Fee: $35
- After 5 monthly payments, you become eligible for a higher credit line
- Fraud Coverage if card is stolen or lost
2) Chase Slate®
- No Annual Fee
- No Fee for balance transfers within 60 days of opening an account
- Free Monthly FICO® Score and Dashboard access
- Variable APR 13.24% – 23.24%
- Zero percent Intro APR for first 15 months
- Paying late will not raise your APR, however, it could cause you to lose your introductory APR and late fees can be as high as $35.
3) Capital One® Quicksilver® Cash Rewards Credit Card
- Unlimited 1.5% cash back on all purchases
- Zero percent Intro APR for 9 months then 23.24% variable APR
- Fraud Coverage if card is lost or stolen
- Cashback never expires and there are no limits to how much cashback you can receive
- Make 5 monthly payments on time and have access to a higher credit line
Steps to Improving Credit
Whether you’re trying to build up your credit score for a loan or are simply fixing poor credit, an unsecured card is definitely your best bet. Not only does this card report to all the credit reporting agencies, but also enables you to build up your credit without a deposit.
Even if you start off with a low line of credit on your card, some of the top providers (like Capital One®) will steadily raise your credit limit over time. However, before taking the plunge, know some simple rules which can help you make the best out of your card.
1 – What is your credit score?
Before applying for an unsecured credit card, take some time to first find out about your current credit score and report. You can view your credit report for free once a year from each Credit Reporting Agency.
Visit AnnualCreditReport.com to view your credit report from all three bureaus. And you can find your FICO credit score for free from select credit card issuers like Citi and Discover. Otherwise you have to pay to find your scores from Experian, Equifax and TransUnion.
2 – Apply for Cards Reasonably
If you have a credit score that’s under 700, then avoid applying for best reward cards. Just stick to cards for average credit since asking for a new card will end up in a hard inquiry on your report that could lower your score for a little while.
3 – Use your card with Caution
Once you’ve received approval for an unsecured card, it’s crucial you take things slowly and practice responsible personal finance habits. It’s a good idea to make small purchases you can afford and avoid maxing out your credit limit.
Make a habit of paying the balance in full each month and, in the event that you start to fall behind in terms of payments, simply revert back to cash or a debit card.
Better Rates & More Options
With the above facts and steps in mind, you’ll improve your credit score which will allow you access to more affordable loan rates and better credit card options.
In conclusion, credit cards for fair credit will open up the door to better opportunities and more financially stable times.