Credit Cards for Fair Credit
Credit cards that you can qualify for with a fair credit rating are going to be ok credit cards. You will have higher interest rates in the area of 18% – 23% and will have to pay an annual fee around $50.
Fair credit is frequently viewed by lenders as being 620 – 690 FICO score. Clearly each lender has their specific set of requirements and these will vary. You do have some options when it comes to types of cards to get and what you can qualify for.
Due to legislation that was passed in order to crack down on sub prime or bad credit lending your options for an unsecured card have been reduced dramatically. If you are on the high end of the score spectrum then you can qualify for a card with a major bank and will be looking at paying about $100 in fees every year.
With responsible use of your card you can build some positive payment history, which will help to improve your score. We have seen some offers even providing rewards and points for purchases.
If you are on the lower end of fair credit you still may be able to get an unsecured card however it will be much more expensive. The legislation that was supposed to crack down on sub prime lending did nothing of the sort. Instead it created higher interest rates, if you can believe that and higher fees.
These cards somehow have found a legal loop hole or are breaking the law but they charge a incredibly high 36% interest rate. Additionally you have a $78 annual fee, a $9 monthly fee, and you must pay a $97 security deposit. We believe that maybe the security deposit changes the classification of the card and that is how they are able to charge such a high APR, but we are for sure.
Your other options for a card are a secured or prepaid card. First let’s talk a secured card; this will work just like a traditional card. You will have monthly payments, a credit limit, and an interest rate however much lower because the account is secured.
The only difference is that a secured card will require you to make a deposit with the bank. This deposit secures your card and will protect the bank in case you default on your payments. The amount of your deposit will equal the credit limit you are given.
For example, if you deposit $300 the limit on your card will be $300. This deposit is FDIC insure, refundable, and will earn interest. These accounts will report monthly to all three major bureaus and can also be a very effective way to improve you payment history.
There is no credit check or bank account required for approval. Lastly, you other option is to get a prepaid card. These require you to first make a deposit on the account before you can use the card to make purchases.
It acts just like a checking account and will often give you free direct deposit. Also it will provide you with an online bill payment center where you can have payment sent in your name to pay your bills.
In sum, you do have options for a credit card with a fair credit score. It depends on what type of card is right for you and what you hope to accomplish with your card. You don’t have to continue living with damaged credit you can fix a low score.
For a free credit consultation call 1-800-483-0256 or visit us for more about credit cards for fair credit or to learn about an easy credit card to get visit us.