Expert Picks: The Top Credit Cards for Fair Credit in 2021
Expert Picks: The Top Credit Cards for Fair Credit in 2021
Having fair credit doesn’t mean you can’t have access to quality credit cards. In fact, there are a plethora of options available for individuals with fair credit scores looking to improve their credit standing and take advantage of various benefits and rewards. In this article, we will highlight some of the best credit cards for fair credit in 2021, selected by credit card experts.
What is Fair Credit?
Fair credit is typically considered to be a credit score between 580 and 669. While it may not be considered excellent or even good credit, individuals with fair credit can still qualify for credit cards and work towards improving their credit score over time. It’s important to note that having fair credit may limit the types of credit cards available, but there are still plenty of options to choose from.
The Importance of Building Credit
Having a credit card and using it responsibly is a great way to build or rebuild credit. By making on-time payments and keeping your credit utilization low, you can steadily improve your credit score over time. This is crucial for obtaining better interest rates on loans, securing lower insurance premiums, and even qualifying for rental housing or employment.
Top Credit Cards for Fair Credit in 2021
1. Discover it® Secured Credit Card
The Discover it® Secured Credit Card is a top pick for individuals with fair credit looking to build or rebuild their credit. This secured credit card requires a refundable security deposit as collateral, but it offers numerous benefits, including cash back rewards. Cardholders can earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, and 1% cash back on all other purchases. Discover also matches all the cash back earned in the first year for new cardmembers, making this card a great option for those looking to maximize rewards while improving their credit score.
2. Capital One Platinum Credit Card
The Capital One Platinum Credit Card is another great option for individuals with fair credit. This card has no annual fee and offers access to a higher credit line after making the first five monthly payments on time. While this card does not offer rewards, it is a solid choice for those looking to establish or rebuild credit without the pressure of managing a rewards program.
3. Petal® 2 “Cash Back, No Fees” Visa® Credit Card
The Petal® 2 “Cash Back, No Fees” Visa® Credit Card is a unique option for individuals with fair credit. This card does not require a security deposit and offers cash back rewards on every purchase. With responsible use, cardholders have the opportunity to earn up to 1.5% cash back on eligible purchases. Additionally, the Petal® 2 card has no fees, including no annual fee, late payment fee, foreign transaction fee, or any other hidden fees, making it a transparent and consumer-friendly option for those looking to improve their credit.
4. OpenSky® Secured Visa® Credit Card
The OpenSky® Secured Visa® Credit Card is a secured credit card designed for individuals with fair credit. This card requires a refundable security deposit but does not require a credit check, making it an accessible option for those with limited credit history or a low credit score. The OpenSky® card reports to all three major credit bureaus, helping cardholders build credit history over time. With responsible use, cardholders may qualify for an upgrade to an unsecured credit card in the future.
Final Thoughts
While fair credit may limit the options available, there are still plenty of quality credit cards for individuals looking to improve their credit score in 2021. Whether you choose a secured card to establish credit or an unsecured card with rewards, using credit responsibly is key to building a strong credit history. By selecting the right credit card for your financial goals and lifestyle, you can pave the way for a brighter financial future.
