Best credit cards for fair/average credit in December 2023

Many credit cards for fair credit offer instant approval, but this card goes further. It doesn’t charge an annual fee, doesn’t require a security deposit and automatically considers you for a credit line increase in as little as six months. (See Rates and Fees) 

People looking for a no-frills credit card that they plan to use on occasion and pay off in full each month to avoid interest charges as they build credit.

Compared to most unsecured credit cards for fair credit, the Petal® 2 “Cash Back, No Fees” Visa® Credit Card makes it easier to focus on building credit. It doesn’t charge a security deposit or many of the fees found with credit cards. It also has an impressive amount of credit-building features, including an app packed with free credit score access, payment calculator and tools to help you budget and track your spending habits.

This is a no-annual-fee credit card that can help students develop good financial habits while earning rewards. It comes with a number of features people new to credit will appreciate. This includes access to credit monitoring tools and late-payment forgiveness the first time you miss making an on-time payment (up to $41 thereafter).

Students who want access to a starter rewards card loaded with an impressive number of features.

The Capital One Quicksilver Student Cash Rewards Credit Card is another solid pick for students. It’s a no-annual-fee card that lets students earn an unlimited 1.5 percent cash back on all purchases, which may be a better fit for people who don’t want to deal with enrolling in or tracking the rotating bonus categories found with Discover cards. (See Rates and Fees)

If you’ve already picked up good financial habits and just need a credit card to report your on-time payments to the credit bureaus, the Milestone may be a good pick. It’s open to people with fair or bad credit and doesn’t require a security deposit. And like most credit cards, it offers zero liability fraud protection for any unauthorized purchases on a lost or stolen card.

People who can pay their balances in full and don’t mind a credit card with an annual fee and limited features.

The Capital One Platinum Credit Card is a no-frills credit card for people with fair-to-good credit. Like the Milestone, it comes with $0 fraud liability for unauthorized charges, but it doesn’t charge an annual fee. Since it comes with a high variable APR (30.74 percent) it’s a good idea to try and pay your balance in full each month to avoid interest charges. (See Rates and Fees)

The card’s flat rate of 1.5 percent cash back on all purchases can help offset the card’s $39 annual fee as long as you spend over $2,600 each year. You can also earn unlimited 5 percent cash back on hotel and rental cars booked through Capital One Travel (terms apply). These are decent benefits on a card that only requires fair credit, plus you’ll automatically be considered for a credit line increase in as little as six months. (See Rates and Fees)

People who want to earn rewards while building credit and who can pay their balances in full each month to avoid the high variable APR of 30.74 percent.

The Petal 2 card earns up to 1.5 percent cash back on eligible purchases, but only after making 12 on-time payments. It also earns 2 percent to 10 percent cash back at select merchants. The card isn’t as hassle-free as the QuicksilverOne, but cardholders won’t have to worry about an annual fee, late payment, returned payment or foreign transaction fees found with other credit cards.

This card carries some of the highest travel rewards rates you can get on an unsecured card available with fair credit and its rewards program covers an impressive range of travel categories. Along with expected categories like eligible flights and hotels, you’ll earn points on gas and dining, making it a good option for vacations and everyday travel alike.

Credit-builders who want to earn rewards on travel and would rather pay an annual fee than tie up money in a security deposit.

If you’re looking for a lower-cost way to build credit without putting down a deposit or giving up rewards completely, consider the Capital One QuicksilverOne card. You’ll earn a still-impressive 5 percent back on hotels and rental cars booked through Capital One Travel as well as 1.5 percent back on all other purchases, all for an annual fee of just $39 per year (See Rates and Fees). Plus, after you’ve improved your score with responsible card use, you may be able to upgrade to a more lucrative Capital One rewards card, such as the Capital One Venture Rewards Credit Card.

It offers an innovative way to improve credit by letting you make purchases like a credit card or send money to your bank account like a personal loan. Users then pay off their balances in equal monthly installments, from 12 to 60 months. That payoff schedule helps users pay off balances faster and with less interest charges and fees than you get with traditional credit cards.

People with fair credit who need help budgeting for and paying down their credit card debt.

If you’d like a traditional credit card with limited fees, the Petal 2 is probably the best alternative. You won’t get charged an annual fee, late payment fee, returned check fee or foreign transaction fees. And you can earn rewards, making it a versatile option for people with fair credit.

The fast approval process makes this a good choice for anyone looking for a credit card for fair credit with instant approval. Plus, it doesn’t charge foreign transaction fees and has no penalty APR. When used responsibly, you can grow your credit score, which can open the door to credit cards for good credit.

People with fair credit who struggle to qualify for credit cards with less fees and lower interest rates.

The Mission Lane Visa is available to users with bad credit and cardholders may qualify for a credit line increase after seven months of on-time payments.

When you have fair credit, you may struggle to find a card with a low interest rate. If you don’t pay your balance in full every month, the OpenSky Secured card may be a good fit since it has a relatively low variable APR, which could help cut down on interest charges.

Credit-builders who want to work on their credit score while avoiding two of the biggest disadvantages of credit cards: high interest rates and the temptation to overspend.

Credit union cards typically come with even lower interest rates, and if your FICO score is closer to 670, you may qualify for an unsecured one, like the Gold Visa® Card, which currently offers a variable APR of 17.99 percent.

The Mission Lane Cash Back card can help you build credit through responsible use. Along the way, you can earn cash back for your purchases.

Credit builders who can pay their balances in full and avoid the numerous fees associated with the card.

Not everyone will qualify for the 1.5-percent rate with the Mission Lane Cash Back Visa. But the Capital One QuicksilverOne can be a great option because you’re guaranteed a 1.5 percent flat rate as well as 5 percent back on hotels and rental cars booked in the Capital One Travel portal.

The accessibility. If you’re new to fair credit, it may be difficult to qualify for some of the other cards on this list. Fortunately, the Mission Lane Visa is accessible even to people with bad credit, which increases your odds of approval.

People with no credit history or who have just risen out of bad credit.

Both the Petal® 1 "No Annual Fee" Visa® Credit Card and Petal® 2 "Cash Back, No Fees" Visa® Credit Card look at income, spending and savings to help make their cards more accessible to people with fair credit. And you just need to go through one quick application process to see which card you are most likely to get approved for.

Its lack of fees. There’s no annual fee, overcharge fee or interest. The Azpire is a blend of a credit card and debit card that can make improving your credit score easier.

People who don’t want a traditional bank account. You have to open an Azpire Deposit Account and move your money from that account to an Azpire Security Deposit Account to fund the card.

The Self – Credit Builder Account with Secured Visa® Credit Card works similarly — you fund a loan account with at least $100 then have access to its credit card. However, the card comes with an interest rate and annual fee, which the Azpire does not.

Accessibility. This is one of the rare cards for people who have declared bankruptcy in the past.

People who have declared bankruptcy and struggle to get approved for a different credit card can use the Indigo Mastercard to show off good credit habits and work their way up to a card with more features and less fees.

If you’re struggling to get approved for a credit card, you may need more time to build your credit score. The Mission Lane Visa Credit Card can be a good option, but take a look at the best credit cards for bad credit to see if there is a secured or unsecured card that can help get you on your way to better credit.