There are a lot of credit cards out there, and not all of them will be a good fit for you. To find the best credit card for fair credit, you’ll have to consider a number of factors, including your spending habits, goals and the type of card you’re likely to qualify for. To help you narrow down your options, here are some questions to ask when choosing a credit card.
What’s my credit score?
It’s important to have a general idea of which cards you might qualify for based on credit score. Check your credit score before you go card shopping and look for recommended credit scores in each card’s marketing details.
Secured or unsecured?
Depending on your credit score, it could be difficult to qualify for the top unsecured credit cards for fair credit. If you can afford to put down a security deposit, a secured credit card with minimal fees and a low interest rate can help you boost your credit score while helping you avoid cards that offer no perks but plenty of fees.
How will I pay my balance?
If you can pay off your credit card balance in full each month, you can avoid the high interest charges and many of the other fees that can lead to credit card debt. But if you tend to carry a balance, make it a priority to find a low-interest credit card. These cards have a lower annual percentage rate (APR), which could help you save a lot of money.
Does the card have credit-building tools?
If your main goal is to build credit, check to see if your card comes with features that can make it easier for you to grow your credit score or improve your financial literacy skills. Some credit cards for fair credit offer free access to your credit score and help you monitor your credit. Others come with helpful advice and tips that can empower you to make the best possible financial decisions.
What are the fees?
Watch out for common credit card fees. You won’t be able to avoid them all, but some credit cards can help you avoid certain costs like annual fees, foreign transaction fees and penalty APRs.
Am I prequalified?
Keep an eye out for pre-qualification. Online tools like CardMatch™ help you compare pre-qualified offers without hurting your credit score.