Credit Cards for Fair Credit

Thank you for choosing to visit Direct Banc®, your ultimate shopping destination for credit cards for fair credit and financial services. We have been helping our customers find the perfect financial products safely and simply since 1999.

This section focuses on credit cards for fair to average credit. We suggest that when making a decision that you also look at the credit cards network affiliation, i.e. MasterCard, Visa. Each of these cards are given a "Card Status/Type" that is usually designed as "Platinum" or "Standard".

These distinctions refer to the benefits that you will receive from MasterCard and Visa that are over and above the features that the credit card itself has. For example, extended warranty protection, auto rental insurance and so on.

To determine each credit card's Card Status/Type simply click the "See More Details" link located under the credit card picture for every card. You will see "Card Status/Type" in the first section of information as you scroll down.

Before the “credit crunch” fair credit was basically one step above bad credit. The fact is, it still is. However, nowadays, more people have "fair credit" than good credit and the credit card issuers have had to adjust their credit card line-ups to offer more credit cards for people with fair credit than they used to offer.

This means that there is more competition in this category and that means more choices for consumers.

So, what can you expect from credit cards that are designed for fair credit? These credit cards carry typical interest rates that are slightly above those rates for people with good credit.

Regardless of your credit score, credit cards are designed to be paid off in full every month. If you fall into this category of consumers, “fair credit” credit cards shouldn't cost you much more than other credit cards that are designed for people with higher credit scores.

However, if you do carry a balance each month, you can expect these cards to be a little more expensive.

Most credit cards that are designed for people with fair to average credit will have an annual fee. These fees range from $25 - $65 on average. However, if you use this credit card wisely, it's very possible that you will be able to qualify for a better credit card within a year or so. Once you can qualify for a better card, you will probably need to re-apply for the better card while keeping this credit card open.

Most people believe that when you get a credit card for poor, fair or average credit that all you have to do is to pay that card on-time and the card issuer will morph that card into a better card. Unfortunately that's not the case. The truth is; when you get a credit card that is designed for fair credit, this makes the credit card issuers more money than usual. This extra money is something that they really don't want to give up simply because you pay your bill on time.

When your credit begins to improve from using the fair credit credit card,  Instead of making your current card a better card with lower fees and rates, card issuers will usually just give you a credit increase.. This is usually where card holders make a mistake by taking advantage of the credit limit increase and adding to their balance.

Think about this, fair-credit credit cards offer fewer benefits, an annual fee and slightly higher rate. When the credit card issuer recognizes that you are creditworthy they will increase your limit; however the annual fee and lack of reward benefits still remain. Running out and adding to this card's balance is exactly what you should not do.

If your current credit card issuers has deemed you creditworthy and offered you a higher credit limit, other card issuers will too. Meaning, this is a great time for you to shop around and find another credit card that doesn't have an annual fee, has lower rates and a rewards program. Since the credit card you have has increased your limit, you should have a low credit to balance ratio, which will make qualifying for a newer and better credit card all that much easier.

Once you get approved for the better credit card, all you need to do is transfer the balance from the fair-credit credit card to the newer card and you have successfully upgraded to a better card. Once this is done, you can keep the older card or close it. Just remember, you still have to pay the annual fee whether you use the card or not. However, it always looks good on your credit report to have an un-tapped source of credit, whether that is worth the annual fee or not is up to you.

Individuals with fair credit can often feel as though they are stuck in limbo.  While their score is not terrible, it is also not entirely good.  If this is where you have found yourself, you can rest assured there are still credit cards for fair credit available. 

Even if you have fallen behind on some payments, missed a payment or two, or have a low income to debt ratio, you can still get the credit you need.

In order to find the best card to meet your needs, and one that will not make your current financial situation worse, you should know what to avoid and what to search for. Take a bit of time to research interest rates, introductory incentives, and any other fees that may be associated with the card.

Many lenders will actually open up to negotiations regarding the interest rate, fees, billing cycle length, or even monthly payments. If you are able to spend a bit of time negotiating your terms early on, you will be in the best position to improve your situation and save some money.

It is important to understand that even though you are trying to repair your credit now, you are still going to be considered a bit of a risk when applying for credit cards for fair credit. Even though you will most likely be approved for a card, you may not receive the best possible terms.  In many cases, you will have to pay higher than average interest rates, annual fees, and endure lower available credit limits.

 You should view these issues as temporary and think long term; the better you are able to manage this card, the sooner you can rebuild your credit and move on to better credit terms. By making the commitment to pay down your existing balances, make payments on time each month, and spend within your means, you will be surprised by how much you can improve your credit score. 

This will then show lenders that you are serious about improving your financial situation, which can lead to better rates and terms with new and existing creditors. Credit cards for fair credit can be a wonderful tool to help you once again get back on the path to financial freedom.