Best Credit Cards for Average Credit of October 2024

Benzinga's top picks for the best credit cards for individuals with fair or average credit include Capital One or Petal.

Credit cards for fair credit offer a valuable opportunity for individuals aiming to improve or establish their credit scores, which typically fall between 580 and 669. While these individuals may not qualify for the best credit card offers, there are still various options available that can help enhance their credit profiles. For those closer to the higher end of the fair credit spectrum, achieving a "good" credit status becomes increasingly attainable, thereby unlocking access to cards that come with better perks such as rewards programs and lower fees. Whether one's goal is to earn rewards, boost credit score, or minimize costs, there are tailored credit card options suited to every individual's needs.

Benzinga reviewed some of the best credit cards available to those with fair or average credit score for this month. Consider these top picks and choose the one that best fits your financial goals and spending habits.

Quick Look at the Best Credit Cards for Fair or Average Credit:

• Best for First Credit Card: Capital One Platinum Credit Card
• Best for No Fees: Petal® 2 “Cash Back, No Fees” Visa® Credit Card
• Best for Travel Cash Back: Capital One QuicksilverOne Cash Rewards Credit Card
• Best for Easy Application: Avant Credit Card
• Best for Building Credit: Mission Lane Cash Back Visa® Credit Card
• Best for Simplified First Card: Open Sky Secured Visa
• Best for Free Credit Building: Step

The Best Credit Cards for Fair Credit

The best credit cards for individuals with fair or average credit can help with building credit score while offering low to no fees, rewards and benefits. Here are our top picks for this month.

1. Best for First Credit Card: Capital One Platinum Credit Card

Your first credit card should be recognized everywhere, so you will always have the confidence that you can use it and enjoy the protection that comes from a well-known card issuer. The Capital One Platinum Credit Card offers this recognition and protection. You can tap to pay with the contactless card almost anywhere. Plus, enjoy fraud protection in case you lose your card or someone steals it.  

The credit card has no annual fee and foreign transaction fees. It also offers automatic credit line review in as little as six months. Once you've established a solid credit history with this creditor, you may have the opportunity to upgrade to other Capital One cards with better rewards and benefits. This allows you to continue building your credit while enjoying more perks.

Why We Picked It: With its no annual fee, credit-building features and fraud coverage, this credit card can help you establish a positive credit history while also providing some valuable perks.

2. Best for No Fees: Petal® 2 “Cash Back, No Fees” Visa® Credit Card

If you’re worried about excessive or surprise fees, the Petal® 2 “Cash Back, No Fees” Visa® Credit card might be a good fit for you. The card charges no fees at all, which makes it a stand-out option in this area, including annual fee. If you’re late on a payment or your payment method is returned, you won’t pay a fee for that either. You can also earn up to 1.5% cash back on everyday purchases.

Because there are no fees, you can trim your spending and protect yourself during emergencies. There’s also a Petal 1 card, which could help you get started with this brand.

Why We Picked It: This is a great option for individuals who want to earn cash back on their purchases without worrying about fees. With its generous rewards program, no fees, and easy application process, this credit card is definitely worth considering for those looking for a hassle-free credit card option.

3. Best for Travel Cash Back: Capital One QuicksilverOne Cash Rewards Credit Card

While the Capital One QuicksilverOne Cash Rewards Credit Card does charge an annual fee of $39, you can make up for it with the card’s generous unlimited 1.5% cash back. You can apply these credit card rewards to all your travel purchases and much more, and you can even book through Capital One Travel. Like other Capital One cards, this credit card offers $0 Fraud Liability coverage and automatic credit line review. You can also monitor your credit score with their CreditWise tool for free.

Why We Picked It: With generous rewards, travel benefits, and credit-building opportunities, this credit card has a lot to offer for those who love to explore the world.

4. Best for Easy Application: Avant Credit Card

Applying for the Avant credit card consists of filling out a short online application and it only takes minutes to receive your answer. What’s even better is that when you apply for this credit card, the card issuer does not do a hard pull on your credit report. That means that the credit card application process is not only easy, but it will not negatively impact your credit score. There are credit cards and other financial services you could also get from Avant that will help you centralize your finances, such as installment loans and debt consolidation loans.

Why We Picked It: Avant's quick and easy application process makes it a great option for those who need a credit card quickly or those who may not have the time to wait for a lengthy approval process.

5. Best for Building Credit: Mission Lane Cash Back Visa® Credit Card

If you’re looking to build or rebuild your credit, the Mission Lane Cash Back Visa® Credit Card could be a great choice. When you carry this card, you will have access to your credit score anytime – and the positive changes that come from paying your payment on time every month – as well as educational tools to help build your credit. And the card reports your payments to the three major credit reporting agencies which will help build your credit as you make your on-time payments over time.

Mission Lane is not a mainstream credit card issuer, which means that it may not offer the level of backend support and features that you want, but it does offer some unique benefits that are worth considering. The card has no annual fee and offers up to 1.5% cash back rewards.

Why We Picked It: With features like no annual fee, cash back rewards, and credit monitoring, this credit card provides the tools and support you need to improve your credit score.

6. Best for Simplified First Card: Open Sky Secured Visa

The OpenSky Secured Visa card is a good option for improving credit score, as on-time payments are reported monthly to all three credit reporting agencies. The line of credit is initially equal to the security deposit with a minimum of $200. It can be increased after six months of on-time payments without requiring an additional deposit.

One of the key features of the OpenSky Secured Visa card is the opportunity to earn up to 10% cash back rewards on eligible purchases. This is a generous cash back rate compared to many other secured credit cards on the market. By using this credit card for everyday purchases, cardholders can earn cash back rewards that can help offset some of the costs associated with the $35 annual fee.

Why We Picked It: With no credit check required, a low annual fee, and reporting to all three major credit bureaus, this credit card provides a straightforward and effective way to improve your creditworthiness.

7. Best for Free Credit Building: Step

Yes, Step works well for kids and parents who want to teach their children about money. It can even help when you have no credit history at all, but it’s also great option for a credit card for fair score. This is another tool in your toolbox you can use to improve your overall credit report. You will fill the secured credit card with funds, make purchases and those purchases are reported to the credit bureaus so that you can see improvement over time. You can start today, pay nothing except what you add as security deposit to your credit card and manage everything in the mobile app.

Why We Picked It: You get support from this app irrespective of your credit history. This means that you can do more to improve your credit instead of waiting around for everything to correct itself. No fees are attached, and it’s still perfect for parents, kids and those with little to no credit.

What Is Considered Fair or Average Credit?

Depending on the credit scoring company, fair credit scores range from 580 to 669. For instance, FICO® rates credit scores between 580 and 669 to be fair. But VantageScore rates scores between 601 and 660 as fair. Ultimately, the credit card issuer will determine whether your credit score is high enough to qualify for its credit card. If your score falls within this range, most will consider it a fair or average credit score.

Lenders consider borrowers that have fair credit scores to be below the national average. But a good credit score begins at 670. So if you’re near the top of the range, it won’t take too much work to move to a better credit score.

How to Choose a Credit Card for Fair Credit

Here are some of the things to look for when choosing the best credit cards for fair to good credit.

• Fees: When you’re building your credit, credit cards that don’t have an annual fee or other fees are a bonus. That’s because the cards will allow you to use them to build your credit without having to pay for the privilege. Also, because credit cards for average credit score don’t typically offer a lot of rewards and perks, it makes sense that you shouldn’t have to pay a lot of fees.
• Perks: Speaking of perks, you won’t get a lot of them with fair credit, but you can find average credit credit cards that offer them. In the list above, we highlight some of the best credit cards for ok credit that offer cash back for things like traveling. Others offer perks that will help you improve your credit score such as access to your credit score, applications that don’t ping your credit score, and reporting to the credit bureaus when you make payments.
• Annual percentage rate (APR): Just because people with fair credit can expect to pay higher interest rates on their credit cards, that doesn’t mean they shouldn’t shop around for the best rates they can find. Credit cards for people with fair credit differ in the rates they offer. Be sure to check the interest rates for all the cards you look at and choose the card that offers you the lowest interest rate when applying for a credit card.

How to Improve Your Fair Credit Score

When you have a fair or average credit score, you won’t have access to the best reward credit cards or those that offer lower Annual Percentage Rate (APR). That’s why improving your fair credit score is so important. Here are some things you can do to improve your score.

• Understand how you got here: Sometimes people with a fair credit score have it because they’re just starting on their credit journey and don’t have enough history to justify a higher credit score. Others with a fair or average credit score have it because they experienced a financial setback that damaged their credit score. Whatever your reason, it’s important to understand it, so that you can work toward improving it.
• Know your debt-to-income ratio: Your Debt-To-Income (DTI) ratio is a picture of how much debt you have in comparison to your income. Many lenders use this ratio when deciding whether or not to lend money to consumers. To get yours, add up all of your monthly bills and then divide that number by your income before taxes. The percentage you get is your DTI. As you pay off your debt, your DTI will improve.
• Make your payments on time: When you make your credit card payments, most card issuers report this activity to the three major credit reporting agencies. If you make your payments on time, the activity will boost your credit score. But remember, if you miss a payment or are late, the card issuers will report that too, and it will negatively affect your credit score. One way to ensure that you always make your payments on time is to set up automatic payments for your bills.
• Keep your credit utilization low: Another thing that contributes to your credit score is how much of your available credit you use. For instance, if you have a credit limit of $3,000 and only use $300 of it that means your credit utilization is only 10%. To improve your fair credit score, try to limit the amount of credit you use to 30% of your total available line of credit.

Card Limits for Fair Credit

Credit limit differs for various credit scores. Typically, the lower your credit score, the lower your credit limit. That’s one of the reasons why it’s smart to improve your credit score. But if you have fair credit, you can typically expect a limit between $300 and $5,000 on your credit card. The amount will depend on your circumstances and the decision of the credit card company.

Many credit card issuers will raise the credit limit of people who make their monthly payments on time, every month. Be sure to speak with your credit card issuer and ask if that’s a possibility if you want more credit in the future.

Frequently Asked Questions