Credit Cards For Fair Credit

Do you have fair credit? There is no “official” definition or score for this category, but here are some scenarios that typically go hand in hand...

• Occasional Late Payment: 35% of your credit score is based on payment history. Whether your payment is 1 day late or 30 days late, it’s classified as a “30 day late payment” if reported to the credit bureaus. Some lenders and credit card companies report every late payment, while others only report if it’s a repeated problem or a payment is more than 30 days late.
• Carrying High Balances: Did you know that using too much of your credit limit can hurt your FICO score? Using more than 30% of a card’s spending limit may decrease your score. So if you currently have any credit cards that are maxed out or close to it, a credit card for fair credit will probably be easier to get approved for.
• Bad Debt: Unfortunately, even just one bad debt or account written off will significantly bring down your credit score. It stays on your credit report for at least seven years, but will have the greatest impact during the first 2-3 years. If this has happened to you within the last few years or so, then your credit might currently be classified as "fair."
• Limited Credit History: Are you relatively new to using credit or have you rarely used it in the past? If so, then starting out with a fair credit credit card is often the best route.

2012 Best Credit Cards For Fair Credit (sponsored)

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Winner: Orchard Bank Credit Cards

This is the second year in a row CreditCardForum has rated Orchard Bank as the #1 choice for fair credit. Why? Based on reviews from consumers as well as our own research, here's why Orchard Bank offers you the best opportunity...

Your pre-qualification is checked for multiple cards at once
Orchard Bank offers several different cards – both secured and unsecured – which cater to fair credit, bad credit, and everything in-between. You simply fill out an online pre-qualification form and then they instantly show you which card(s) you pre-qualify for. From there, you can choose to apply for one if you would like.

This a reputable bank that has been around a long time
Orchard Bank is a subsidiary of HSBC, which is the 5th largest bank in the world and has trillions in assets. So you’re not getting a card from some fly-by-night issuer when you go with Orchard. This is very important, because many credit cards for fair credit are issued by sketchy companies that are here today, gone tomorrow.

Your account is reported to all 3 credit bureaus each month
Did you know that credit card companies actually have to pay money in order to report customer accounts? For this reason, some unscrupulous banks either don’t report at all or do so inconsistently in order to save money. You don’t have to worry about that happening with these guys.

Reasonable fees
If you have no credit or are trying to rebuild, it’s not shocking that you may have to pay for a starter credit card. But the problem is that many issuers which cater to fair/bad credit will rip you off with outrageous fees and surcharges. Orchard Bank is pretty fair and their fees are definitely on the low end.

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For college students
If the reason you have a fair credit score is because you're in school and have a limited history, then by far your best bet will be student cards. They are designed for young adults with fair to no credit history. Fortunately, most of them don't charge an annual fee and some even come with rewards. You can compare student credit cards here.

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For credit scores below 650
If you have a score below 650 it is will be extremely difficult to get approved for an unsecured credit card. Ever since the "Great Recession" banks tend to shy away from customers in this range. If you fall into this category, an option you have is to build your credit using a secured credit card.