Navigating the world of credit cards can be overwhelming, especially when you don't have the best credit score. But worry not, fellow millennials! Flik Eco is here to guide you through the intricacies of obtaining a credit card for fair credit, and we've discovered some great options for you. In this article, we'll take a closer look at credit cards specifically designed for those with fair credit scores, understand their benefits, and help you decide which one might be the best fit for you. So, buckle up and let's dive into the world of credit cards for fair credit!
Credit Cards For Fair Credit Discover Table of Contents
Understanding Fair Credit
Before we dive into credit card options, let's first understand what it means to have 'fair credit.' In general, a FICO credit score between 580 and 669 is considered fair, while a score between 670 and 739 is considered good. Having a fair credit score can be a result of multiple factors, such as late payments, high credit utilization, or even a lack of credit history. With fair credit, you may not have access to the best interest rates or credit card offers, but you still have plenty of options to choose from.
Secured vs. Unsecured Credit Cards
When it comes to credit cards for fair credit, there are two main types: secured and unsecured. Let's quickly go over the differences between the two:
Secured Credit Cards
- Requires a refundable security deposit, which often determines your credit limit.
- Usually come with higher interest rates and fees.
- Designed for individuals looking to build or rebuild credit.
Unsecured Credit Cards
- Do not require a security deposit.
- Typically offer better rewards, lower interest rates, and fewer fees.
- Best suited for those who already have a fair credit score and want to improve it.
Top Credit Cards For Fair Credit Discover
With these factors in mind, let's explore some of the best credit cards for fair credit that we've discovered:
1. Discover it® Secured Credit Card
As one of the most popular secured credit cards on the market, the Discover it® Secured Credit Card offers a variety of benefits:
- $0 annual fee.
- 2% cash back at gas stations and restaurants on up to $1,000 in purchases each quarter, and 1% cash back on all other purchases.
- Cashback Match™ at the end of your first year, where Discover will match all the cash back you've earned.
- Automatic monthly review for upgrading to an unsecured card after 8 months of responsible use.
2. Capital One QuicksilverOne Cash Rewards Credit Card
An excellent unsecured card option, the Capital One QuicksilverOne Cash Rewards Credit Card offers:
- $39 annual fee.
- 1.5% cash back on all purchases.
- No rotating categories or sign-ups required.
- Potential credit limit increase after six months of on-time payments.
Credit Cards For Fair Credit Discover Example:
Let's say you decide to go with the Discover it® Secured Credit Card and make a $300 security deposit. In the first three months, you spend $500 on gas and restaurants, earning a total of $10 in cash back (2% of $500). You also spend an additional $1,000 on other purchases, earning another $10 (1% of $1,000) in cash back. By the end of your first year, you would have earned a total of $40 in cash back, plus an additional $40 from the Cashback Match™, giving you a total of $80 in rewards. And with responsible use, you could potentially be transitioned to an unsecured card after 8 months.
Understanding credit cards for fair credit is essential in making informed decisions and improving your credit score. So whether it's a secured or unsecured card, the options we've discussed above are great starting points on your journey to better credit. With time, patience, and responsible use, you'll be well on your way to getting your credit score back on track.
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