What are fair credit cards and how are they beneficial?

Answered on October 07, 2010
Updated on October 07, 2010
The content is accurate at the time of publication and is subject to change.
James Williams James Williams
Fair credit refers to a credit history which is neither bad nor very good. A fair credit rating for an individual falls between 575 and 600 or slightly more. Fair credit cards are credit cards awarded to credit card customers with credit rating in the fair credit range. There are quite a few companies which approve fair credit cards with decent terms and regulations. However, one thing that clearly stands out between fair credit cards and credit cards rewards to individuals with very high credit rating is that while the latter can help customers make good savings through great credit rewards, the former does not have a lot of attractive prospects as far as rewards are concerned. Fair credit cards are taken by credit card customers who are generally trying to build their credit history and improve their credit rating until they can considered as credit card customers with excellent credit and become eligible for attractive rewards. Fair credit cards do not have massive interest rates but they still have rates slightly higher than 14% or so, which is greater than the average annual percentage rates on credit cards for excellent credit rating customers. However, fair credit cards have their own share of benefits, including loyalty points which can be redeemed in the form of discounts by the credit card customers at select merchants or brands. Fair credit cards are beneficial for those credit card customers whose applications for reputed credit cards have been rejected. The problem with too many rejections is that it shows up on the credit report drawn by the credit bureaus which will make the credit card customer look desperate for credit, thus making it even more difficult to get credit. Hence it is not a bad idea to apply for fair credit cards which are easily approved even if your credit rating is not exceptional but through consistency in monthly bill payments and if possible, avoiding outstanding dues of any kind, one can slowly take their credit rating higher. Fair credit cards in fact, help customers to build their credit rating and monitor it by providing tools such as monthly expense reports which are detailed and give the card holder an idea about what expenses were extravagant and hence could be eliminated. Fair credit cards sometimes also offer 0% introductory interest rates on balance transfers as well as purchases for a fixed period as an incentive to customers.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

User Comments about This Question


Most co-branded credit cards like Speedway credit card won't require you to have excellent credit to qualify. It is often enough to have fair credit to get such card. However, if you want to apply for this card simply because of rewards it gives, you may want to skip this offer and apply for their free Speedy Rewards program. You won't get line of credit but will be able to earn rewards. Also, applying for their loyalty program won't hurt your credit score. Or you can apply for a credit card for fair credit. Some of these credit cards offer rewards program.
All in all, your credit scores are considered average. To apply for a Menards credit card your credit should be good or better. If you apply for a PNC credit card with your current credit scores, your chances to qualify will be low. If you are looking for a cash back credit card, look at the cards offered to people with average credit. Some of the offers can have cash back rewards programs that may suit your needs.
Well, when it comes to credit issuers, there is one thing you always have to remember. When you apply for any credit card, not just the PenFed card, your current credit score is not going to be the only thing the credit issuer is going to check, there are several other factors they will also look into. Your current credit score will still play a very important role in the issuer deciding whether or not you will be approved for the card. I would say, as long as you have a credit score that is at least fair, you have a good chance of being approved. You can apply for one of their cards by...

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There is a credit card for any credit and for any purpose. Whether you want to start building your credit from scratch or earn rewards on purchases, save on gas or travel for free, you can find a good credit card offer for that.