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The best credit cards for fair or average credit in 2021:
| Category | Best credit card for average or fair credit |
| Best with no annual fee: | |
| Best for cash back: | |
| Best for students: | |
| Best for building credit: | |
| Best for small businesses: |
If you haven’t had a lot of time to build up your credit score yet, or if you’ve made a few credit mistakes in the past, it’s possible your current score is in the fair or average range.
According to myFICO.com, an average FICO score is any score that falls between 580 to 669 on a 300 to 850 scale. FICO scores below the “fair” range are generally considered “poor,” while scores above that range are considered good, very good, or exceptional depending on how high they are.
Having a fair credit score isn’t the end of the world, but it does mean you have some room for improvement. It also means you probably won’t be able to qualify for the top rewards credit cards and travel credit cards.
Read more: The best starter credit cards of 2021
Before you pick a credit card, we suggest checking your credit report for free with the major credit bureaus or through a credit card that offers free access to your credit score. This will give you a good idea of where you stand and which credit cards you may be able to qualify for.
If your credit score is indeed fair or average, here are some of the top cards to consider.
Best with no annual fee: Capital One® Platinum Credit Card
If you’re looking for a basic credit card you can use to build your credit score up, consider the
Read more: The best Capital One credit cards of 2021
You won’t earn any rewards with this card and there aren’t a lot of perks other than zero fraud liability and access to your credit score through the CreditWise from Capital One® program. For the most part, you should consider this card if you want a way to build credit and start building positive credit habits without paying an annual fee.
Best for cash back: Capital One® QuicksilverOne® Cash Rewards Credit Card
If you have average credit but want to start earning cash back on all your purchases, check out the
Best for students: Discover it® Student Cash Back
If you’re a student with average credit and you want to build your credit history while earning cash back on all your purchases, consider the
Read more: Discover it Student Cash Back card review
For starters, when you enroll, you’ll earn 5% back on up to $1,500 in purchases in Discover’s rotating categories that change every quarter (then 1%). You’ll also earn 1% back on everything else you buy
Other major benefits include a free look at your FICO score and a $20 statement credit each year you can prove your GPA is 3.0 or higher in school for up to five years. This card also comes with no late payment fee on your first late payment, and no over-the-limit fees.
Read more: The best credit cards for students of 2021
Best for building credit: Petal Visa
The
Read more: The best cash-back cards of 2021
On the rewards side of the equation, you’ll earn 1% cash back on eligible purchases right away. After six on-time monthly payments, cash back increases to 1.25% and after 12 on-time monthly payments, cash back grows to 1.5%. Your credit limit can be as high as $10,000 as well if you qualify, so this card can help you build credit while you keep your utilization low.
Best for small business: Capital One®️ Spark®️ Classic for Business
Finally, don’t forget that it’s possible to get a credit card for your small business with just “average” credit. The
Read more: The best small-business credit cards of 2021
This card doesn’t charge any foreign transaction fees, and you’ll qualify for cardholder benefits that include travel and emergency assistance services, secondary auto rental coverage, purchase protection against damage or theft, and extended warranties on eligible items that come with a manufacturer’s warranty.
Frequently Asked Questions (FAQ)
When your credit is just “average,” you know you have some work to do. Here are some additional questions and answers that can help you get the most out of your new credit card:
How do I build credit with a credit card?
To build credit with a credit card, you should use your card for regular purchases like gas and groceries, then pay your bill early or on time each month. As you use credit this way, your responsible use will be reported to Experian, Equifax, and TransUnion, who should be able to use that information to increase your score over time.
Which fees should I be aware of?
Credit cards can come with an array of fees, ranging from annual fees to application fees, foreign transaction fees, late fees, returned payment fees, and over-the-limit fees. We suggest reading over each card’s terms and conditions before you apply so you know which fees you might be required to pay.
How do I know when my credit score has improved?
Credit cards for average credit can help you improve your credit score provided you avoid racking up too much debt and you always pay your credit card bill early or on time. You can monitor your credit score for free with all three major credit bureaus – and because of the pandemic, you can do so once a week through April 2022.
Read more: How to keep your credit score up when the economy feels uncertain
Some credit cards for average credit, including the
How do I avoid credit card interest?
Credit card interest is charged on your balance if you do not pay your credit card bill in full each month. To avoid interest on your purchases, charge only what you can afford to pay off each month and pay your bill early or on time.
Is earning rewards worth it?
Earning rewards with a credit card is only worth it if you are able to pay your balance in full each month. With credit cards for average credit charging APRs over 20%, earning 1% to 2% back on your purchases won’t leave you ahead.
Read more: The best 0% APR and low-interest credit cards of 2021
You should only pursue rewards with a credit card if you are entirely certain you can pay your bill in full each month and avoid debt for the long haul.
Holly Johnson is a credit card expert, award-winning writer, and mother of two who is obsessed with frugality, budgeting, and travel.
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