Whether you’re looking to take out a mortgage, lease a vehicle or qualify for a new credit card, you should know how your “fair” credit score will affect you. A fair credit score sits between 600-649 – just a tier below a “good” score, which is anywhere from 650-719, and opens up the doors to a wider range of credit products and more competitive rates and terms.
In our guide below, compare the best credit cards on the market for those with fair credit and learn more about what your credit score means, including tips and tricks on how you can improve your score.
How we chose the best credit cards for fair credit
We’ve chosen the cards on this page based on the providers available through Finder. These cards are not representative of the entire market. Our top credit cards for those with fair credit offer rewards points, miles or cash back, basic perks such as balance protection and roadside assistance, and a signup bonus. We’ve also considered annual fees and balance transfer fees.
No single credit card will be the best choice for everyone, so compare your options before picking your new card.
The American Express Cobalt Card earns you Membership Rewards points which can be redeemed for travel, merchandise, gift cards and statement credit.
Get 5x the points when you spend at eligible grocery stores across Canada, as well as bonus points and standard Amex perks like comprehensive insurance coverage, entertainment access and more.
Earn accelerated points. Get 5 points per $1 spent when you spend at eligible grocery stores, restaurants, cafes and food delivery in Canada.
Earn on all purchases. Earn 2 points per $1 spent on all transit and gas purchases in Canada, and earn 1 point per $1 spent on everything else.
Welcome bonus points. Earn 2,500 bonus points each month when you spend at least $500 on your card. Get up to 30,000 points over the course of your first year as a cardholder.
Amex perks. Get a $100 hotel credit, complimentary room upgrades, entertainment access, comprehensive travel insurance and more.
Monthly annual fee. You’ll pay a monthly fee of $10 for this card, which is $120 annually.
Welcome bonus point restrictions. The bonus cash back offer is available to new American Express Cobalt Card cardholders only. Existing customers will not be eligible for the bonus points offer.
Foreign transaction fee. You’ll pay a foreign transaction fee of 2.5% on all overseas purchases.
The Scotiabank Value Visa Card has a low purchase and cash advance APR of 12.99%, but you won’t earn any rewards points or cash back. However, this can be a powerful starter credit card, especially for online shopping – you can save big with the much lower purchase APR.
This card also comes with a competitive balance transfer offer should you need to move debt to the card.
Low interest rates. This card has low purchase and cash advance interest rates of 12.99%. Plus, once the balance transfer ends, any unpaid balance will incur the low rate of 12.99%.
Balance transfer offer. Get a low rate of 0.99% on transferred balances for the first 6 months. This card charges no balance transfer fee.
Annual fee. This card has an annual fee of $29.
No cash back or rewards. You won’t earn any cash back or rewards with this card.
Foreign transaction fee. This card has a foreign transaction fee of 2.5%. This will apply on any overseas purchases or any purchases made online with an international retailer.
Although you’ll get a low purchase and cash advance APR of 12.99% with the BMO Preferred Rate Mastercard, you won’t earn any rewards points or cash back. But for online shopping purposes, you can save with the low purchase APR if you don’t pay off your balance in full each month.
This card also comes with an optional balance transfer offer of 9 months – which makes it one of the longest offers on the market.
Low interest rates. This card has low purchase and cash advance interest rates of 12.99%. Plus, once the balance transfer ends, any unpaid balance will incur the low rate of 12.99%.
Balance transfer offer. Get a low rate of 3.99% on transferred balances for the first 9 months. You’ll face a 1% balance transfer fee.
Annual fee. This card has an annual fee of $20.
No cash back or rewards. You won’t earn any cash back or rewards with this card.
Foreign transaction fee. This card has a foreign transaction fee of 2.5%. This will apply on any overseas purchases or any purchases made online with an international retailer.
Balance transfer fee. This card comes with a balance transfer fee of 1%.
With the BMO AIR MILES Mastercard you’ll earn rewards without paying an annual fee. Earn 2 Air Miles when you spend $20 at participating Air Miles partners, and earn 1 Air Miles for every $20 spent elsewhere.
Plus, take advantage of an optional balance transfer offer as well as a bonus signup offer, earning you 800 bonus Air Miles within 3 months.
Signup bonus. Earn 800 bonus Air Miles. You’ll earn 400 after you make your first purchase and another 400 once you spend $1,000 in your first 3 months as a cardholder.
No annual fee. This card has no annual fee.
Earn Air Miles. Earn 2 Air Miles when you spend $20 at participating Air Miles partners, and earn 1 Air Miles for every $20 spent everywhere else.
Balance transfer offer. Take advantage of a low balance transfer rate of 1.99% on transferred balances during your first 9 months as a cardholder.
Foreign transaction fees. You’ll face a foreign transaction fee of 2.5% every time you use your card overseas or online with international retailers.
Balance transfer fee. Should you take advantage of the balance transfer offer, you’ll face a balance transfer fee of 1%.
What is fair credit?
Credit scores in Canada range from 300 to 900 points. The “magic number” is said to be 650 – a credit score higher than 650 is regarded as being in the “good”, “very good” or “excellent” range, while anything under 650 is regarded as “fair” or “poor”. A fair credit score sits just below the “good” credit range, starting at around 600 and going up to 649.
In simple terms, a fair credit score means that you pose a medium level of risk to banks and other lenders when it comes to defaulting on your loan. The lower your score is, the more risk lenders perceive and the less money you’ll be able to qualify for. That’s why it’s important to maintain your score and take measures to improve your ranking where possible.
American Express Cobalt Card
American Express Cobalt Card
19.99 %APR
Purchase interest rate
Eligibility criteria, terms and conditions, fees and charges apply
American Express Cobalt Card
Apply today and earn up to 5 points for every dollar you spend on eligible purchases.
Purchase interest rate: 19.99%
Cash advance rate: 22.99%
Annual fee: $120
Credit rating: Fair, Good, Excellent
Minimum age: Age of majority in province/territory of residence
*The products compared here are chosen from a range of offers available to us and are not representative of all the products available in the market. There is no perfect order for the products we list on our site, so we enable you to re-order and compare products. The initial display order is influenced by a range of factors including commercial partnerships, product costs and conversion rates, so please don’t interpret the listing order as an endorsement or recommendation from us. We’re happy to provide you with the tools you need to make better decisions, and we encourage you to make your own decisions and compare and assess products based on your individual needs, preferences and circumstances.
How to choose the best credit card for fair credit
Compare your options. Aim to compare at least three to four credit cards to see which one will give you a high return on rewards, as well as perks, for the lowest fee.
Search for a no annual fee card. Find a card that doesn’t charge an annual fee so that you can put the money you save onto your balance.
Opt for a low interest rate. If you think you’ll carry a balance on your card, look for a card that has a low purchase APR to keep your payments manageable and cheaper.
Ask about intro offers. Lock in a card that offers a signup bonus, a balance transfer offer and/or a low purchase rate offer in the first few months.
Decent rewards. Tap into a card that offers a good return on cash back, points or miles and use that balance to help make your payments on time every month – or treat yourself to travel, gift cards or merchandise.
Other benefits. Look for a card that offers basic benefits like fraud protection and extended warranty coverage.
How to improve a fair credit score
Make payments on time. This is the best way to improve your credit score, since your payment history accounts for roughly 35% of your total score.
Keep your credit utilization ratio low. Your credit utilization ratio is calculated as the amount of credit you use vs. the total amount you have. Keep your spending low in relation to the total amount of credit you have access to. This accounts for roughly 30% of your credit score.
Pay your balance off each month. Pay your balance off in full each month to improve your score and save money on interest.
Only apply for credit you need. Every credit check on your account will drag down your score, so only apply if you need the credit and you’re sure you’ll qualify. Inquiries on your report account for around 10% of your total score.
Don’t cancel old credit cards. Keep old cards open even if you don’t use them to maintain your total credit amount and the length of your credit history.
A fair credit score will still let you qualify for many credit cards, but your options will be more limited and you won’t be able to take advantage of some of the best credit card offers on the market. However, a fair credit score places you very close to a good score, which means with a little budgeting and effort, you could improve your credit score and open yourself up to more financial products.
Frequently asked questions
You can apply for your credit score for free through TransUnion or Equifax – the two major Canadian credit bureaus – by visiting their website and filling out an online form. You can also apply for your score through a reputable website like Credit Verify or Credit Karma.
The “magic number” is said to be 650 – a credit score higher than 650 is regarded as being in the “good”, “very good” or “excellent” range, while anything under 650 is regarded as “fair” or “poor”. That said, if your score is a bit lower, you could still be close enough to the magic number to be eligible for some products.
The most important way to rebuild your credit is to make all of your payments on time. Even if this just means making the minimum payment every month, it’s much better than defaulting on your loan. Learn more about rebuilding your credit score in our guide here.
Emma Balmforth is a Producer at Finder. She is passionate about cryptocurrency, credit cards and loans, and enjoys helping people understand the often confusing world of finance. Emma has a degree in business and psychology from the University of Waterloo. She wants to help people make financial decisions that will benefit them now and in the future.
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finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
