Credit cards for fair credit 2023

As a general rule, you’ll find that the most competitive credit cards – those that offer the best rewards or the longest 0% periods – are reserved for those with good credit. But if your credit score is fair, you should still have a decent selection of credit cards to choose from.

What is a fair credit score?

A fair credit score simply means that credit reference agencies think you’re doing a reasonable job of managing credit. However, it also means there’s room for improvement and some lenders may still view you as higher risk. As a result, you might be turned down for certain credit cards or if you are accepted, you might not be offered the very best deal. You might be offered a shorter 0% period, for instance, or higher interest rate or lower credit limit.

Different credit reference agencies have different scoring systems, so the ratings for fair credit can vary between them. The table below outlines the different scoring systems of Experian, Equifax and TransUnion.

• Experian
• Equifax
• TransUnion

Lenders might work with all 3 credit reference agencies or just 1 or 2, and they all have different requirements. So you might find that while one lender rejects you, another is happy to accept your application. You can find out how to check your credit score for free here.

How to choose the best credit card for fair credit

If you have a fair credit score, you won’t have access to every credit card on the market, so you’ll need to research your options carefully. It’s worth using an eligibility checker before you apply for a credit card as this will show you how likely you are to get accepted and, as it only uses a “soft” search, your credit score won’t be affected. This will reduce the risk of you applying for a credit card that you then get rejected for.

You’ll also need to consider what type of credit card you want. For example:

• Do you want to spread the cost of a large purchase such as a new car or holiday? If so, you’ll want a 0% purchase credit card to help you spread the cost over a number of months interest-free.
• Do you want to pay off existing debt more cheaply? If so, you’ll want a balance transfer credit card – preferably one that won’t charge interest for several months or one that offers a much lower interest rate than your current card. Note that you’ll usually pay a balance transfer fee of between 1% and 3%.
• Can you comfortably afford to pay off your balance in full each month and are you looking to earn rewards? If so, consider a card that lets you earn cashback or loyalty points or even air miles. Just watch out for annual fees and high interest rates.

What type of credit cards are available to fair credit scores?

The type of credit cards available to those with fair credit scores are not dissimilar to those with good scores, but some options will be more restricted.

For example, you should still be able to apply for a 0% balance transfer or 0% purchase card, but you might find that the 0% period you’re offered is shorter than the one advertised. Similarly, you might have to pay a higher transfer fee or a higher interest rate. Note that when a credit card is advertised with a representative annual percentage rate (APR), this rate only has to be offered to 51% of successful customers. The remaining 49% could be offered a much higher rate.

If you can’t get accepted for a 0% balance transfer credit card, you might get accepted for a low APR balance transfer credit card instead. This offers a low rate of interest for the life of the debt which means you’ll still save money in the long run. Many of these cards won’t charge a balance transfer fee either.

You might still get accepted for certain rewards credit cards too, but the rewards on offer might not be quite as enticing as they would be for someone with excellent credit. Be warned that your credit limit is unlikely to be as high either, though this might increase after a few months if you use your card sensibly.

Another option worth considering is a credit builder credit card as this type of card has more flexible acceptance criteria and enables you to increase your credit score over time. However, these cards usually have lower credit limits and higher interest rates, so you’ll need to ensure you pay off your balance in full each month.

Frequently asked questions

• How long does it take to build fair credit?

  It can take several months to build fair credit. If you have no credit history or your credit score is low, you’ll need to take steps to increase it such as paying bills on time, spacing out credit applications and keeping up with loan, credit card and mortgage repayments. After around 6 months, you should start to see an improvement in your credit score.

• What are the best balance transfer credit cards for fair credit?

  This will depend on the lender and your financial circumstances, but you could look at the Virgin Money 16 Month Balance Transfer credit card which offers 16 months at 0% on balance transfers with a 3% fee. Or Chrome by Vanquis Bank is designed for those with less-than-perfect credit scores and offers 0% on balance transfers for 9 months with a 2.9% fee.

• Are there credit cards for fair credit with instant approval?

  Yes, there are credit cards for fair credit that will give you a decision within a few minutes or less. However, the number of credit cards that offer this is likely to be smaller compared to someone with good credit. If you’re applying for a credit builder card, for example, which has wider eligibility criteria, you’re more likely to get instant approval. Find out more here.