In this brief blog, we are going to talk about credit cards for fair credit. Getting credit cards for fair credit is very essential if these are the best credit cards you are eligible for as they will ensure you are not on a higher APR than you should pay.

What Is fair credit?

Fair credit could be defined as a credit score which is neither good nor bad but rather just in between.

In the UK we have four main credit bureaus: Crediva, Experian, Equifax and Transunion.

Each credit bureau has a different range for ranking your credit score so your credit score will differ from each credit bureau.

With TransUnion a fair credit score will be any score from between 566–603. This score should allow you to get credit cards for fair credit.

With Experian a fair credit score will be any score from between 721—880. This score should allow you to get credit cards for fair credit.

With Equifax a fair credit score will be any score from between 380—419. This score should allow you to get credit cards for fair credit.

Different credit card providers will each use different credit bureaus when considering you for a credit card. If you apply for credit cards which you think you may have been eligible for as you have fair credit and you get rejected then this could be for a variety of reasons as most credit card providers and lenders will look into other factors aside from your credit score.

Credit cards for fair credit

Get your credit report

To see if you will be eligible for credit cards for fair credit you should get a copy of your credit score. You can get a copy of your credit score from either of the 4 credit bureaus: Equifax, Experian, Transunion and Crediva.

Some of these credit bureaus may charge you in order for them to display your credit score but you also have a legal right to one free copy of your credit report from each credit bureau each year. This is known as your statutory credit report.  You can get your statutory report for free by simply requesting it from the credit bureau.

You can also get a copy of your credit score from providers such as checkmyfile and clearscore.

Credit cards for fair credit?

When looking for credit cards for fair credit we could easily mention a lot of credit card providers but the best way to check for credit cards for people with fair credit is by using a comparison eligibility checker which will show you credit card providers which you may be eligible to apply for based on your fair credit.

Credit cards for fair credit

How to improve your credit score for fair credit?

If you already have bad credit such as county court judgements, missed payments, late payments, defaults, home repossessions, individual voluntary arrangements or bankruptcy    then you may want to increase your credit score so you may be eligible for credit cards for fair credit. 

Credit cards for fair credit will usually have a better APR than credit cards for bad credit. This means if you have any credit card debt you may be able to move it over to a credit card with a cheaper APR and hence lower monthly repayments.

To improve your credit you should do the below:

Get on the electoral roll

Open a bank account

Get a credit builder loan

Get a credit builder card

Get a secured credit card

Leave your credit accounts open for as long as possible

Avoid any missed credit repayments

Avoid any late credit repayments

Credit cards for fair credit

What to consider when getting your credit card?

Whilst the fair credit card may be right for you, there could also be other potential credit cards which suit you better. It is always advisable to use a credit card eligibility checker which provides you with all the credit cards you may be eligible for outside of the fair credit card.

When comparing multiple credit cards; below are the things you should look out for before applying.

Eligibility

Each card issuer will have its own lending criteria that you will need to meet before they will provide you with an offer of credit. There are now credit card eligibility checker platforms which let you know which credit cards you are eligible for and which you have a high probability of getting on application. 

Most credit card providers now have their own credit card eligibility systems in place which will let you know if you will be approved for a credit card with them or not. These tools use a soft credit check t pull your credit file data and hence does not leave any footprints which are visible to the public or harm your credit score.

You should avoid applying for a credit card if you are not confident you will be accepted as rejections for credit could damage your credit score and history. This may then affect your ability to get further credit in the future.

Credit cards for fair credit

Interest rates

When getting a credit card, the interest rates on the credit card are a very important factor and you should always look out for the APR figure. The interest rates on the credit card are the rates that will be charged on any outstanding credit card balance which you carry over from one month to another. If you pay your credit card balance in full each month then you will not have any interest to pay.

Credit cards typically come with up to 55 interest-free days on purchases if you don’t carry a balance month-to-month.

Credit limits

You should look at the credit Credit limits when choosing a credit card provider as the credit card limits will determine how much you can spend on your credit card. Most credit card providers may offer you a credit limit increase if you can show good credit behaviour over a few months.

Rewards and perks

Credit card providers offer various rewards and perks but usually, these are reserved for applicants with high credit scores.

Fees

Some credit card providers will have annual fees on their credit cards but these are usually for credit cards with high credit card limits and lots of rewards or perks.

You should always check what fees are attached to your credit card. These can include annual or monthly account fees, cash advance (withdrawing cash using the card) fees, overseas transaction fees and others.

How to get your fair credit card

To get your fair credit card, check to see if you have a credit score first.

If you are unsure of what your credit score is then you should check your credit score from the four credit bureaus in the UK: Experian, Crediva, Equifax and Transunion.

Some of these credit bureaus may charge you a fee to view your credit report so what you can alternatively do is request a statutory credit report which is a free credit report which each credit bureau must provide to you upon you requesting it.

Alternatively, you can also use credit score services such as Checkmyfile and clearscore to check your credit report.

Once you have done this you should then check on a credit card eligibility platform to see what credit cards you are eligible for and then apply for the best credit card. This may be the fair credit card or it could be another credit card from a different provider which suits you better.

In this blog, we discussed credit cards for fair credit.  If you have any comments or questions about this then please let us know below.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.