Best Credit Cards for Average Credit of January 2025

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The post Best Credit Cards for Average Credit of January 2025 by Suzanne Kearns appeared first on Benzinga. Visit Benzinga to get more great content like this.

The best credit cards for fair or average credit offer a balance of rewards, manageable fees, and focus on building credit. Benzinga’s top picks include Capital One or Petal.

Credit cards for fair credit provide a great opportunity for individuals looking to improve or establish their credit scores, typically between 580 and 669. While they may not qualify for the best credit card offers, there are still plenty of options to help boost credit profiles. For those closer to the higher end of the fair credit range, achieving “good” credit becomes more attainable, opening doors to cards with better rewards and lower fees. Whether aiming to earn rewards, improve credit scores, or reduce costs, there are credit card options to suit various needs.

Benzinga reviewed some of the best credit cards available to those with fair or average credit score for this month. Compare card features, fees, and benefits to find the card that suits your needs!

Quick Look at the Best Credit Cards for Fair or Average Credit:

  • Best for First Credit Card: Capital One Platinum Credit Card
  • Best for No Fees: Petal® 2 “Cash Back, No Fees” Visa® Credit Card
  • Best for Travel Cash Back: Capital One QuicksilverOne Cash Rewards Credit Card
  • Best for Easy Application: Avant Credit Card
  • Best for Building Credit: Mission Lane Cash Back Visa® Credit Card
  • Best for Simplified First Card: Open Sky Secured Visa
  • Best for Free Credit Building: Step
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The Best Credit Cards for Fair Credit

The best credit cards for fair or average credit can help with building credit score while offering low to no fees, rewards and benefits. Here are our top picks for this month.

1. Best for First Credit Card: Capital One Platinum Credit Card

Capital One Platinum

Capital One Platinum

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More Details
Disclosure: Terms apply
Best For
Lower Credit Scores
N/A
1 Minute Review

Capital One, located in Virginia, is one of the top 10 largest banks that’s focused on blending technology into banking. Since 2012, the company has worked to use the cloud as well as banking tools to remain competitive in the financial industry.

Specs
  • Best For:
    Lower Credit Scores
Pros
  • Can earn back the deposit and switch to an unsecured card
  • No foreign transaction fees
  • Credit line can increase
  • Credit lines can begin at around $200 and extend up to $1,000
Cons
  • Minimum security deposit fees can range up to about $200
  • Late penalty fee can extend up to $40
  • No rewards

Your first credit card should be recognized everywhere, so you will always have the confidence that you can use it and enjoy the protection that comes from a well-known card issuer. The Capital One Platinum Credit Card offers this recognition and protection. You can tap to pay with the contactless card almost anywhere. Plus, enjoy fraud protection in case you lose your card or someone steals it.  

The credit card has no annual fee and foreign transaction fees. It also offers automatic credit line review in as little as six months. Once you’ve established a solid credit history with this creditor, you may have the opportunity to upgrade to other Capital One cards with better rewards and benefits. This allows you to continue building your credit while enjoying more perks.

Why We Picked It: With its no annual fee, credit-building features and fraud coverage, this credit card can help you establish a positive credit history while also providing some valuable perks.

2. Best for No Fees: Petal® 2 “Cash Back, No Fees” Visa® Credit Card

Petal 2 Visa Card

Petal 2 Visa Card

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Disclosure: Terms Apply
Best For
All Rewards and No Fees
N/A
1 Minute Review

The Petal® 2 “Cash Back, No Fees” Visa® Credit Card is the second edition of the Petal card that will help you build credit and eliminates fees. You can pick up cash back on qualifying purchases, and you can also increase your credit limit by completing challenges from Petal.

Specs
  • Best For:
    All Rewards and No Fees
Pros
  • 1% to 1.5% cash back
  • Credit limits up to $10,000
  • Builds credit by eliminating fees
Cons
  • May need to step up from the Petal 1 Card

If you’re worried about excessive or surprise fees, the Petal® 2 “Cash Back, No Fees” Visa® Credit card might be a good fit for you. The card charges no fees at all, which makes it a stand-out option in this area, including annual fee. If you’re late on a payment or your payment method is returned, you won’t pay a fee for that either. You can also earn up to 1.5% cash back on everyday purchases.

Because there are no fees, you can trim your spending and protect yourself during emergencies. There’s also a Petal 1 card, which could help you get started with this creditor.

Why We Picked It: This is a great option for individuals who want to earn cash back on their purchases without worrying about fees. With its generous rewards program, no fees, and easy application process, this credit card is definitely worth considering for those looking for a hassle-free credit card option.

3. Best for Travel Cash Back: Capital One QuicksilverOne Cash Rewards Credit Card

Capital One QuicksilverOne Cash Rewards Credit Card

Capital One QuicksilverOne Cash Rewards Credit Card

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More Details
Disclosure: Terms Apply
Best For
An Unsecured Card
N/A
1 Minute Review

What makes the Capital One QuicksilverOne Cash Rewards so unique is that it offers 1.5% cash back on purchases and higher-quality services while remaining relatively attainable for lower credit scores. The card works with fair or limited credit. For example, the credit card offers beneficial tools such as CreditWise, which allows you to keep track of your credit score for free. The credit card provides fraud coverage and automatic credit line reviews to more quickly increase credit lines and allow for larger purchases. The credit card includes a higher-than-usual APR. The credit card also charges annual fees and a 5% cash advance fee, but not less than $5.

Specs
  • Best For:
    An Unsecured Card
Pros
  • Provides automatic credit line reviews
  • No foreign transaction fees
  • Fraud coverage
Cons
  • A $39 annual fee
  • Penalty late fee of up to $40
  • Includes higher APRs

While the Capital One QuicksilverOne Cash Rewards Credit Card does charge an annual fee of $39, you can make up for it with the card’s generous unlimited 1.5% cash back. You can apply these credit card rewards to all your travel purchases and much more, and you can even book through Capital One Travel. Like other Capital One cards, this credit card offers $0 Fraud Liability coverage and automatic credit line review. You can also monitor your credit score with their CreditWise tool for free.

Why We Picked It: With generous rewards, travel benefits, and credit-building opportunities, this credit card has a lot to offer for those who love to explore the world.

4. Best for Easy Application: Avant Credit Card

Avant Credit Card

Avant Credit Card

Get started

securely through Avant Credit Card’s
website

More Details
Disclosure: Terms Apply
Best For
Best for No Hidden Fees
N/A
1 Minute Review

The Avant Credit Card is a good card for those who need to build credit but cannot afford a security deposit. The company determines your annual fee and credit limit based on credit worthiness so that you can make the purchases you need and build credit over time.

Specs
  • Best For:
    Best for No Hidden Fees
Pros
  • $0 security deposit
  • Broad range of credit limits
  • Annual fees chosen based on credit worthiness
Cons
  • Some credit limits might be lower than expected

Applying for the Avant credit card consists of filling out a short online application and it only takes minutes to receive your answer. What’s even better is that when you apply for this credit card, the card issuer does not do a hard pull on your credit report. That means that the credit card application process is not only easy, but it will not negatively impact your credit score. There are credit cards and other financial services you could also get from Avant that will help you centralize your finances, such as installment loans and debt consolidation loans.

Why We Picked It: Avant’s quick and easy application process makes it a great option for those who need a credit card quickly or those who may not have the time to wait for a lengthy approval process.

5. Best for Building Credit: Mission Lane Cash Back Visa® Credit Card

Mission Lane Credit Card

Mission Lane Credit Card

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More Details
Best For
No Activation Fee
N/A
1 Minute Review

Get an instant decision on your Mission Lane Visa®Credit Card application. No more waiting for days or weeks to find out if you’re approved. With no activation fee, no hidden fees, no over-the-limit fees, no security deposit and a powerful mobile app, you can track your spending, build credit and gain some financial freedom.

Specs
  • Best For:
    No Activation Fee
Pros
  • Accepted globally where you see the Visa® logo
  • No over-the-limit fees
  • No security deposit
  • No activation fee
  • Be automatically considered for a higher credit line in as few as 7 months
Cons
  • There is currently no rewards program

If you’re looking to build or rebuild your credit, the Mission Lane Cash Back Visa® Credit Card is one of the best credit cards for average credit score. When you carry this card, you will have access to your credit score anytime – and the positive changes that come from paying your payment on time every month – as well as educational tools to help build your credit. And the card reports your payments to the three major credit reporting agencies which will help build your credit as you make your on-time payments over time.

Mission Lane is not a mainstream credit card issuer, which means that it may not offer the level of backend support and features that you want, but it does offer some unique benefits that are worth considering. The card has no annual fee and offers up to 1.5% cash back rewards.

Why We Picked It: With features like no annual fee, cash back rewards, and credit monitoring, this credit card provides the tools and support you need to improve your credit score.

6. Best for Simplified First Card: Open Sky Secured Visa

Open Sky Secured Visa® Credit Card

Open Sky Secured Visa® Credit Card

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The OpenSky Secured Visa card is a good option for improving credit score, as on-time payments are reported monthly to all three credit reporting agencies. The line of credit is initially equal to the security deposit with a minimum of $200. It can be increased after six months of on-time payments without requiring an additional deposit.

One of the key features of the OpenSky Secured Visa card is the opportunity to earn up to 10% cash back rewards on eligible purchases. This is a generous cash back rate compared to many other secured credit cards on the market. By using this credit card for everyday purchases, cardholders can earn cash back rewards that can help offset some of the costs associated with the $35 annual fee.

Why We Picked It: With no credit check required, a low annual fee, and reporting to all three major credit bureaus, this credit card provides a straightforward and effective way to improve your creditworthiness.

7. Best for Free Credit Building: Step

Step

Step

Get started

securely through Step’s
website

More Details
Best For
Free Credit Building
N/A
1 Minute Review

Step has emerged as an easy and safe banking app with secured credit cards that helps users build credit for free. A secured credit card acts like a debit card, so there is no interest or debt as users spend from their bank account. Purchases are automatically paid for with SmartPay and then reported to Experian, Equifax, and Transunion which helps users build or improve their credit score. Step offers a seamless solution with its all-in-one mobile banking experience comprising an app, a bank account, and a credit builder card.

This allows users to build credit as they spend, save and invest from their Step account – without having to qualify. The platform makes depositing money, tracking spending, and sending money to friends and family hassle-free. Thanks to its accessible and easy-to-use financial tools, it helps users build credit and learn responsible money habits at any age.

It is a game-changer for young adults looking to take control of their financial future. Read on to find out if Step is for you.

Specs
  • Best For:
    Free Credit Building
Pros
  • Free credit building and reporting tools for people of all ages
  • No credit check or credit hit and no interest or overdraft fees
  • No annual fees for Step Black’s premium rewards card
  • Step Black offers unlimited 1% cashback on every purchase with up to 8% on select brands, 3% on dining and food delivery, and 2% on subscriptions and entertainment
  • Step Black members earn a highly competitive 5.00% rate on their savings balance
  • No monthly fees for Step’s free credit building card
  • Get paid up to 2 days early with direct deposit
Cons
  • Strictly online – no physical branch
  • High-interest savings reward requires Step Black
  • Step Black charges $4.99 per month after a 30 day free trial if you can’t meet the $500 monthly direct deposit

Yes, Step works well for kids and parents who want to teach their children about money. It can even help when you have no credit history at all, but it’s also great option for a credit card for fair score. This is another tool in your toolbox you can use to improve your overall credit report. You will fill the secured credit card with funds, make purchases and those purchases are reported to the credit bureaus so that you can see improvement over time. You can start today, pay nothing except what you add as security deposit to your credit card and manage everything in the mobile app.

Why We Picked It: You get support from this app irrespective of your credit history. This means that you can do more to improve your credit instead of waiting around for everything to correct itself. No fees are attached, and it’s still perfect for parents, kids and those with little to no credit.

What Is Considered Fair or Average Credit?

Depending on the credit scoring company, fair credit scores range from 580 to 669. For instance, FICO® rates credit scores between 580 and 669 to be fair. But VantageScore rates scores between 601 and 660 as fair. Ultimately, the credit card issuer will determine whether your credit score is high enough to qualify for its credit card. If your score falls within this range, most will consider it a fair or average credit score.

Lenders consider borrowers that have fair credit scores to be below the national average. But a good credit score begins at 670. So if you’re near the top of the range, it won’t take too much work to move to a better credit score.

How to Choose a Credit Card for Fair Credit

Here are some of the things to look for when choosing the best credit cards for fair to good credit.

  • Fees: When you’re building your credit, credit cards that don’t have an annual fee or other fees are a bonus. That’s because the cards will allow you to use them to build your credit without having to pay for the privilege. Also, because credit cards for average credit score don’t typically offer a lot of rewards and perks, it makes sense that you shouldn’t have to pay a lot of fees.
  • Perks: Speaking of perks, you won’t get a lot of them with fair credit, but you can find average credit credit cards that offer them. In the list above, we highlight some of the best credit cards for ok credit that offer cash back for things like traveling. Others offer perks that will help you improve your credit score such as access to your credit score, applications that don’t ping your credit score, and reporting to the credit bureaus when you make payments.
  • Annual percentage rate (APR): Just because people with fair credit can expect to pay higher interest rates on their credit cards, that doesn’t mean they shouldn’t shop around for the best rates they can find. Credit cards for people with fair credit differ in the rates they offer. Be sure to check the interest rates for all the cards you look at and choose the card that offers you the lowest interest rate when applying for a credit card.

How to Improve Your Fair Credit Score

When you have a fair or average credit score, you won’t have access to the best reward credit cards or those that offer lower Annual Percentage Rate (APR). That’s why improving your fair credit score is so important. Here are some things you can do to improve your score.

  • Understand how you got here: Sometimes people with a fair credit score have it because they’re just starting on their credit journey and don’t have enough history to justify a higher credit score. Others with a fair or average credit score have it because they experienced a financial setback that damaged their credit score. Whatever your reason, it’s important to understand it, so that you can work toward improving it.
  • Know your debt-to-income ratio: Your Debt-To-Income (DTI) ratio is a picture of how much debt you have in comparison to your income. Many lenders use this ratio when deciding whether or not to lend money to consumers. To get yours, add up all of your monthly bills and then divide that number by your income before taxes. The percentage you get is your DTI. As you pay off your debt, your DTI will improve.
  • Make your payments on time: When you make your credit card payments, most card issuers report this activity to the three major credit reporting agencies. If you make your payments on time, the activity will boost your credit score. But remember, if you miss a payment or are late, the card issuers will report that too, and it will negatively affect your credit score. One way to ensure that you always make your payments on time is to set up automatic payments for your bills.
  • Keep your credit utilization low: Another thing that contributes to your credit score is how much of your available credit you use. For instance, if you have a credit limit of $3,000 and only use $300 of it that means your credit utilization is only 10%. To improve your fair credit score, try to limit the amount of credit you use to 30% of your total available line of credit.

Card Limits for Fair Credit

Credit limit differs for various credit scores. Typically, the lower your credit score, the lower your credit limit. That’s one of the reasons why it’s smart to improve your credit score. But if you have fair credit, you can typically expect a limit between $300 and $5,000 on your credit card. The amount will depend on your circumstances and the decision of the credit card company.

Many credit card issuers will raise the credit limit of people who make their monthly payments on time, every month. Be sure to speak with your credit card issuer and ask if that’s a possibility if you want more credit in the future.

Frequently Asked Questions 

Q

Can I get a credit card with a 595 score?

1
Can I get a credit card with a 595 score?
asked
A
1

Not all credit card issuers will grant an applicant who has a 595 score, but some will. Because this score is on the low end of the fair credit score, it may be difficult to find a card issuer that is willing to take a chance. If you do find one, you should expect to pay higher Annual Percentage Rate (APR) and you shouldn’t expect to receive any rewards or perks. Alternatively, if you cannot find an unsecured credit card with that score, you may consider building your credit with a secured credit card.

Answer Link

answered
Q

How long does it take to go from fair to good credit?

1
How long does it take to go from fair to good credit?
asked
A
1

When you are just starting to build your credit, you will have to have patience and good habits to build your credit score. Most lenders will use your FICO® score when evaluating your credit, and it will take about six months after opening some credit lines and making on-time payments for your credit score to go up. VantageScore is not used as often, but you can build that score faster by following the same responsible habits.

Answer Link

answered
Q

Can you wipe your credit history?

1
Can you wipe your credit history?
asked
A
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It’s understandable that someone with fair credit would want to wipe clean their credit history and start over, but it’s not possible. Your credit score is a record of how you’ve conducted your credit and payments, and lenders want to see that activity when making a lending decision. Luckily, you can improve your credit score by following the tips outlined above and ensuring that your credit utilization stays low.

Answer Link

answered
Q

What is the easiest credit card to get for fair credit?

1
What is the easiest credit card to get for fair credit?
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A
1

The easiest credit card to get for fair credit is typically a secured credit card, as it requires a deposit that serves as collateral and reduces the risk for the credit card issuer. Additionally, store credit cards or credit builder cards may also be easier to obtain for those with fair credit.

Answer Link

answered

The post Best Credit Cards for Average Credit of January 2025 by Suzanne Kearns appeared first on Benzinga. Visit Benzinga to get more great content like this.