Even if your credit record could use some improvement, you can still qualify for fair credit credit cards. Credit cards offered to people with mediocre credit scores still have a number of benefits. A person has fair credit if their credit score, also known as a FICO score, is between 650 and 699. If you don’t know your credit rating, you can easily obtain this information online. Understanding what fair credit credit cards do and don’t provide can help you understand the rates and benefits you will receive.
Understanding Your Options
When you are considering the different fair credit credit cards available, you want to be sure that you understand exactly what you are getting if your application is accepted by the credit card issuer. You will want to find out what the interest rate is on the card, as well as if you need to pay an annual fee.
Some credit card companies offer an introductory interest rate to new customers. You may be paying no interest or be charged a reduced interest rate for the first six months, or even longer. Keep in mind that the “official” interest rate will kick in once this period expires.
While a zero percent interest rate on balance transfers or new purchases may seem like an attractive option, unless you can pay off the balance before the rate changes, you will be stuck paying the higher rate going forward. Discipline will be required if you want to make the most of this opportunity, and that is a lot to ask of many credit card holders.
Cash Advances For Fair Credit Credit Cards
The card you are considering may let you get a cash advance on your account, but you need to understand that you will be paying a higher rate of interest for the privilege. The credit card company may also be charging you daily interest until you repay the amount borrowed. With other purchases, you get a certain number of days’ grace before interest charges kick in, but that is not the case with a cash advance.
Late Payments
If you are late with your payments, the credit card company may penalize you by increasing the interest rate you are charged. Be sure to find out what the default rate is before you apply for the card. Making sure that your payments are made on time and credited to your account before your due date means that your credit card account will remain in good standing, and you will be charged only the standard interest rate.
Being late with a payment on your this type of credit card account may also mean that you will be charged a late fee. The amount will vary, depending on the credit card company involved, but you may be charged an amount in the range of $20-$40 for every time you miss a payment due date. This amount will be added onto the minimum payment you are asked to make each month.
Late fees aren’t the only kind of extra charges you need to be aware of when you are looking at credit card terms. If you go over your credit limit, you will likely be hit with an over limit fee. The amount will vary, depending on the company you are dealing with, but it may range between $15-$40. Even going over by a small amount means that you will be hit by this additional charge.
Benefits Available With Credit Cards For Fair Credit
Along with looking at the terms of the credit card you are interested in, you will want to consider the benefits that it offers. Some cards offer a certain percentage in cash back to cardholders. You will want to find out how often this benefit is credited to your account and if there is a minimum level that you need to reach before the company will pay out on it. If the plan isn’t clear to you, contact a customer service agent with the providing bank or lender to find out for sure.
If you like to travel or hope to take a trip someday, a reward credit card offering air miles may be the right choice for you. For each dollar that your charge to the card, you are credited with a certain number of travel miles. Some cards give you double miles if you spend over a certain amount each month. Before you apply, you will need to know whether you are limited to certain airlines and if certain blackout periods apply.
Get Your Fair Credit Credit Card Today!
People with fair credit ratings still have several credit card options available to them. The key to finding the right card is to do your homework and investigate offerings from several providers to find the best deal. You can start the process to compare the available fair credit credit cards right now by using the free credit card chaser at the top of this page!
