Writer: Eric Bank
Editor: Lillian Guevara-Castro
Reviewer: Ashley Fricker
Disclosure: When you apply through links on our site, we may earn a referral fee from our partners. For more, see our ad disclosure and review policy.
There’s no shortage of credit cards for fair credit with no annual fee, but they usually lack many of the bells and whistles associated with cards pegged to higher scores. That means you’re unlikely to encounter big signup bonuses, although some cards in this group offer cash back rewards and a few other goodies.
All of the cards reviewed below may charge no annual fee and are useful to folks with a scant or blemished credit history. Timely payments and low balances can help keep your interest charges in check and demonstrate your creditworthiness. This may help you increase your credit score over time.
Read on for some of our experts’ top selections — we’ll dive into the overall best cards, cash back cards, student cards, business cards, and retail cards.
Best Overall Cards For Fair Credit With No Annual Fee
We’ve judged these three cards to offer the best overall mix of benefits. All three are unsecured and should be available to those with fair credit scores. These cards may be useful for improving your credit without necessarily shelling out annual fees.
4.9
- No annual or hidden fees. See if you're approved in seconds
- Be automatically considered for a higher credit line in as little as 6 months
- Help build your credit through responsible use of a card like this
- Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
- Monitor your credit score with CreditWise from Capital One. It's free for everyone
- Get access to your account 24 hours a day, 7 days a week with online banking from your desktop or smartphone, with Capital One's mobile app
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Intro (Purchases)
|
Intro (Transfers)
|
Regular APR
|
Annual Fee
|
Credit Needed
|
|---|---|---|---|---|
N/A
|
N/A
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29.74% (Variable)
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$0
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Average, Fair, Limited
|
The Capital One Platinum Credit Card is highly rated because it may provide access to higher credit limits when you make your first five months of payments on time.
It takes only a few minutes to pre-qualify for this card and doing so won’t hurt your credit score. The card offers tools to monitor your credit, $0 fraud liability, automatic monthly payments, provision for adding authorized users, and several travel and retail services.
4.7
- Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
- Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 18.24% – 28.24%, based on your creditworthiness.
- Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
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Intro (Purchases)
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Intro (Transfers)
|
Regular APR
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Annual Fee
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Credit Needed
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|---|---|---|---|---|
N/A
|
0% 18 months on Balance Transfers
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18.24% – 28.24% (Variable)
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$0
|
Excellent/Good/Fair
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Additional Disclosure: Citi is a CardRates advertiser.
The Citi Double Cash® Card lives up to its name by doubling your cash back. It offers unlimited 1% cash back when you make a purchase and adds another 1% cash back when you pay for those purchases. For applicants with fair credit, this structure rewards timely payments, which are the key to building (and keeping) a higher credit score.
The Citi Double Cash® Card may also offer special cash back rates on certain purchases, including bookings through the Citi Travel portal, so be sure to check its current promotions.
4.4
- INTRO OFFER: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. So you could turn $50 cash back into $100. Or turn $100 cash back into $200.
- Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.
- Redeem your rewards for cash at any time.
- No credit score required to apply.
- No annual fee and build your credit with responsible use.
- 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 17.24% - 26.24% applies.
- Terms and conditions apply.
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Intro (Purchases)
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Intro (Transfers)
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Regular APR
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Annual Fee
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Credit Needed
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|---|---|---|---|---|
0% Intro APR for 6 months
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10.99% Intro APR for 6 months
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17.24% - 26.24% Variable APR
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$0
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Fair/New to Credit
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The Discover it® Student Chrome offers a limited bonus cash back rate on select purchases and an unlimited regular cash back rate on all others.
Students receive a statement credit if they refer a friend and they’re approved. The card provides free alerts when it spots new accounts on your credit report or detects your Social Security number on the dark web.
Best Student Cards For Fair Credit With No Annual Fee
Student cards can be helpful for folks with limited credit experience. They usually offer features that can help students and other credit newbies manage their credit and monitor the card’s security.
4.8
- INTRO OFFER: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. So you could turn $50 cash back into $100. Or turn $100 cash back into $200.
- Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
- Redeem your rewards for cash at any time.
- No credit score required to apply.
- No annual fee and build your credit with responsible use.
- 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 17.24% - 26.24% applies.
- Terms and conditions apply.
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Intro (Purchases)
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Intro (Transfers)
|
Regular APR
|
Annual Fee
|
Credit Needed
|
|---|---|---|---|---|
0% Intro APR for 6 months
|
10.99% Intro APR for 6 months
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17.24% - 26.24% Variable APR
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$0
|
Fair/New to Credit
|
The Discover it® Student Cash Back card uses a quarterly rotating merchant system to offer a bonus cash back rate. You must activate the card each quarter to earn the bonus rate. All other purchases earn the regular cash back rate.
4.7
- INTRO OFFER: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. So you could turn $50 cash back into $100. Or turn $100 cash back into $200.
- Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.
- Redeem your rewards for cash at any time.
- No credit score required to apply.
- No annual fee and build your credit with responsible use.
- 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 17.24% - 26.24% applies.
- Terms and conditions apply.
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Intro (Purchases)
|
Intro (Transfers)
|
Regular APR
|
Annual Fee
|
Credit Needed
|
|---|---|---|---|---|
0% Intro APR for 6 months
|
10.99% Intro APR for 6 months
|
17.24% - 26.24% Variable APR
|
$0
|
Fair/New to Credit
|
The Discover it® Student Chrome offers a bonus cash back rate on limited selected purchases and an unlimited regular cash back rate on all other purchases. Other benefits include fraud liability protection, free credit scores, an instant on/off switch to freeze your account, and 24/7 live customer support.
4.7
- Earn unlimited 1.5% cash back on every purchase, every day
- Early Spend Bonus: Earn $100 when you spend $300 in the first three months
- Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
- Enjoy no annual fee, foreign transaction fees, or hidden fees
- Lock your card in the Capital One Mobile app if it's misplaced, lost or stolen
- Earn up to $500 a year by referring friends and family when they're approved for a Capital One credit card
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Intro (Purchases)
|
Intro (Transfers)
|
Regular APR
|
Annual Fee
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Credit Needed
|
|---|---|---|---|---|
N/A
|
N/A
|
19.24% - 29.24% (Variable)
|
$0
|
Average, Fair, Limited
|
The Capital One Quicksilver Student Cash Rewards Credit Card is a newer student offer, paying unlimited flat-rate cash back on all purchases. The APR is a bit high, so you must pay your balance off each month to reap any real rewards.
Moreover, you can earn a higher credit line by making timely payments for the first six months. The card lets you access credit monitoring tools, provides $0 fraud liability, and supports virtual card numbers for online purchases. You also get instant card lock and various types of security alerts.
Best Store Cards For Fair Credit With No Annual Fee
Store cards allow you to make purchases online or at brick-and-mortar store locations. The following three approve applicants with fair credit scores, and two of them offer alternatives to those who may have trouble qualifying for a card.
7. Amazon Store Cards
Amazon offers multiple credit card products, the Amazon Store Card and Prime Store Card being the two marketed to consumers with fair credit scores. It offers promotional financing and will help increase your credit score with responsible use.
- 6-, 12- or 24-month 0% financing on select purchases
- Start shopping on Amazon.com instantly upon approval
- Access to free credit score monitoring
- No annual fee
For those with lower credit scores, there is also the Amazon Secured Card and the Prime Secured Card (available to customers who also subscribe to Amazon Prime). If you aren’t approved for the Amazon Store Card, Amazon will automatically consider you for one of its secured cards.
The Amazon Secured Card requires you to put down a security deposit of at least $100, which acts as your credit limit.
8. Target Circle™ Card
The Target Circle™ Card can be used to charge purchases at Target stores and Target.com. The card offers several rewards, including a fixed 5% discount on all purchases.
- 5% discount on all eligible Target and Target.com purchases, including in-store Starbucks locations
- Extended returns when you pay with your Target Circle ™Card
- Free 2-day shipping on qualifying items from Target.com
You can combine the 5% discount with savings from Target Circle™ Rewards and Target Subscription offers. You also get early access to special products, exclusive extras, and an additional 30 days for returns and exchanges.
What Is the Easiest Credit Card to Get With Fair Credit?
Typically, secured credit cards are the easiest to obtain, since they are backed by your deposited cash. In this group, the secured credit cards are the Amazon Secured Cards, and the Discover it® Secured Credit Card.
The minimum deposit for Amazon’s secured cards ($100) is lower than that of the Discover card, which may make the Amazon card somewhat easier to get.
In both cases, the issuer automatically re-evaluates your use of the secured card and will reward responsible usage with an upgrade to an unsecured account. However, only the Discover it® Secured Credit Card also offers cash back on purchases.
Although the Amazon card may be the easiest to get, it’s not necessarily the easiest to understand. That’s because Amazon offers at least eight different credit cards. These include four different types and Prime versions of each:
- Amazon Secured Card and Prime Secured Card
- Amazon Store Card and Prime Store Card
- Amazon Visa and Prime Visa
- Amazon Business American Express Card and Amazon Business Prime American Express Card
You can qualify for Amazon’s secured cards and store cards with fair credit, but you’ll likely need good credit or better to get approved for the Amazon Visa, Prime Visa, or either of its business cards.
While none charge an annual fee, it costs $119/year to join Amazon Prime. Of course, you get many benefits with Prime membership beyond cash back on the cards.
Which Credit Cards Are Best For Building Credit?
The basic rule for building credit from credit card usage is for the issuer to report your payment activity to one or more of the major credit bureaus, Experian, TransUnion, and Equifax.
All of the cards in this review report payment activity, although not necessarily to all three bureaus. A business credit card may instead, or additionally, report account activity to business credit bureaus.
To help build credit, you should make your payments on time and remit at least the minimum payment due each month. This approach can help pay off the balance quickly, as it demonstrates that you haven’t overused your credit.
Credit scoring models like to see a credit utilization rate below 30%, meaning your total balances are no more than 30% of your available credit. A low utilization rate indicates you have leeway to respond to a sudden need for credit, such as a medical emergency.
Here’s an example of how to calculate CUR for someone who has three credit cards and $10,000 in overall credit limits:
| Card A | Card B | Card C | Overall | |
|---|---|---|---|---|
| Balance | $500 | $0 | $2,150 | $2,650 |
| Credit Limit | $2,000 | $3,000 | $5,000 | $10,000 |
| Utilization Ratio | 25% | 0% | 43% | 26.50% |
Another important point for building credit is to avoid canceling a card, even if you have stopped using it. That’s because the credit limit on the card contributes to your overall available credit. Closing the card will reduce your available credit and, therefore, increase your credit utilization ratio, which is a negative factor for your credit score.
As indicated earlier, secured cards are a good way to build or establish credit. The secured card in this review is the Discover it® Secured Credit Card. If you have bad or scant credit, you may find it easier to get a secured card first, and possibly replace it with an unsecured card later.
Does Getting Approved For a Credit Card Raise Your Score?
Getting a new credit card can have both positive and negative implications for your credit score. On the positive side, the credit limit on the new card increases your available credit. All things being equal, this will reduce your credit utilization ratio, which should help your credit score.
However, that benefit could quickly disappear if you make a big-ticket purchase when you open the card.
That could reduce your overall credit utilization ratio to a figure lower than the one you had before you got the new card, which could weaken your credit score. Amounts owed counts as 30% of your FICO score.
There are a couple of other ways a new credit card could hurt your credit score. The first is that a new credit score lowers your average credit age.
| FICO Score Factor | Percentage of Your Score |
|---|---|
| Payment History | 35% |
| Amounts Owed | 30% |
| Credit History | 15% |
| Credit Mix | 10% |
| New Credit | 10% |
Credit scores like FICO consider the age of your credit accounts and rewards older credit histories.
In fact, 15% of your credit score is determined by the age of your credit history. The second negative effect is that accepting a new credit card requires the card issuer to place a hard inquiry on your credit report. That’s true even if you decline the offer. Credit inquiries have a small negative impact, composing 10% of your credit score.
It may not seem significant to lose a few points from an inquiry, but if you are barely in the “fair” range, an inquiry could tip you into “poor” territory.
You may have important reasons to apply for a new card even if it negatively impacts your score. For example, you may want to take advantage of a card’s introductory offers for a cash back bonus or 0% APR on purchases and balance transfers. Or perhaps you’ve improved your score enough to qualify for a card with a significantly lower APR or better rewards.
Compare Offers to Find the Best Rates and Terms
All the cards reviewed here should be obtainable by people with fair credit, and some may be available to those whose credit is poor or nonexistent. We’ve categorized some of the cards (i.e., student, business, store, secured) to help you focus on the ones that best meet your individual needs.
By concentrating on cards with no annual fees, you keep your expenses down and have more money to repay your card balances. Responsible use of these cards may help boost your score and possibly open a whole new universe of card choices.
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CardRates.com is a free online resource that offers valuable content and comparison services to users. To keep this resource 100% free, we receive compensation for referrals for many of the offers listed on the site. Along with key review factors, this compensation may impact how and where products appear across CardRates.com (including, for example, the order in which they appear). CardRates.com does not include the entire universe of available offers. Editorial opinions expressed on the site are strictly our own and are not provided, endorsed, or approved by advertisers.
Editorial Note: Our site content is not provided or commissioned by any credit card issuer(s). Opinions expressed on CardRates.com are the author's alone, not those of any credit card issuer, and have not been reviewed, approved, or otherwise endorsed by credit card issuers. Every reasonable effort has been made to maintain accurate information; however, all credit card offer details, including information about rewards, signup bonuses, introductory offers, and other terms and conditions, is presented without warranty. Clicking on any offer on CardRates.com will direct you to the issuer's website, where you can review the current terms and conditions of the offer.
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