The Best credit cards if your FICO score is between 500 and 649

There are both positives and negatives if your credit score is between 500 and 649. Unfortunately, because your score is deemed to be fair to bad, you might not be accepted for numerous prime credit cards that are only available to individuals with higher ratings.

On the plus side, you still have access to a number of cards, some of which are rather profitable. We’ve put together a list of the top credit cards that are accessible to those with credit scores similar to yours. You can avoid international transaction fees, receive cash back and rewards, and progressively raise your credit score with responsible use of these cards, increasing your chances of soon being approved for higher-level cards.

⁺Credit Score requirements are based on Hustler’s Market research on approval rates; meeting the minimum score will give you the best chance to be approved for the credit card of your choice. If you don’t know your credit score, try using Borrowell they have free tools to help you get a better idea of which cards you’ll qualify for.

Best credit cards if your FICO score is 500 to 649 overview

Capital One Quicksilver One Cash Rewards Credit Card

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Petal® 1 “No Annual Fee” Visa® Credit Card

Capital One Platinum Credit Card

Capital One Platinum Secured Credit Card

OpenSky® Secured Visa® Credit Card

Indigo® Mastercard® Credit Card

Milestone Mastercard®

In-depth analysis of our top credit cards for people with credit scores between 500 and 649

Why you should consider the Capital One QuicksilverOne Cash Rewards Credit Card

An unsecured credit card with cash rewards is the Capital One QuicksilverOne Cash Rewards Credit Card. There are no rotating spending categories; you will always receive 1.5% cash back on all purchases.

After just six consecutive months of on-time payments, your credit limit may be increased. A $39 yearly charge and no fraud liabilities are also included with the card.

Howto Use The Capital One QuicksilverOne Cash Rewards Credit Card

If raising your credit score wasn’t incentive enough, you’ll be qualified for a greater credit limit after making your first six on-time payments each month. In two ways, this will help raise your credit score:

A solid credit reference will come from making on-time payments.
Your credit utilization ratio may improve as a result of the higher credit limit.

Why You Might Not Want the Capital One QuicksilverOne Cash Rewards Credit Card

You might be tempted to raise your spending and debt due to the rising credit limit. Increasing your debt is the last thing you need to do if you want to raise your credit score.

Only use this card if you can afford to pay the balance in full each month.

Petal® 1 “No Annual Fee” Visa® Credit Card
Best for fee-free credit rebuilding

Card Attributes

Annual fee: $0
APR: 22.24% – 31.74% Variable
Rewards: 2% to 10% cash back on purchases at select merchants

Why Choose the Petal 1 “No Annual Fee” Those with fair credit should consider the Visa® Credit Card?

With the Petal® 1 “No Annual Fee” Visa® Credit Card, you may apply even if you have bad credit or no credit at all. They also take into account your banking and savings history in addition to your credit score to get a complete picture of your financial situation. Petal is a wonderful card to start boosting your credit score because, if approved, it reports timely payments to all three credit bureaus.

Some of the benefits of a card with a higher credit score are available with the Petal® 1 “No Annual Fee” Visa® Credit Card. Not only is there no annual fee, but you also will enjoy cash back rewards between 2% and 10% at select merchants.

How to use the Petal® 1 “No Annual Fee” Visa® Credit Card

Paying your bills on time each month will be all you need to do to start repairing your credit. You’ll have access to an app that will help you find the most recent cash back offers accessible to you once you’ve been approved for the Petal® 1 “No Annual Fee” Visa® Credit Card. You can get cash back as a statement credit when you make purchases at selected merchants.

It’s a useful tool to have on hand to be able to track your spending and manage your monthly payments with Petal’s app.

Why You Might Not Want to Get a Petal® 1 “No Annual Fee” Visa® Credit Card

The 22.24% – 31.74% Variable APR is low for a credit card designed for those with fair credit. But the rate is variable, and there can be a big difference between the higher and lower end of that spectrum.

After you’ve established credit, you might also wish to choose a Petal® 2 “Cash Back, No Fees” Visa® Credit Card because it offers 1% to 1.5% cash back on all transactions in addition to 2% to 10% at specific retailers.

Capital One Platinum Credit Card –
Best for Rebuilding Credit

Card Attributes

Annual fee: $0
APR: 26.99% (Variable)
Rewards?: 1% cash back on eligible purchases

Why Those with fair credit should consider the Capital One Platinum Credit Card

For those with fair or weak credit, the Capital One Platinum Credit Card is a real credit card that is also unsecured. In as little as six months, cardholders will automatically be given consideration for an increased credit limit. There is no yearly charge.

Additionally, the Capital One Platinum Credit Card provides features including auto rental collision damage waiver, $0 fraud liability, and 1% cash back on qualifying transactions.

How to Use The Capital One Platinum Credit Card

Your main goal, like with any credit cards for fair credit, is to raise your credit score by making on-time payments.

Additionally, you should try to keep your balance from rising and harming your credit use ratio. As long as you don’t use the additional credit, the prospective credit line increases in as little as six months after the credit limit review, which will help with that ratio.

Why you might not want to consider the Capital One Platinum Credit Card

You might borrow more than you can afford to repay due to the cash back rewards and prospective credit line hikes. Use this combination with caution.

Capital One Platinum Secured Credit Card – 
Best for the Lower End of Fair Credit

Card Attributes

Annual fee: $0
APR: 26.99% (Variable)
Credit line: $200
Rewards?: Nope

If you Have Fair Credit Should Consider the Capital One Platinum Secured Credit Card

The Capital One Platinum Secured Credit Card is an excellent secured card for people with poor credit scores. Additionally, it offers security deposit requirements that might be less stringent than your credit limit. For instance, on a $200 credit line, your deposit can be $49, $99, or $200 depending on your creditworthiness.

There is no yearly charge. After a credit line review, your credit limit may be raised in as little as six months without an increase in the amount of the security deposit needed.

How to Use The Capital One Platinum Secured Credit Card

Once you’ve paid your security deposit, your credit limit will automatically be raised and you’ll be eligible for a larger credit line in as little as six months. Capital One submits reports to the three main credit databases. Your payment history will be enhanced by on-time payments, and your credit utilisation ratio will be enhanced by the higher credit limit.

Why you might not want to consider the Capital One Platinum Secured Credit Card

This is a great card to use if you need to restore your credit and it is at the lower end of fair. In contrast, if it’s possible, you might be better off with an unsecured credit card that won’t require a deposit.

Capital One Platinum Secured Credit Card – 
Best for the Lower End of Fair Credit

Card Attributes

Annual fee: $35
Regular APR: 18.89% (Variable)
Intro APR: Nope

Why those with fair credit should consider the OpenSky® Secured Visa® Credit Card

For people with fair credit, the OpenSky® Secured Visa® Credit Card is an excellent alternative because they don’t examine your credit report, thus your credit score isn’t taken into account when you apply. Additionally, you’ll get a decision right away regarding your application.

Your security deposit serves as your credit limit on secured credit cards. With a deposit as low as $200 or as much as $3,000, you can select your own credit line. Additionally, the $35 annual charge is lower than those of certain other credit card companies.

How to use the Secured Visa® Credit Card from OpenSky®

You’ll need to give OpenSky your security deposit in order to establish your credit limit. Your card will be used for transactions, and timely minimum payments will raise your credit score.

Consider paying your regular bills, like your cell phone bill, using the OpenSky® Secured Visa® Credit Card.

After six months of on-time payments, you might be qualified for an increase in your credit limit.

Why you might not want to use the OpenSky® Secured Visa® Credit Card

The OpenSky® Secured Visa® Credit Card might not be the best option for you if you struggle to pay off your balance in full each month. Interest fees are a result of carrying a balance, and those extra expenses may have an impact on your spending plan.

Additionally, the purpose of making minimal payments on time is to improve your credit score, not hurt it.

Indigo® Mastercard® Credit Card- Best credit card for people who have a recent bankruptcy

Card Attributes

Annual fee: $0 – $99
APR: 24.9%
Credit line: $300
Rewards?: Nope

Why the Indigo® Mastercard® is a Good Option for Those With Fair Credit

It is possible to obtain a credit score between 600 and 649 while having previously filed for bankruptcy. If you had good credit for the previous two years but a bankruptcy the year before, that may occur. In that case, the Indigo® Mastercard® Credit Card is a fantastic option.

The initial credit line is $300, and the annual charge can reach $99. However, since the line is unprotected, you won’t need to put down a security deposit.

How to use the Indigo® Mastercard® Credit Card

Make your minimal payments on time every month, and you’ll start to establish a solid credit history with all three of the major credit reporting agencies. Even better, pay off your balance entirely each month to stop interest from accumulating.

Why you might not want to consider the Indigo® Mastercard® Credit Card

Another credit card with a high annual charge is this one. It might cost $0, $59, or $75 for the first year and $99 for each year following that, depending on your credit.

Indigo® Mastercard® Credit Card- Best credit card for people who have a recent bankruptcy

Card Attributes

Annual fee: $35 to $99
APR: 24.9%
Credit line: $300 or more
Rewards?: Nope

Why the Milestone Mastercard® is a good option for those with fair credit

Why the Milestone Mastercard® is a good option for those with fair credit

With a minimum credit limit of $300 and no security deposit needed, the Milestone Mastercard® is an unsecured credit card. If you need to restore your credit and have a score in the low 600s, this card is fantastic.

They file reports with all three credit agencies, so your solid payment record can raise your credit score and open up better opportunities for you.

How to use the Milestone Mastercard®

It’s crucial to make your monthly payments on time with this credit card as it is with all credit cards for those with acceptable credit. Additionally, you ought to try your hardest to pay off your debt completely each month.

Reasons why you might want to avoid applying for the Milestone Mastercard®

The annual cost is excessive considering the potential credit limit. The first year’s yearly charge will be either $35, $59, or $75, and subsequent years’ annual fees will be $99, depending on your credit profile. That will significantly reduce a $300 credit limit.

How This List was Created

The cards known to be accessible to people with credit scores between 600 and 649 were isolated first. From there, we narrowed the list using the following standards:

• Does the credit card company file reports with TransUnion, Experian, and Equifax, the three major credit agencies, providing you the chance to improve your credit score with each of them?
• Do you provide both secured and unsecured credit cards? At the lower end of the fair credit score range, secured cards might be required, but not everyone is comfortable putting down a security deposit, and some people at the higher end of this credit score range might be eligible for an unsecured card.
• Your credit limit should be large enough to be useful but not cripplingly high.
• There should be no annual fees or very little (around $100 at most).
  Does the card give you the option to boost your credit limit after a certain amount of time of using it responsibly and reliably paying off your balances?
• Does the card offer any extra advantages, such as incentives or cash back, that are frequently seen on cards for those with better credit scores?

Fair Credit, What is it?

A credit score range from 580 to 669 is referred to as having “fair credit” in general. That is a relatively wide range, but it is based on data provided by significant credit bureaus.

But that’s only the beginning. The definition of a “fair” credit score might differ by industry and occasionally even by lender.

For instance, mortgage lenders typically won’t give money to borrowers with credit scores below 620. Therefore, a credit score of 605 is essentially regarded as low for mortgage candidates.

Auto loans from banks and credit unions may have a 650 minimum credit score requirement, below which they won’t extend credit. For them, a credit score of less than 650 is considered poor.

For this reason, you shouldn’t stay too long in the fair credit score area. The best way out is to get fresh, minor credit lines and make your monthly payments on time after that. It will make it possible for your positive payment history to gradually surpass your negative payment history.

How to Get the Most of a Credit Card with Fair Credit

Making a little amount of monthly expenditures and paying off your balance in full each month is the greatest method to use a credit card for people with fair credit.

You should avoid using these cards to make purchases and then pay them off later since the interest rates (APRs) on them could be higher than on credit cards intended for those with solid credit.

You’ll be more qualified to apply for a card in the future with a lower interest rate or more tempting incentives as your credit improves.

The Most Important Features of Credit Cards if your FICO Score is Between 600 and 649

Shopping for a credit card is different if your FICO Score is between 600 and 649 than it would be, for example, if your score was over 700. You won’t be as concerned about things like 0% introductory APRs, travel incentives, and cash rewards. Your requirements will be simpler, concentrating on the cost and usage of the card.

Obtaining a credit card in this credit score category is mostly done in order to use it as a tool to raise or rebuild your credit score. You won’t be qualified for the more generous credit card offers until after that.

The Following is the Most Crucial

Annual Percentage Rate – APR

Many credit cards offer significant interest rate spreads, such as 14.99% to 24.99%, as you may have noticed. You’re far more likely to be awarded an interest rate on the higher end of a range if your credit score is between 600 and 649.

This is a major justification for our advice that you maintain the lowest possible credit card balance throughout this manual. Using a credit card can help you raise your credit score for a very small fee. However, there will be a significant interest fee if you carry a balance.

Annual Fee

Even if you have excellent credit, you should carefully consider the annual fee before applying for any credit card. But when your credit score is in the fair area, it matters much more. This is due to the fact that rewards granted by credit cards for fair credit are generally modest, making it unlikely that their total value will make up for a high annual charge.

That is not to say that annual fee credit cards should be wholly disregarded. The next best thing to having a credit card with no annual fee is having a card with a pretty modest annual cost.

If you use the card responsibly, it can still help you rebuild or improve your credit score. Eventually, if your credit score rises enough, you should be able to cancel the card and switch to an unsecured card without an annual fee or a card with benefits that far outweigh the cost of the annual fee.

Additional Card Benefits

You start to receive more lenient credit card features when your credit score is in the fair level. This can include rental car collision damage waiver, free credit scores, and no fraud liability for illegal charges.

I included a number of credit cards that offer cash back benefits on our list.

It is preferable to have all of these advantages than not. However, if you have fair credit, you shouldn’t use them as your main justification for obtaining a credit card. In fact, when utilized improperly, some advantages may potentially cause harm. Cash back benefits, for instance, could tempt you to spend more than you can safely afford to reimburse.

Secured vs. Unsecured

There are more unsecured credit cards accessible in the fair credit category than in the area for scores below 599. Unsecured cards might not be an option for you if your credit score is at the low end of the range, say in the low 600s. Secured cards will then be a required option.

Let’s examine the advantages and disadvantages of each card types.

Secured cards

With secured credit cards, your credit limit is typically correlated to the level of security you provide. Typically, a $300 deposit will be needed for a $300 credit limit. The Capital One Platinum Secured Credit Card is one example where the deposit will be less than the credit limit. If your credit is acceptable, the security deposit for a $200 credit limit might be as low as $49.

Secured credit cards operate largely in the same way as unsecured cards. They can be used for purchases, but the card issuer requires that you make minimum payments against the card balance each month. Your credit score will either increase or decrease depending on how well (or poorly) the main credit bureaus handle their reporting of your card payments. Additionally, the card issuer will add interest on any overdue balances.

A secured card’s main drawback is that your credit limit is based on how much security you can provide. You won’t be able to qualify if you have zero cash.

But having a secured card has a number of benefits:

• If a credit card is needed instead of cash or another form of payment, you will have one on hand.
• They’ll make it possible for you to raise your credit rating.
• They may have either a very cheap or no annual charge due to the fact that they are secured.
• The majority will automatically raise your credit limit following a few months of good payment behavior.
• Once you establish a solid payment history, a lot of secured card issuers will change your account to an unsecured one.

Unsecured cards

The most common type of credit card is an unsecured card. Unsecured cards for those with fair credit typically have credit limits that are only a few hundred dollars or less.

The fact that you are not required to post a security deposit gives them a significant benefit over secured cards. They are ideal for those who need to raise their credit score but lack the funds to provide collateral.

The differences between secured and unsecured credit cards is outlined in the table below:

Benefits	Secured cards	Unsecured cards
Make purchases on credit	Yes	Yes
Report to all 3 credit bureaus	Yes	Yes
Annual fee	Mostly low (≤$35)	As high as $500+
Interest rate	Usually 18%-30%	Usually 15%-25%
Automatic credit line increases	Yes	On some
Convert to unsecured	Yes	N/A

Advice for Boosting your Credit

This is particularly crucial if your credit score is in the fair level for at least two reasons:

• You should aim towards the top of the fair credit range if you are at the bottom, and;
• To rise above the fair credit range should be your objective.
  Here are some pointers to get you started.

Get a free credit score and start keeping track of it right away.

You’ll be able to monitor your credit’s health as a result. Even simulators that demonstrate how and by how much you can enhance your credit score are offered by several free credit score providers. You ought to utilise these administrations to their best potential.

Challenge Any Mistakes

You have the chance to correct any inaccurate information that appears on your credit report. Make contact with the creditor, point out the error, and offer documented evidence that it is incorrect.

Obtain written confirmation of the error from the creditor. Ask the creditor to send the updated information to all three credit bureaus as well. If they don’t, you’ll have to contact the three credit bureaus yourself and notify the creditor that an error has been made.

After the successful dispute, wait at least 30 days before applying for a credit product and getting your credit score again.

From Now on, Pay ALL your Bills Expeditiously

When they first happen, a late payment here and a collection there could seem relatively harmless — especially if you’re short on cash. However, they are the things that fair and poor credit are made of, therefore you must avoid them at all costs.

One benefit of having bad credit is that it loses significance over time. Your credit score will increase and the negative information will get older the sooner you start paying your payments on time. Start paying all of your payments on time starting right away.

Utility providers and landlords are also important to remember. If you owe them money, they’ll report it to the credit bureaus.

Pay Down Any Outstanding Debts

Pay off any charge-offs or collections you may have as soon as you can. The same holds true for tax liens and judgements. Even if you pay them off, they won’t disappear from your credit report. But a paid infraction is always preferable to an open one. Soon after these delinquencies are settled, your credit score should start to increase.

Go slow applying for new credit 

Lenders don’t like it when applicants seek for several credit lines, even though we’ve already touched on this topic. It can be a sign that you’re having money issues and trying to seek more credit to fix them. No more than one or two new lines of credit should be requested annually.

Use an App to Boost your Score

Borrowell offers multiple services that can improve your score by many points depending on how long you use them. From free credit scores to credit building and also a service that lets you know which credit cards you’re guaranteed to be approved for, they truly are a one stop credit shop. Sign up and get started today.

Payment Alternatives for People with Credit Scores Between 600 and 649

It’s a terrific strategy to raise your credit score to use a credit card, secured or unsecured. But you also have access to various payment options.

Debit card

Debit cards work very similarly to credit cards as a means of making transactions; they can be used to buy things in stores, online, etc. The major distinction is that when you use a debit card to make a transaction, the money is deducted from your checking account; since you aren’t borrowing money from the card issuer, there is no balance and no need for regular payments.

This fundamental distinction has both advantages and disadvantages. Here are two illustrations:

Building credit can’t be done with a debit card

Since there are no monthly payments, the credit bureaus cannot report a payment history. Although debit cards let you make purchases similar to those made with credit cards, they do nothing to raise your credit score.

You COULD manage your finances better with a debit card

In this case, debit cards may even be superior to credit cards. You are compelled to stick to your spending limit since you are only allowed to spend what is available in the checking account that is linked to the card. Additionally, there are no interest fees because there are no monthly payments. The cash flow is enhanced as a result.

You can better prepare yourself for responsible credit card use by successfully using a debit card. A debit card can help if you’ve had trouble controlling your spending in the past by pressuring you to adhere to your budget.

Prepaid Cards

Prepaid cards have gained popularity recently, not just among those who can’t use credit cards but also as a safe means to make internet transactions. Even if you already have a debit card and a credit card, it could be beneficial to have a prepaid card.

How Prepaid Cards Work?

While debit cards are linked to a bank account, credit cards operate on credit limitations. Prepaid cards are exactly what their name suggests; in order to use one, you must load a particular amount of cash onto the card ahead of time.

Prepaid cards function similarly to debit and credit cards when it comes to making purchases. Even better, you may “recharge” them by giving them more money.

Because you don’t run the risk of giving account information to an unidentified internet vendor, they are ideal for online purchases. Identity theft is no longer a possibility as a result.

The Limits of Prepaid Cards

Prepaid cards won’t help you if you want to repair your credit or raise your credit score. Similar to debit cards, there is no payment history to report to the credit bureaus because there is no monthly payment.

Fees are the other issue. To buy the card and then each time you recharge it, you might have to pay a cost. If you have to pay $5 every time you load $100 onto the card, they can be pricey to use.

Store Charge Cards

Store cards are frequently chosen by those who find it difficult to obtain conventional credit cards. But might they be of use if you want to raise your credit score?

How to use store cards

Each individual retailer issues their own store cards. You might have a credit card from Sears, JCPenney, Macy’s, or another company, but these aren’t typical credit cards. They can only be applied to transactions with that business. The card cannot be used for other transactions, such as gas and groceries.

Do Store Cards Make Sense?

Your payment history for store cards is reported to credit bureaus because they are credit cards. Having one or two can assist your credit score if you pay your bills on time and keep your balance modest.

But they do have a few drawbacks, 

• They can only be used with the issuing merchant.
• Typically, they have extremely high interest rates.
• Store cards were created to entice you to make purchases from the retailer. The last thing you need to do if you have negative credit is add to your debt load.

You should also be aware that the capabilities for shop credit cards are back office activities. They only exist to extend credit to customers so they can buy the goods and services of the merchant. As a result, activities involving shop cards could be a little chaotic, increasing the chance of incorrectly applied payments and bad credit. The greatest cards for credit repair or improvement are not these ones.

What to Take From All This

It’s easy to get frustrated by the seeming limitation of credit cards offered to people with low credit ratings. However, the cards you have access to can be a significant stepping stone on your path to a brighter future.

After making timely, complete payments with your secured card for about a year, you should start to notice noticeable increases in your credit score. Using this resource, you can find a credit card with more value for your newly elevated credit score after some time has passed working this system.