BEST Fair Credit Credit Cards / Average Credit Cards in 2021 - FICO Credit Scores 600 - 650 - 700

hey i'm adam jusko from proudmoney.com and in this video we are going to look at the best fair credit slash average credit credit cards on the market but before we do i'm going to ask you to please subscribe to this youtube channel right here if you have not already and if you have already i thank you for doing so so this is a video that is in dire need of an update looked at this about maybe a year and a half ago but i think we can do a better job and an updated job on this particular topic so fair credit slash average credit credit cards for people that are in that zone of average credit for maybe a multitude of reasons maybe you had bad credit and you're climbing your way back up maybe you don't have much of a credit history so you're sort of in this uh you know in between zone maybe you're someone that just over the years hasn't used credit a whole lot so you have a decent credit score but you don't have a great credit score so the many reasons you could be in here but we're gonna look at the cards that fit in this uh zone and talk about them going from cards with for people with sort of the lowest credit scores within the zone up to cards for people that have higher credit scores within that fair credit average credit range now before we start looking at individual cards let's define what fair credit or average credit means in terms of the scores we are talking about first off i am going to be using fico as sort of my standard in terms of a credit model versus vantage score which you may be seeing as well through credit karma or other services of that nature vantage score scores tend to be a little higher than fico scores and fico is the model that more lenders use when they make the actual decisions on your credit cards and other loans so i think fico makes more sense to use as a standard now when you look on the fico website you will see that they say that fair credit is scores between 580 and 669. now to me that is a little optimistic in terms of what fair credit actually means i define it a little bit differently and when i say i define it differently you say well you know why do you get to define it differently than fico does since they're the ones that make the credit scores but i define it differently because i think that credit card companies use a little different standard than what fico might put out there they can use any standard they want and i think fico considers fair credit scores to dip down further than what really is fair credit in the credit card companies minds so as far as i'm concerned if you are below 600 in your credit scoring most credit card companies are going to see you as bad credit not as fair credit if you are between 600 and 620 or 625 maybe that is sort of on the fringe of fair credit i think between 620 or 625 and 700 is really what i consider to be the fair credit zone now obviously there's kind of a big difference between 620 or 625 and 700 so we are gonna kind of chop these zones up uh even further here when i talk about the cards but so if you're in those that you know six twenty ish range you're not going to have the same choices that you have if you're you know 695 but that's kind of how i'm chopping it up between 625 and 700 is probably where most of what i would consider to be fair credit comes in in terms of how the credit card companies think all right so there are no absolutes here and we could debate pretty much anything in this video in the comments section below however let's get started with the actual cards so if you are someone who is on that sort of what i consider the fringe of fair credit 600 to 620 or 600 to 625 maybe down into the high 500s if you believe fico there are a handful of cards that might be good options for you you're not going to be able to get a lot of cards that are on the market unless maybe you have a very high income and you have shown that you are you know have rebuilt your way from a lower credit score anyway the first card that many people will get when they are sort of rebuilding credit and have gotten into this fair credit zone or maybe they are new to credit is the capital one platinum card now the capital one platinum card is nothing to write home about a very no frills card it has no rewards it has a high interest rate but it has no annual fee and it has a reputation for approving people at lower credit scores so many people are very loyal to the capital one platinum card or maybe at least very loyal to capital one for giving them a card when nobody else would so if you're in that low end of the fair credit range this is a card that many people would tell you was good to them when they needed it a few other cards that might straddle that line between bad credit and fair credit the avant card a card with a small annual fee 29 dollars to 49 depending on how they judge you you're going to have higher interest rates again you're going to have a card without any real frills to it here but it is a card that could accept you and help you on your journey as you build your credit the pedal card debuted within the last couple years and it is a card that might work with people in this lower zone as well however it is more likely to work with people that don't have any credit history than it is to deal with people that have had a bad credit history and are rebuilding so some nice features with this card but if you have had a bad credit history they're much more likely to decline you but if you just don't have a credit score because you have or you don't have much of a credit score because you have a very thin file you don't have any or you have very little experience with credit pedal is definitely worth one worth looking at two other banks or card families to consider if you are on this lower end of the fair credit range merrick bank and allo card these are cards that are either by invitation or you might get matched up with them if you use an online card matching service merrick bank is a bank that deals both with bad credit customers and people that are a little higher up who are kind of getting into the fair credit range i think they have a fairly good reputation however you do need to look closely at whatever terms and conditions they might be offering you because sometimes they're going to have high annual fees and high interest rates if your credit is worse but if your credit is a little bit better sometimes they don't have annual fees and their interest rates aren't that bad so you have to make sure to look at your individual offer because they have a lot of different offers out there not everyone is necessarily getting the same offer a low card i know a little less about but they are an invitation only card that deals with fair credit customers for the most part again you want to look closely at what exactly it is that you're being offered but the cards that they show on their website you have fairly high interest rates but there's a no annual fee card and there's a reward card that does have a bit of an annual fee they look like they're decent cards and they could match up with you if your credit score is down at the low end of that fair credit range now one other card in the low 600s to mention and this might be a surprise is the apple card so when the apple card rolled out you would not have guessed that they would be looking for people with lower credit scores or even considering them but when you look in their marketing materials you see that is very much the case in one point they even talk about the fact that they might decline people under 600 the fact that they would even be looking at people around 600 was very surprising to me and apple even has what they call the path to apple card a new program that they uh recently rolled out where they basically try to help people get to a place where they will approve them if initially they can't so it is something where they may invite you to sort of give them access to some of the other uh financial information in your life and then over time if they see you're paying other bills on time then they might invite you back to their card even if they declined you at first and the good thing about the apple card is you can apply and they will let you know whether you're going to be approved or not approved without doing a hard pull on your credit so if they say no we're not going to approve you that is just considered a soft pull and it will look like you never actually applied for the card just that they sort of looked at your credit so if you're worried about your credit score this is a card that you know that's a pretty nice thing most credit cards do not do that so anyway the apple card itself i think is only okay but if you are someone that has an iphone or other apple products maybe this is a card that you would like in terms of the cashback that it gives if you use apple pay a lot that is really where this card makes a lot of sense otherwise it's just an okay cashback card however if you have that lower credit score an okay card might be okay let's move up to the 620 to 640 range and look at some cards that might come open to you i'm going to talk first about two sort of classes of cards or types of cards number one being store credit cards so things like the walmart mastercard uh best buy the gap cards maybe the new verizon visa cards that come from synchrony bank and community bank in particular i think are often cards that are open to you in this range now some of these cards are going to be more narrow than others in terms of how useful they are if you can qualify for the mastercard or visa versions of these cards great with some of these cards they might relegate you to just using it at one particular store and that might be fine for something like walmart but for something like the gap or something like even best buy that's not necessarily going to give you you know sort of a wide range of purchases that you can make with the card but this might be a place to start and if they you know gauge your credit well enough and think that you qualify for a visa or mastercard well then that is a good thing now the second place or the second type of card that i would talk about here are college student credit cards oftentimes if you are a college student you may never have had credit or have had very little credit so you might have a lower credit score but you don't have a bad credit history and there are cards specifically tailored to college students in particular bank of america has a couple of good cards the capital one journey card as well and there's some other student cards out there but if you're a student and you have a lower credit score those cards they are looking for you specifically try to sort of get in on the ground floor with you and hopefully build some loyalty with you over time the capital one quicksilver card should be mentioned here as well both of them give you 1.5 cashback on all of your purchases with the cards however the regular quicksilver card has no annual fee while the quicksilver one has a 39 annual fee so depending on where you fall in terms of credit score they might offer you the one with the annual fee or they might offer you the other one you can use capital one's pre-approval tool to try to gauge how capital one sees you before you actually go through to apply for any particular card they might also show you some other capital one cards that you would qualify for as well pre-approval is not a guarantee but for most people if you are pre-approved you're probably going to be approved when you actually go through with the full application then i want to give a shout out to credit unions in general credit unions oftentimes will work with people whose credit scores are a little lower in the fair credit range if you're already part of a credit union definitely check out any cards they have there are many many credit unions that are regional credit unions or for people that work in certain places military navy federal credit union is one that many people are very high on in terms of them working with them and they have some very good credit cards as well but check out all the credit unions that might be available to you if you're in that range to see if you might get approved for something that works for you now when you get up to a score of around 640 up to 700 this is a range where a lot of other cards potentially open up to you it doesn't mean that you're guaranteed approval by any of the cards that i'm going to talk about however they will at least consider you and not reject you out of hand but they may look at you a lot closer than they would people that had higher credit scores that were beyond 700 so you might not see instant approvals or you might see lower credit lines than you would if you had higher credit scores they also would look at things like your income more closely they'll look more closely at how many other credit cards you have gotten in the recent past so they'll do a deeper dive on you usually when you're in this sort of gray area where they're not sure if they want to approve people with these credit scores so a lot of cards fall into this bucket all of the discover cards the chase freedom and the chase freedom unlimited cards would consider you in that 640 to 700 range the american express credit cards meaning the amex everyday cash magnet blue cash everyday capital ones venture cards the paypal cashback mastercard amazon visa disney visa some of the no annual fee travel cards which i don't love but they would be more open to you in this range as well the marvel mastercard the wells fargo cash-wise visa the city rewards plus card i think those ones fit in there as well and there are plenty of others but those are the cards that i think fit in that range that are popular cards that a lot of people wonder about now there are still some cards out there that aren't going to be available to most people that are in that fair credit zone it's not set in stone but i think most of these are going to require a 700 or more that includes the chase sapphire preferred or chase sapphire reserve cards the amex platinum amex gold maybe even the amex green most bank of america cards the wells fargo propel card the u.s bank cards a lot of the co-branded airliner hotel cards might want that higher credit score as well so you're probably going to need 700 for a lot of these or if you have an established relationship with the bank that issues those cards sometimes they will deal with people whose credit scores are a little bit lower if you already have you know checking and savings or maybe investments with them and finally i want to reiterate that none of this is set in stone your credit score is not the only factor that comes into play income plays a bigger role than many people realize relationships that you already have with the bank do come into play if you have opened other credit cards in the recent past that is going to hurt you more than someone that has not opened recent credit cards even if you have the same credit score so there are a lot of things to think about here and even in the bigger economy when the economy is better the scale sort of slides down so lower credit scores can get you cards that you would not be able to get when the economy is not so good and the bank has tightened up their lending standards so none of this is set in stone but this is a pretty decent guide as to i think how credit card companies look at people with fair credit scores now one of the great things about the internet is that everyone can contribute their own unique data points into the mix so that others can see what is actually happening out in the market so if you have experience with one of the cards i talked about or other cards and you're in sort of the fair credit range and you want to say here's the card i got and here's what credit score i had and put that in the comments i would be very grateful and i think other people would be as well otherwise i thank you for watching and as always please go to proudmoney.com where we do credit card reviews we talk personal finance we talk deals all sorts of other fun stuff too thanks for watching bye

Channel: ProudMoney - Credit Cards & Personal Finance

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Length: 15min 16sec (916 seconds)

Published: Fri Jul 17 2020