The best credit cards for average or fair credit in 2021

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The best credit cards for fair or average credit in 2021:

If you haven't had a lot of time to build up your credit score yet, or if you've made a few credit mistakes in the past, it's possible your current score is in the fair or average range.

According to myFICO.com, an average FICO score is any score that falls between 580 to 669 on a 300 to 850 scale. FICO scores below the "fair" range are generally considered "poor," while scores above that range are considered good, very good, or exceptional depending on how high they are.

Having a fair credit score isn't the end of the world, but it does mean you have some room for improvement. It also means you probably won't be able to qualify for the top rewards credit cards and travel credit cards.

Read more: The best starter credit cards of 2021

Before you pick a credit card, we suggest checking your credit report for free with the major credit bureaus or through a credit card that offers free access to your credit score. This will give you a good idea of where you stand and which credit cards you may be able to qualify for.

If your credit score is indeed fair or average, here are some of the top cards to consider.

Best with no annual fee: Capital One® Platinum Credit Card

If you're looking for a basic credit card you can use to build your credit score up, consider the Capital One® Platinum Credit Card. This card doesn't charge an annual fee or foreign transaction fees, although you may have to start things off with a fairly low credit limit. Fortunately, Capital One promises to consider increasing your credit limit on this card when you make at least five on-time payments in a row.

Read more: The best Capital One credit cards of 2021

You won't earn any rewards with this card and there aren't a lot of perks other than zero fraud liability and access to your credit score through the CreditWise from Capital One® program. For the most part, you should consider this card if you want a way to build credit and start building positive credit habits without paying an annual fee.

Best for cash back: Capital One® QuicksilverOne® Cash Rewards Credit Card

If you have average credit but want to start earning cash back on all your purchases, check out the Capital One® QuicksilverOne® Cash Rewards Credit Card. This card doesn't offer an initial sign-up bonus, but you do earn a flat 1.5% back for each dollar you spend. There's a Capital One® QuicksilverOne® Cash Rewards Credit Card annual fee as well, but you won't pay any foreign transaction fees when you use your card for purchases made abroad.

Best for students: Discover it® Student Cash Back

If you're a student with average credit and you want to build your credit history while earning cash back on all your purchases, consider the Discover it® Student Cash Back. This card doesn't charge an annual fee or foreign transaction fees, yet you can earn rewards for each dollar you spend.

Read more: Discover it Student Cash Back card review

For starters, when you enroll, you'll earn 5% back on up to $1,500 in purchases in Discover's rotating categories that change every quarter (then 1%). You'll also earn 1% back on everything else you buy Discover It Cashback rotation. For new card members, Discover will match all the rewards you earn at the end of your first year.

Other major benefits include a free look at your FICO score and a $20 statement credit each year you can prove your GPA is 3.0 or higher in school for up to five years. This card also comes with no late payment fee on your first late payment, and no over-the-limit fees.

Read more: The best credit cards for students of 2021

Best for building credit: Petal Visa

The Petal Visa is interesting because it's actually made for people who need help building their credit and want some perks along the way. This card comes with no annual fee, no late fees, no foreign transaction fees, and no other fees (APRs are a 12.99% - 23.99% variable APR). You'll also get access to a handy mobile app that helps you manage your payments and track your credit progress while you build positive money management habits.

Read more: The best cash-back cards of 2021

On the rewards side of the equation, you'll earn 1% cash back on eligible purchases right away. After six on-time monthly payments, cash back increases to 1.25% and after 12 on-time monthly payments, cash back grows to 1.5%. Your credit limit can be as high as $10,000 as well if you qualify, so this card can help you build credit while you keep your utilization low.

Best for small business: Capital One®️ Spark®️ Classic for Business

Finally, don't forget that it's possible to get a credit card for your small business with just "average" credit. The Capital One®️ Spark®️ Classic for Business is a good option because it comes with no annual fee and you'll earn 1% back on everything you buy. You'll also get free employee cards, which means you can earn rewards and qualify for consumer protections on purchases your employees make.

Read more: The best small-business credit cards of 2021

This card doesn't charge any foreign transaction fees, and you'll qualify for cardholder benefits that include travel and emergency assistance services, secondary auto rental coverage, purchase protection against damage or theft, and extended warranties on eligible items that come with a manufacturer's warranty.

Frequently Asked Questions (FAQ)

When your credit is just "average," you know you have some work to do. Here are some additional questions and answers that can help you get the most out of your new credit card:

How do I build credit with a credit card?

To build credit with a credit card, you should use your card for regular purchases like gas and groceries, then pay your bill early or on time each month. As you use credit this way, your responsible use will be reported to Experian, Equifax, and TransUnion, who should be able to use that information to increase your score over time.

Which fees should I be aware of?

Credit cards can come with an array of fees, ranging from annual fees to application fees, foreign transaction fees, late fees, returned payment fees, and over-the-limit fees. We suggest reading over each card's terms and conditions before you apply so you know which fees you might be required to pay.

How do I know when my credit score has improved?

Credit cards for average credit can help you improve your credit score provided you avoid racking up too much debt and you always pay your credit card bill early or on time. You can monitor your credit score for free with all three major credit bureaus - and because of the pandemic, you can do so once a week through April 2022.

Read more: How to keep your credit score up when the economy feels uncertain

Some credit cards for average credit, including the Capital One® Platinum Credit Card, give you access to your credit score and credit-building tools just for being a cardholder.

How do I avoid credit card interest?

Credit card interest is charged on your balance if you do not pay your credit card bill in full each month. To avoid interest on your purchases, charge only what you can afford to pay off each month and pay your bill early or on time.

Is earning rewards worth it?

Earning rewards with a credit card is only worth it if you are able to pay your balance in full each month. With credit cards for average credit charging APRs over 20%, earning 1% to 2% back on your purchases won't leave you ahead.

Read more: The best 0% APR and low-interest credit cards of 2021

You should only pursue rewards with a credit card if you are entirely certain you can pay your bill in full each month and avoid debt for the long haul.

Holly Johnson is a credit card expert, award-winning writer, and mother of two who is obsessed with frugality, budgeting, and travel.