Unfortunately if your current credit score falls into the range that is considered to be “fair credit” you will not have access to the lowest rates of interest when it comes to credit cards but that does not have to mean that in order to get a credit card, which will, if used responsibly, help build up your credit rating you have to pay ridiculously high rates of interest. There are some credit cards out there that while they are granted to those with fair credit only charge interest rates of as high as 35-40% interest for the privilege of card membership. You do not have to settle for this kind of card though if you do a little careful shopping around. Here are just a few of the best low interest credit cards for fair credit that you should consider applying for:
Iberia Bank Select Visa
Iberia Bank is a name that is less familiar than other banks to many but their presence in the credit card market in the US is growing. They offer a number of different credit cards but the Iberia Bank Select Visa card is the one that can be granted to those with fair credit.
There is no rewards program attached to the Iberia Bank select Visa and there are very few extra perks but the low interest rate offered, even to those whose credit score is considered fair is so good that it makes the lack of such things rather inconsequential. After enjoying an introductory 7.50% APR for the first six months of card membership the APR only increases to 11.50%, a rate of interest that is low for any kind of credit card.
Citi Simplicity Card
This is another rather no frills credit card offering but once again the low rate of interest more than makes up for that,. In addition the Citi Simplicity card offers other benefits that other cards do not that can really be of great assistance.
The first big advantage of the Citi Simplicity card is that the 0% APR introductory rate lasts for a rather extraordinary 21 months and applies to both purchases and balance transfers. After that the APR increases to 16.9%, still a very reasonable rate of interest especially if you only have fair credit.
The Citi Simplicity card offers other kinds of money saving assistance too though. There are no penalties accessed to your first late payment of the year and neither is there a penalty charged for a single instance of going over your credit limit. A sort of one strike is OK policy that can be really helpful if you are having a bad month from a financial standpoint!
Capital One Classic Platinum
This credit card offers those with fair credit a chance to get a great credit card with a reasonable interest rate and the backing of the excellent Capital One customer service with credit scores as low as 600, point at which most other companies suggest that applicants try a secured credit card instead. Like many credit cards there is an introductory interest rate on purchases of 0% APR for the first 6 billing sites with the rate rising to 17.99-22.99% there after. That is not as low as some of the cards mentioned here but is still reasonable for a credit card offered to those in lowest end of the fair credit scale.
Orchard Bank Mastercard / Orchard Bank Visa
Orchard Bank are well known for their credit card offerings that are especially designed for those who are in the process of rebuilding their credit. There are several different orchard Bank credit cards offered to those with fair credit but a fair credit score should, in most cases qualify you for the Orchard Bank Platinum Visa or MasterCard which offers the lowest interest rates of all the Orchard Bank credit cards at a reasonable 14.90-19.90.
A Word about Interest Rates
All of these cards have low interest rates but theses rates only stay that way if you exercise good credit habits. Just one late payment can result in an interest rate hike instantly and that rate may stay in effect from that point on. When you are applying for any of these low interest credit cards for fair credit make sure you read all of the terms and conditions, so that you are aware in advance how late payments or going over the limit will affect the interest rates you are actually charged.
Considering Secured Credit Cards for Fair Credit
In a tight economy some credit card companies are tightening up their lending regulations considerably and credit scores that might have qualified a customer for a certain credit card a year ago my be considered too low now. If you do find yourself turned down for several credit cards for credit it may be worth considering a secured credit card to help build up your credit level. Even if a credit card is secured though it is important to pay attention to the interest rate being charged.
Most major banks are now offering a secured version of their credit cards. Capital One and Citi both offer secured credit cards that are excellent products and only require a $200 minimum deposit to get you started.