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Best low-interest credit card for fair credit

In my opinion, low-interest credit cards that offer fair credit are not star-performers in 2021. As of now, the average or fair credit score is not enough to make your financial life a little less miserable. So why are people still considering low-interest credit cards? Is the deal with fair credit cards a steal? We will take you through this step by step.

Why do you pay a high interest if you have a fairly good credit card?

People with poor credit scores have a different story than those with good credit. They usually find solutions on how to get a 750 plus credit score. It is important to establish a good credit score as the interest rates the companies charge you depend entirely on the score. The point being, the better the score, the lower your chances of being called a risky borrower.

The lender’s thinking is quite different. He sees the score, goes for the window of opportunity, and considers it a fair gamble. Why? Because he would be earning a high return on investment. However, the loan comes with multiple high finance charges.

Why do banks and lenders consider credit score?

Due to the credit risk and the competition in the marketplace, banks usually prefer candidates with a high credit score or with a fair credit history. Therefore, they seldom use promotional offers to woo them away from the marketplace competitors.

However, lenders are not at all interested in enticing people with a poor credit score. They have no concern with the marketplace or their product’s image. As a consequence, they won’t provide a juicy low-interest rate or even negotiate while lending. That is why many borrowers with low credit scores hesitate in going to lenders instead of banks.

Even if you get a credit card with a winning APR, you still have to an interest as a voluntary act.

Why consider a low-interest credit card for fair credit?

As we recommend a low-interest credit card for fair credit, remember that we talk under certain terms. To be honest, no company provides credit cards with a genuinely low APR. However, there are many credit cards available that charge less APR as compared to other cards.

For instance, if we talk about the UNITY Visa secured credit card, you only get a 9.95% on transfers for 6 months straight. Moreover, the card provides an on-going yet fixed APR of 17.99%.

Yes, you might think it has a high-interest rate but again, it is low as compared to other options in the market.

Furthermore, the annual fee of this visa card stands at $39, which is pretty low as compared to other fair credit cards in the market.

As UNITY Visa is a secured credit card, you will need a certain amount to give off as a security deposit. To establish your credit score, getting a secured card is one of the best options. Although you have to submit a security deposit, it varies; ranging from $250 to $10,000. It totally depends on how much you want to submit.

You would definitely get the money back unless you show poor payment habits. After adding points to your credit score, you can definitely move to an unsecured credit card.

Another advantage of getting a UNITY Visa credit card is that your activity will be thoroughly reported to all the 3 credit-reporting bureaus. Assuming you would pay on time, before the due date, this activity will boost your credit score.

Tips on how to improve your credit score- How to boost my credit?

Start to improve your middling credit score as it is standing in your way to getting the low-interest fair credit card. Keep moving forward for the top credit-increasing tips:

  • Do not apply for new credit cards
  • Pay all of your bills in full and before the due date
  • Use your card regularly
  • Keep the credit card’s balance 30% less than the actual spending limit throughout the month
  • Watch for errors and if you find one, start a dispute

List of best credit cards for fair credit 2021

  • Capital One QuicksilverOne Cash Rewards Credit card
  • Upgrade card
  • Capital One Platinum Credit card
  • UNITY Visa secured fair credit card
  • Deserve EDU Mastercard for students

Take-home Message

If you have a fair credit score, your chances of getting a low-interest credit card are thin. While you can have a UNITY visa secured fair credit card with average credit, you can consider these tips to take your score from average to fairly high.

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