Best Cards You Can Get With a Mediocre Credit Score
NEW YORK (MainStreet) -- Premium rewards cards and low annual percentage rates are typically reserved for the credit elite, but growing competition has led many issuers to widen their target market.
That means credit card holders with so-so credit -- scores between 650 and 699 -- don't need to resort to using a subprime product to improve their score. We talked to experts to find out which cards offer the best terms for these cardholders.
There are good credit cards available even to people with a so-so credit score. |
Capital One No Hassles Cash Rewards Card
This
Capital One
(COF) - Get Report
card is notable for its
rewards program,
which offers 2% cash back on gas and groceries and 1% cash back on all purchases made by cardholders. The card does carry a 17.9% to 22.9% variable APR and a $39 annual fee, but Beverly Harzog, a credit card expert with
Credit.com
, says that's reasonable for a rewards card in this category.
Orchard Bank Secured Card
If it's a
low-interest card
you're after, you might want to sign up for
Orchard Bank
's secured card, which features a low APR of 7.99%. (As we have reported,
secured cards
require customers to put down money upfront to cover the line of credit and thereby minimize the risk of default.)
"That's pretty low among all credit cards," says Anisha Sekar, vice president of credit and debit products with credit card ranking site
NerdWallet
. The card carries a $35 annual fee, but it is waived for the first year.
>>Resolutions 2012: Destroy Debt
Visa Platinum Preferred Credit Card From Associated Credit Union
Another option for people not interested in paying a sky-high interest rate is this
Visa
(V) - Get Report
card from Atlanta-based
, which allows new members to apply online. According to Sekar, those with a FICO score higher than 680 can qualify for a variable 9.9% APR offered by the credit union, while those with a score of 600 will qualify for a 12% variable APR.
Additionally, the card carries no annual fee and there is also no charge for balance transfers.
Journey Student Rewards Card From Capital One
"This is a good card for students working on their credit," Harzog says, since it allows cardholders to earn extra rewards when they use the card wisely. Students get
1% cash back
on all purchases and a 25% bonus on their cash-back rewards each month they pay their bills on time. The card also carries no annual fee, but does feature a high APR at 19.8%.
Not all credit cards marketed to the credit elite live up to their hype. Find out which cards you aren't missing out on in our roundup of the most overrated cards of 2011.
>To submit a news tip, email:
.
Follow
TheStreet
on
and become a fan on
