According to Experian, fair credit is typically defined as a FICO Score between 580 and 669. You could have fair credit because you have very little information in your credit history or because you’ve had some credit problems in the past. This makes it difficult for you to qualify for most competitive credit cards, but options do exist—especially if you’re a student.
Credit score requirements vary among lenders, and you typically won’t be told what a particular lender’s cutoff point is between a good credit score and a not-so-good one. Lenders will evaluate your entire credit history, as well as income, employment and other factors when deciding whether or not to approve you for a card.
Pro Tip
Fair credit isn’t something you’re stuck with forever. If you make your payments on time and aim to lower your balances or revolve as little debt as possible, it can go a long way toward building up a stronger profile.
Why Higher Credit Scores Are Better
Lenders use credit scores to help decide whether to approve a new loan or credit application and to help determine the interest rate charged on the loan or lines of credit. Higher credit scores signal that you are a responsible borrower and can be trusted to repay your debts, so they can result in higher credit limits, more card application approvals and more favorable lending terms. Better credit scores can also save you money on insurance, security deposits for rent or utilities.