Credit card issuers are reacting to the recent trend of lower credit scores across America. In the wake of the current mortgage crisis consumer's credit scores have been steadily falling in certain segments of the population. This means that the competition for credit cards for fair credit is heating up between the bank issuers and this means better deals for consumers. We have outlined, what we feel, are the best credit cards for fair credit on the market below.
1) Citi? Platinum Select? MasterCard ? The Citi Platinum Select Card is one of the editor's favorite for those applicants whose credit rating is fair. This card has a balance transfer feature of 0% APR for 6 months and interest rates as low as 9.99%.
The Citi Platinum Select Card offers a few platinum benefits to include car rental insurance, fraud protection, and up to $1,000,000 in travel insurance. All in all, this card has some of the best all-around features for credit cards for fair credit.
2) Bank of America? Accelerated Rewards? - This credit card is designed for those with fair average credit and offers a 9.9% FIXED interest rate. On top of that, you can transfer balances from your old credit cards and get 0% APR for up to 12 months. There is no annual fee attached to this card either, which is common for credit cards for fair to average credit.
Using the reward program, card holders will get 1.25 points for every dollar they spend. The points are applied to cash rebates, brand-name merchandise, travel with no blackout dates, discounts at hotels, and gift certificates. If you add in theft protection and a personal concierge service you have a pretty good card for people with fair to average credit.
3) ESPN Total Access Visa? Card ? This credit card issued by Washington Mutual is probably the most popular credit card for fair credit that we offer. The low interest rate and the reward program that it offers to sports enthusiast is unbeatable. Card holders earn 5 points for every dollar they spend that can be used at the ESPN Shop, ESPN Zones, and ESPN Sports Concierge Service.
In addition the ESPN benefits, cardholders have access to other rewards like VIP access to sporting events, retail, dining and travel rewards. If you are a sports lover with fair to average credit this is your credit card. Oh, and by the way, the interest rate is 9.24% and you get 6 months at 0% for balance transfers!
Twelve months ago credit cards like these were reserved only for those with good to excellent credit. Now with competition what it is these cards are available for people who have a few bumps on their credit report. Keep in mind, credit cards for fair credit are different than credit cards for ?bad credit?. The typical person that has fair credit, for the most part, pays their bills on time, but may have a few late payments over a long period of time.
If your credit is below ?fair to average? your choices have gotten better as well. The Continental Finance Gold MasterCard? is offering a card for those applicants with poor credit with APR's as low as 9.75%! The Orchard bank offers a similar card with a slightly higher rate but better terms and benefits.
A well managed credit card is a great way to rebuild or repair your credit. The key is to apply for the card and never use it. Most people think that you have to charge and pay-off debt for the card to show on your bureau. This isn't the case at all, a credit card that is reported to the bureaus when the account is opened and an open account with a zero balance will boost your credit better than a card with a balance.
In today's hectic financial times credit card use by the average consumer is at an all time high. When we consider that food prices are at an all-time high, gas is through the roof and our property isn't worth what it used to be you can start to see why. In the past, credit cards had a worthy adversary called a ?home equity line of credit?, not any more. In today's mortgage environment home equity lines are only available for those with the best credit, and that's if their house values aren't dropping.
As a result of the tightening mortgage market the average consumer is turning to credit cards at a startling rate. Credit card applications for fair to average credit are soaring over the traditional ?regular? to ?good? credit applications as home refinancing becomes harder and harder. This trend could possibly lead the credit card industry down the same road as the sub-prime mortgage market.
Once upon a time if you had a good job, a nice home and you could fog a mirror you could qualify for a mortgage or a second mortgage. Those days are gone as well as the credit card issuers competition. During the refi boom and property bubble many people have become addicted to debt. The cycle was to build debt then refinance and let the equity in the house pay for it. That addiction is now being shifted to low interest credit cards.
This is exactly what happened in the mortgage business. When the ?rush? of refinancing was in full bloom the competition between lenders became fierce. Each lender would invent different niches to one-up the competition. For instance, one lender would offer no-income verification loans with a 620 FICO score and the next would tweak their guidelines to allow borrowers with a 580 FICO score have the same loan. This niche bidding was ultimately their undoing.
Most of these loans were put into portfolios by smaller lenders and eventually sold on Wall Street to replenish funds to continue lending money. The larger banks would buy these portfolios at a price commensurate to how the lenders loans had performed over time. Meaning, the lower default rate the higher the price. This was fine and dandy until property values started plummeting and the default rate began to rise as a result of the adjustable rate mortgages.
Now there are a bunch of banks holding mortgages they can't sell, and a lot of Americans are holding a debt they cannot refinance. This is why credit cards for fair credit applications are on the rise. This is also exactly where the sub-prime lenders found themselves at the beginning of the refi boom, tons of applications with marginal credit. It will be interesting to sit back and watch and see how well our financial institutions have learned their lesson. The unfortunate thing is they repeat the sins of late our economy will once again suffer as a result.
At DirectBanc.com, we are recommending to all of our clients to try and find a credit card that offers a ?life of balance? transfer option. Most of these cards offer low transfer rates that are fixed but higher charge rates. Once you find a card with this feature we are urging everyone to move all of their credit card debt to it. Then cut up or close the other credit card accounts. Now is the time to batten down the hatches until the financial storm blows by.
Aubrey Clark has sinced written about articles on various topics from Credit Cards, Home loans and Finances. Aubrey Clark is a writer and editor for Directbanc.com, a directory of . He is also a staff writer for LendFast.com helpin. Aubrey Clark's top article generates over 14800 views. to your Favourites.