Falling in the middle of the credit scoring range are consumers with “OK” or Fair credit. This credit rating is an improvement over bad or poor credit, however not quite in the Good to Excellent range. Individuals who have OK credit have more credit card options as well as more favorable terms than their peers with a lower credit rating. While offers are more plentiful at this level, there are still many considerations to ensure the right credit card is selected. From a lender’s standpoint, consumers with OK credit may not be the highest risk of default however there is certainly room for improvement in terms of credit worthiness. Because of this, it is important to carefully consider all credit card offers at this level to avoid costly mistakes.
Middle Of The Road
Individuals with OK credit either lack credit history or have made mistakes in the past when managing credit accounts. Landing in the middle of the credit range, these individuals will likely not qualify for the best terms and conditions associated with “Good” credit cards, however the offers available will be a vast improvement over “Bad” credit cards. This is a very pivotal point on the scoring range where a few points in either direction can make a significant difference in how much you pay to utilize credit cards.
Terms and Conditions
There are several credit card offers available for consumers with OK credit that boast low introductory rates or other promotions to help new card holders manage credit responsibly. As with any other credit card offer, applicants must read and understand these terms to select the best card to suit their needs. Introductory offers usually expire within the first six months, therefore applicants must consider the default interest rates and any other fees or expenses associated with the account. There are several credit cards available which offer cash back or other rewards which can help card holders save money while building a solid credit history.
Compare and Save
Each credit card offer will vary in fees, interest rates and rewards. Consumers looking for a credit card for OK credit can view credit card offers online to see a side by side comparison of terms and conditions. Specific attention should be paid to default interest rates, late payment fees, over the limit fees and any annual fees which may apply. It is also important to choose a card which reports to the major credit bureaus to ensure responsible management of the account is noted. There are several websites which provide applicants with information regarding benefits, requirements, terms and reviews. Current and previous card members can provide tips and warning based on their experience which can offer an insight as to what new members might expect from the same company. Most offers found online provide instant approval for qualified applicants, however consumers are reminded that multiple inquiries at the same time can result in a drop in credit rating.