Best Fair Credit Credit Cards
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What is fair vs. average credit?
Why did my credit score dip below 700?
- You made a late payment. If there is just a single late payment on your credit report, it can negatively affect your credit score. Your payment history accounts for 35% of your credit score. It can take up to seven years for that late payment to come off your credit report unless it's a mistake. A missed payment can drop your credit score by 100 points or more. An easy way to make you don't miss a payment is to set up autopay for all your bills.
- Your credit card debt is high. A person's credit utilization ratio determines 30% of their credit score. Your credit utilization ratio is the amount you owe in relation to your actual credit limit. To improve it, "all you have to do" is pay off your balance and your credit score will go up.
- You have a short credit history. Even though your credit history only equates to 15% of your credit score, that is enough to bring it down. Unfortunately, you'll have to wait until your accounts grow in age to improve this metric.
- You have a large number of credit inquiries. Every time you apply for a loan or credit, it goes on your credit report. This factor affects 10% of your credit score. Credit inquiries can linger on your credit report for two years. So if you aren't sure you'll qualify for a credit card, work with issuers who will do a soft pull on your credit to determine which cards you will qualify for.
Is a fair credit score good?
How fast can I improve my fair credit score?
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