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Fair credit is a term used to describe the safe credit zone that the credit scores falls into. Based in the credit scores, they are classified into three different zones, good credit, fair credit and bad credit zones. Good credit history may often come down to fair credit history, because credit scores keep changing throughout the year. It is however very important to maintain the credit scores in the fair credit zone, and not let them slip to the bad credit zone.

Fair credit history may not be the most desired credit score situation, but it is quite difficult to maintain the credit scores to be in this zone for a long time. Many activities define the credit scores at any particular point of time. Fair credit scores do not get as many advantages as good credit score holders. Good credit score holders get a lot of benefits over fair credit holders, in all different walks of life:

  • Applying for more credit cards is fairly easy for good credit score holders than fair credit score holders. Good credit score holders will get approval almost all the time, but the same is not guaranteed for fair credit score holders.
  • Applying for different loans like housing, auto or even personal loans is easy for good credit score holders. While fair credit score holders are not denied loans of any kind, they end up paying high interest rates, and have lesser repayment time.
  • Good credit score holders classify for credit card upgrades and many discounts and better reward schemes. Fair credit score holders do not get as many reward schemes and discounts, and they do not get free upgrades to high end credit cards.
  • Most of the times, fair credit score holders end up paying membership fees, and upgrade fees while such services can be availed for free is the credit scores are good.

Fair credit is definitely not a bad situation to be in. Fair credit score holders do not find it difficult to sign up for services and get on with daily financial needs unlike bad credit score holders. But it is not enough to have fair credit history because it almost always never gives any room for errors. If good credit score holders make one or two mistakes in handling finances, the scores may slip on to fair credit zone, and can be improved within a short span of time. But if fair credit score holders make small mistakes, they might slip into bad credit history, which is difficult to handle.