March 16, 2023
*Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.
This article was last updated March 16, 2023 . Terms and conditions may have changed. For the most accurate information, please consult the issuer website.
The Capital One Platinum Credit Card offers potential credit line increases, comes with a $0 annual fee and access to Capital One benefits — making it our overall pick for best credit card to build credit. It’s also a great option for individuals looking for a starter credit card to build credit as it requires a low minimum deposit and is intended for those with fair/limited credit.
Whether you have no credit history or you want to rebuild your credit, there are plenty of credit cards designed to help you build credit. The best credit cards to build credit have low fees, report monthly to the credit bureaus and provide free credit scores so you can monitor your progress. After you get approved for a credit card, the most important part of building credit is using your card responsibly — meaning paying your bill on time each month and staying well below your credit limit.
Sign-up bonus: No bonus
Earning rate: Non-rewards Card
Why we picked this card: The Capital One Platinum Credit Card is a solid, no-frills credit card with a $0 annual fee. Along with reporting your credit usage to the three major credit bureaus (Experian, Equifax and TransUnion), the card will automatically consider you for a credit limit increase in as little as six months.
Pros & cons:
If you’re looking to boost your credit profile with the help of a credit card, you should consider the Capital One Platinum Credit Card. The card is intended for individuals with fair/limited credit, which Capital One describes as those who have either defaulted on a loan in the past five years or have had a credit card or other credit for less than three years.
Notably, the Capital One Platinum Credit Card doesn’t offer a rewards program. However, sometimes the possibility of earning rewards on a credit card can cause a cardholder to overspend — which isn’t ideal when trying to build credit. In addition, the Capital One Platinum Credit Card has a regular APR of 29.74% (variable).
While the Capital One Platinum Credit Card doesn’t earn rewards, after demonstrating responsible usage, you may be able to request a product change to a Capital One card that does — such as the Capital One QuicksilverOne Cash Rewards Credit Card or the Capital One VentureOne Rewards Credit Card.
Sign-up bonus: No bonus
Earning rate: Non-rewards Card
Why we picked this card: The Capital One Platinum Credit Card is a solid, no-frills credit card with a $0 annual fee. Along with reporting your credit usage to the three major credit bureaus (Experian, Equifax and TransUnion), the card will automatically consider you for a credit limit increase in as little as six months.
Pros & cons:
If you’re looking to boost your credit profile with the help of a credit card, you should consider the Capital One Platinum Credit Card. The card is intended for individuals with fair/limited credit, which Capital One describes as those who have either defaulted on a loan in the past five years or have had a credit card or other credit for less than three years.
Notably, the Capital One Platinum Credit Card doesn’t offer a rewards program. However, sometimes the possibility of earning rewards on a credit card can cause a cardholder to overspend — which isn’t ideal when trying to build credit. In addition, the Capital One Platinum Credit Card has a regular APR of 29.74% (variable).
While the Capital One Platinum Credit Card doesn’t earn rewards, after demonstrating responsible usage, you may be able to request a product change to a Capital One card that does — such as the Capital One QuicksilverOne Cash Rewards Credit Card or the Capital One VentureOne Rewards Credit Card.
Sign-up bonus: N/A
Earning rate: N/A
Why we picked this card: It’s common for secured credit cards to charge interest rates upwards of 26.99% (variable); however, the DCU Visa® Platinum Secured Credit Card offers a low ongoing APR of just 15.75% Variable on purchases.
Pros & cons:
If you plan to carry a balance on your card from month to month and don’t mind submitting a security deposit, the DCU Visa® Platinum Secured Credit Card could be a good fit.
Along with offering a reasonable APR, the card comes with a $0 annual fee and $0 foreign transaction fee. As for balance transfer fees — there are none.
That said, the card does require a high minimum security deposit of $500.
You should also know that to apply for this card, you must be a member of Digital Federal Credit Union (DCU). To be eligible, you must be related to a current DCU member, employed by or retired from a participating company, belong to an eligible organization or live, work, worship or attend school in an eligible community. You can also join a participating nonprofit for a nominal fee.
Sign-up bonus: N/A
Earning rate: N/A
Why we picked this card: It’s common for secured credit cards to charge interest rates upwards of 26.99% (variable); however, the DCU Visa® Platinum Secured Credit Card offers a low ongoing APR of just 15.75% Variable on purchases.
Pros & cons:
If you plan to carry a balance on your card from month to month and don’t mind submitting a security deposit, the DCU Visa® Platinum Secured Credit Card could be a good fit.
Along with offering a reasonable APR, the card comes with a $0 annual fee and $0 foreign transaction fee. As for balance transfer fees — there are none.
That said, the card does require a high minimum security deposit of $500.
You should also know that to apply for this card, you must be a member of Digital Federal Credit Union (DCU). To be eligible, you must be related to a current DCU member, employed by or retired from a participating company, belong to an eligible organization or live, work, worship or attend school in an eligible community. You can also join a participating nonprofit for a nominal fee.
Sign-up bonus: No bonus
Earning rate: Non-rewards Card
Why we picked this card: Typically, a secured credit card offers a credit line equal to the amount of your security deposit. However, the Capital One Platinum Secured Credit Card provides the opportunity to qualify for a higher credit line than your initial security deposit: The card requires a minimum refundable deposit of $49, $99 or $200 — which will get you an initial credit line of $200. In addition, you can get a higher credit line if you deposit more money before your account opens, up to a maximum limit of $1,000.
Pros & cons:
If you have poor/limited credit and want to use a secured credit card to help boost your credit — but don’t want to put down a large deposit — the Capital One Platinum Secured Credit Card is a good option.
Just know that you’ll have to apply and be approved before your minimum deposit is determined, and you’re not guaranteed to get one of the lower deposit amounts.
The Capital One Platinum Secured Credit Card doesn’t offer a rewards program; however, after six months of demonstrating responsible card usage, Capital One will review your eligibility for an increased credit limit.
The Capital One Platinum Secured Credit Card charges a $0 annual fee and comes with an APR of 29.74% (variable).
Sign-up bonus: No bonus
Earning rate: Non-rewards Card
Why we picked this card: Typically, a secured credit card offers a credit line equal to the amount of your security deposit. However, the Capital One Platinum Secured Credit Card provides the opportunity to qualify for a higher credit line than your initial security deposit: The card requires a minimum refundable deposit of $49, $99 or $200 — which will get you an initial credit line of $200. In addition, you can get a higher credit line if you deposit more money before your account opens, up to a maximum limit of $1,000.
Pros & cons:
If you have poor/limited credit and want to use a secured credit card to help boost your credit — but don’t want to put down a large deposit — the Capital One Platinum Secured Credit Card is a good option.
Just know that you’ll have to apply and be approved before your minimum deposit is determined, and you’re not guaranteed to get one of the lower deposit amounts.
The Capital One Platinum Secured Credit Card doesn’t offer a rewards program; however, after six months of demonstrating responsible card usage, Capital One will review your eligibility for an increased credit limit.
The Capital One Platinum Secured Credit Card charges a $0 annual fee and comes with an APR of 29.74% (variable).
Sign-up bonus: N/A
Earning rate: None
Why we picked this card: Unlike other secured credit cards, The OpenSky® Secured Visa® Credit Card doesn’t require a credit check to be approved making it accessible to consumers with poor/limited credit. In addition, the card reports your credit usage to the major credit bureaus, allowing you to easily start building credit.
Pros & cons:
The OpenSky® Secured Visa® Credit Card may be your best option if you have no credit history and are having a difficult time getting approved for a traditional card or a secured card requiring a review of your credit history. It doesn’t require a credit check or a bank account for approval, though you’ll have to provide some financial information like annual income, monthly housing payment and housing payment type.
Note that unlike some secured cards, the OpenSky® Secured Visa® Credit Card doesn’t offer the option to transition to an unsecured card after demonstrating responsible card usage. Once your credit improves to the point where you can apply for an unsecured card, you’ll need to pay your balance in full and close the account to get your deposit back.
Sign-up bonus: N/A
Earning rate: None
Why we picked this card: Unlike other secured credit cards, The OpenSky® Secured Visa® Credit Card doesn’t require a credit check to be approved making it accessible to consumers with poor/limited credit. In addition, the card reports your credit usage to the major credit bureaus, allowing you to easily start building credit.
Pros & cons:
The OpenSky® Secured Visa® Credit Card may be your best option if you have no credit history and are having a difficult time getting approved for a traditional card or a secured card requiring a review of your credit history. It doesn’t require a credit check or a bank account for approval, though you’ll have to provide some financial information like annual income, monthly housing payment and housing payment type.
Note that unlike some secured cards, the OpenSky® Secured Visa® Credit Card doesn’t offer the option to transition to an unsecured card after demonstrating responsible card usage. Once your credit improves to the point where you can apply for an unsecured card, you’ll need to pay your balance in full and close the account to get your deposit back.
Sign-up bonus: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Earning rate: 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically
Why we picked this card: Along with a generous sign-up bonus and cash back rewards rate, the $0-annual-fee Discover it® Student Cash Back offers an intro APR on purchases and balance transfers.
Pros & cons:
When in college, it’s a good idea to get a head start on building a positive credit history. A $0 annual fee student credit card, such as the Discover it® Student Cash Back, can help you do that while earning rewards in popular spending categories.
If you need to finance a large purchase, like school books or a laptop, you can do so interest-free for half a year with the Discover it® Student Cash Back. The card offers a 0% Intro APR for 6 months on purchases, then an ongoing 17.49% - 26.49% Variable APR applies. Plus, receive a 10.99% Intro APR for 6 months on balance transfers, after which a 17.49% - 26.49% Variable APR will apply.
Just know, to apply for this card, you’ll need to be at least 18 years old, have a U.S. address, have a Social Security number and show proof of education.
Sign-up bonus: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Earning rate: 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically
Why we picked this card: Along with a generous sign-up bonus and cash back rewards rate, the $0-annual-fee Discover it® Student Cash Back offers an intro APR on purchases and balance transfers.
Pros & cons:
When in college, it’s a good idea to get a head start on building a positive credit history. A $0 annual fee student credit card, such as the Discover it® Student Cash Back, can help you do that while earning rewards in popular spending categories.
If you need to finance a large purchase, like school books or a laptop, you can do so interest-free for half a year with the Discover it® Student Cash Back. The card offers a 0% Intro APR for 6 months on purchases, then an ongoing 17.49% - 26.49% Variable APR applies. Plus, receive a 10.99% Intro APR for 6 months on balance transfers, after which a 17.49% - 26.49% Variable APR will apply.
Just know, to apply for this card, you’ll need to be at least 18 years old, have a U.S. address, have a Social Security number and show proof of education.
Sign-up bonus: Discover will match all the cash back you’ve earned at the end of your first year.
Earning rate: 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically
Why we picked this card: The Discover it® Secured Credit Card makes a great card for beginners because it has a $0 annual fee, it’s easy to qualify for and it offers a generous rewards program for a secured credit card.
Pros & cons:
The Discover it® Secured Credit Card is best for beginners and people looking for their first credit card. It’s a secured credit card, which can help you build credit if used responsibly, that also offers cash back rewards on every purchase. It requires a refundable security deposit ranging from $200 to $2,500, which will serve as your line of credit.
After you’ve had the Discover it® Secured Credit Card for seven months, Discover will begin conducting monthly account reviews to see if you’re eligible to graduate to an unsecured card and get your deposit refunded. Note that Discover will evaluate your behavior across your credit cards and loans from Discover, as well as other issuers or lenders. You can also get your deposit back if you choose to close your account and pay any remaining balance.
Along with offering a $0 annual fee, the card doesn’t charge a fee the first time you pay late; after that, the late fee will be up to $41. That said, it’s important to pay your bill on time when trying to build credit. Plus, if you carry a balance on your card from month to month from purchases, you will be subject to interest charges of 27.49% Variable APR.
Sign-up bonus: Discover will match all the cash back you’ve earned at the end of your first year.
Earning rate: 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically
Why we picked this card: The Discover it® Secured Credit Card makes a great card for beginners because it has a $0 annual fee, it’s easy to qualify for and it offers a generous rewards program for a secured credit card.
Pros & cons:
The Discover it® Secured Credit Card is best for beginners and people looking for their first credit card. It’s a secured credit card, which can help you build credit if used responsibly, that also offers cash back rewards on every purchase. It requires a refundable security deposit ranging from $200 to $2,500, which will serve as your line of credit.
After you’ve had the Discover it® Secured Credit Card for seven months, Discover will begin conducting monthly account reviews to see if you’re eligible to graduate to an unsecured card and get your deposit refunded. Note that Discover will evaluate your behavior across your credit cards and loans from Discover, as well as other issuers or lenders. You can also get your deposit back if you choose to close your account and pay any remaining balance.
Along with offering a $0 annual fee, the card doesn’t charge a fee the first time you pay late; after that, the late fee will be up to $41. That said, it’s important to pay your bill on time when trying to build credit. Plus, if you carry a balance on your card from month to month from purchases, you will be subject to interest charges of 27.49% Variable APR.
Sign-up bonus: None
Earning rate: Non-rewards card
Why we picked this card: The AvantCard Credit Card is a good choice for people who want to build credit but don’t want to put down a security deposit. It has a small annual fee of $59, but if used responsibly, can help you build credit and qualify for a card down the road with more benefits and a stronger rewards program.
Pros & cons:
The AvantCard Credit Card is a good choice for people who want to build credit but don’t want to put down a security deposit. It has a small annual fee, but if used responsibly, can help you build credit and qualify for a card down the road with more benefits and a stronger rewards program.
Sign-up bonus: None
Earning rate: Non-rewards card
Why we picked this card: The AvantCard Credit Card is a good choice for people who want to build credit but don’t want to put down a security deposit. It has a small annual fee of $59, but if used responsibly, can help you build credit and qualify for a card down the road with more benefits and a stronger rewards program.
Pros & cons:
The AvantCard Credit Card is a good choice for people who want to build credit but don’t want to put down a security deposit. It has a small annual fee, but if used responsibly, can help you build credit and qualify for a card down the road with more benefits and a stronger rewards program.
Sign-up bonus: $60 Amazon Gift Card upon approval
Earning rate: Prime cardholders can earn 5% back at Amazon.com
Why we picked this card: Prime cardholders can earn 5% back at Amazon.com and includes an Amazon gift card upon approval. And, if you need more time to pay off your items, cardholders have the option of 0% financing for larger purchases instead of earning rewards.
Pros & cons:
This card is best for people who shop at Amazon frequently but don’t need to use the card at other retailers. Because it is a store card, purchases are limited to select Amazon-affiliate websites like Audible, Hoot and Comixology. Prime cardholders can earn 5% back at Amazon.com and up to 15% on select, rotating items throughout the year. If you need extra time to pay off your purchases, some purchases are eligible for financing for up to 24 months.
Sign-up bonus: $60 Amazon Gift Card upon approval
Earning rate: Prime cardholders can earn 5% back at Amazon.com
Why we picked this card: Prime cardholders can earn 5% back at Amazon.com and includes an Amazon gift card upon approval. And, if you need more time to pay off your items, cardholders have the option of 0% financing for larger purchases instead of earning rewards.
Pros & cons:
This card is best for people who shop at Amazon frequently but don’t need to use the card at other retailers. Because it is a store card, purchases are limited to select Amazon-affiliate websites like Audible, Hoot and Comixology. Prime cardholders can earn 5% back at Amazon.com and up to 15% on select, rotating items throughout the year. If you need extra time to pay off your purchases, some purchases are eligible for financing for up to 24 months.
Sign-up bonus: No bonus
Earning rate: 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply)
Why we picked this card: With the Capital One QuicksilverOne Cash Rewards Credit Card, cardholders earn an elevated cash back rate on every purchase they make using the card. Rewards can be redeemed for checks, statement credits or gift cards, or used to directly cover a recent purchase.
Pros & cons:
If you want a simple approach to earning rewards while building your credit, the Capital One QuicksilverOne Cash Rewards Credit Card could be a great fit, since it offers a flat cash back rate on general purchases.
Just know, the Capital One QuicksilverOne Cash Rewards Credit Card charges a $39 annual fee, and comes with an APR of 29.74% (variable). As for foreign transaction fees — there are none.
That said, after demonstrating responsible card usage and building a relationship with Capital One, you may be able to request a product change to the Capital One Quicksilver Cash Rewards Credit Card. This card earns cash back at the same flat rate on general purchase as the Capital One QuicksilverOne Cash Rewards Credit Card, but charges a $0 annual fee.
Sign-up bonus: No bonus
Earning rate: 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply)
Why we picked this card: With the Capital One QuicksilverOne Cash Rewards Credit Card, cardholders earn an elevated cash back rate on every purchase they make using the card. Rewards can be redeemed for checks, statement credits or gift cards, or used to directly cover a recent purchase.
Pros & cons:
If you want a simple approach to earning rewards while building your credit, the Capital One QuicksilverOne Cash Rewards Credit Card could be a great fit, since it offers a flat cash back rate on general purchases.
Just know, the Capital One QuicksilverOne Cash Rewards Credit Card charges a $39 annual fee, and comes with an APR of 29.74% (variable). As for foreign transaction fees — there are none.
That said, after demonstrating responsible card usage and building a relationship with Capital One, you may be able to request a product change to the Capital One Quicksilver Cash Rewards Credit Card. This card earns cash back at the same flat rate on general purchase as the Capital One QuicksilverOne Cash Rewards Credit Card, but charges a $0 annual fee.
Sign-up bonus: N/A
Earning rate: Earn 1% cash back on eligible purchases right away, and 2% to 10% cash back at select merchants
Why we picked this card: The Petal 2 Credit Card — issued by WebBank, Member FDIC — offers a very reasonable Variable APR between 17.49% - 31.49%. In addition, cardholders have the opportunity to receive a relatively high credit line that ranges from $300 to $10,000.
Note, the APR and credit line are determined by your creditworthiness.
Pros & cons:
If you think you may need to carry a balance on your card from month to month from purchases, the Petal 2 Credit Card may be ideal — as long as you qualify for the lowest interest rate.
The Petal 2 Credit Card differs from competing credit cards by using a “Cash Score” to potentially determine your eligibility. If you have no credit history, you may be asked to link a bank account so that an algorithm can be used to analyze factors such as transaction history, money earned and spent each month and bills paid. This makes it easier for consumers who have responsible financial habits, but haven’t had credit before, to qualify for a card.
The Petal 2 Credit Card lets cardholders earn 1% cash back on eligible purchases right away, and 2% to 10% cash back at select merchants.
Plus, the card comes with a $0 annual fee card and does not charge late payment fees — but you should always pay your bill on time, to make sure you don’t negatively affect your credit score.
Sign-up bonus: N/A
Earning rate: Earn 1% cash back on eligible purchases right away, and 2% to 10% cash back at select merchants
Why we picked this card: The Petal 2 Credit Card — issued by WebBank, Member FDIC — offers a very reasonable Variable APR between 17.49% - 31.49%. In addition, cardholders have the opportunity to receive a relatively high credit line that ranges from $300 to $10,000.
Note, the APR and credit line are determined by your creditworthiness.
Pros & cons:
If you think you may need to carry a balance on your card from month to month from purchases, the Petal 2 Credit Card may be ideal — as long as you qualify for the lowest interest rate.
The Petal 2 Credit Card differs from competing credit cards by using a “Cash Score” to potentially determine your eligibility. If you have no credit history, you may be asked to link a bank account so that an algorithm can be used to analyze factors such as transaction history, money earned and spent each month and bills paid. This makes it easier for consumers who have responsible financial habits, but haven’t had credit before, to qualify for a card.
The Petal 2 Credit Card lets cardholders earn 1% cash back on eligible purchases right away, and 2% to 10% cash back at select merchants.
Plus, the card comes with a $0 annual fee card and does not charge late payment fees — but you should always pay your bill on time, to make sure you don’t negatively affect your credit score.
Sign-up bonus: No bonus
Earning rate: 4X points on dining and takeout, 2X at grocery stores, gas stations and on streaming services, 1X on all other purchases
Why we picked this card: In addition to a solid rewards rate on dining purchases, the U.S. Bank Altitude Go Visa Secured Card reports to all three major credit bureaus with credit lines up to $5,000, based on your security deposit. With responsible use, your card may be eligible for an automatic upgrade to an unsecured card.
Pros & cons:
This card is best for people who want to earn rewards on eating out, groceries and more while working to improve their credit scores. You’ll 4X points on dining and takeout, 2X at grocery stores, gas stations and on streaming services, 1X on all other purchases.
Sign-up bonus: No bonus
Earning rate: 4X points on dining and takeout, 2X at grocery stores, gas stations and on streaming services, 1X on all other purchases
Why we picked this card: In addition to a solid rewards rate on dining purchases, the U.S. Bank Altitude Go Visa Secured Card reports to all three major credit bureaus with credit lines up to $5,000, based on your security deposit. With responsible use, your card may be eligible for an automatic upgrade to an unsecured card.
Pros & cons:
This card is best for people who want to earn rewards on eating out, groceries and more while working to improve their credit scores. You’ll 4X points on dining and takeout, 2X at grocery stores, gas stations and on streaming services, 1X on all other purchases.
Applicants searching for the best credit card to build credit should search for cards with no or minimal fees and low APRs (a card with a rewards program is also nice to have). Take a close look at the APR, annual fee, rewards and recommended credit of the following secured and unsecured credit cards.
| Credit Card | Welcome Offer | Rewards Rate | Annual Fee | Intro Purchase APR | Regular APR | Intro Balance Transfer Rate | Regular Balance Transfer Rate | Balance Transfer Fee | Recommended Credit | Card Review |
|---|---|---|---|---|---|---|---|---|---|---|
|
Capital One Platinum Credit Card
|
No bonus | Non-rewards Card | $0 | N/A | 29.74% (Variable) | N/A | 29.74% (Variable) | $0 at this Transfer APR | Fair/Limited | Capital One Platinum Credit Card Review |
|
DCU Visa® Platinum Secured Credit Card
|
N/A | N/A | $0 | N/A | 15.75% Variable | N/A | 15.75% Variable | None | Poor | DCU Visa® Platinum Secured Credit Card Review |
|
Capital One Platinum Secured Credit Card
|
No bonus | Non-rewards Card | $0 | N/A | 29.74% (Variable) | N/A | 29.74% (Variable) | $0 at this Transfer APR | Poor/Limited | Capital One Platinum Secured Credit Card Review |
|
OpenSky® Secured Visa® Credit Card
|
N/A | None | $35 | N/A | 21.89% (variable) | N/A | N/A | N/A | Poor/Limited | OpenSky® Secured Visa® Credit Card Review |
|
Discover it® Student Cash Back
|
Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match. | 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically | $0 | 0% Intro APR for 6 months on purchases | 17.49% - 26.49% Variable APR | 10.99% Intro APR for 6 months | 17.49% - 26.49% Variable APR | 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)* | Fair/Limited | Discover it® Student Cash Back Review |
|
Discover it® Secured Credit Card
|
Discover will match all the cash back you’ve earned at the end of your first year. | 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically | $0 | N/A | 27.49% Variable APR | 10.99% Intro APR for 6 months | 27.49% Variable APR | 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)* | Poor/Limited | Discover it® Secured Credit Card Review |
|
AvantCard Credit Card
|
None | Non-rewards card | $59 | N/A | 29.49% | N/A | N/A | N/A | Fair/Poor/Limited | AvantCard Credit Card Review |
|
Amazon Prime Store Card
|
$60 Amazon Gift Card upon approval | Prime cardholders can earn 5% back at Amazon.com | $0 | N/A | 29.99% | N/A | N/A | N/A | N/A | Amazon Prime Store Card Review |
|
Capital One QuicksilverOne Cash Rewards Credit Card
|
No bonus | 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply) | $39 | N/A | 29.74% (Variable) | N/A | 29.74% (Variable) | $0 at this Transfer APR | Fair/Limited | Capital One QuicksilverOne Cash Rewards Credit Card Review |
|
Petal® 2 Cash Back, No Fees Visa® Credit Card
|
N/A | Earn 1% cash back on eligible purchases right away, and 2% to 10% cash back at select merchants | $0 | N/A | Variable APR between 17.49% - 31.49% | N/A | N/A | None | N/A | Petal® 2 Cash Back, No Fees Visa® Credit Card Review |
|
U.S. Bank Altitude Go Visa Secured Card
|
No bonus | 4X points on dining and takeout, 2X at grocery stores, gas stations and on streaming services, 1X on all other purchases | $0 | N/A | 29.49% | N/A | 29.49% | 3% of the amount of each transfer or $5 minimum, whichever is greater | Poor/Limited | Review Coming Soon |
Although it’s possible to build credit without a credit card, using a credit card responsibly is one of the best ways to build credit. Making on-time payments monthly and keeping your credit utilization low will help you build your credit score quickly. Combined, these two factors make up almost two-thirds of your credit score.
If you’re looking for credit cards to build credit, there are four broad categories of cards to choose from.
Does it report to all three credit bureaus?
To build your credit, your credit card must report your activity to the major credit bureaus — Experian, Equifax and Transunion. Credit bureaus compile information from lenders to create a history of how you handle debt. This information is used to generate a credit score and is often one of the major criteria a lender uses to approve or deny your credit application. If your credit card doesn’t report to all three, then it will be more difficult to build your credit.
How does the APR compare?
The annual percentage rate (APR) is the interest rate you pay when carrying a balance on your credit card. Ideally, you will pay off your balance in full each month to avoid interest charges. However, some customers are unable to do that. Finding a credit card with a low APR helps to minimize the interest charges if you cannot pay off your balance each month.
Are the fees reasonable?
When comparing credit card options, pay attention to the fees that they charge. In some cases, a secured credit card is a more affordable option than many unsecured cards geared towards cardholders with lower credit. Beware of cards that charge application fees, high annual fees, monthly fees and other ongoing charges. They can eat into your credit limit, making it harder to pay off the balance and maintain a low credit utilization ratio.
Are there any “gotchas” in the fine print?
The fine print is where some credit cards can take advantage of unsuspecting borrowers. While most credit cards offer a grace period before they charge interest, some do not. Additionally, the fine print may include details like foreign transaction fees, authorized user fees, penalty APR, cash advance APR and how rewards are earned and redeemed.
Does it earn rewards?
Many of the good credit cards to build credit also offer rewards based on your purchases. Reward options include miles, points, cash back or store credits. These rewards are a way to offset annual fees and encourage customers to use a credit card instead of cash, checks, debit cards or other forms of payment. Pay attention to how rewards are earned and redeemed to ensure that the rewards program works for you.
What other benefits does it offer?
In addition to earning rewards, the best credit cards to build credit also include other useful benefits. Benefits vary widely depending on which card you apply for. Examples of perks include travel protections, insurance for your purchases, airport lounge access and cellphone protection. You may find it worthwhile to pay a credit card annual fee to gain access to these benefits.
Tip: If you don’t have credit yet, but are looking to build credit, a secured credit card may be the best option for you. Secured cards accept most types of credit histories and some don’t even require a credit check. These cards typically charge modest or no fees, in exchange for a reasonable deposit up front. You can use your card to make purchases in the same way as an unsecured card. Using your card responsibly will help boost your credit profile.Getting approved for a credit card can be challenging when you’re building credit. To increase the odds of getting approved, follow these tips:
If you’re just starting on your credit journey, one of the best ways to boost your approval odds for a credit card is to apply for a card targeted to applicants with limited or no credit. If you’re unable to qualify for your own credit card, you can also be added as an authorized user on someone else’s credit card. You may also consider applying for a loan or utilizing existing loans like personal, auto, student or credit-builder loans to help build credit.
When selecting the best credit card to help you build credit, you should start with one that reports your account and payment activity to the three major credit bureaus, accepts individuals with poor, fair or limited credit and charges limited fees.
You can then make your choice based on how you plan to use the card. For example, if you’re a student just starting out on your credit journey, the Discover it® Student Cash Back may be your best option. But if you want to transfer high-interest credit card debt to a card with an intro APR, the Discover it® Secured Credit Card will be a better fit.
Whether using a traditional credit card, secured credit card, store credit card or student credit card, a key factor in building your credit is to use the card responsibly. That includes:
Paying your balance on time and in full each month. Since payment history is the most important factor of your credit score, you should always pay your credit card bill on time each month. It’s also a good habit to pay in full so that you avoid incurring interest charges that get applied to any remaining balance (as well as the next month’s purchases).
Maintaining a low credit utilization ratio. It’s generally recommended that you keep your credit utilization ratio — the amount of credit you use divided by the total amount of available credit you have — below 30%. For example, if you have a credit card limit of $500, you should keep your card balance under $150.
Only applying for a credit card when it’s truly needed. Each time you apply for a major loan or credit card, a hard inquiry appears on your credit when the lender reviews your credit profile — which lowers your credit score by a few points each time one occurs and stays on your credit report for two years. If you have too many hard inquiries in a short period of time, it may signal to lenders that you’re a high-risk consumer.
Applying for a credit card for the first time is one of the biggest financial decisions you can make. Following these steps can make this important process a lot smoother.
1. Find a credit card that fits your needs.
When you’re on the market for a credit card, make sure you’re only applying to ones that truly fit your financial goals and spending habits. You can hurt your credit score more than you need to by applying for several different credit cards.
2. See if you prequalify for the card you want.
Most major banks will offer a portal where you can check which cards you’re prequalified or preapproved for without any impact to your credit score. Note that although it’s rare, you can still get denied a credit card even if you’re preapproved.
3. Fill out an application.
You can find the application link on your bank’s website, or go to a bank’s physical branch location. You also may be able to apply over the phone or by mail.
4. Wait for a decision.
If you applied for a credit card online, your application should be processed quickly and you should receive a decision in minutes. In some scenarios, it could take longer to hear back — but you’re required to receive a decision within 30 days.
5. Take the next steps depending on your application status.
If you’re denied, take steps to improve your credit and apply again later. If you’re approved, make sure to use your credit card responsibly by paying off your card in full and on time each month.
If you aren’t ready to get a credit card or you’re struggling to get approved, there are plenty of other credit-building options available. Here are a few to consider:
There are several ways that you can improve your credit score including:
No credit card has a guaranteed approval. However, there are cards that are easier to get approved for with straightforward terms. Most are secured cards, which require a deposit, and one is an unsecured card with an annual fee. Other cards that may be easier to qualify for are store cards, which often come with high APRs and low credit limits — but if used responsibly, they can help build your credit score.
No, debit cards do not help you build credit. They do not report your payments to the three credit bureaus like credit cards do. Instead of using a credit line from a bank, debit cards take money from your own checking account.
To select the best card for each of these categories, our credit card experts compared secured and unsecured credit cards designed for individuals with poor, limited and average credit on LendingTree.com and issuer sites.
We chose our top picks based on a variety of factors, including the value of the card’s rewards program, the annual fee and the interest rate.
Other factors that came into play when making our selections include the benefits offered by the card, as well as the opportunity to increase your credit line or improve your credit score.
For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply
The above offers and/or promotions may have since changed, expired, or is no longer available. Check the Issuers’ website for more details.
