Best Credit Cards for Building Credit
Are you starting from scratch and need a credit card to build your credit score? Or perhaps you’re in the process of rebuilding after some financial hiccups. Either way, finding the right credit card can be a game-changer for your financial future. In this guide, we’ll explore some of the best credit cards to help build credit and how to choose the right one for your needs. Let’s dive in and see how you can kick-start your credit journey. MoneyLion can help you explore a wide variety of credit card options tailored to different needs and preferences. Start building your credit today with the right card for you.
10 Best credit cards to help build credit
1. Best for cash back rewards: Discover it® Secured Credit Card®
2. Best for students: Discover it® Student Cash Back
The Discover it® Student Cash Back card is designed specifically for students. It offers rewards on purchases and tools to help you manage your credit responsibly.
3. Best for rebuilding credit: OpenSky® Secured Visa® Credit Card
The OpenSky® Secured Visa® Credit Card is ideal for those with poor credit or no credit history. It doesn’t require a credit check, making it accessible to a broader range of applicants.
4. Best for no annual fee: Capital One® Platinum Secured Credit Card
The Capital One® Platinum Secured Credit Card is perfect for those starting their credit journey with no annual fee and access to higher credit lines after making your first five monthly payments on time.
5. Best for building credit with rewards: Petal® 2 “Cash Back, No Fees” Visa® Credit Card
The Petal® 2 Visa® Credit Card The offers cash back on every purchase with no fees whatsoever, making it a great option for building credit while earning rewards.
6. Best for secured card: Citi® Secured Mastercard®
The Citi® Secured Mastercard® is designed for those looking to establish or rebuild their credit. It requires a security deposit, which sets your credit limit.
7. Best for credit monitoring: Credit One Bank® Platinum Visa® for Rebuilding Credit
The Credit One Bank® Platinum Visa® for Rebuilding Credit offers 1% cash back rewards on eligible purchases and free credit score access.
8. Best for low fees: AvantCard Credit Card
The AvantCard Credit Card offers a straightforward way to build credit with no hidden fees and a fast application process.
9. Best for flexible credit limits: First Progress Platinum Prestige Mastercard® Secured Credit Card
The First Progress Platinum Prestige Mastercard® The secured card offers one of the lowest APRs available for a secured credit card, making it a great option for those looking to minimize interest costs.
10. Best for credit building tools: Self-Credit Builder Account + Secured Visa® Credit Card
Self-Credit Builder Account+Secured Visa Credit Card® offers a unique combination of a credit builder loan and a secured credit card to help you build credit.
How to choose the best cash back credit card
1. Look for cards designed for building credit
2. Compare annual fees
3. Check interest rates and APR
4. Ensure the card reports to all three major credit bureaus
5. Consider secured credit cards
6. If applicable, consider student credit cards.
7. Evaluate rewards programs
8. Check for free credit score access
9. Look for automatic credit limit increase features
10. Read all terms and conditions carefully
11. Consider cards with upgrade paths to better cards
12. Avoid cards with high fees for basic services
Choosing the Best Credit Card for Building Credit
You've got questions. We have answers.
Can I get a credit card to build credit if I have no credit history?
Yes, many credit cards, such as secured and student credit cards, are designed for individuals with no credit history.
How often should I use my credit card to build credit?
Use your credit card regularly but responsibly. Make small purchases and pay off the balance in full each month to build a positive credit history.
How long does it take to build credit with a new credit card?
It can take several months to start seeing improvements in your credit score, but consistent and responsible use will lead to positive changes over time.
What’s the typical credit limit on a credit-building card?
Credit limits on credit-building cards are usually lower, ranging from $200 to $1,000, but can increase with responsible use.
How can you effectively use a credit card to build a positive credit history without accruing debt?
Make small purchases regularly, pay off the full monthly balance, and avoid carrying a high balance to keep your credit utilization low.
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