There’s no shortage of options when choosing a credit-building credit card. But it’s arguably a more challenging choice since many cards require a credit check. The bottom line — you want your pick to count. Our roundup of the best credit cards to build credit explores each card to help you determine which one offers you the best return while building your credit.
The Chase Freedom Rise Credit Card is our top choice for those embarking on their credit-building journey. What sets this card apart is its unique features that cater to ease of use and reward maximization.
Why we like it: First, it’s one of the few credit-building options offered that is the total package: an unsecured credit line — no security deposit required — no annual fee, generous rewards, and a competitive APR. Not to mention, traditional credit cards typically offer higher credit limits.
The Chase Freedom Rise Credit Card is an ideal candidate for those focusing on building or improving their credit. One of the key advantages is its $0 annual fee, and relatively low regular APR for its category starting at 26.99%, making it a cost-effective option for regular use. Additionally, it being an unsecured credit card removes the issue of low capped credit limits and the hassle of upgrading in the future.
The card’s straightforward reward structure, offering 1.5% cash back on all purchases, incentivizes regular use while providing financial benefits. Not to mention, you get all the capabilities and perks that Chase offers their banking clients: access to your credit score, an intuitive app experience, and consideration for other banking products as you display responsible use of your current credit line.
These combined features make the Chase Freedom Rise Credit Card a compelling choice for anyone looking to establish a strong credit history.
Coming in as our top choice for those taking their initial steps into establishing a positive credit history: The Capital One Platinum Secured Credit Card. This card was designed with simplicity and accessibility in mind, serving as a fundamental building block for those seeking to establish their credit history.
Why we like it: The Capital One Platinum Secured Credit Card is particularly advantageous for those just starting out with credit. Its standout feature is the low minimum security deposit requirement of only $49, one of the lowest entry points available for a secured card (most require at least $200). This feature makes it an excellent option for individuals who find higher deposits a barrier to entry.
With no reward structure, users can focus solely on building their credit without the temptation of chasing cash back or a rotating point structure.
Regular reporting to the three major credit bureaus ensures responsible usage, positively impacting the cardholder’s credit score. Plus, the opportunity to upgrade to a traditional credit card in the future makes this card not just a short-term solution for establishing credit, but also a stepping stone towards more conventional credit products.
The Capital One Platinum Secured Credit Card, with its minimal barriers to entry and the potential for future upgrades, is a solid choice for anyone looking to begin their credit journey on a firm footing.
Although a competitive contender for “Best overall,” The Discover it Secured Credit Card ultimately was named “Best for building credit” because it still requires a security deposit.
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Annual fee: $0
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APR: 28.24% (variable)
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Security deposit: $200 (refundable)
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Welcome offer: Cash-back match in your first year
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Rewards:
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2% cash back quarterly on combined purchases up to $1,000
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Unlimited 1% cash back on all other purchases
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Why we like it: The Discover it Secured Credit Card is an excellent tool for those new to credit, thanks to its approachable requirements and beneficial reward structure. The card’s $0 annual fee and refundable security deposit make it an accessible option for beginners. Its reward system allows you to reap tangible benefits — some of which are comparable to even the best rewards credit cards, even with it being a secured credit card.
Earning 2% cash back in select categories each quarter on up to $1,000 in purchases and an unlimited 1% on everything else is a rare commodity for secured credit lines. To sweeten the deal, the first-year cash-back match doubles the rewards earned, making it highly attractive for first-time credit card users. The Discover it Secured card’s emphasis on rewarding responsible spending habits and regular reporting to the major credit bureaus makes it a powerful tool for those looking to boost their credit score.
The Applied Bank Secured Visa Gold Preferred Credit Card is a clear winner in the “rebuilding credit” category. It is an excellent choice for individuals with poor credit who are focused on improvement. It is particularly notable for its user-friendly features that cater to those with less-than-ideal credit profiles.
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Annual fee: $48
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APR: 9.99% (fixed)
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Security deposit: $200
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Rewards: N/A
Why we like it: This card’s most remarkable feature is the exceptionally low fixed APR of 9.99%, a rate rarely seen in secured credit cards — or any credit card, for that matter.
The Applied Bank Secured Visa Gold Preferred Credit Card best suits those looking to repair their credit. The low annual fee of $48 makes it a budget-friendly option for regular use. However, the other standout attribute of this card is the absence of a credit check or a minimum credit score requirement for applicants.
This feature ensures that even individuals with severely damaged credit histories can apply. It’s a card embodying the principle of giving a second chance to those who need it the most in their credit-rebuilding journey. By reporting to the major credit bureaus, consistent use of this card can positively impact a user’s credit score over time, making the Applied Bank Secured Visa Gold Preferred Credit Card a valuable tool for those working towards credit recovery.
More credit-building options
To add to your options, here are some alternatives that didn’t quite make the top spots, but are great if you need a more specialized credit-building card.
The U.S. Bank Altitude Go Visa Secured Card is a distinctive choice for individuals who are building or rebuilding their credit but don’t want to miss out on generous reward opportunities. This card bridges the gap between credit building and reward maximization, making it a compelling option for reward enthusiasts.
Why we like it: The U.S. Bank Altitude Go Visa Secured Card offers a cost-effective choice for daily use, and the refundable $300 security deposit aligns with the standard for secured cards.
Its robust rewards program, which is rare in secured credit cards, sets this card apart. Earning 4x points on dining, takeout, and restaurant delivery, and 2x points on groceries, streaming services, gas, and EV charging stations, makes this card extremely valuable for everyday purchases.
The strong rewards program and the credit-building potential of a secured card make the U.S. Bank Altitude Go Visa Secured Card a rare find in the market, offering the best of both worlds to its users.
Still in school? You may find an array of options when searching for the best credit card for students. The Bank of America Customized Cash Rewards for Students Credit Card is an ideal choice for students to look into, especially those who frequently commute.
This card — designed to mirror the benefits of its non-student version — offers substantial rewards and is an excellent tool for building credit.
Why we like it: The Bank of America Customized Cash Rewards for Students Credit Card is particularly beneficial for students who commute. The card’s high cash-back rate at gas stations is unrivaled among student credit cards, making it a top pick for those with a significant commute.
This card comes with a 0% introductory APR on new purchases for 15 billing cycles (18.24%-28.24% variable APR thereafter), making it a great option for financing significant purchases without interest for a while. Rewards can be redeemed as statement credits or cash back into a Bank of America account.
Besides the financial benefits, it also reports to all three credit bureaus, building a solid credit history. It also offers access to credit scores, allowing students to monitor their credit progress. The combination of significant cash back on everyday expenses, a $0 annual fee, and tools to build credit effectively make the Bank of America Customized Cash Rewards for Students Credit Card a standout choice for students, particularly those who spend considerable time commuting.
Building business credit can be just as difficult as establishing personal credit. Bank of America’s Business Advantage Unlimited Cash Rewards Secured Credit Card is a noteworthy option for businesses aiming to build credit. This card stands out not just for its credit-building capabilities but also for offering uncommon perks even among traditional business credit cards.
Why we like it: The Business Advantage Unlimited Cash Rewards Secured Credit Card is particularly beneficial for businesses focused on establishing or improving their credit profile. One of the unique advantages of this card is the free access to Dun & Bradstreet business credit scores within Business Advantage 360, Bank of America’s small business online banking platform.
This feature is a significant benefit as accessing business credit scores is typically a service that incurs additional costs. By providing this facility at no extra charge, the card offers businesses a valuable tool to monitor and understand their credit standing, which is often a challenging aspect of managing business credit.
Furthermore, the card’s reward structure is highly appealing. Businesses earn a flat rate of 1.5% cash back on every purchase without any caps. This straightforward reward system makes it easy for businesses to maximize their earnings on all their spending. The absence of an annual fee adds to the card’s appeal, making it a cost-effective choice for business owners.
The OpenSky Secured Visa Credit Card provides a unique opportunity to establish credit without the typical barriers associated with credit card applications.
Why we like it: The OpenSky Secured Visa Credit Card was a comparable competitor to the Discover it Secured Credit Card because it requires no credit check to apply, a low security deposit, and low annual fee, removing a significant hurdle for those with no credit history. But with no rewards offered, Discover ultimately took the cake for “Best for credit building.”
That being said, OpenSky remains a great option with its no credit check application. It ensures that applying for the card involves zero credit risk, making it accessible to a broader audience who may be just starting their credit journey or looking to establish credit for the first time.
Another key benefit of the OpenSky Secured Visa Credit Card is the possibility of extending beyond the initial $200 credit line. Cardholders are considered for an unsecured credit line increase after just six months, providing an opportunity to progress to a traditional credit card. This feature aids in building a stronger credit profile and demonstrates the card’s commitment to supporting the cardholder’s financial growth.
The combination of no credit check requirement, the potential for rapid credit score improvement, and the opportunity to transition to an unsecured line make the OpenSky Secured Visa Credit Card a top choice for those starting with no credit. The card provides a straightforward and effective pathway for building a solid credit foundation, essential for financial stability and future credit opportunities.
How to choose the best credit-building card for you
With the goal of establishing and building a positive credit report, there is no such thing as a bad credit card — only ones that work and those that work best. Here’s what the ones categorized as “best” look like.
Reporting to all three major credit bureaus
There are three major credit bureaus, all with separate criteria and methods of determining your credit score: Equifax, Experian, and TransUnion. The best way to establish credit profiles with all of them is to have a card that reports to all three credit bureaus. Many cards, like the Bank of America Secured Credit Card, openly state that they report to all three. But always check if you don’t see it written explicitly on the issuer’s website.
This report includes factors like your credit utilization (how much of the credit line you’re using), on-time payments, and the limit on your credit card. Depending on the bureau, each factor can be weighted differently.
Refundable security deposits
If you have selected a secured credit-building card, you likely have a minimum security deposit to provide. This is, on average, $200, but it can be higher or lower depending on the issuer.
The best cards, such as the Capital One Platinum Secured Credit Card, will offer a refundable security deposit, which you can get back if you close your account in good standing, having paid off your balance in full. This refundable deposit acts as collateral but doesn’t tie up your funds indefinitely, ensuring that once you’ve demonstrated responsible credit use, your deposit can be returned to you.
Upgrade options
For most, getting a credit-building card means opting for a secured credit card. While these work to get your foot in the door there’s a ceiling to their capabilities. The best secured cards will offer a review of your credit profile after you’ve displayed good use of your secured line and offer the possibility of an upgrade to their traditional credit card.
For example, the Discover it Secured Credit Card offers monthly account reviews after seven months of use to see if you qualify for an upgrade to their traditional unsecured credit card. This opens up possibilities of credit line increases, better rewards, and perks that only traditional credit cards can offer.
Additional benefits
The main priority for using a credit-building card is to establish or improve your credit score. This means using your credit line responsibly and monitoring your progress. However, beyond these fundamental aspects, there are additional benefits that can make certain credit-building cards more advantageous. Look for features such as free access to your credit score, which allows you to track your credit improvement over time. Some cards also offer rewards programs, even on secured cards like the Capital One Quicksilver Secured Credit Card, providing cash back or points on purchases.
6 tips for building your credit score
Getting approved for a credit card is only half the battle. The rest comes with time, responsibility and intentional use of your credit. To help you navigate this path successfully, here are some essential tips:
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Automate payments: One of the most effective ways to ensure you never miss a payment is by setting up automatic monthly payments. This can help you maintain a consistent payment history, which is a key factor in credit scoring.
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Set up credit card notifications: Utilize the notification features most credit cards offer. These can alert you to due dates, high balances, or unusual activity, helping you stay on top of your account and avoid potential pitfalls.
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Regularly monitor your credit score: Keeping an eye on your credit score is crucial. Many credit cards offer free access to your credit score, allowing you to track your progress. This regular monitoring can motivate you to continue good credit habits and help you quickly identify any issues that need addressing.
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Check your credit report annually for errors: Mistakes on credit reports are not uncommon. Ensure you obtain a free annual credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) and review them for any inaccuracies. Dispute any errors you find, as they can unfairly lower your credit score.
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Maintain low credit utilization: Try to keep your credit utilization ratio – the amount of credit you’re using compared to your credit limit – low, ideally below 30%. High utilization can be seen as a sign of financial distress and negatively impact your score.
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Be patient and consistent: Building a good credit score takes time. It requires consistent, responsible financial behavior over time. Avoid opening too many accounts too quickly, and focus on managing your existing credit effectively.
Methodology
In our pursuit to identify the best credit-building credit cards, we adopt a meticulous and impartial evaluation approach, ensuring our recommendations cater specifically to enhancing your credit profile. Our analysis remains independent, shielded from external financial influences, and credit card issuers(American Express, Chase, Mastercard, etc.) do not sway our reviews. This approach upholds our editorial integrity and the reliability of our advice, targeting the optimization of your financial well-being.
Our methodology commences by focusing on key factors essential for credit-builder cards: interest rates, the credibility of the card issuer, the initial credit limit provided, and the potential for increasing available credit. Recognizing that credit-builder cards are crucial in establishing or improving your FICO score and overall credit health, we aim to address diverse financial circumstances and requirements.
We conduct an exhaustive comparison of 20 different credit-building cards, analyzing them across nearly 400 distinct data points (399 exactly). This comprehensive approach allows us to assess each card’s specific features and benefits in detail. This exhaustive approach enables us to evaluate each card’s specific features and benefits in depth. Our assessment includes the impact of interest rates, the reputation and reliability of each card issuer, the initial credit limits set, and the opportunity for credit line increases. Additional elements such as cash-back rewards, the card’s connectivity with bank accounts, and any associated fees or incentives are also considered.
Our proprietary scoring system plays a key role in this process, allowing us to objectively and qualitatively assess each card against these crucial factors. The system ensures a balanced evaluation, considering both the card’s ability to aid in building or repairing credit and its potential advantages or drawbacks over time.
After scrupulously scoring each card, we narrow down our choices to those that excel in offering exceptional value, reasonable interest rates, and favorable terms for credit building. Our selection includes cards that meet and surpass industry benchmarks, providing the best options for enhancing and maintaining a robust credit profile.
This ongoing and dynamic review process guarantees that our recommendations stay up-to-date and genuinely beneficial, reflecting the latest developments and shifts in the credit card industry. By adhering to this thorough and unbiased methodology, we strive to present our readers with a meticulously curated list of the best credit builder credit cards, empowering you to make informed financial choices geared towards your credit-building objectives.
Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn’t include all currently available offers.