If you are struggling with a limited credit history, no credit, or a damaged credit score due to past mistakes, don’t lose hope. There are credit card options available specifically designed to help you build or rebuild your credit. These credit-building cards are ideal for individuals with no credit history or those trying to fix credit issues.
Best credit cards for building credit compared 2024
Here are our top recommendations for the best credit cards to build credit:
Best for no security deposit: Mission Lane Visa® Credit Card
Why we like it: The Mission Lane Visa® Credit Card allows individuals with limited credit to start building credit without requiring a security deposit. You can even check if you’re prequalified online without a hard inquiry on your credit reports. The card also offers automatic credit line reviews, allowing for potential increases in your spending limit with responsible use. Please note that this card has an annual fee ranging from $0 to $59.
Best for low APR: Applied Bank Secured Visa® Gold Preferred® Credit Card
Why we like it: The Applied Bank Secured Visa® Gold Preferred® Credit Card is secured, meaning you’ll need to provide a cash deposit as collateral. However, this card features a low variable annual percentage yield (APR). No credit check is required for approval, and you can secure a credit line between $200 and $5,000 based on your initial deposit amount. Please note that this card has an annual fee.
Best secured card with rewards: Capital One Quicksilver Secured Cash Rewards Credit Card
Why we like it: The Capital One Quicksilver Secured Cash Rewards Credit Card offers 1.5% cash back on all purchases. This card is secured, meaning you’ll need to provide a deposit as collateral. However, responsible use can lead to credit limit increases and potentially upgrading to an unsecured version of the card. This card is suitable for individuals with fair credit.
Best for low security deposit: Capital One Platinum Secured Credit Card
Why we like it: The Capital One Platinum Secured Credit Card is ideal for individuals who are rebuilding their credit. It requires a minimum refundable deposit, which can be as low as $49, and the initial credit limit starts at $200. This card offers the opportunity to improve your credit score while keeping fees to a minimum.
Best for fair credit: Capital One QuicksilverOne Cash Rewards Credit Card
Why we like it: The Capital One QuicksilverOne Cash Rewards Credit Card is an unsecured credit card designed for individuals with fair credit. It offers 1.5% cash back on all purchases and helps build credit over time. With no hidden fees and the option to select your payment due date, this card is a solid choice for those looking to improve their credit.
Best for fast processing: First Progress Platinum Elite Mastercard® Secured Credit Card
Why we like it: The First Progress Platinum Elite Mastercard® Secured Credit Card offers fast processing with no credit check required. You can apply online quickly and receive your card promptly. This secured card is available to consumers with poor credit, including those with recent bankruptcy discharges.
Best for no credit check: OpenSky® Secured Visa® Credit Card
Why we like it: The OpenSky® Secured Visa® Credit Card doesn’t require a credit check. With an average approval rate of 87%, this card is suitable for individuals with limited or no credit history. By using this secured card responsibly, you can build your credit profile and improve your credit score.
Best for credit-building: Citi® Secured Mastercard® Credit Card
Why we like it: The Citi® Secured Mastercard® Credit Card is a no-frills credit card designed for building credit. With no annual fee and the ability to select your payment due date, this card is an excellent option for those focused on building credit.
Our Methodology
To select the best credit cards for building credit, we reviewed over 60 credit cards specifically geared towards individuals with imperfect credit scores or no credit history. Our evaluation criteria included annual fees, monthly fees, interest rates, rewards programs, and additional features such as free credit scores and flexible payment due dates. We prioritized cards with reasonable fees, favorable approval odds, and tools to help individuals begin building credit.
How to choose the best credit card to build credit for you
When choosing a credit card to build credit, consider the following tips:
- Carefully evaluate fees and look for added perks or features.
- Decide whether earning rewards or solely building credit is a priority for you.
- Choose between secured and unsecured options based on your comfort level with providing a deposit.
- Check for credit-building tools such as free credit scores and credit tracking.
Remember, these credit-building cards may have overlapping features, but their deposit requirements, fees, and rewards programs can vary. Focus on finding a card that aligns with your personal needs and goals.
TIME Stamp: Credit-building cards can help brighten your financial future
Having poor or limited credit can impact your life in various ways, making it challenging to achieve your goals. Whether it’s getting a mortgage or qualifying for financing, a credit-building card can be the first step towards improving your financial future. While these credit cards may not be perfect, they provide an opportunity to start building credit when other options are not available.
Frequently asked questions (FAQ)
How do I use a credit card to build credit?
Once approved for a credit card, use it for regular purchases and make on-time or early monthly payments. Keep your credit utilization below 30% by managing your balances responsibly.
What are the pros and cons of credit cards to build credit?
Using a credit card to build credit has advantages such as reporting payments to credit bureaus, which can improve your credit profile over time. However, potential drawbacks include temptation to overspend, fees, and high interest rates if carrying a balance.
What are the different types of credit cards to build credit?
There are two main types: secured credit cards, which require a cash deposit as collateral, and unsecured credit cards, which don’t have this requirement.
What are the different ways to build credit without a credit card?
If you prefer not to use a credit card, you can use apps like Experian Boost to build credit with regular bill payments. Additionally, credit-builder loans allow you to make monthly payments into a savings account or certificate of deposit, which are reported to credit bureaus.
Do all credit cards report to all credit bureaus?
Most credit cards report to all credit bureaus, regardless of their type or issuer. Make sure to choose a credit card that offers this benefit if you’re seeking to build credit.
What is the recommended credit utilization ratio for building credit?
Experts recommend maintaining a credit utilization ratio below 30%. This means keeping your debt below 30% of your available credit limits to build or maintain a healthy credit score.
[Many of the offers that appear on this site are from companies from which TIME Stamped receives compensation. This compensation may impact how and where products appear (including, for example, the order in which they appear). TIME Stamped provides a variety of offers, but these offers do not include all financial services companies or all products available. The editorial content on this page (including, but not limited to, Pros and Cons) is not provided by any credit card issuer. Any opinions, analysis, reviews, or recommendations expressed here are the author’s alone, not those of any credit card issuer, and have not been reviewed, approved, or endorsed by any credit card issuer.]
Remember, building or rebuilding your credit takes time, discipline, and responsible credit use. Consider these credit-building options and choose the one that suits your needs and financial goals. Don’t let your past credit challenges hold you back from a brighter financial future!
For more financial tips and advice, visit Personal Finances Blog.