Do you need to improve your credit history or need better credit? Then, opting for and opening a new credit account and picking the right credit card can be the smartest way to build credit or rebuild or improve your overall credit score.
Credit cards are undoubtedly an effective tool to build great credit, whether you are starting or seeking an excellent second chance. But we can understand this is not easy, as limited options depend on a cardholder's credit history requirements. However, we have researched and chosen the perfect option that will not stop you from getting a good credit score, even if your credit history is poor.
But before we get into the topic, it is recommended to read about the Top 10 Starter Credit Cards to start building credit in detail by Bright Money!
What are the Best Credit Cards to use for Building Credit?
Here are some of the best Credit Cards for Building Credit:
- Capital One Platinum Secured Credit Card
- Capital One SavorOne Student Cash Rewards Credit Card
- Secured Chime® Credit Builder Visa® Credit Card
- Bank of America® Unlimited Cash Rewards Secured credit card
- 5. Petal® 2 “Cash Back, No Fees” Visa® Credit Card
- OpenSky® Secured Visa® Credit Card
1. Capital One Platinum Secured Credit Card
Do you want to build credit? Using this card could help you a lot. This card was created and offered to the users to build good credit through responsible usage. You can easily consider this card an excellent option for growing your credit. Below, we are mentioning some of this card's best features, which will help you decide why this could be a great option to start.
- There is no annual charge you need to pay
- Also, there are no fees for any balances you are transferring to APR
- No credit score is required to apply for the card, but it may be used if available
- No annual or hidden fees. See if you are approved in seconds
- There is no penalty for APR
- Zero foreign transaction fee
Some Cons:
- Late payment fees sometimes reach up to $40. Here setting automatic payments can help you to receive email and text alerts. Also, you can choose your monthly due date.
- High variable APR
- No rewards program
However, the pros are way more worthy than the cons that any user can ignore. Consider the flexibility and facilities that this card can offer. This credit card is great for responsible credit card users who want to quickly build, improve, or fix their credit score.
2. Capital One SavorOne Student Cash Rewards Credit Card
This card is excellent for credit building at no cost and with many rewards. Below, we are mentioning some of the best things about this card -
- The card has no annual fee
- The rewards here begin with the initial bonus of $50 for spending $100 in the first 3 months of opening the account
- 1 - 8% cash back on purchases
- Earn up to $500 a year by referring friends and family when they also get approval for a Capital One credit card
- No foreign transaction fee
- No membership fees
Some Cons:
- This card’s regular APR is pretty high, almost 26.99%, and variable.
- This card can be availed of by students only.
- A high interest rate is another negative thing.
3. Secured Chime® Credit Builder Visa® Credit Card
The Chime Credit Builder Visa Secured Card is an excellent option to help you build or establish great credit if it is your first time. With no annual fee or interest charges, you can easily gain lots of flexibility with this card. Some of them are-
- No interest
- No credit history needed
- No minimum deposit requirement
- The annual fee is $0
- There is no APR
Some Cons:
- No rewards available
- Must have a Chime® Checking Account.
- You must make a qualifying direct deposit of $200³ to your Chime checking account
4. Bank of America® Unlimited Cash Rewards Secured credit card
If you are a beginner and want to build or improve your overall credit, with this Bank of America Unlimited Cash Rewards Secured card. In that case, you can get the chance to establish or rebuild your credit besides earning a good cash-back rate on all and different eligible purchases.
- Get a 1.5% cash-back rate on different eligible purchases
- Accepts a 3% balance transfer fee
- Path to upgrade to an unsecured card
- The annual fee is $0
- Unlimited 1.5% cash back on all purchases
Some Cons:
- A minimum security deposit of $200 is required
- No meaningful perks
- There is no welcome bonus
- 28.24% variable APR
5. Petal® 2 “Cash Back, No Fees” Visa® Credit Card
This Petal 2 Visa Card, which WebBank issues, is another top card for your credit-building option. With simplicity and many rewards, this card has been considered a great option for beginners. The card also offers excellent rewards and credit education so that other than building credit, you can also learn to manage your card responsibly. Below, we are mentioning some features of the card -
- There is no annual fee or account opening fee required
- No need for a security deposit
- If you are pre-approved, there is no impact on your credit
- 1% cash back right away and sometimes up to 1.5% cash back
Some Cons:
- Balance transfers are not allowed
- There is no welcome bonus or any kind of intro APR
- The rewards are a little bit complicated
6. OpenSky® Secured Visa® Credit Card
If you want to build credit, even if you are starting or have a poor credit history, this OpenSky Secured Visa Card is just for you. You don’t need a credit check or a bank account to qualify for the account and the card. You can also get the security deposit back when you close your account.
- No credit check is required for the application
- Refundable security deposits are available at just $200
- Reports are made to all three credit bureaus for your better credit
Some cons:
- A $35 annual fee is applicable
- No rewards programs are available
- Deposit money is required
Conclusion
With so many different types of credit cards available in the market, finding the right one for credit-building needs is difficult. But a little research and thoroughly comparing a few cards can help you find the best fit for your needs.
You are all set to go once you decide what features and benefits you want in your credit-building credit card.
Must Read
How do balance transfers impact credit scores?
Best unsecured credit cards for bad credit
The best day to pay your credit cards
FAQS
1. Why is building credit important?
Building a good credit score is extremely important for making major financial moves. From having a mortgage loan to opening a credit card, sometimes for car insurance to getting your dream job, a good credit score matters.
2. What are the benefits of building credit?
When you build a good credit score, it will help you to deal with the approval odds for different financial products. Also, you can expect the best help, allowing you to qualify for lower interest rates and avail of robust credit card benefits.
3. Can I get approval for a credit card with no credit history?
Yes, getting approval for a credit card with no credit history is possible. This is possible with secured credit cards or starter credit cards, designed especially for beginners planning to own a credit card to build a good credit score.
4. How do I improve my credit score?
You need constant practice and responsible credit behavior to improve your credit score. For example - paying the bills on time, limiting your credit utilization ratio, and maintaining the balance.
5. How old do you have to be to get a credit card?
According to government rules, your minimum age should be 18 years or more to own a credit card. If you are between 18 and 21, a co-signer must sign your application as proof if you can not show your independent income.
References
https://money.com/best-credit-cards-to-build-credit/
https://www.lendingtree.com/credit-cards/best/build-credit/
https://www.creditkarma.com/creditcard/CCCapitalOne1012
https://www.bankrate.com/finance/credit-cards/how-to-choose-your-next-credit-card/#familiarize
