One of the beauties of being in the digital age is having the best credit cards to build credit. It provides flexibility and helps you travel light. Interestingly, the majority of people now like to go cashless. Be that as it may, let’s get into it and find out what these cards are.
This will be determined by a number of factors, including whether you are just starting out with credit or already have some credit history, as well as factors such as your desire to pay an annual fee and your work position.
Your goal, regardless of who you are or how much money you make, should be to obtain the best first credit card for your specific needs and financial situation.
You want a card that will assist you in establishing and rewarding good credit card habits from the outset.
Credit cards can be a useful tool for building credit, whether you’re just starting out or looking for a second chance, but they’re not always straightforward to obtain.
Depending on the credit history restrictions of the card issuer, options may be limited.
15 Best Credit Cards to Build Credit
While there are thousands of credit cards available, most of them require some form of credit history to qualify.
This can make it difficult for people with less-than-perfect credit (usually a credit score of less than 580) or no credit at all to qualify for a card.
Secured credit cards are one of your finest options for obtaining credit. They function similarly to standard credit cards (they grant credit, charge interest, and may offer rewards), but they need a deposit (usually $200) before you may access a credit limit.
Whatever you deposit becomes your credit limit; if you want a bigger credit limit, you must deposit more money.
If you fail to make payments, your security deposit serves as collateral. But don’t worry about losing that money; if you pay your balance in full and terminate your account, your deposit is refunded.
Without much ado, let’s check out the best credit cards to build credit.
1. Petal® 2 “Cash Back, No Fees” Visa® Credit Card
The Petal 2 “Cash Back, No Fees” Visa Credit Card is suitable for applicants with no credit history because it evaluates a variety of other variables, such as bank statements and earnings, to establish eligibility.
However, if you do have a credit history, it is considered in the lending decision.
The Petal 2 card has no fees, including no annual fee, late payment fee, or international transaction cost.
It also has a rewards program that rewards people who pay their bills on time with increased returns.
Pros and Cons
| Pros | Cons |
| There is no need for a credit history (though if you do have one, it will be considered). | There are no special financing offers. |
| There are no fees of any kind. | There are no special financing offers. |
| 1% cash back on qualifying purchases immediately and up to 1.5% cash back after 12 on-time monthly payments; 2% to 10% cash back at select businesses | |
| Credit limits range between $300 and $10,000. |
2. Discover it® Secured Credit Card
The Discover it® Secured Credit Card is great for consumers searching for a secured card that offers many of the same benefits as a regular card, such as a generous cash-back program, no annual fee, and no foreign transaction fees.
Cardholders get cash back on all everyday purchases, with higher returns at gas stations and restaurants.
Furthermore, after seven months, Discover will automatically assess your credit card account to see whether you may switch to an unsecured line of credit and return your deposit.
To open a Discover It® Secured Credit Card, you must make a minimum deposit of $200 and a maximum deposit of $2,500. Your credit limit is equal to the amount of your deposit.
Pros and Cons
| Pros | Cons |
| Cash-back program | Earnings are limited by the cash-back program. 2% cash back at gas stations and restaurants on up to $1,000 in total purchases each quarter, then 1% |
| a hefty welcome bonus | A low credit line restricts cardholders from charging expensive items or multiple bills. |
| After seven months, Discover will automatically assess your credit card account to see if you can switch to an unsecured line of credit and return your deposit. |
3. U.S. Bank Cash+® Visa® Secured Card
Consider the U.S. Bank Cash+® Visa® Secured Card if you want to develop credit while getting cash back.
The U.S. Bank Cash+ card provides up to 5% cash back on specific purchases. If you stay under your credit limit and pay your bills on time, U.S. Bank may eventually upgrade you to the U.S. Bank Cash+® Visa Signature® Card.
Your security deposit will be reimbursed once you have been upgraded.
New cardholders must make a deposit of $300 to $5,000, which serves as your credit line.
Pros and Cons
| Pros | Cons |
| There is no annual charge. | There is no welcoming offer. |
| You can earn cash back on regular purchases, which is a unique feature for a secured credit card. | The APR is high. |
| If you pay your bills on time and keep within your credit limit, you may be able to upgrade to an unsecured card. | A 3% fee is applied to purchases made outside of the United States. |
| The ability to adjust the due date of your payment | To open the card, a deposit of $300 to $5,000 is required. |
4. Capital One Platinum Secured Credit Card
If you want a secured card but can’t afford the standard $200 deposit, consider the Capital One Platinum Secured Credit Card.
Capital One automatically considers cardholders for a greater credit line in as little as six months with no additional deposit required, in addition to cheaper security deposits.
This card has a minimum security deposit of $49, $99, or $200, depending on your creditworthiness. If you qualify, you can get a $200 credit limit for just $49 or $99.
Pros and Cons
| Pros | Cons |
| There is no annual charge. | High variability APR |
| Deposits of $49, $99, or $200 are refundable. | There is no incentive scheme. |
| There is no cost for purchases made outside of the United States. | |
| The ability to adjust the due date of your payment |
5. Deserve Digital First Card™
The Deserve Digital First Card is ideal for anyone with no or minimal credit history who cannot afford a security deposit.
There are no yearly or foreign transaction fees. Cardholders can earn up to 1.5% cash back depending on how much they spend each billing cycle.
Furthermore, if you are authorized for the card, you will have immediate access to it and will be able to use it with Apple Pay.
Pros and Cons
| Pros | Cons |
| There is no annual charge. | Cash-back rates are divided into tiers based on how much you spend each billing cycle. |
| No prior credit history is required. | |
| There is no need for a security deposit. | |
| There is no cost for purchases made outside of the United States. |
6. U.S. Bank Altitude® Go Visa® Secured Card
The U.S. Bank Altitude® Go Visa® Secured Card is one of the market’s few travel-focused secured credit cards.
So, if you want to earn travel rewards on your purchases while also improving your credit, this card could be ideal.
This card has generous bonus spending categories that rival certain non-secured credit cards. Cardholders can also get a $15 credit for annual streaming service purchases.
Furthermore, there are no foreign transaction fees, and you can set your bill’s due date. New cardholders must make a deposit of $300 to $5,000, which serves as your credit line.
If you stay under your credit limit and pay your bills on time, U.S. Bank may eventually upgrade you to the U.S. Bank Altitude Go Visa Signature Card.
Your security deposit will be reimbursed once you have been upgraded.
Pros and Cons
| Pros | Cons |
| No annual fee | To open the card, a deposit of $300 to $5,000 is required. |
| You can earn travel points for regular purchases, which is a unique feature for a secured credit card. | There is no welcoming offer. |
| There is no cost for purchases made outside of the United States. | High APR |
| $15 off annual subscriptions to streaming services |
7. Discover it® Student Chrome
The Discover it® Student Chrome is distinguished by its low-maintenance rewards system and student-friendly bonus categories.
In addition, you will receive a free FICO score, reduced fees, and forgiveness for your first late payment. Furthermore, Discover claims that there is no FICO history requirement for this card.
Pros and Cons
| Pros | Cons |
| You get 2% back at restaurants and petrol stations on up to $1,000 in combined purchases per quarter, and 1% back on everything else. | Despite the absence of a foreign transaction fee, Discover is not as readily accepted abroad as other credit cards. If you intend to travel internationally, create a backup plan. |
| Unlike Discover’s other student card, there is no need to “activate” your bonus points. | |
The annual charge is zero dollars. Discover also offers a signature bonus to new members. |
8. Discover it® Student Cash Back
The Discover it® Student Cash Back is our top recommendation for students who want to build credit while in college. To apply, you must be over the age of 18 and a US citizen.
This card offers a significant cash-back program as well as a welcome bonus. It also has no foreign transaction fees, so you can study abroad or travel outside the United States without having to pay the standard 3% fee that other cards impose.
In addition, there is a handy 0% intro APR on new purchases for the first six months (after that, 18.24%–27.24% variable).
Pros and Cons
| Pros | Cons |
| Cash-back program | Each quarter, cash-back categories must be activated. |
| a hefty welcome bonus | Earnings are limited by the cash-back program. Enroll every quarter to earn 5% cash back in various categories on up to $1,500 in quarterly purchases, thereafter 1%. |
| To apply for this card, you must be a U.S. citizen and a college student. |
Conclusion
There are a variety of simple credit cards available that can help you develop credit while also earning incentives.
While a credit card can be an easy way to develop a good credit history, you must use it properly.
When you get a credit card, be sure you spend within your means and pay your debt in full and on time.
Frequently Asked Questions
What is the best type of credit card to get to build your credit?
Secured credit cards are one of your finest options for obtaining credit. They function similarly to traditional credit cards (they extend credit, charge interest, and may offer rewards), but they require a deposit (typically $200) before you can access a credit limit.
What is the easiest credit card to get to establish credit?
The Self Visa® Secured Card provides a unique way for persons with no or low credit to create a credit history. It does not demand an upfront security deposit or a credit check, unlike most secured cards.
How many cards do I need to build credit fast?
Two to three credit card accounts, in addition to other sources of credit, are generally suggested if your goal is to obtain or maintain a strong credit score. This combination may be beneficial to your credit mix. Lenders and creditors like a diverse range of credit kinds on your credit record.
Can I get a credit card with no credit?
It is achievable, and while it will require some effort, the advantages will far outweigh the effort. In fact, certain credit cards are specifically developed for this type of person. As a result, some people require collateral.
Can I get a credit card with a 5,000 limit?
Visa Signature-branded credit cards, such as the Chase Sapphire Preferred® Card, often have a $5,000 or higher starting credit limit.
How can I build my credit quickly?
Begin by making timely payments. Then, focus on paying off old debt and adding new credit lines to your portfolio. Maintain excellent credit habits such as keeping balances low and avoiding unnecessary credit inquiries while your credit score rises.
Which bank credit card is hard to get?
The American Express Centurion Card is the most difficult to obtain. Amex Centurion, sometimes known as the “Black Card,” requires an invitation to obtain.
Can I get a credit card in 5 days?
Although you may be approved for a credit card nearly immediately if you apply online, the card may take up to ten business days to arrive in the mail. Approval may take longer if you applied for the card by mail or over the phone.
What happens if I don’t pay my credit card for five years?
The card company will eventually charge off your account. That means it will cancel your credit card, declare a loss, and send the amount to collections. The card company may have its own internal collection agency or may sell the debt to a third-party collection agency.
How long do you need a credit card to build credit?
To get a FICO credit score, you must have at least one credit account open and reporting to at least one of the main credit agencies (Experian, TransUnion, and Equifax) for at least six months.
