Identifying the best credit-building credit cards can be challenging with so many options available these days. Keep reading for our take on some of the best credit cards that can help you work your way to a healthy credit score.
In today’s world, having good credit is a bit like having a decent internet connection: while you can technically get by without it, it definitely makes many things a whole lot easier.
Of course, building good credit takes a bit more work than phoning up the cable company and asking for a bandwidth upgrade. Merely establishing enough credit to get a credit score requires six months, and reaching the top credit tiers can take years.
But — you have to start somewhere. For many consumers, the easiest first step is to open a credit card account; when used responsibly, one or two credit cards can both establish your credit profile and help you build respectable credit scores.
Secured | No/Limited Credit | Fair Credit | Bad Credit | Rewards | Student | Business
Best Secured Credit Cards to Build Credit
An option available to nearly any credit type — including those with bad credit or without any credit at all — secured credit cards require a deposit to open and maintain. That deposit acts as collateral for the account, keeping the issuer’s risk low.
In many cases, that lower risk benefits both the issuer and the cardholder, as it allows for lower interest rates and fees. Some of our top-rated secured credit cards even come with purchase rewards that can help you save money while you build credit.
- Better than Prepaid...Go with a Secured Card! Load One Time - Keep On Using
- Absolutely No Credit Check or Minimum Credit Score Required
- Automatic Reporting to All Three National Credit Bureaus
- 9.99% Low Fixed APR - Your Rate Won’t Go Up Even if You Are Late
- Activate Today with a $200 Minimum Deposit - Maximum $1,000. * Increase Your Credit Limit up to $5,000 by Adding Additional Deposits Anytime
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
N/A | N/A | 9.99% | $48 | Poor/Fair/Limited/Damaged |
- Earn 3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores, or home improvement/furnishings and 2% cash back at grocery stores and wholesale clubs on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%
- Unlimited 1% cash back on all other purchases
- A minimum refundable security deposit of $300 (maximum of $4,900) is required to open this account
- Access your FICO® Score updated monthly for free, within your Mobile Banking app or in Online Banking
- Optional overdraft protection option helps prevent declined purchases, returned checks or other overdrafts when you link your eligible Bank of America® checking account to your credit card. Transfer fees may apply.
- $0 annual fee
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
N/A | N/A | 23.99% Variable | $0 | Bad/Limited |
- A secured credit card designed to help establish, strengthen or rebuild credit
- A minimum refundable security deposit of $300 (maximum of $4,900) is required to open this account
- Access your FICO Score updated monthly for free within your Mobile Banking app or in Online Banking
- Your account will periodically be reviewed, and, based on your overall credit history (including other credit cards and loans), you may qualify to have your security deposit returned. Not all customers will qualify.
- $0 annual fee
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
N/A | N/A | 22.99% Variable | $0 | Bad/Limited |
The deposit you make to open a secured credit card is just that: a deposit. It’s not a fee, which means you can get your deposit back simply by closing your account (provided it’s in good standing — i.e., you don’t have an outstanding balance). Of course, some secured cards do have annual fees, which are not refundable.
Your secured credit card may also be eligible to be automatically upgraded to an unsecured credit card when your credit profile improves. If your card is upgraded to an unsecured credit card, your full deposit will be refunded to you.
Best Credit-Building Cards for No/Limited Credit
Contrary to the common saying, “no news is good news,” having no credit profile, or a very limited one, is not good news to credit card issuers. Without a way to gauge your credit risk, they tend to assume the (almost) worst.
While finding a credit card without a credit score is likely easier than finding one with a poor credit score, your method will be similar: look for cards designed for your situation. A number of issuers offer entry-level unsecured cards designed for people who need to establish and build credit.
- Pay no annual fee
- Be automatically considered for a higher credit line in as little as 6 months
- Fraud coverage if your card is lost or stolen
- Use online banking to access your account, even from your smartphone, with our mobile app
- Check out quickly and securely with a contactless card, without touching a terminal or handing your card to a cashier. Just hover your card over a contactless reader, wait for the confirmation, and you're all set.
- Pay by check, online or at a local branch, all with no fee - and pick the monthly due date that works best for you
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
N/A | N/A | 26.99% (Variable) | $0 | Average, Fair, Limited |
- All credit types welcome to apply!
- Free access to your Vantage 3.0 score From TransUnion* (When you sign up for e-statements)
- Monthly reporting to the three major credit bureaus
- See if you’re Pre-Qualified without impacting your credit score
- Fast and easy application process; results in seconds
- Free online account access 24/7
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
See website for Details | N/A | 25.90% - 29.99% | See website for Details | Bad, Poor Credit |
- Earn unlimited 1.5% cash back on every purchase, every day
- Earn cash rewards without signing up for rotating categories
- Be automatically considered for a higher credit line in as little as 6 months
- Monitor your credit profile with the CreditWise® app, free for everyone
- $0 fraud liability if your card is ever lost or stolen
- No limit to how much cash back you can earn, and cash back doesn't expire for the life of the account
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
N/A | N/A | 26.99% (Variable) | $39 | Average, Fair, Limited |
Once you’ve obtained your first card, be sure you’re building your credit the right way. The most important thing to do is to always make at least the minimum required payment before your due date each billing cycle.
Late payments that are made within 30 days of your due date won’t be reported to the credit bureaus, but they will usually come with pricey late fees. Payments more than 30-days late are considered delinquent and will be reported to the bureaus. Delinquent payments can knock dozens of points off of your credit scores.
Best Credit-Building Cards for Fair Credit
Although more than 1 in 10 consumers believe that you start out with a perfect credit score, that’s simply not the case. Perfect credit scores are certainly possible, but it can take years to build up enough positive payment history and credit profile length to reach that auspicious height.
Most consumers who are just starting out will have fair credit before they have good credit — but that’s OK. Fair credit opens up a few more doors than no credit at all, and you can easily use fair-credit card options to boost your score higher up the FICO food chain.
- Pay no annual fee
- Be automatically considered for a higher credit line in as little as 6 months
- Fraud coverage if your card is lost or stolen
- Use online banking to access your account, even from your smartphone, with our mobile app
- Check out quickly and securely with a contactless card, without touching a terminal or handing your card to a cashier. Just hover your card over a contactless reader, wait for the confirmation, and you're all set.
- Pay by check, online or at a local branch, all with no fee - and pick the monthly due date that works best for you
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
N/A | N/A | 26.99% (Variable) | $0 | Average, Fair, Limited |
- Earn unlimited 1.5% cash back on every purchase, every day
- Earn cash rewards without signing up for rotating categories
- Be automatically considered for a higher credit line in as little as 6 months
- Monitor your credit profile with the CreditWise® app, free for everyone
- $0 fraud liability if your card is ever lost or stolen
- No limit to how much cash back you can earn, and cash back doesn't expire for the life of the account
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
N/A | N/A | 26.99% (Variable) | $39 | Average, Fair, Limited |
- Earn 1 Membership Rewards® point for every eligible dollar you spend
- You can get double Membership Rewards® points on every dollar of eligible travel purchases—such as prepaid hotel stays, vacation packages, and cruises—when you use your card to book your trip through AmexTravel.com
- Amex Offers rewards you at places you like to shop, dine, travel, and more. Simply log in to your account or use the American Express® App to add offers to your card. Then use that same card to pay and enjoy rewards directly on your statement.
- Plan It® is a payment option that lets you split up purchases of $100 or more into clear and simple monthly payments with a fixed fee and no interest
- $0 annual fee
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
N/A | N/A | 23.99% Variable | $0 | Fair/Good |
As your credit profile grows, you’ll want to pay attention to more than just your payment history (though that’s still 35% of your FICO Score). Those with the best credit scores also do well in the other factors that are considered in credit score calculations.
For example, you’ll want to keep an eye on your balances, as using a lot of your available credit can lower your credit score. And you should be careful to avoid opening too many new accounts, since hard inquiries and new accounts can impact your new credit and account age factors.
Best Credit-Building Cards for Bad Credit
Whether you made one mistake early in your credit journey, or have made several through the years, it doesn’t take much to wind up with a bad credit score.
On the bright side, there are plenty of credit card options available for bad credit — they’re just not always ideal. Unsecured credit cards for bad credit will tend to have higher rates and fees, while secured credit cards will require upfront deposits.
- No annual fee
- Unlike a prepaid card, there is regular reporting to the 3 major credit bureaus
- Accepted at millions of locations worldwide
- Make the minimum required security deposit and you'll get an initial credit line of $200. Plus, deposit more money before your account opens to get a higher credit line
- Access to an authorized bank account is required to make your $49, $99 or $200 refundable security deposit
- Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
N/A | N/A | 26.99% (Variable) | $0 | Limited, Bad |
- Earn 3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores, or home improvement/furnishings and 2% cash back at grocery stores and wholesale clubs on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%
- Unlimited 1% cash back on all other purchases
- A minimum refundable security deposit of $300 (maximum of $4,900) is required to open this account
- Access your FICO® Score updated monthly for free, within your Mobile Banking app or in Online Banking
- Optional overdraft protection option helps prevent declined purchases, returned checks or other overdrafts when you link your eligible Bank of America® checking account to your credit card. Transfer fees may apply.
- $0 annual fee
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
N/A | N/A | 23.99% Variable | $0 | Bad/Limited |
- All credit types welcome to apply!
- Free access to your Vantage 3.0 score From TransUnion* (When you sign up for e-statements)
- Monthly reporting to the three major credit bureaus
- See if you’re Pre-Qualified without impacting your credit score
- Fast and easy application process; results in seconds
- Free online account access 24/7
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
See website for Details | N/A | 25.90% - 29.99% | See website for Details | Bad, Poor Credit |
The best method for rebuilding a bad credit score will depend mostly on what’s dragging down your credit score in the first place. For instance, if high balances and maxed-out credit cards are at fault, then paying down your debts is the best way to boost your score.
At the same time, if late payments or defaulted credit accounts have done the damage, then your best option is likely to work on building a positive payment history and giving the negative items time to season; the older items become, the less impact they tend to have on your scores.
Best Rewards Credit Cards to Build Credit
As a country with more credit cards than people, it’s easy to see that Americans love their credit cards. And credit card issuers love cardholders, so much so that the market is positively flooded with options for just about every credit type.
That abundance of options means that competition is fierce, which definitely works in consumers’ favor. For instance, even credit-building credit cards are competing for attention, which means you can find a number of options for earning solid purchase rewards while you build credit.
- Earn unlimited 1.5% cash back on every purchase, every day
- Earn cash rewards without signing up for rotating categories
- Be automatically considered for a higher credit line in as little as 6 months
- Monitor your credit profile with the CreditWise® app, free for everyone
- $0 fraud liability if your card is ever lost or stolen
- No limit to how much cash back you can earn, and cash back doesn't expire for the life of the account
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
N/A | N/A | 26.99% (Variable) | $39 | Average, Fair, Limited |
14. Discover it® Secured
This card is currently not available.
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
N/A | N/A | N/A | N/A | N/A |
The Discover it® Secured offers bonus rewards up to the maximum quarterly spend and unlimited rewards on all other purchases, all with no annual fee.
15. SunTrust Secured Credit Card with Cash Rewards
The SunTrust Secured Credit Card with Cash Rewards has a lot going for it as a credit-building card, not the least of which is that it provides cash back on every purchase, plus bonus cash back on gas and grocery purchases.
- Earn 2% cash back on up to $6,000 in combined gas and grocery purchases each year
- Earn unlimited 1% cash back on all other purchases
- Pay a $32 annual fee
Another great feature of the SunTrust Secured Credit Card is that it’s upgradable, which means SunTrust will automatically upgrade the account to an unsecured credit card when the cardholder has shown significant credit improvement.
One important thing to keep in mind when it comes to rewards credit cards is that rewards should never be a reason to spend more than you can afford to repay right away. Interest fees on carried balances will typically outweigh any potential rewards, making it a losing proposition.
You should also determine if paying an annual fee for a rewards card (versus a card with no annual fee but no rewards) is worth the extra cost. If you won’t actually earn enough rewards to offset the annual fee, you may want to reconsider your card choice.
Best Student Credit Cards to Build Credit
Given that you need to be at least 18-years-old to get a credit card — or 21-years-old if you don’t have a cosigner or independent income — few students will have particularly robust credit histories (or any at all).
Enter: the student credit card. Typically requiring proof of enrollment to qualify, student credit cards generally have flexible credit requirements, low fees, and even student-centered perks all designed to help students build good credit while in college.
- Earn 1% cash back on all your purchases. Pay on time to boost your cash back to a total of 1.25% for that month
- Enjoy no annual fee and no foreign transaction fees
- You can help build your credit with responsible use of a card like this
- Get Eno®, your Capital One® assistant, to manage your account via text, receive alerts, and shop safer online
- Pick the monthly due date that works best for you
- Be automatically considered for a higher credit line in as little as 6 months
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
N/A | N/A | 26.99% (Variable) | $0 | Average, Fair, Limited |
- Earn a $200 cash rewards bonus after making at least $1,000 in purchases in the first 90 days of your account opening
- Earn 3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores, or home improvement/furnishings and 2% cash back at grocery stores and wholesale clubs on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%
- Unlimited 1% cash back on all other purchases
- 0% introductory APR on new purchases and balance transfers for 12 billing cycles (3% balance transfer fee applies)
- Optional overdraft protection option helps prevent declined purchases, returned checks or other overdrafts when you link your eligible Bank of America® checking account to your credit card. Transfer fees may apply.
- $0 annual fee
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
0% for 12 billing cycles | 0% for 12 billing cycles | 13.99% - 23.99% Variable | $0 | None/Limited |
- Earn 25,000 bonus points ($250 value) if you make at least $1,000 in purchases in the first 90 days of account opening
- Earn unlimited 1.5 points for every $1 you spend on all purchases everywhere
- No blackout dates or restrictions apply, and points never expire
- 0% introductory APR on new purchases for 12 billing cycles
- No foreign transaction fees
- $0 annual fee
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
0% for 12 billing cycles | N/A | 14.99% - 22.99% Variable | $0 | None/Limited |
Student credit cards can be a great training ground for young adults for a variety of reasons, including the generally low fees. But the secondary benefits typically offered can also help provide a smoother learning experience.
For instance, most student credit cards won’t increase your APR if you make a late payment, and some cards will even waive your first late payment fee. Some options may also offer bonus rewards or incentives for positive credit behaviors, like a boost to your rewards rate for on-time payments.
Best Business Credit Cards to Build Credit
If building up a good consumer credit score sounds like a lot of work, it can pale in comparison to building business credit. You’ll need at least three business trade lines to even qualify for some business credit scores, let alone to reach a boast-worthy number.
Business credit cards are often a simple way to add to your business credit-building strategy. As with consumer credit cards, however, business cards will have specific credit requirements. Those looking to establish and build business credit should choose business credit cards with flexible credit requirements.
19. Capital One® Spark® Classic for Business
This card is currently not available.
Intro (Purchases) | Intro (Transfers) | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|---|
N/A | N/A | N/A | N/A | N/A |
The Capital One® Spark® Classic for Business is an unsecured business credit card typically available to applicants with fair credit or better.
20. BBVA Secured Visa® Business Credit Card
The BBVA Secured Visa® Business Credit Card is available in select states and requires a minimum deposit of $500 to establish a credit line. You can increase your deposit — and, thus, your total credit line — at any time (in $100 increments).
- Earn bonus points in categories you select, including office supplies, utilities, and travel
- Earn 1X point per $1 on all other purchases
- Pay no annual fee the first year, then $40
The card also earns purchase rewards, waives the first year’s annual fee, and offers individual employee cards at no additional cost.
21. Wells Fargo Business Secured Credit Card
The Wells Fargo Business Secured Credit Card provides a business credit line of up to $25,000, equal to the amount of your initial deposit, and up to 10 employee cards.
- Earn 1.5% cash back on every purchase made with your card, redeemable as a statement credit or check
- Access credit lines from $500 to $25,000
- Pay $25 annual fee
Once you’ve grown your business credit profile and demonstrated positive payment behaviors, Wells Fargo may automatically upgrade your secured card to an unsecured credit card and refund your deposit.
Building business credit requires many of the same positive credit behaviors as building consumer credit, including always, always, always paying your debt on time and as agreed. Business credit scoring agencies also look at your outstanding balances, credit utilization, and the number of trade experiences.
More than your financial history is up for grabs in business credit scoring, however. Experian, for instance, also looks at your company’s public records and business demographics (age, size, etc.) when calculating your business credit score.
(The information related to Wells Fargo Business Secured Credit Card has been collected by CardRates.com and has not been reviewed or provided by the issuer or provider of this product or service.)
Use Your New Card Responsibly to Build Credit
Over the last few decades, America’s economic and social landscapes have shifted dramatically. Analog is out, and we now have digital — well, digital everything. And it’s all five times as expensive.
So, while you could once get by without things like high-speed internet and a solid credit score, today’s world doesn’t make it so easy. Modern Americans usually need loans to get new cars and houses — and WiFi to get everything else.
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