Best Credit Cards To Build Credit

Best Credit Cards To Build Credit 

If you're new to credit or have a less-than-great credit history, getting a credit card can help you build or repair your credit, but it's important to be responsible with it.

Most credit cards require a decent credit history, which can be tough if your credit score is low (usually under 580) or if you have no credit at all. One good option is a secured credit card. These cards work like regular credit cards, but you need to make a deposit, typically around $200, to get a credit limit.

The amount you deposit becomes your credit limit. If you want a higher limit, you'll need to deposit more. Your deposit acts as a safety net in case you don't make your payments. But don't worry, you can get your deposit back if you pay your balance in full and close your account.

Besides secured cards, there are other credit card options for people with no or poor credit who can't or don't want to put down a deposit.

These credit cards designed for people with no or poor credit to find the best ones for building or rebuilding credit. They considered things like the minimum deposit, fees, rewards, and the annual interest rate (APR).

Petal® 2 Visa® Credit Card

The Petal 2 "Cash Back, No Fees" Visa Credit Card is a good choice for people with fair, good, or no credit history. It's different from many other cards because it takes into account things like your bank statements and earnings to determine if you qualify, not just your credit history.

• Rewards: You can earn 1% cash back on certain purchases right away, and if you make 12 monthly payments on time, your cash back can increase to as much as 1.5%. Plus, you can earn 2% to 10% cash back at specific stores or merchants.
• Welcome Bonus: There's no special bonus for signing up.
• Annual Fee: This card doesn't have an annual fee, so you won't need to pay to use it.
• Interest Rate: The interest you'll pay on your balance can vary between 18.24% to 32.24%, depending on your creditworthiness.
• Balance Transfer Fee: There is no fee for transferring balances from other cards.
• Foreign Transaction Fee: When you use this card to make purchases in other currencies or while traveling abroad, there are no extra fees.

So, in a nutshell, the Petal 2 card is a good choice for those looking for a credit card with no fees. It also rewards you for making timely payments and is open to people with different credit backgrounds.

Discover it® Secured Credit Card

The Discover it® Secured Credit Card is a great choice for people who are new to credit or are working on rebuilding their credit. Here's what you need to know about it:

• Rewards: With this card, you can earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. For all other purchases, you get 1% cash back. The best part is that these cash back rewards are automatic.
• Welcome Bonus: At the end of your first year, Discover will match all the cash back you've earned. That's a nice bonus!
• Annual Fee: This card doesn't have an annual fee, so you won't have to pay to keep it.
• Interest Rate: The regular interest rate is 28.24% (Variable), which means you'll pay this rate on any balance you carry from month to month.
• Balance Transfer Fee: If you want to transfer balances from other cards, there's a 3% intro balance transfer fee, and in the future, it can go up to 5% (check the terms for details).
• Foreign Transaction Fee: You won't be charged any extra fees for using this card to make purchases in foreign currencies or while traveling.

This card is a good option because it offers cash back rewards on your everyday spending, and it has features like the ability to transition to an unsecured credit card after some time. To get started, you'll need to make a minimum deposit of $200, and your credit limit will be equal to that deposit.

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Discover it® Student Cash Back

The Discover it® Student Cash Back card is an excellent choice for students who want to start building a good credit history while in college. Here's what you should know about this card:

• Rewards: You can earn 5% cash back on everyday purchases at various places like grocery stores, restaurants, and gas stations, but there's a limit to how much you can earn each quarter. You need to activate this bonus each quarter. For all other purchases, you automatically get 1% cash back.
• Welcome Bonus: At the end of your first year, Discover will match all the cash back you've earned, which is a nice extra bonus.
• Annual Fee: You won't have to pay an annual fee to use this card.
• Interest Rate: This card has an introductory 0% APR (Annual Percentage Rate) for the first six months on purchases, which can help if you need to make big purchases. After the introductory period, the APR ranges from 18.24% to 27.24% (Variable).
• Balance Transfer Fee: If you decide to transfer balances from other cards, there's a 3% introductory fee, and in the future, it can go up to 5% (check the terms for more details).
• Foreign Transaction Fee: You won't be charged extra fees for using this card for purchases in foreign currencies or while studying abroad.

This card is ideal for students who want to start building their credit history. It offers cash back rewards, a welcome bonus, and even an introductory 0% APR. Plus, there are no foreign transaction fees. To apply, you need to be over 18 years old and a U.S. citizen. You don't need to make a minimum deposit to get this card.

Capital One Platinum Secured Credit Card

The Capital One Platinum Secured Credit Card is a good choice for people who are just starting to build their credit history and may not have a strong credit background. Here's what you need to know about this card:

• Rewards: This card does not offer any rewards, so you won't earn cash back or points on your purchases.
• Welcome Bonus: There is no special offer for new cardholders.
• Annual Fee: You won't need to pay an annual fee to keep this card.
• Interest Rate: The regular interest rate, also known as the APR, is 30.74% (Variable). This is the rate you'll pay on any outstanding balance if you don't pay your full bill each month.
• Balance Transfer Fee: You won't be charged a balance transfer fee, which is great if you want to move balances from other cards to this one.
• Foreign Transaction Fee: Using this card for purchases in foreign currencies or while traveling won't result in extra fees.

The standout benefit of this card is that it allows you to start with a lower security deposit, as low as $49, $99, or $200, depending on your creditworthiness. If you qualify, you can get a $200 credit limit with a smaller deposit. Also, Capital One may review your account in as little as six months and consider increasing your credit line without requiring an additional deposit.

This card is a good option for those who want to build their credit but may not have the means to make a larger deposit, which is often required for secured credit cards.

Capital One Platinum Credit Card 

The Capital One Platinum Credit Card is a good choice if you have fair to good credit and want to improve your credit score. Here's what you need to know about this card:

• Rewards: This card doesn't offer any rewards or cash back on your purchases.
• Welcome Bonus: There's no special bonus when you first get the card.
• Annual Fee: You won't have to pay an annual fee to use this card, so it won't cost you anything to keep it.
• Interest Rate: The regular interest rate (APR) is 30.74% (Variable), which is the rate you'll pay if you carry a balance on your card.
• Balance Transfer Fee: If you want to transfer balances from other cards to this one, there's a 3% fee on the amount you transfer, but it may be waived if Capital One offers a promotional APR.
• Foreign Transaction Fee: You won't be charged extra fees for using this card for purchases in foreign currencies or while traveling.

The standout benefits of this card are its travel-related features, which can save you money and provide protection when you're traveling. These benefits include no foreign transaction fees, travel accident insurance, auto rental collision damage waiver, roadside assistance, and 24-hour travel assistance services.

This card is suitable for people with fair to good credit who are working to build a stronger credit history. It's designed to help you achieve a better credit score, and it offers some useful travel-related perks. There's no need for a minimum deposit to get this card.

Deserve Digital First Card™

The Deserve Digital First Card™ is a suitable choice for individuals who have little to no credit history and may not be able to make a security deposit. Here's what you need to know about this card:

• Rewards: With this card, you can earn cash back of up to 1.5% based on the amount you spend each billing period.
• Welcome Bonus: There is no special bonus when you first get the card.
• Annual Fee: You won't have to pay an annual fee to use this card, so it's free to keep.
• Interest Rate: The regular interest rate, known as the APR, can vary between 14.99% to 24.99% (Variable), depending on your creditworthiness.
• Balance Transfer Fee: This card does not have a balance transfer fee, making it easy to move balances from other cards.
• Foreign Transaction Fee: There are no extra fees for using this card for purchases in foreign currencies or while traveling.

The standout benefits of this card include the absence of an annual fee and no foreign transaction fees. Cardholders can earn cash back on their purchases, and they have the convenience of adding the card to Apple Pay. This card is an excellent option for those with limited or no credit history who may not have the ability to make a security deposit. There is no minimum deposit required to get this card.

U.S. Bank Cash+® Visa® Secured Card

The U.S. Bank Cash+® Visa® Secured Card is a good option for those who want to build their credit while earning cash back rewards. Here's what you need to know about this card:

• Rewards: You can earn cash back in three ways. You get 5% cash back on your first $2,000 in combined eligible purchases each quarter in two categories you choose. You also get 2% cash back on eligible purchases in one everyday category of your choice, such as gas stations, grocery stores, or restaurants. For all other eligible purchases, you'll receive 1% cash back.
• Welcome Bonus: There is no special bonus when you first get the card.
• Annual Fee: You won't have to pay an annual fee to use this card, so it's free to keep.
• Interest Rate: The regular interest rate, known as the APR, is 29.99% (Variable). This is the rate you'll pay on any outstanding balance if you don't pay your full bill each month.
• Balance Transfer Fee: If you want to transfer balances from other cards to this one, you'll be charged either 3% of the transfer amount or a minimum of $5, whichever is greater.
• Foreign Transaction Fees: When you use this card for purchases in foreign currencies or while traveling, there is a 3% fee.

The standout benefit of this card is the opportunity to earn up to 5% cash back on specific purchases. If you stay within your credit limit and pay your bills on time, U.S. Bank may upgrade you to the U.S. Bank Cash+® Visa Signature® Card in the future, and your security deposit will be returned.

To get started with this card, new cardholders must make a deposit ranging from $300 to $5,000, which determines your credit limit.