When it comes to maintaining your financial health, one of the most important steps is build credit. A credit card that is appropriate for your situation may be an invaluable resource in your journey, regardless of whether you are beginning from zero or recovering from a credit history that is less than flawless.
If you use these credit cards in a responsible manner, they may assist you in establishing a solid credit history, which is necessary for obtaining loans, renting an apartment, and even getting certain employment.
Here is a comprehensive look at the top ten credit cards in the United States that are ideal for establishing credit.
1. Discover it® Secured Credit Card
- Overview: The Discover it® Secured Credit Card is an excellent option for individuals who are new to credit or looking to rebuild their credit history. Unlike many secured cards, it offers rewards on purchases, making it a standout choice.
- Key Features:
- Security Deposit: A minimum deposit of $200 is required, which becomes your credit limit.
- Rewards: Earn 2% cash back at gas stations and restaurants (on up to $1,000 in combined purchases each quarter) and 1% on all other purchases.
- No Annual Fee: You won’t have to worry about an annual fee eating into your rewards.
- Automatic Reviews: After eight months, Discover will automatically review your account to see if you can transition to an unsecured card.
- Why It’s Great for Building Credit: There is a possibility that responsible usage of Discover might result in an improved credit score and the ability to switch to an unsecured credit card. Discover reports to all three major credit agencies.
2. Capital One Platinum Secured Credit Card
- Overview: The Capital One Platinum Secured Credit Card is designed for people with limited or no credit history. It’s a secured card, but its unique feature is the ability to get a higher credit line with a lower deposit.
- Key Features:
- Flexible Deposit: Your deposit could be as low as $49, $99, or $200 for a $200 credit line, depending on your creditworthiness.
- Credit Line Increase: Access a higher credit line in as little as six months with responsible use.
- No Annual Fee: Helps you build credit without the burden of an annual fee.
- Why It’s Great for Building Credit: Capital One reports to all three major credit bureaus, and the possibility of a lower deposit makes it accessible for many.
3. Citi® Secured Mastercard®
- Overview: The Citi® Secured Mastercard® is another great option for those looking to build or rebuild credit. This card doesn’t offer rewards, but it provides a straightforward path to establishing credit.
- Key Features:
- Security Deposit: A deposit between $200 and $2,500 is required, which determines your credit limit.
- No Annual Fee: You can build credit without worrying about annual fees.
- Reports to All Three Major Credit Bureaus: Ensures your responsible credit behavior is reported to Equifax, Experian, and TransUnion.
- Why It’s Great for Building Credit: With no annual fee and the ability to choose your credit limit, this card provides flexibility while helping you build credit.
4. OpenSky® Secured Visa® Credit Card
- Overview: The OpenSky® Secured Visa® Credit Card is ideal for those who may have difficulty qualifying for other secured cards due to credit issues. It doesn’t require a credit check, making it accessible for many.
- Key Features:
- No Credit Check: Your approval is based on your ability to pay the deposit, not your credit history.
- Security Deposit: A refundable deposit of $200 to $3,000 is required.
- Reports to All Three Major Credit Bureaus: Helps build your credit with responsible use.
- Low Annual Fee: There is a $35 annual fee, which is relatively low compared to other secured cards.
- Why It’s Great for Building Credit: OpenSky’s no-credit-check policy makes it a good option for those with bad or no credit, providing an opportunity to build or rebuild credit with consistent reporting to credit bureaus.
5. Credit One Bank® Platinum Visa® for Rebuilding Credit
- Overview: The Credit One Bank® Platinum Visa® is designed for individuals looking to rebuild their credit. It offers a mix of rewards and credit-building potential, though it does come with an annual fee.
- Key Features:
- Rewards: Earn 1% cash back on eligible purchases such as gas, groceries, and services like mobile phone, internet, cable, and satellite TV.
- Credit Line Increases: Potential for periodic credit line increases with responsible use.
- Annual Fee: The annual fee ranges from $75 to $99 based on your creditworthiness.
- Reports to All Three Major Credit Bureaus: Helps you build credit with timely payments.
- Why It’s Great for Building Credit: The ability to earn rewards while rebuilding credit makes this card a compelling choice, despite the annual fee.
6. Capital One QuicksilverOne Cash Rewards Credit Card
- Overview: The Capital One QuicksilverOne Cash Rewards Credit Card is designed for those with fair credit, offering a flat-rate rewards program that is rare for cards in this category.
- Key Features:
- Rewards: Earn unlimited 1.5% cash back on every purchase, every day.
- Credit Line Reviews: Automatic reviews for credit line increases after six months of responsible use.
- Annual Fee: The card has a $39 annual fee.
- Why It’s Great for Building Credit: This card not only helps you build credit but also allows you to earn rewards, which is uncommon for credit-building cards.
7. Petal® 2 “Cash Back, No Fees” Visa® Credit Card
- Overview: The Petal® 2 Visa® is a unique card for those with no credit history. It doesn’t require a security deposit and offers a cash-back rewards program with no annual fees or other common credit card fees.
- Key Features:
- No Fees: No annual fees, late fees, or foreign transaction fees.
- Cash Back: Earn 1% cash back on all purchases right away. After 12 on-time payments, earn up to 1.5% cash back.
- Credit Reporting: Reports to all three major credit bureaus.
- Why It’s Great for Building Credit: Petal uses an alternative underwriting process that considers your banking history, making it accessible to those with limited or no credit history.
8. Deserve® EDU Mastercard for Students
- Overview: The Deserve® EDU Mastercard is tailored specifically for students with little or no credit history. It offers rewards and benefits that are ideal for young adults starting their credit journey.
- Key Features:
- No Annual Fee: This card is free to carry, making it a cost-effective option for students.
- Rewards: Earn 1% cash back on all purchases.
- No Security Deposit: Unlike many cards for those with limited credit, no deposit is required.
- Student Perks: Includes Amazon Prime Student subscription reimbursement (up to $59) when you use your card to pay for the membership.
- Why It’s Great for Building Credit: The Deserve® EDU card offers students a way to build credit with no fees and valuable perks, making it a solid option for young adults.
9. Bank of America® Customized Cash Rewards Secured Credit Card
- Overview: This secured card from Bank of America offers rewards similar to an unsecured card, making it an attractive option for those looking to build credit while earning cash back.
- Key Features:
- Rewards: Earn 3% cash back in a category of your choice (gas, online shopping, dining, travel, drug stores, or home improvement), 2% at grocery stores and wholesale clubs (on the first $2,500 in combined purchases each quarter), and 1% on all other purchases.
- Security Deposit: A minimum refundable security deposit of $200 is required.
- No Annual Fee: Build credit without worrying about annual fees.
- Credit Line Reviews: Potential for an unsecured card after demonstrating responsible use.
- Why It’s Great for Building Credit: This card offers a rewards program typically seen in unsecured cards, making it a strong choice for building credit.
10. U.S. Bank Secured Visa® Card
- Overview: The U.S. Bank Secured Visa® Card is a straightforward card that helps you build credit with responsible use. It doesn’t offer rewards, but it has a low annual fee and a flexible credit limit.
- Key Features:
- Security Deposit: A minimum deposit of $300 is required, which becomes your credit limit.
- Low Annual Fee: The card has a $29 annual fee, making it one of the more affordable secured cards.
- Reports to All Three Major Credit Bureaus: Ensures your credit activity is reported, helping you build credit.
- Why It’s Great for Building Credit: The U.S. Bank Secured Visa® Card offers a reliable way to build credit with a low annual fee and reports to all major credit bureaus.
How to Choose the Best Credit Card for Building Credit
When choosing a credit card to build or rebuild your credit, consider the following factors:
- Annual Fees: An annual cost is associated with many credit-building cards; however, there are solutions available that do not have this price. Consider the total cost of the charge in comparison to the advantages of the card.
- Security Deposit: A deposit that is refundable is required for secured credit cards. Consider whether or not you are able to pay the deposit, since it will be used to establish your credit limit.
- Credit Reporting: There are three main credit bureaus: Equifax, Experian, and TransUnion. Make sure that the card is reported to all of them. In order to improve your credit score, this is really important.
- Rewards: Although there are credit-building cards that give incentives, you shouldn’t make them your major focus or priority. One of your primary priorities should be to build credit in a responsible manner.
- Upgrade Potential: On some secured cards, the possibility to upgrade to an unsecured card is available when the cardholder has shown responsible usage of the card. In the future, you may not need to have to submit an application for a new card if you do this.
Tips for Building Credit Responsibly
- Make Timely Payments: Your current payment history is the single most important component that determines your credit score. Make sure that you never miss a payment deadline.
- Keep Balances Low: Your credit usage, which is the proportion of your credit limit that you utilize, should be kept below thirty percent at all times. High balances might have a detrimental effect on your credit score.
- Avoid Opening Too Many Accounts: When you apply for an excessive number of credit cards in a short period of time, it might reduce your credit score. Pay attention to the responsible management of one or two cards.
- Monitor Your Credit: If you want to keep track of your progress and make sure there are no mistakes that might influence your credit score, you should check your credit report on a regular basis.
Conclusion
Building up your credit is more of a marathon than a sprint. You are able to build a strong credit history by taking use of the appropriate credit card and using it in a responsible manner. This will allow you to take advantage of greater financial chances in the future.
These credit cards are among the greatest alternatives available in the United States for establishing or reestablishing credit, and each one of them offers a particular set of characteristics that are tailored to meet a certain set of requirements. Pick the one that is most suitable for your circumstances, and get started on establishing your credit right now.
