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Home Credit Cards Best Credit Cards for Building Credit

Best Credit Cards for Building Credit in August, 2022

Credit card with FICO gauge on the top representing credit building

At a glance

Good credit-building cards report to all three credit bureaus and are available to less-experienced borrowers.

Written by Kari Dearie

Reviewed by Robert Jellison

Jul 18, 2022

Fresh advice you can trust

We promise to always deliver the best financial advice that we can. That's our first priority, and we take it seriously. Our writers and editors follow strict editorial standards and operate independently from our advertisers and affiliates. Learn more about how we make money.

Credit Cards for Building Credit

Credit Card Best For Credit Score Annual Fee Welcome Bonus Apply Now
Discover It secured credit card Discover it® Secured Credit Card Overall 300–850 $0 Cashback Match Apply
Capital One Platinum credit card Capital One® Platinum Secured Credit Card Secured 300–850 $0 N/A Apply
Prosper Card Prosper® Card Unsecured (No Deposit) 300–850 $0–$39 N/A Apply
OpenSky Secured Visa credit card OpenSky® Secured Visa® Credit Card Easy to Get 300–850 $35 N/A Apply
Deserve Pro Mastercard Deserve® PRO Mastercard No Annual Fee 580–850 $0 N/A Apply
Petal 2 cash back no fees visa credit card Petal® 2 "Cash Back, No Fees" Visa® Credit Card No SSN Requirement 500–850 $0 N/A Apply
Discover it student cash back credit card Discover it® Student Cash Back Students 580–850 $0 Cashback Match Apply

Table of Contents

  1. Best credit cards for building credit
  2. Do credit cards really build credit?
  3. Which credit cards can I use to build credit?
  4. How do I build credit with a credit card?

Using credit cards to build credit is a tried-and-true way to establish a borrowing history. Without credit, you may struggle to secure loans or score some jobs and housing. However, credit cards vary widely, and which ones you can get depends on your credit history.

This can make building credit tricky, as new borrowers only qualify for a small number of credit cards. Luckily, there are options out there, you just need to find the right one for you. To build credit with a credit card, look for options that report to the three major credit bureaus, as credit reporting is one of the fastest ways to establish your borrowing history.

What makes a credit card good for credit building beyond that will depend on your borrowing needs, including whether you can afford a credit card security deposit or want to earn cashback rewards. To start your search, check out our top picks for the best credit cards for building credit.

Best credit cards for building credit

Below are the top credit cards you can use to build credit.

Best overall credit card to build credit

Discover It secured credit card Apply Now

on Discover's secure site
or call (800) 347-2683

Discover it® Secured Credit Card

4.8

Authority

Rates & Fees

Minimum Deposit
$200
Annual Fee
$0
Regular APR
24.49% (variable)
Rewards Rate
1% - 2%
Recommended Credit Score
300–850
Poor Fair Good Excellent
300 850

Why It's Great

Our top choice of credit-building credit cards is easily the Discover it® Secured credit card. As a secured card, it requires a security deposit that will equal your initial credit limit. However, the deposit can be as little as $200 and is fully refundable when you cancel your account or upgrade to an unsecured card.

What makes the Discover it® Secured credit card so desirable is that it offers cashback rewards—an extreme rarity among credit cards for no credit. Here’s how the rewards work:

  • 2% cash back on gas and restaurant purchases (up to $1,000 each quarter)
  • 1% cash back on all other purchases (unlimited)
  • 1-for-1 cashback match in your first 12 months (every dollar you earn in cash back will be doubled in your first year of card ownership)

In addition to the generous rewards program, there’s no annual fee or foreign transaction fees. What’s more, you get a free monthly FICO score, so you can track your credit-building progress.

Pros & Cons

Pros:

  • No annual fee
  • 2% cash back on gas station and restaurants
  • 1% cash back on all other purchases
  • Dollar-for-dollar cashback match after 12 months
  • Free monthly access to FICO score

Cons:

  • High annual percentage rate (APR)
  • Maximum deposit of $2500
  • Rewards rates cap out at $1000 per quarter
  • High penalty fees

Card Details

  • Issuer: Discover
  • Annual fee: $0
  • Regular APR: 23.74% (variable)
  • Minimum security deposit: $200
  • Cash advance APR: 25.74% (variable)
  • Balance transfer APR: 10.99%–23.74% (variable)
  • Cash advance fee: $10 or 5% (whichever is greater)
  • Balance transfer fee: 3%–5%
  • Rewards rate: 1%–2%
  • Foreign transaction fee: None
  • Late payment fee: Up to $41

Best secured credit card to build credit

Capital One Platinum credit card Apply Now

on Capital One's secure website
or call (800) 227-4825

Capital One® Platinum Secured Credit Card

4.0

Authority

Rates & Fees

Minimum Deposit
$49
Annual Fee
$0
Regular APR
24.99% (variable)
Rewards Rate
N/A
Recommended Credit Score
300–850
Poor Fair Good Excellent
300 850

Why It's Great

Building credit tends to come at a cost. Cards available to borrowers with bad credit, limited credit, or no credit at all, usually charge high fees and security deposits.

The Capital One Platinum Secured breaks the trend by providing an inexpensive option for building credit. Along with its credit reporting to the three major bureaus, the Capital One Platinum Secured offers:

  • No annual fee
  • No foreign transaction fees
  • Flexible due dates
  • A flexible security deposit
  • Credit limit increases
  • CreditWise, a virtual credit monitoring service

Secured credit cards usually match your initial credit limit to your security deposit. With the Capital One Platinum Secured, you can put down as little as $49 and still be offered a $200–$1,000 initial credit limit with potential for credit limit increases, making it a uniquely cheap secured card option.

Additionally, Capital One offers a variety of credit tracking perks, including free credit scores and comprehensive breakdowns of changes to your credit report.

Pros & Cons

Pros:

  • No annual fee
  • Potential for increased credit limit after six months
  • Credit monitoring
  • Flexible deposit

Cons:

  • No rewards or sign-on bonuses
  • High APR

Card Details

  • Issuer: Capital One Bank
  • Annual fee: $0
  • Regular APR: 26.99% (variable)
  • Security deposit: $49, $99, or $200
  • Cash advance APR: 26.99% (variable)
  • Balance transfer APR: 26.99% (variable)
  • Cash advance fee: $10 or 3% (whichever is greater)
  • Balance transfer fee: 0%–3%
  • Initial credit limit: $200–$1,000
  • Foreign transaction fee: None
  • Late payment fee: Up to $40

Best unsecured credit card to build credit

Prosper Card Apply Now

on Prosper's secure site
or call (866) 615-6319

Prosper® Card

4.1

Authority

Rates & Fees

Annual Fee
$0–$39
Regular APR
19.74%–30.74% (variable)
Rewards Rate
N/A
Recommended Credit Score
300–850
Poor Fair Good Excellent
300 850

Why It's Great

For borrowers who want to establish credit but aren’t eager to put down a security deposit, finding a good option can be difficult. Most unsecured credit cards for bad credit charge exorbitant fees and offer less-than-favorable borrowing terms.

The Prosper® Card, however, doesn’t require a deposit and offers fairly gracious borrowing terms. For one, your initial credit limit will be between $500–$3,000 and your account will be automatically reviewed for credit limit increases.

This gives borrowers a comparatively high amount of buying power, as most similar cards only offer credit limits of $200–$300.

On the downside, it comes with an annual fee up to $39. However, this fee will be waived in your first year if you set up autopay on your account.

Pros & Cons

Pros:

  • No deposit required
  • No cash advance fees
  • Fast application
  • Credit limit increases available after 3 months
  • Foreign transactions are available

Cons:

  • High APR
  • $39 annual fee
  • No rewards
  • No welcome bonus or intro offers
  • Balance transfers not available

Card Details

  • Issuer: Coastal Community Bank
  • Annual fee: $0–$39
  • Regular APR: 19.74%–30.74% (variable)
  • Cash advance APR: 30.74% (variable)
  • Cash advance fee: None
  • Initial credit limit: $500–$3,000
  • Foreign transaction fee: 1%
  • Late payment fee: Up to $40

Easiest-to-get credit card to build credit

OpenSky Secured Visa credit card Apply Now

on OpenSky's secure site
or call (800) 859-6412

OpenSky® Secured Visa® Credit Card

4.5

Authority

Rates & Fees

Minimum Deposit
$200
Annual Fee
$35
Regular APR
17.64% (variable)
Rewards Rate
N/A
Recommended Credit Score
300–850
Poor Fair Good Excellent
300 850

Why It's Great

While there’s no such thing as a 100% guaranteed approval credit card for bad credit, the OpenSky® Secured Visa® is about as close as you can get. If you’re worried about qualifying for a credit card because of insufficient credit history or negative marks on your credit report, this may be the one for you.

The OpenSky® Secured Visa® won’t perform a credit check (also called a hard pull or hard inquiry) when you apply for the card. Not only does this raise your chances of approval, but it will prevent your credit score from dropping a few points due to a hard inquiry.

Additionally, the OpenSky® credit card will report your borrowing activities to all three major bureaus and allow you to set your own due date, making on-time payments more easily manageable.

Pros & Cons

Pros:

  • Low APR
  • No checking account required
  • High approval odds
  • Flexible due dates

Cons:

  • Requires a security deposit
  • $35 annual fee
  • Can’t upgrade to an unsecured card
  • No rewards

Card Details

  • Issuer: Capital Bank
  • Annual fee: $35
  • Regular APR: 17.39% (variable)
  • Cash advance APR: 17.39% (variable)
  • Cash advance fee: $6 or 5% (whichever is greater)
  • Minimum security deposit: $200
  • Initial credit limit: $200–$3000
  • Foreign transaction fee: 3%
  • Late payment fee: Up to $38

Best no-annual-fee credit card for building credit

Deserve Pro Mastercard Apply Now

on Deserve's secure website
or call (800) 418-2362

Deserve® PRO Mastercard

4.0

Authority

Rates & Fees

Annual Fee
$0
Regular APR
17.49%–24.49% (variable)
Rewards Rate
1%–3%
Recommended Credit Score
580–850
Poor Fair Good Excellent
300 850

Why It's Great

The Deserve® PRO Mastercard is an unsecured credit card available to borrowers with no credit score whatsoever. It scores major points as it comes with no annual fee and cashback rewards.

The Deserve® PRO is an especially great card for foreign employees, as you can qualify without an SSN, as long as you’re gainfully employed in the US. Better yet, it doesn’t charge foreign transaction fees, making it a good resource for traveling abroad.

As far as rewards, it offers:

  • 3% on travel (e.g., hotels, car rental, airlines, tourism, and general entertainment)
  • 2% on restaurants
  • 1% on everything else

However, there are relatively low caps each quarter, as you can only enjoy the 2%–3% cashback rate for up to $500 in spending. After that, the rewards rate will default to 1%.

Pros & Cons

Pros:

  • No deposit required
  • No annual fee or foreign transaction fees
  • 1%–3% cashback rewards
  • Available to professionals with no credit score

Cons:

  • No balance transfers or cash advances
  • Caps on cashback rewards
  • No introductory APR offers
  • No welcome bonuses

Card Details

  • Issuer: Celtic Bank
  • Annual fee: $0
  • Regular APR: 16.24%–23.24% (variable)
  • Rewards rate: 1%–3%
  • Foreign transaction fee: None
  • Late payment fee: Up to $25

Best credit card to build credit without an SSN

Petal 2 cash back no fees visa credit card Apply Now

on Petal's secure site
or call (855) 697-3825

Petal® 2 "Cash Back, No Fees" Visa® Credit Card

4.4

Authority

Rates & Fees

Minimum Deposit
$0
Annual Fee
$0
Regular APR
15.24%–29.24% (variable)
Rewards Rate
1% - 1.5%
Recommended Credit Score
500–850
Poor Fair Good Excellent
300 850

Why It's Great

Whether or not you’re a US citizen, the Petal® 2 credit card is a great credit card for building your credit. However, if you’re an international worker or otherwise non-citizen, this is an especially appealing option, as you don’t need a Social Security number (SSN) to apply.

The Petal® 2 offers a unique combination of no fees and cashback rewards. It doesn’t charge annual, monthly, late, or foreign transaction fees, and it offers the following rewards:

  • 1% cash back on all of your purchases
  • 25% cash back on all purchases after 6 on-time monthly payments
  • 5% cash back on all purchases after 12 on-time monthly payments
  • 2%–10% cash back on purchases made with select merchants

These generous perks make the card a lucrative option for new borrowers, and a great source of credit building as payments are reported to the three major bureaus.

However, not everyone will be approved for the Petal® 2. When you apply, you first go through a Petal® credit card pre-approval process, which will determine whether you’re eligible for the Petal® 2, Petal® 1, both cards, or neither card.

Pros & Cons

Pros:

  • No annual fee
  • No foreign transaction fees
  • No late payment fees
  • Cashback rewards
  • Available to people with no SSN

Cons:

  • Complicated rewards
  • Potentially high APR
  • No introductory APR
  • No balance transfers or cash advances

Card Details

  • Issuer: WebBank
  • Annual fee: $0
  • Regular APR: 12.99%–26.99% (variable)
  • Rewards rate: 1%–10%
  • Initial credit limit: $300–$10,000
  • Foreign transaction fee: None
  • Late payment fee: None

Best student credit card to build credit

Discover it student cash back credit card Apply Now

on Discover's secure site
or call (800) 983-1307

Discover it® Student Cash Back

4.6

Authority

Rates & Fees

Minimum Deposit
$0
Annual Fee
$0
Regular APR
12.99% – 21.99% (variable)
Rewards Rate
1% - 5%
Recommended Credit Score
580–850
Poor Fair Good Excellent
300 850

Why It's Great

One of the best financial moves you can make is to build your credit early. One great way to achieve this is by getting a student credit card if you’re enrolled in a college or university. Building your credit while in school gives you a leg-up when you enter the working world. And what better way to build credit than with a highly lucrative rewards card.

Along with no annual fee or foreign transaction fees, the Discover it® Student Cash Back card offers the following rewards:

  • 5% cash back on rotating categories (e.g., groceries, gas, dining) up to $1,500 each quarter
  • Unlimited 1% cash back on all other purchases
  • 1-for-1 cashback match in the first year

Keep in mind that you’ll need to sign up for the quarterly bonus cashback categories, so making the most out of this credit card requires some diligence.

Pros & Cons

Pros:

  • No annual fee
  • No foreign transaction fees
  • Cashback rewards
  • Cashback bonuses in the first year
  • Introductory offers on APRs and fees
  • No fee for first late payment

Cons:

  • May need cosigner to qualify
  • Complicated bonus rewards
  • Limited acceptance abroad

Card Details

  • Issuer: Discover
  • Annual fee: $0
  • Regular APR: 12.99%–21.99% (variable)
  • Cash advance APR: 24.99% (variable)
  • Balance transfer APR: 13.24%–22.24% (variable)
  • Cash advance fee: $10 or 5% (whichever is greater)
  • Balance transfer fee: 3%–5%
  • Rewards rate: 1%–5%
  • Foreign transaction fee: None
  • Late payment fee: Up to $40

Do credit cards really build credit?

Yes, credit cards really build credit. If your credit card issuer reports your borrowing activities to the credit bureaus (the major three are Equifax, Experience, and TransUnion), that information will be used to update your credit report. Your credit report is what lenders use to check your credit.

Using a credit card regularly and responsibly—meaning you don’t borrow too much and you always pay your bills on time—is an effective way to build credit. How dramatically your credit changes will depend on where it started. For example, someone with no credit history or a bad score might see big changes in credit score after they start using a credit card versus someone with a well-established credit history.

Which credit cards can I use to build credit?

You can use any credit card to build credit, including secured and unsecured cards. The most important feature to look for in a credit card for building credit is credit reporting. (That is, whether or not your credit card issuer reports your payments to any credit bureaus.)

Credit reporting is not legally required of lenders, but many still report your monthly borrowing activities to one or more of the major credit bureaus. For your credit card to be used to build credit, you need to ensure your lender reports. To find out whether a lender reports to the credit bureaus:

  • Check their website
  • Check the card’s rates and fees page
  • Check the card’s terms and conditions
  • Call the issuer directly and ask

How do I build credit with a credit card?

To build credit with a credit card, follow these steps:

1. Choose the right card: Do your research ahead of time and only apply for a credit card you’re confident you can qualify for. Otherwise, you risk getting hard inquiries on your credit report for no reason. Hard inquiries are when a lender checks your credit history, an act that knocks a few points off your credit score.

2. Pay your bills on time: The most important thing to do when building credit is always pay your bills on time. Failing to pay your credit card bill could result in fees, penalty APR, and credit score damage. On the other hand, paying your bills in full and on time will likely improve your credit history.

3. Don’t borrow too much credit: One factor in your credit score is your credit utilization rate. This number represents how much credit you’re borrowing at any given time. Borrowing too much of your available credit will look bad, so try to limit how much you borrow each month.

4. Keep your credit accounts open: When finding the right card to build credit with, choose one that you can see yourself using for a long time. Try not to open a card thinking you’ll just close it in a year or two, as closing credit cards can hurt your credit score.

How we rate our credit cards

Finding the right credit card when you don't have established credit is tough. That's why we heavily weighted the following factors when determining the best credit cards to build credit:

  • Qualification requirements
  • Fees
  • Interest rates
  • Security deposits
  • Rewards and bonuses
  • Borrowing terms

These factors, among many others, are part of our 5-star credit card rating methodology for all card categories. Our star ratings are unbiased and independent of our affiliates and advertisers.

Kari Dearie

Editor

View Author

Kari Dearie is an editor for FinanceJar specializing in credit and personal finance. She previously managed a B2B website in the data privacy and digital compliance industry.

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