If you lack a credit history or have poor credit, opening a credit card can be a smart way to build or rebuild credit — as long as you practice responsible financial behavior. Show
While there are thousands of credit cards available, most require some sort of credit history in order to qualify. This can make it hard for people with less than stellar credit (typically, a credit score below 580), or no credit at all, to qualify for a card. Secured credit cards are one of your best chances at qualifying for credit. They're similar to traditional cards (they extend credit, charge interest and may offer rewards) but require you to make a deposit (typically $200) in order to access a credit limit. Whatever amount of money you deposit becomes your credit limit — if you want a higher credit limit, you'll need to deposit more money. Your security deposit acts as collateral if you fail to make payments. But don't worry about losing that money; your deposit is refundable if you pay your balance in full and close your account. In addition to secured cards, there are some other credit card options for people with no credit or poor credit who don't want to — or are unable to — put down a deposit. While a credit card can be an easy way to build a strong credit history, you need to make sure you use it responsibly. After you open a credit card, make sure you spend within your means and pay your balance on time and in full. Select analyzed 29 credit cards that are marketed toward consumers with no or poor credit to determine the best cards for building or rebuilding your credit. We considered a number of factors, including security deposit minimums, fees, rewards programs and APR. Here are our top picks: Best credit cards for building credit
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Subscribe to the Select Newsletter! Our best selections in your inbox. Shopping recommendations that help upgrade your life, delivered weekly. Sign-up here. WinnerPetal® 2 "Cash Back, No Fees" Visa® Credit Card
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Who's this for? The Petal 2 "Cash Back, No Fees" Visa Credit Card, issued by WebBank, is a unique card that takes a different approach to the credit card application process. Instead of judging your creditworthiness solely based on credit history, Petal may ask you to link bank accounts during the application process. Then, WebBank, analyzes your bank statements and other data, such as bill payments and earnings, to determine your eligibility. This is especially beneficial for applicants who may not have any credit history. However, if you do have a credit history, that does factor into the credit decision. The Petal 2 card is one of the few cards that charge zero fees*: no annual fee, no late payment fee and no foreign transaction fees. And it stands out for consumers trying to build credit because there's no security deposit required. It also offers a rewards program with 1% cash back on eligible purchases right away, which can increase up to 1.5% cash back after you make 12 on-time monthly payments. This is not only a nice perk, but a great way to encourage responsible behavior. Cardholders also receive 2% to 10% cash back from select merchants. Runner-upDiscover it® Secured Credit CardOn Discover's secure site
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Who's this for? The Discover it® Secured Credit Card gives cardholders access to many of the perks and benefits available to people with higher credit scores, including a robust cash-back program, no annual fee and no foreign transaction fees. You must put down a minimum deposit of $200 to open a Discover it® Secured Credit Card, or as much as $2,500. Your credit limit is equal to your deposit. Cardholders earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter (then 1%). Plus, you can earn unlimited 1% cash back on all other purchases. This card also comes with a welcome bonus for new cardholders: Discover will match any cash back you earn during the first 12 billing cycles. So, if you have $100 cash back at the end of the first year, Discover will give you an additional $100. What makes this card really stand out is the ease with which cardholders can transition to an unsecured card. Starting at seven months from account opening, Discover will automatically review your credit card account to see if you can transition to an unsecured line of credit and return your deposit. This takes the guesswork out of wondering when you can transition to an unsecured card. Best for cash backU.S. Bank Cash+® Visa® Secured CardInformation about the U.S. Bank Cash+® Visa® Secured Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
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Who's this for? If you want to build credit while earning cash back, consider the U.S. Bank Cash+® Visa® Secured Card. As you spend on the card, you can earn:
The cashback you earn can be redeemed in one of three ways: a statement credit to your account, direct deposit to your U.S. Bank checking, savings or money market account, or a U.S. Bank rewards card (similar to a Visa gift card). New cardholders must put down a deposit of between $300 and $5,000 which acts as your credit line. If you spend within your credit limit and pay your bill when it's due, over time, U.S. Bank could upgrade you to the U.S. Bank Cash+® Visa Signature® Card, but unlike some other cards on this list, there's no clear timeline. Once you're upgraded, your security deposit will be returned. Best low depositCapital One Platinum Secured Credit CardInformation about the Capital One Platinum Secured Credit Card has been collected independently by Select and has not been reviewed or provided by the issuer of the cards prior to publication.
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Who's this for? If you're looking for a secured card, but can't afford the typical $200 deposit, take a look at the Capital One Platinum Secured Credit Card. It has no annual fee and varying minimum security deposits of $49, $99 or $200 — based on your creditworthiness. If you qualify, you can still access a $200 credit limit while only depositing $49 or $99. In addition to lower security deposits, Capital One automatically considers cardholders for a higher credit line in as little as 6 months with no additional deposit needed. This is a great incentive to practice responsible card management. Unlike the Discover it® Secured Credit Card, there is no rewards program or welcome bonus. Capital One also doesn't offer a clear timeframe for when secured cardholders can upgrade to an unsecured account. Best for international applicantsDeserve Digital First Card™Information about the Deserve Digital First Card™ has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication.
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Who's this for? The Deserve Digital First Card™ is good for anyone with zero or limited credit history who doesn't have the means to put down a security deposit. There's no annual fee and no foreign transaction fees. Plus if you're approved for the card, you receive instant access and can add it to Apple Pay. Cardholders also receive up to 1.5% cash back, based on the amount of money you spend each billing period. Here are the levels:
You can redeem cash back as a statement credit to offset your bill. Best for travel rewardsU.S. Bank Altitude® Go Visa® Secured CardInformation about the U.S. Bank Altitude® Go Visa® Secured Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
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Who's this for? The U.S. Bank Altitude® Go Visa® Secured Card is one of the few travel-focused secured credit cards on the market. So if you want to earn travel rewards on your purchases while building your credit, this card may be a great fit for you. As you spend on the card, you can earn:
When these points are redeemed, they are worth 1 cent per point, giving you an effective 4% back in value on dining — an excellent value that even trumps some non-secured credit cards. In addition, cardmembers are eligible for a $15 credit for annual streaming service purchases. New cardholders must put down a deposit of between $300 and $5,000 which acts as your credit line. If you spend within your credit limit and pay your bill when it's due, over time, U.S. Bank could upgrade you to the U.S. Bank Altitude Go Visa Signature Card, but unlike some other cards on this list, there's no clear timeline. Once you're upgraded, your security deposit will be returned. The card doesn't have foreign transaction fees, and you can choose the due date for your bill. Best for studentsDiscover it® Student Cash BackOn Discover's secure site
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Who's this for? Financial experts often stress the importance of building credit at a young age, and opening a credit card while you're a student is one of the easiest ways to establish credit. The Discover it® Student Cash Back is our top pick for students looking to build good credit while attending college. You must be over 18 and a U.S. citizen to apply. This card provides a generous cash-back program: Upon activation, cardholders can earn 5% cash back on rotating categories up to a $1,500 maximum each quarter (then 1%). All other purchases earn unlimited 1% cash back automatically. This card also offers the welcome bonus of a dollar-for-dollar match of all cash back earned the first year for new cardholders. So, if you have $50 cash back at the end of the first year, Discover will give you an additional $50. This card has no annual fee and no foreign transaction fees, so you can study abroad or vacation outside the U.S. without worrying about paying the typical 3% fee other cards charge. There's also a 0% introductory APR for the first six months on new purchases, which is perfect for financing textbooks or dorm room essentials. After the intro period, there's a 15.99% - 24.99% variable APR. Best for average creditCapital One Platinum Credit CardInformation about the Capital One Platinum Credit Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
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Who's this for? If you have average credit and are looking to build up to a good or excellent credit score, it's a good idea to consider a credit card designed for average credit applicants, such as the Capital One Platinum Credit Card. This card also provides travel benefits that can save you money and protect you against unexpected issues — most notably no foreign transaction fees. This perk will save you the typical 3% fee many other cards charge on each purchase made outside the U.S. For example, the average American spends $2,154 a year on travel, and depending on how much of that is done abroad, you could potentially save up to $65 with the Platinum Credit Card from Capital One (and even more depending on your travel spending habits). This card also offers travel accident insurance, auto rental collision damage waiver, roadside assistance and 24-hour travel assistance services — all at no extra cost, though third-party service fees apply for roadside assistance. These perks are a great way to make traveling less stressful and provide you with coverage for eligible issues. This card doesn't offer a rewards program, so you don't have the opportunity to earn cash back, points or miles from your everyday spending. But with no annual fee, it can be a good starter card if you want to eventually upgrade to another card in the Capital One family. FAQsWhy is building credit important?A good credit score is necessary for many major financial moves, including taking out a mortgage, opening a credit card, getting car insurance and sometimes even landing your dream job. If you don't have a good or excellent credit score, you may not get approved for a certain financial product or may pay higher interest rates. What are the benefits of building credit?Nearly every facet of your financial life is impacted by the strength of your credit score. Building a good credit score helps improve your approval odds for financial products, helps you qualify for lower interest rates and better terms and allows you to to benefit from robust credit card benefits. Can I get approved for a credit card with no credit history?It is possible to sign up for a credit card without having credit history. It's generally easier to get approved for secured credit cards or starter credit cards, which are designed especially for those who are beginning to build their credit. How do I improve my credit score?The best way to improve your credit score is by consistently practicing responsible credit behavior, such as paying your bills on time every month and limiting your credit utilization ratio. Do authorized users build credit?Becoming an authorized user on someone else's credit card is a great way to build credit. So long as the primary cardholder has good (670-799) or excellent credit (800-850), it can be relatively low-risk and allows you to build or boost your credit score. However, there are also instances where being an authorized user can harm your credit score, such as if the primary account holder misses a payment. Read moreOur methodologyTo determine which cards offer the best value for building or rebuilding credit, Select analyzed 29 of the most popular credit cards available for consumers building or rebuilding their credit. We compared each card on a range of features, including: annual fee, minimum security deposit, credit limit, rewards program, introductory and standard APR, welcome bonuses and foreign transaction fees, as well as factors such as required credit score and customer reviews when available. We also took into account how easy it is to upgrade the card from secured to unsecured and how quickly you can get your security deposit back. Because it's unusual for credit cards aimed at consumers looking to build (or rebuild) their credit to have robust rewards programs, we did not analyze how many rewards points you can earn in the first year. For cardholders looking to rebuild credit, it's more important to practice good credit card habits — spending within your means, paying your balance on time and in full — than try to optimize your points balance. Petal 2 Visa Credit Card issued by WebBank. For rates and fees of the Discover it® Student Cash Back, click here. For rates and fees of the Discover it® Secured Credit Card, click here. Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party. Does a prepaid credit card help build credit?Prepaid cards are not the same as credit cards. Unlike traditional credit cards, activity from a prepaid card is not reported to the three credit reporting agencies (Experian®, TransUnion®, and Equifax®) and will not help in establishing or maintaining your credit score.
Can getting a credit card boost your credit score?When you open a new credit card, you have an opportunity to reduce your credit utilization ratio — since your credit line is being increased — and improve your payment history. Both of these things can help provide a boost to your FICO credit score.
Can I build credit with a Bank card?Unfortunately, a debit card typically will not help you build your credit. Despite similar looks, it can help to think of debit cards more like cash than like credit cards. And because debit card activity isn't traditionally reported to credit bureaus, it likely won't help with your credit scores.
What credit score is needed for Bank of America secured credit card?What's the Bank of America Secured credit card score requirement? The minimum credit score required for the BankAmericard Secured credit card is at least 300. This means that the BankAmericard Secured credit card accepts people with bad credit.
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