Best Credit Cards to Build Credit of March 2023
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Credit cards can be an effective tool to build credit whether you’re starting out or seeking a second chance, but they aren't always easy to get. Options may be limited depending on a card issuer's credit history requirements.
If you don’t know where your credit history stands, it’s possible to get your credit score and credit report for free. Then, you can use the information to apply for credit cards in your credit score range and improve your odds of approval. As you’re weighing your options, here are a few cards to consider that report to all three credit bureaus (TransUnion, Equifax and Experian). These bureaus record the information used to calculate your credit scores. By having your payments recorded by all three companies, future lenders can get a full picture of your credit regardless of which bureau they use to review your credit report.
Some of our selections for the best cards for building credit can be applied for through NerdWallet, and some cannot. Below, you'll find application links for the credit cards from our partners that are available through NerdWallet, followed by the full list of our picks.
Credit cards can be an effective tool to build credit whether you’re starting out or seeking a second chance, but they aren't always easy to get. Options may be limited depending on a card issuer's credit history requirements.
If you don’t know where your credit history stands, it’s possible to get your credit score and credit report for free. Then, you can use the information to apply for credit cards in your credit score range and improve your odds of approval. As you’re weighing your options, here are a few cards to consider that report to all three credit bureaus (TransUnion, Equifax and Experian). These bureaus record the information used to calculate your credit scores. By having your payments recorded by all three companies, future lenders can get a full picture of your credit regardless of which bureau they use to review your credit report.
Some of our selections for the best cards for building credit can be applied for through NerdWallet, and some cannot. Below, you'll find application links for the credit cards from our partners that are available through NerdWallet, followed by the full list of our picks.
Find the right credit card for you.
Whether you want to pay less interest or earn more rewards, the right card's out there. Just answer a few questions and we'll narrow the search for you.
Best Credit Cards to Build Credit From Our Partners
Our pick for
No security deposit
on Petal's website
on Petal's website
$0
N/A
24.49%-33.99% Variable APR
The Petal® 1 "No Annual Fee" Visa® Credit Card, issued by WebBank, is a solid choice for those with less-than-perfect credit. Petal’s algorithm can look beyond credit scores by analyzing bank information to see how you manage income, savings and spending.
The Petal® 1 "No Annual Fee" Visa® Credit Card, issued by WebBank, is a solid choice for those with less-than-perfect credit. Petal’s algorithm can look beyond credit scores by analyzing bank information to see how you manage income, savings and spending.
Pros
Unlike secured credit cards, this card doesn’t require a security deposit. The credit limit can range between $300 and $5,000, depending on eligibility. That’s a potentially high amount for a starter card if you can qualify. Cardholders may also see some value from the card's rewards — up to 10% cash back when you use the card to make purchases with select merchants.
Cons
Petal does not allow you to change your payment due date, so you'll have to find a way to make payments if it doesn't align with your payday.
$0 Annual Fee.
Variable APRs range from 24.49%-33.99%.
$300 - $5,000 credit limits.
Earn a credit limit increase in as little as 6 months. Terms and conditions apply.
No credit score? No problem. If eligible, we'll create your Cash Score instead.
2% - 10% cash back at select merchants.
See if you're pre-approved within minutes without impacting your credit score.
No annual or foreign transaction fees.
Build credit alongside hundreds of thousands of Petal card members.
Petal's mobile app makes it easy to manage your money, track your spending, and automate payments.
Petal reports to all 3 major credit bureaus.
No deposits required.
Card issued by WebBank, Member FDIC.
Our pick for
A path to upgrade to a regular card
on Discover's website, or call 800-347-0264
on Discover's website, or call 800-347-0264
$0
10.99% intro APR on Balance Transfers for 6 months
27.49% Variable APR
The Discover it® Secured Credit Card is one of the few secured card options that offers rewards. For no credit or bad credit alike, it's an excellent credit-building tool.
The Discover it® Secured Credit Card is one of the few secured card options that offers rewards. For no credit or bad credit alike, it's an excellent credit-building tool.
Pros
This card earns 2% cash back at gas stations and restaurants, on up to $1,000 in combined purchases each quarter, and 1% cash back on all other purchases. It requires a minimum of $200 as a security deposit, but you'll eventually get that back if you keep the account in good standing and either close it to get a regular card with a different issuer or use Discover's path to upgrade to one of its regular cards. If you stick with Discover, the wait may not be too long: The issuer starts reviewing your account at seven months to see if you can qualify for a regular Discover credit card.
Cons
The minimum required security deposit is $200, which is typical among secured credit cards, but some options for building credit may accept a lower amount or avoid a deposit requirement.
No credit score required to apply.
No Annual Fee.
Use your tax refund to fund your security deposit and start building your credit history. Your credit line will equal your deposit amount, starting at $200. Bank information must be provided when submitting your deposit.
Automatic reviews starting at 7 months to see if we can transition you to an unsecured line of credit and return your deposit.
Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically.
Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
Get an alert if we find your Social Security number on any of thousands of Dark Web sites. Activate for free.
Click through to Discover’s website to see terms and conditions.
- View Rates & Fees
Our pick for
Deposit flexibility + credit-building features
on Capital One's website
on Capital One's website
$0
N/A
29.74% Variable APR
Secured cards typically require an upfront deposit of several hundred dollars, and the amount determines your credit limit, but the Capital One Platinum Secured Credit Card may offer valuable flexibility.
Secured cards typically require an upfront deposit of several hundred dollars, and the amount determines your credit limit, but the Capital One Platinum Secured Credit Card may offer valuable flexibility.
Pros
The card may allow you to qualify for a credit limit of $200 with a deposit starting at $49, depending on eligibility. After six months, with responsible use, the Capital One Platinum Secured Credit Card can further bump up your credit since the issuer automatically considers you for a higher credit limit without requiring an additional deposit. A higher limit can lower your credit utilization ratio, which can be good for credit scores.
Cons
This card doesn't earn rewards, which isn't uncommon for secured credit cards, but some cards do offer them.
No annual or hidden fees. See if you're approved in seconds
Building your credit? Using the Capital One Platinum Secured card responsibly could help
Put down a refundable security deposit starting at $49 to get a $200 initial credit line
You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
Monitor your credit score with CreditWise from Capital One. It's free for everyone
Get access to your account 24 hours a day, 7 days a week with online banking to access your account from your desktop or smartphone, with Capital One's mobile app
Our pick for
Student-friendly features
on Discover's website, or call 800-347-0264
on Discover's website, or call 800-347-0264
$0
0% intro APR on Purchases for 6 months and 10.99% intro APR on Balance Transfers for 6 months
17.49%-26.49% Variable APR
The Discover it® Student chrome packs a lot of value for students with fewer obstacles. It’s rare to find a student credit card that offers a sign-up bonus, an introductory APR offer and rewards.
The Discover it® Student chrome packs a lot of value for students with fewer obstacles. It’s rare to find a student credit card that offers a sign-up bonus, an introductory APR offer and rewards.
Pros
This card earns 2% cash back at gas stations and restaurants, on up to $1,000 in combined purchases per quarter, and 1% cash back on all other purchases. There’s no FICO history or security deposit to qualify for this card, barriers that sometimes prevent students from building credit. Discover also waives the first late fee which can be helpful when students are learning to get acquainted with managing a first credit card.
Cons
The rewards are decent, but students may be able to squeeze more value from the issuer's other student card, the Discover it® Student Cash Back. Discover's international acceptance is limited, so it's not a good companion for studying abroad.
INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically.
No credit score required to apply.
Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
No annual fee and build your credit with responsible use.
0% intro APR on purchases for 6 months, then the standard variable purchase APR of 17.49% - 26.49% applies.
Click through to Discover’s website to see terms and conditions.
- View Rates & Fees
Our pick for
Eligibility with credit from another country
on American Express' website
on American Express' website
$0
0% intro APR for 15 months on purchases and balance transfers
18.74%-29.74% Variable APR
For some newcomers to the U.S. it may be possible to get the Blue Cash Everyday® Card from American Express if they have good credit in an eligible country.
For some newcomers to the U.S. it may be possible to get the Blue Cash Everyday® Card from American Express if they have good credit in an eligible country.
Pros
AmEx’s partnership with Nova Credit makes it possible to translate credit reports from eligible countries like Australia, Canada, India, Mexico, the United Kingdom, Brazil, the Dominican Republic, Kenya, Nigeria, South Korea, the Philippines, Spain and Switzerland. (In the application process, you'll have the opportunity to confirm that you have a credit history in another country.) The card comes with solid rewards, as well as a bonus offer and an introductory 0% APR period. Terms apply.
Cons
The card is not ideal for international travel. It charges a 2.7% fee on every purchase made abroad, and international acceptance of the card may be limited, depending on the destination.
Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.
No Annual Fee.
Balance Transfer is back! Enjoy 0% intro APR on purchases and balance transfers for 15 months from the date of account opening. After that, 18.74% to 29.74% variable APR.
3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%.
3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1%.
3% Cash Back at U.S. gas stations, on up to $6,000 per year in purchases, then 1%.
Get $7 back each month after using your Blue Cash Everyday Card to spend $12.99 or more each month on an eligible subscription to The Disney Bundle, which includes Disney+, Hulu, and ESPN+. Enrollment required.
Terms Apply.
- View Rates & Fees
FULL LIST OF EDITORIAL PICKS: BEST CREDIT CARDS TO BUILD CREDIT
Petal® 1 "No Annual Fee" Visa® Credit Card
Our pick for: No security deposit
Discover it® Secured Credit Card
Our pick for: A path to upgrade to a regular card
Like other secured credit cards for people building or rebuilding credit, the Discover it® Secured Credit Card requires a cash security deposit. Unlike most others, it offers rewards. But what really makes it stand out from the competition is its upgrade possibilities. The issuer has a process in place for automatically reviewing accounts for possible transition to an unsecured card. Read our review.
Capital One Platinum Secured Credit Card
Our pick for: Deposit flexibility + credit-building features
Discover it® Student chrome
Our pick for: Student-friendly features
Simplicity makes the Discover it® Student chrome a standout for students searching for their first credit card. You'll earn bonus cash back at restaurants and gas stations with no activation required and no rotating categories to keep track of. Read our review.
Blue Cash Everyday® Card from American Express
Our pick for: Eligibility with credit from another country
Tomo Credit Card
Our pick for: No interest charges
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OTHER RESOURCES
What does ‘building credit’ mean?
“Building credit” is the process of establishing a positive credit history, which demonstrates that you can be responsible with borrowed money. The simplest way to track your progress in building credit is by watching your credit score, a number between 300 and 850 that essentially summarizes how you’ve handled credit and debt.
People who are building credit tend to fall into three broad categories:
No credit. This indicates an individual who is just starting out with credit. They don’t have any credit history, and therefore they don’t have a credit score.
Bad credit. When you have a score, but it’s low — in the 500s and below — that’s generally referred to as bad credit. Some who fall into the “bad credit” category are still new to credit and are working their way up. Others are working to rebuild credit after setbacks such as missed payments, defaults or bankruptcy.
Fair credit. Also called “average” credit, fair credit is a score generally in the low to mid-600s. It’s a rung below good credit.
Why build credit? You’ll need decent credit if you ever plan to apply for a mortgage to buy a home, or if you hope to get a car loan with a good interest rate, or if you want to qualify for a great rewards credit card. Employers and landlords frequently run credit checks on applicants, too, so a credit report without many blemishes could help you land a job or get approved for an apartment.
Building credit takes time, though. It’s not something you take care of a week before applying for a mortgage. The time to build strong credit is long before you need strong credit.
A credit card, used responsibly, is generally the fastest and easiest way to build credit. However, many people encounter a catch-22 along the way: They want to get a credit card to build a good credit history, but they discover that they can’t get approved for most credit cards unless they already have a good credit history. The trick to escaping this paradox lies in understanding which cards to apply for.
If you’re just starting out with credit, or if you’re working to rebuild your credit after some setbacks that have dinged your score, you’re not going to get approved for the rich rewards credit cards you see advertised by celebrities on TV. Those cards are for people with good to excellent credit. You can get there, but you’re not there yet. What you need is a card specifically designed for building credit.
What's the best credit card for building credit?
NerdWallet readers regularly ask, “What’s the best credit card?” Our standard answer is that there is no single "best" credit card. There's just the best credit card for you. It’s the card that does the best job of meeting your specific needs as an individual consumer.
That applies just as much with credit cards for building credit as with other cards. The best option depends on your circumstances and what "building credit" means to you. Are you starting from scratch, with no credit history whatsoever? Have you begun building credit and are now looking to push your score into the 700s or 800s? Are you looking to bounce back from damaged credit?
Options in credit building credit cards include:
Secured credit cards. These cards require a cash security deposit, which will usually be equal to your credit limit. If you provide a $300 deposit, for example, you'll get a $300 credit limit. The card issuer holds on to the deposit as "insurance" in case you don't pay your bill. That reduces the risk to the card issuer. For that reason, secured cards are among the easiest cards to qualify for. Here are some excellent secured credit cards.
Student credit cards. As the name suggests, these are cards designed specifically for college students. They don't require a security deposit and allow for a more flexible approval process. You may be able to qualify with limited credit history or, in some cases, no credit history at all. Credit card companies see college students as desirable long-term customers, so they target this audience with special products. Here are some excellent cards for students.
Alternative underwriting cards. Most unsecured credit cards — that is, "regular" cards without a security deposit — put a lot of emphasis on your existing credit history when evaluating applications. That's why it's so difficult to qualify for a card when you're just starting out. To address this problem, a number of newer credit card companies use alternative underwriting models. (Underwriting is the process of measuring risk; with credit cards, the risk is that a cardholder won’t pay their bills.) These alternative models can take into consideration things like your job, your education or your non-debt payments instead of just your credit score. Here are some alternative credit card options.
Store credit cards. Cards that you can use at just one store tend to be easier to qualify for than bank cards that you can use anywhere.
Cards for fair or “average” credit. Fair credit is a middle ground. It’s generally defined as credit scores in the low to mid-600s. That’s better than “bad credit,” but still below the “good credit” threshold that’s eligible for most of the best credit card offers. This has traditionally been a poorly served segment of the market, but options have been expanding. Here are some excellent credit cards for fair credit.
Subprime unsecured cards. A whole industry has developed to offer unsecured credit cards to people with bad credit. Although they don’t require a security deposit, cards from so-called subprime specialist issuers are hardly a bargain. They almost uniformly charge high fees — $99 a year is common, and some even charge monthly maintenance fees on top of that. (Unlike a deposit on a secured card, which can be refunded to you, you never get these fees back.) They tend to have low credit limits and high interest rates.
What to look for in a credit card for building credit
Choosing a credit card is about trade-offs. You’re not going to get everything you want in a single card. What’s realistic is to look for a card with the right combination of features that matter the most. Here are some of the most desirable features on cards for building credit.
Credit bureau reporting
Simply put, a credit card will help you build credit only if the activity on that card is reported to the companies that gather the data that goes into credit reports and forms the basis for credit scores. Don’t bother with any card that doesn’t report your payments to credit bureaus.
Prequalification
Applying for any credit card generates a “hard” credit check that will knock points off your credit scores temporarily. If your scores are great, those few points won’t make much of a difference; but if you’re struggling to build credit, it may be a risk you don’t want to take unless you’re sure you’ll be approved. Many companies with credit cards for building credit offer a prequalification process, in which they look at your credit and let you know ahead of time whether you’ll be approved and what kind of offer you qualify for. You can then choose whether to apply, at which point the issuer will usually run the hard check.
A manageable annual fee
Many of the best secured credit cards charge no annual fee at all (although you still must put down a deposit). Some charge an annual fee but offer a compelling feature that might make it worth the cost, such as the ability to qualify with no credit check or an unusually low interest rate. Meanwhile, annual fees are fairly common on unsecured (aka no-deposit) cards for building credit, although you can still find cards in this category without them, particularly if your credit qualifies as “fair” rather than “bad.” Don’t automatically rule out a card with an annual fee, but make sure the fee is one you can manage. Ideally, you won’t be paying the fee very long, because in time you’ll upgrade. Speaking of which …
An upgrade path
A card for building credit is not a long-term proposition. The point is to get the card, use it responsibly to strengthen your credit, then move on to a better card. In the best case, the issuer of your card has better options available in its own portfolio, which would allow you to upgrade while keeping the same account (which can be good for your credit score). If you’ve been carrying a secured card, upgrading with the same issuer allows you to get your deposit back without having to close the account (also good for your score). For example:
Capital One offers several cards for bad credit and fair credit as well as popular cards for good-to-excellent credit, so there are plenty of upgrade possibilities.
When you have Discover’s secured card, the issuer automatically reviews your account for a potential upgrade to an unsecured card.
Many companies that specialize in cards for building credit don’t have upgrade options, however. That’s not the end of the world. It just means that once your credit improves, you’ll have to open a new card somewhere else. If your first card requires a deposit or charges an annual fee, you’ll have to close that account to get your deposit back or stop paying the fee.
For secured cards: Flexible deposit
Secured credit cards typically have a minimum deposit, and the amount of your deposit determines your credit limit. But pulling together $200 or $300, and then locking up that money in a deposit for a year or more, can be a stretch for some people. Meanwhile, low credit limits can be an issue when you're trying to build credit (see below). Some secured cards offer deposit flexibility, such as:
An initial deposit lower than your credit limit.
The ability to pay your deposit in installments.
The ability to add money to your deposit at any time to get a higher limit.
Account reviews that could boost your credit limit without depositing more money.
Allowing the money in a linked bank account to act as your deposit.
Free credit score
Multiple card issuers give you free access to a credit score so you can track your progress. This is a nice feature to have, although you can get free credit scores in many places, including from NerdWallet.
Convenient payment options
A key step in building credit — the most important step, really — is paying your bill on time every month. Some cards don’t make that easy, allowing you to pay only by mail and dragging their feet in crediting payments to your account, which can result in late fees and credit score damage. Look for a card that lets you pay online. If you can set up autopay for your bill, even better.
Some credit cards for building credit offer cash back rewards. Getting a little something back for your spending is nice, but don’t get too focused on it. Between the low credit limits typically offered on these cards and the importance of keeping your utilization down (see below), you shouldn’t be doing so much spending that you’re racking up sizable rewards.
Using a credit card to building credit
Once you get a card, use it responsibly to build credit:
Put one or two small purchases on the card each month. The amount you spend should be less than 30% of your card’s credit limit. If you can stay below 10%, that’s even better. A key factor in credit scores is credit utilization, or the amount of your available credit that you’re using. Aim to keep it low.
Pay your bill in full by the due date. Paying on time each month is the single most important thing you can do to build your credit. And when you pay your bill in full each month, you won’t be charged interest. Cards for building credit tend to have high APRs, but if you never incur finance charges, your interest rate doesn’t actually matter. (And no, you do not have to carry a balance from month to month to build credit.)
Keep your eye on your credit score. Over time, your careful credit habits will hopefully be reflected in your scores.
Move up. When your credit improves enough to qualify, call your card issuer and ask about an upgrade. If your issuer doesn’t have upgrade options, look for a card from another issuer.
Last updated on March 23, 2023
