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.
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.
Show summary
Chime Credit Builder Visa® Credit Card: Best for Easy account management and guardrails
Discover it® Secured Credit Card: Best for Secured card with a clear upgrade path
Capital One Platinum Secured Credit Card: Best for Secured card with deposit flexibility
OpenSky® Plus Secured Visa® Credit Card: Best for Secured card with no credit check
Petal® 1 "No Annual Fee" Visa® Credit Card: Best for No-deposit card with no annual fee
Prosper® Card: Best for No-deposit card for 'less than perfect credit'
Mission Lane Visa® Credit Card: Best for No-deposit option for bad credit
Upgrade Cash Rewards Visa®: Best for Flexibility for fair credit
Discover it® Student chrome: Best for College student card
Annual fee
$0
Intro APR
N/A
Regular APR
N/A
Recommended Credit Score
The Chime Credit Builder Visa® Credit Card has no minimum deposit requirement, charges neither an annual fee nor interest, and doesn't require a credit check, and you can automate your payments so you're never late. But to get it, you must be a Chime banking customer
Instead of a security deposit, the card is backed by the money in a linked account, which you can add to at any time. The card won't let you spend any more than you have in the account, and when your payment is due, you can have the money taken from the account automatically. In a way, it works like a prepaid debit card, but unlike a prepaid card, it helps build credit. No credit check required to apply.
The safety precautions that make it an excellent tool for building credit can also get in the way of learning how to handle credit responsibly. Any card you graduate to will work quite differently. Chime has been the subject of multiple complaints related to the way it freezes customers' funds.
The Chime Credit Builder Visa® Credit Card has no minimum deposit requirement, charges neither an annual fee nor interest, and doesn't require a credit check, and you can automate your payments so you're never late. But to get it, you must be a Chime banking customer
Annual fee
$0
Intro APR
10.99% intro APR on Balance Transfers for 6 months
Regular APR
27.74% Variable APR
Recommended Credit Score
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.
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.
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.
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.
Annual fee
$0
Intro APR
N/A
Regular APR
29.99% Variable APR
Recommended Credit Score
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.
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.
This card doesn't earn rewards, which isn't uncommon for secured credit cards, but some cards do offer them.
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.
Annual fee
$0
Intro APR
N/A
Regular APR
29.49% Variable APR
Recommended Credit Score
You don't have to undergo a credit check to apply, and you don't need a bank account to qualify. If these are areas of concern for you, the OpenSky® Plus Secured Visa® Credit Card is definitely worth a look.
The issuer doesn’t run a credit check on OpenSky® Secured Visa® Credit Card applicants, making this an attainable option for people with severely damaged credit. You can make your deposit — minimum $300, maximum $3,000 — and pay your bills with a debit card, wire transfer, check or money order, making it one of the few secured cards that doesn’t require a traditional bank account.
The $300 minimum deposit is higher than most secured cards require, and it's 50% higher than the minimum on OpenSky's original card, which has an annual fee. The interest rate on this card is also considerably higher, so avoid carrying a balance. Also, your options for upgrading to an unsecured card are limited.
You don't have to undergo a credit check to apply, and you don't need a bank account to qualify. If these are areas of concern for you, the OpenSky® Plus Secured Visa® Credit Card is definitely worth a look.
Annual fee
$0
Intro APR
N/A
Regular APR
24.74%-34.24% Variable APR
Recommended Credit Score
The Petal® 1 "No Annual Fee" Visa® Credit Card, issued by WebBank, is a solid choice for newcomers to credit. Petal’s algorithm can look beyond credit scores by analyzing bank information to see how you manage income, savings and spending.
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.
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.
The Petal® 1 "No Annual Fee" Visa® Credit Card, issued by WebBank, is a solid choice for newcomers to credit. Petal’s algorithm can look beyond credit scores by analyzing bank information to see how you manage income, savings and spending.
Annual fee
$0 intro with auto pay, then $39 after first year
Intro APR
N/A
Regular APR
23.99%-34.99% Variable APR
Recommended Credit Score
The Prosper® Card doesn't offer rewards, and it charges an annual fee, but the issuer goes out of its way to encourage people with "less than perfect credit" to apply. If you're looking to beef up your credit, it's a decent place to start.
The Prosper® Card has a prequalification process that lets you see the offer you're eligible for without a "hard" credit check that can ding your scores. (If you go through with applying, then there's a hard check.) Cardholders' accounts are reviewed for a potential credit line increase every three months. And if you're approved, you can begin using your credit line immediately — no need to wait for the physical card.
There's an annual fee, although you can avoid it in the first year by signing up for autopay before your first statement is issued. The fee is $0 intro with auto pay, then $39 after first year. Prosper also doesn't have other cards to upgrade to once your credit improves, so you either have to keep paying the fee or close the card.
The Prosper® Card doesn't offer rewards, and it charges an annual fee, but the issuer goes out of its way to encourage people with "less than perfect credit" to apply. If you're looking to beef up your credit, it's a decent place to start.
Annual fee
$0-$59
Intro APR
N/A
Regular APR
26.99%-29.99% Variable APR
Recommended Credit Score
Although it usually charges an annual fee, the Mission Lane Visa® Credit Card could be a reasonable option for someone building or rebuilding credit who doesn't want to tie up money in a security deposit. Not everyone will qualify, but the issuer lets you see whether you do before you apply.
The issuer's prequalification process shows you what offer you're eligible for without a "hard" credit check that affects your credit scores. (If you choose to apply after seeing the offer, then a hard check takes place.) That's an important consideration if you're struggling to build your credit profile and don't want to run the risk of a hard check only to be rejected. After approval, the issuer automatically reviews your account for potential credit line increases. And the annual fee range is lower than what you'd be charged on many competing no-deposit cards.
As is the case with any unsecured card, if you have subprime credit, you're probably going to pay an annual fee. The fee on this card is $0-$59.
Although it usually charges an annual fee, the Mission Lane Visa® Credit Card could be a reasonable option for someone building or rebuilding credit who doesn't want to tie up money in a security deposit. Not everyone will qualify, but the issuer lets you see whether you do before you apply.
Annual fee
$0
Intro APR
N/A
Regular APR
14.99%-29.99% APR
Recommended Credit Score
The $0-annual-fee Upgrade Cash Rewards Visa® can be an ideal choice if you plan to carry a balance, want the convenience of equal monthly debt repayments and can pre-qualify for a favorable interest rate. It also earns 1.5% cash back on all purchases.
The Upgrade Cash Rewards Visa® earns rewards on par with cards for good or excellent credit. And unlike many of those cards, any unpaid balance is automatically converted into an installment loan with a fixed monthly payment. You can also borrow against your credit limit, much like a personal loan. See what terms you'd qualify for without a hard credit inquiry.
You may qualify for better terms with a traditional personal loan, depending on your financial situation. As of this writing, the card is unavailable to residents of Iowa, West Virginia, Wisconsin, and Washington, D.C.
The $0-annual-fee Upgrade Cash Rewards Visa® can be an ideal choice if you plan to carry a balance, want the convenience of equal monthly debt repayments and can pre-qualify for a favorable interest rate. It also earns 1.5% cash back on all purchases.
Annual fee
$0
Intro APR
0% intro APR on Purchases for 6 months and 10.99% intro APR on Balance Transfers for 6 months
Regular APR
17.74%-26.74% Variable APR
Recommended Credit Score
The Discover it® Student chrome shines with its no-maintenance rewards structure and student-friendly bonus categories. You also get a free FICO score, low fees, and forgiveness for your first late payment. Plus, Discover says there's no FICO history requirement for this card.
You earn 2% cash back at restaurants and gas stations, on up to $1,000 in combined purchases per quarter, and 1% cash back on all other purchases. (Unlike with Discover's other student card, you don't have to "activate" your bonus rewards.) The annual fee is $0. There's also Discover's signature bonus for new cardholders.
Although there's no foreign transaction fee, Discover isn’t as widely accepted abroad as other cards. If you plan to travel internationally, make sure you have a backup plan.
The Discover it® Student chrome shines with its no-maintenance rewards structure and student-friendly bonus categories. You also get a free FICO score, low fees, and forgiveness for your first late payment. Plus, Discover says there's no FICO history requirement for this card.
Our pick for: Easy account management and guardrails
This card has no minimum deposit requirement, charges neither an annual fee nor interest, and doesn't require a credit check, and you can automate your payments so you're never late. But to get it, you must be a Chime banking customer, which is an extra hoop to jump through — and which comes with its own considerations when it comes to customer service. Read our review.
Our pick for: Secured card with a clear upgrade path
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.
Our pick for: Secured card with deposit flexibility
The Capital One Platinum Secured Credit Card requires a security deposit, as do all secured credit cards. But while most cards require you to put down a deposit equal to your credit line, this one allows some qualifying applicants to get a $200 credit line with a deposit starting at $49. Further, you can be automatically considered for a higher credit line with no additional deposit in as little as six months. Read our review.
Our pick for: Secured card with no credit check
Like the regular OpenSky card, the OpenSky® Plus Secured Visa® Credit Card doesn't require a credit check or a bank account. This card, however, charges an annual fee of $0 — at the cost of a higher minimum deposit and a higher interest rate. Read our review.
Our pick for: No-deposit card with no annual fee
The issuer of the Petal® 1 "No Annual Fee" Visa® Credit Card doesn’t only rely on credit scores to determine eligibility. Instead, it assesses your creditworthiness based on your income, expenses, savings and debts. The card earns a decent rate of up to 10% cash back when you use the card to shop with select merchants. And there's no annual fee, late fees or foreign transaction fees. Read our review.
Our pick for: No-deposit card for 'less than perfect credit'
The Prosper® Card doesn't offer rewards, and it charges an annual fee, but the issuer goes out of its way to encourage people with "less than perfect credit" to apply. If you're looking to beef up your credit, it's a decent place to start. Read our review.
Our pick for: No-deposit option for bad credit
Although it usually charges an annual fee, the Mission Lane Visa® Credit Card could be a reasonable option for someone building or rebuilding credit who doesn't want to tie up money in a security deposit. Not everyone will qualify, but the issuer lets you see whether you do before you apply. Read our review.
Our pick for: Flexibility for fair credit
The $0-annual-fee Upgrade Cash Rewards Visa® is a cross between a credit card and a personal loan, and it can offer the best of both worlds: flexibility, but with predictable terms from month to month. The card also lets you see what terms you'd qualify for before officially applying. And on top of all that, it earns cash back, too. Read our review.
Our pick for: College student card
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.
• • •
“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.
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.
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.
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.
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.
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 …
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.
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.
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.
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.
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.
To view rates and fees of the Blue Cash Everyday® Card from American Express, see this page.
Last updated on May 16, 2023
NerdWallet's credit cards team selects the best credit cards in each category based on overall consumer value. Factors in our evaluation include fees, promotional and ongoing APRs, and sign-up bonuses; for rewards cards, we consider earning and redemption rates, redemption options and redemption difficulty. A single card is eligible to be chosen as among the "best" in multiple categories. Learn how NerdWallet rates credit cards.