Best Credit Cards to Build Credit of December 2024
Updated: Dec 10, 2024+ 2 more+ 2 more
Credit cards can be an effective tool to build credit whether you’re just 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. Here are a few cards to consider that report to all three credit bureaus, the companies that gather the information used to calculate credit scores. With your activity on file at all three, future lenders can get a full picture of your credit regardless of which bureau they use to review your credit report.
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400+ credit cards reviewed by our team of experts (See our top picks)
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Objective comprehensive ratings rubrics (Methodology)
NerdWallet's credit cards content, including ratings and recommendations, is overseen by a team of writers and editors who specialize in credit cards. Their work has appeared in The Associated Press, USA Today, The New York Times, MarketWatch, MSN, NBC's "Today," ABC's "Good Morning America" and many other national, regional and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity.
Credit cards can be an effective tool to build credit whether you’re just 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. Here are a few cards to consider that report to all three credit bureaus, the companies that gather the information used to calculate credit scores. With your activity on file at all three, future lenders can get a full picture of your credit regardless of which bureau they use to review your credit report.
Why trust NerdWallet
400+ credit cards reviewed by our team of experts (See our top picks)
80+ years of combined experience covering credit cards and personal finance
27,000+ hours spent researching and reviewing financial products in the last 12 months
Objective comprehensive ratings rubrics (Methodology)
NerdWallet's credit cards content, including ratings and recommendations, is overseen by a team of writers and editors who specialize in credit cards.
Their work has appeared in The Associated Press, USA Today,
The New York Times, MarketWatch, MSN, NBC's "Today," ABC's "Good Morning America"
and many other national, regional and local media outlets.
Each writer and editor follows NerdWallet's strict guidelines for editorial integrity.
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Credit cards can be an effective tool to build credit whether you’re just 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. Here are a few cards to consider that report to all three credit bureaus, the companies that gather the information used to calculate credit scores. With your activity on file at all three, future lenders can get a full picture of your credit regardless of which bureau they use to review your credit report.
Why trust NerdWallet
400+ credit cards reviewed by our team of experts (See our top picks)
80+ years of combined experience covering credit cards and personal finance
27,000+ hours spent researching and reviewing financial products in the last 12 months
Objective comprehensive ratings rubrics (Methodology)
NerdWallet's credit cards content, including ratings and recommendations, is overseen by a team of writers and editors who specialize in credit cards. Their work has appeared in The Associated Press, USA Today, The New York Times, MarketWatch, MSN, NBC's "Today," ABC's "Good Morning America" and many other national, regional and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity.
Credit cards can be an effective tool to build credit whether you’re just 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. Here are a few cards to consider that report to all three credit bureaus, the companies that gather the information used to calculate credit scores. With your activity on file at all three, future lenders can get a full picture of your credit regardless of which bureau they use to review your credit report.
Why trust NerdWallet
400+ credit cards reviewed by our team of experts (See our top picks)
80+ years of combined experience covering credit cards and personal finance
27,000+ hours spent researching and reviewing financial products in the last 12 months
Objective comprehensive ratings rubrics (Methodology)
NerdWallet's credit cards content, including ratings and recommendations, is overseen by a team of writers and editors who specialize in credit cards. Their work has appeared in The Associated Press, USA Today, The New York Times, MarketWatch, MSN, NBC's "Today," ABC's "Good Morning America" and many other national, regional and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity.
Why trust NerdWallet
400+ credit cards reviewed by our team of experts (See our top picks)
80+ years of combined experience covering credit cards and personal finance
27,000+ hours spent researching and reviewing financial products in the last 12 months
Objective comprehensive ratings rubrics (Methodology)
NerdWallet's credit cards content, including ratings and recommendations, is overseen by a team of writers and editors who specialize in credit cards. Their work has appeared in The Associated Press, USA Today, The New York Times, MarketWatch, MSN, NBC's "Today," ABC's "Good Morning America" and many other national, regional and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity.
NerdWallet's Best Credit Cards to Build Credit of December 2024
Chase Freedom Rise®: Best for No-annual-fee card with rewards
Chime Secured Credit Builder Visa® Credit Card: Best for Easy account management and guardrails
Discover it® Secured Credit Card: Best for Secured card with 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
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
Grow Credit Mastercard: Best for Building credit with subscriptions
Show SummaryHide Summary
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.
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.
Secured card with deposit 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.
Our Take
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.
Secured card with clear upgrade path
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.
Product Details
- No credit score required to apply. No Annual Fee.
- Your secured credit card requires a refundable security deposit, and your credit line will equal your deposit amount, starting at $200. Bank information must be provided when submitting your deposit.
- Raise your credit score by 30+ points.
- 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, automatically. Plus earn unlimited 1% cash back on all other purchases.
- 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.
- Terms and conditions apply.
- View Rates & Fees
Our Take
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.
Easy account management and guardrails
The Chime Secured 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
Product Details
- The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
- No credit check to apply, no annual fees or interest⁴, and no minimum security deposit required.³ No stress! Additional terms apply.
- Use your secured Credit Builder card everywhere Visa credit cards are accepted, including on everyday purchases, such as gas and groceries.
- Help build your credit history with your own money. The money you move into the Credit Builder secured account is the amount you can spend on your card (no minimum deposit required!).³ Turn on Safer Credit Building² and have your monthly balance automatically paid on time. Chime will report your activities to Transunion®, Experian®, and Equifax®.
- Increase your credit scores by an average of 30 points, with regular, on-time payments.¹
- Turn on transaction notifications to receive real-time transaction alerts. Then, use Chime’s instant in-app disable card feature to help prevent unauthorized activities.
- Live support 24/7 to assist you around the clock.
- Now you can use your Credit Builder card fee-free at over 60K+ in-network ATMs at retailers like Walgreens®, CVS®, and more! Out-of-network ATM withdrawal fees may apply except at Moneypass ATMs in 7-Eleven® locations, or any Allpoint® or Visa Plus Alliance ATMs.
- Apply for a secured Chime Credit Builder Visa® Credit Card once you have an active Chime Checking Account. See www.chime.com to learn more.
Our Take
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 Secured 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
Secured card with no credit check
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.
Product Details
- New feature! Earn up to 10% cash back on everyday purchases
- No annual fee
- No credit check to apply. Find out instantly if you are approved- Zero credit risk to apply!
- Looking to build or rebuild your credit? 2/3 of cardholders receive a 48+ point improvement after making 3 on-time payments
- Monitor your credit progress with free access to your FICO Credit Score.
- Reports to all 3 major credit bureaus monthly to establish and build credit history.
- Add to your mobile wallet and make purchases using Apple Pay, Samsung Pay and Google Pay
- Secure your credit line with a refundable security deposit - as low as $300.
- Easy application, apply in less than 5 minutes right from your mobile device
- Offers flexible payment due dates which allow you to choose any available due date that fits your payment schedule
- Now you can make smaller partial payments towards funding your security deposit over 60 days
- Over 1.4 Million Cardholders Have Used OpenSky Secured Credit Card To Improve Their Credit
Our Take
The issuer doesn’t run a credit check on OpenSky® Plus Secured Visa® Credit Card applicants, making this an attainable option for people with severely damaged credit. You can make your deposit 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 regular minimum deposit is higher than most secured cards require. The interest rate on this card is also considerably higher than the OpenSky's original card, 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.
Flexibility for fair credit
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.
Product Details
- Earn 1.5% unlimited cash back on card purchases every time you make a payment.
- Combine the flexibility of a credit card with the predictability of a personal loan.
- No annual fee
- No touch payments with contactless technology built in.
- Great for large purchases with predictable payments you can budget for.
- Mobile app to access your account anytime, anywhere.
- Relax knowing you’re protected against unauthorized transactions with Visa’s Zero Liability Policy
- View Rates & Fees
Our Take
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.
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.
Product Details
- No annual fee for the first year if you sign up for AutoPay before your first statement
- No security deposit required
- We don't charge fees for ATM cash withdrawals. Third party fees may apply
- Initial credit limit up to $3,000
- We regularly report on your credit card performance to help you establish credit history
- Zero fraud liability (which offers protection against unauthorized purchases).
- While you wait for your Prosper® Card to ship, use a portion of your credit line instantly through Digital Wallet, MyProsperCard App, or Prosper.com
- Choose a monthly payment date that works for you
- Free mobile app—MyProsperCard
- Issued by Coastal Community Bank, Member FDIC pursuant to a license by Mastercard® International
Our Take
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 $39 (waived for the first year if you sign up for autopay before your first statement). 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.
College student card
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.
Product Details
- INTRO OFFER: Unlimited Cashback Match for all new cardmembers – 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 cash back 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, automatically. Plus earn unlimited 1% cash back on all other purchases.
- Redeem your rewards for cash at any time.
- 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.
- Terms and conditions apply.
- View Rates & Fees
Our Take
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.
No-annual-fee card with rewards
The Chase Freedom Rise® is an ideal credit-building companion, mostly because you don't need a credit history to be approved in the first place. The card's annual fee is $0, it offers solid rewards on everything you buy, and there's an upgrade path when you're ready.
Product Details
- Increase your approval chances - Having a Chase checking or savings account with a balance of at least $250 will increase your chances of getting approved for Chase Freedom Rise®
- Earn Cash Back - With Chase Freedom Rise®, you can start building credit while earning 1.5% cash back on all purchases. Cash Back rewards do not expire as long as your account is open and there is no minimum to redeem for cash back.
- Earn a $25 statement credit after signing up for automatic payments within the first three months of opening your account. With automatic payments, just pick a date and dollar amount to make sure your Credit Card gets paid on time.
- Credit Limit Increase - As a Freedom Rise cardmember, you'll be evaluated for a credit line increase in as soon as 6 months. Your credit line is the maximum amount of money you can spend on your Freedom Rise® Card
- Free Credit Score - Track your credit score and learn how to build it with Chase Credit Journey.
- No Annual Fee - You won't have to pay an annual fee for all the great features that come with your Freedom Rise® card.
- Member FDIC
Our Take
There's no annual fee or upfront deposit, nor do you need a credit history to qualify. Beyond that, you'll earn 1.5% cash back on all purchases, you may be evaluated for a higher credit limit in as soon as six months, and Chase will review your account each anniversary for a potential upgrade to the Chase Freedom Unlimited®.
You may end up needing to take extra steps to qualify: Chase says approval odds will be higher if you have, or can open, a Chase checking or savings account with at least $250 in it. Also, even though it's a great option for credit builders, it's not meant for credit rebuilders. If you have poor credit (generally, FICO scores below 630), you likely won't qualify.
The Chase Freedom Rise® is an ideal credit-building companion, mostly because you don't need a credit history to be approved in the first place. The card's annual fee is $0, it offers solid rewards on everything you buy, and there's an upgrade path when you're ready.
No-deposit option for bad credit
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.
Product Details
- $0 Annual Fee. Clear terms and transparent pricing.
- See if you qualify instantly without harming your credit score.
- Be automatically considered for a higher credit line in as few as 7 months.
- Free, online credit score access for cardholders.
- No interest on purchases when you pay in full and on time each month.
- No security deposit required – get started today!
- Enjoy coverage from Visa®.
- Access your account anytime, anywhere with our mobile app.
- If you are charged interest, the charge will be no less than $0.50.
Our Take
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.
You won't earn rewards with this card. Rewards shouldn't be the main priority when building your credit, but it is a nice perk you'll get with some other credit-building cards.
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.
Building credit with subscriptions
The Grow Credit Mastercard helps you build credit through qualifying subscriptions and bill payments you're already making. There's no hard credit check, no interest charges and a no-annual-fee option.
Product Details
- Connect a bank account to apply for a Grow Credit interest-free Mastercard.
- Signing up is easy and completely free.
- Use your Grow Credit Mastercard to pay for your existing subscriptions or browse for new ones.
- Just sit back, relax and watch your credit score grow!
- Grow Credit is not taking new applications at this time.
Our Take
Depending on which membership plan you choose, you can use the card for $17 to $150 a month in qualifying subscriptions and/or bill payments. Eligible payments include streaming services like Netflix and Spotify, as well as certain wireless phone providers. Your bill must be paid in full each month, so you can't carry a balance and therefore won't pay interest. The card reports to all three major credit bureaus.
This card rates lower than other options on this page because of its limited usability. It can help you build credit, but beyond subscriptions, you can't put so much as a pack of gum on it. There are multiple membership tiers, but all of them charge a monthly fee.
The Grow Credit Mastercard helps you build credit through qualifying subscriptions and bill payments you're already making. There's no hard credit check, no interest charges and a no-annual-fee option.
FULL LIST OF EDITORIAL PICKS: BEST CREDIT CARDS TO BUILD CREDIT
Chase Freedom Rise®
Our pick for: No-deposit, no-annual-fee card with rewards
The Chase Freedom Rise® is a good option for credit newbies for all the right reasons. It's an unsecured credit card, so there's no security deposit needed, nor do you need a credit history to be approved. The annual fee is $0, it earns 1.5% cash back on every purchase, and Chase will automatically review your account each anniversary for a potential upgrade. Read our review.
Chime Secured Credit Builder Visa® Credit 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.
See more from Chime®
Chime says the following:
The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime® Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.
Based on a representative study conducted by Experian®, members who made their first purchase with Credit Builder between June 2022 and October 2022 observed an average FICO® Score 8 increase of 30 points after approximately 8 months. On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score.
On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.
Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.
Out-of-network ATM withdrawal and OTC advance fees may apply. View The Bancorp agreement or Stride agreement for details; see back of card for issuer.
Discover it® Secured Credit Card
Our pick for: Secured card with 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.
Capital One Platinum Secured Credit Card
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 (see rates and fees). Read our review.
OpenSky® Plus Secured Visa® Credit Card
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.
Petal® 1 Visa® Credit Card
Our pick for: No-deposit card with no annual fee
The issuer of the Petal® 1 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. (The card is issued by WebBank, Member FDIC.) Read our review.
Prosper® Card
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.
Mission Lane Visa® Credit Card
Our pick for: No-deposit option for bad credit
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.
Upgrade Cash Rewards Visa®
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.
Discover it® Student Chrome
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.
Grow Credit Mastercard
Our pick for: Building credit with subscriptions
The Grow Credit Mastercard doesn’t require a security deposit or a hard credit check. It allows you to establish a credit history by paying for qualifying subscriptions like Netflix or Spotify, and it doesn’t charge any interest because you can't carry a balance on the card. You will owe a membership fee, however. Read our review.
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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.
With the Discover it® Secured Credit Card, the issuer automatically reviews your account after 7 months 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 December 10, 2024
Methodology
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.