Best Credit Cards for Building Credit

Signing up for a new credit card, engaging in some modest spending, and making your payments on time can add positive history to your credit report. Over time, this activity can lead to a higher credit score, which means better interest rates and higher approval odds when applying for financial products. 

The question is, which card is the right fit for building credit? If you are looking for the best credit cards for building credit, this guide is for you. 

What are the best credit cards for building credit?

Most of the cards on our list are secured credit cards, meaning you have to make a cash deposit to get approved. Typically, the cash deposit is equal to your credit limit. For instance, if you put down a $1,000 deposit, your limit will be $1,000. Secured cards are easier for individuals with low or rebuilding credit to obtain, as they are less risky for lenders. 

The best credit cards for building credit are: 

1. Kikoff Secured Card

The Kikoff secured card is a no-fee option offered by Kikoff’s partner bank. Your card activity and on-time payments will be reported to all three of the major credit bureaus. You can keep the card, even if you decide to cancel your Kikoff subscription. 

During the application process, you will find out what your deposit options are and what your limit will be. It’s an excellent option for individuals with thin or rebuilding credit. With a Kikoff credit account, you can also access a variety of other tools, including verified rent reporting and free dispute letter generation. 

2. Capital One Platinum card

The Capital One Platinum Secured Credit Card is popular for people who are rebuilding credit or have no credit history. Deposit options are as low as $49, $99, or $200. If you are approved, your card will have a minimum limit of $200. It is one of the few cards that offers a limit that is higher than the required deposit amount. 

After you’ve demonstrated responsible financial behavior, Capital One may review your account for a higher limit without requiring an additional deposit. Make sure you pay on time and carefully read all terms and conditions. 

3. Discover it Secured Credit Card

The Discover it Secured Credit Card offers rewards, which is uncommon for secured products. Benefits include:

• Cashback rewards
• Reporting to all three bureaus
• An automatic account review after several months (time varies)

Consider this option if you want to earn rewards. As with other secured cards, your limit and deposit requirements will vary based on individual factors. You don’t even have to have a credit score to apply, which makes the card appealing for individuals who are just starting out. 

4. Petal 2 Visa credit card

The Petal 2 Visa is issued by WebBank. You can earn cash back on purchases and won’t have any annual fees. The card also features a Leap program, which outlines how you can earn a credit increase over six months. It’s a great tool for building discipline. 

5. Chime Credit Builder Visa Credit Card

The last option on our list is offered by Chime. You may be eligible with low or no credit. The Chime Credit Builder Visa Credit Card has no minimum deposit requirement, allowing you to start with as many or as few funds as you would like. 

How credit cards help build credit

Using credit cards for establishing credit works for a few reasons. First, you are opening a new account, which adds to your credit mix and increases your available credit balance. When you use that card and make on-time payments, it improves your credit report, which is what is used to create your score.

However, credit cards can work against you, too. If you use a high percentage of your balance or max out your card, it can reflect negatively on your financial discipline. Missing payments can be even worse for your score. 

Alternative methods to build credit

There are plenty of other ways to improve your credit history and boost your score. A few options include:

• Taking out a credit-builder loan
• Reporting verified rent and utility payments 
• Signing up for credit accounts that report monthly activity 

Platforms like Kikoff report monthly activity as a retail tradeline to major credit bureaus. You aren’t charged interest for financing Kikoff digital products, and there is no hard credit check to sign up. It's an accessible option for consumers who want reported activity without traditional revolving debt.  

Conclusion

Finding good credit cards for rebuilding credit is just one option. Signing up for Kikoff opens several other doors for improving your financial history and boosting your score. In addition to offering credit cards for establishing credit, Kikoff also provides:

• A free credit account 
• A paid subscription credit service
• Rent reporting
• Invite-only credit-builder loans
• Free dispute tools and debt negotiation on eligible debts

Strengthening your credit history and improving your score can open all sorts of doors. Ready to take control of your financial journey? Use on-time payments to build credit with Kikoff.