Best Credit Building Credit Cards

Best Credit Building Credit Cards

Hello Guys, After reviewing more than 189 cards for you, we have shortlisted the best credit building credit cards for you using which you can build your credit score. So basically, there are two types of credit cards that you can use to build your credit score.

Best Credit Building Credit Cards Including Types of Credit Card:

Secured Credit Card
Unsecured Credit Card

So the main difference in both of them is that, Secured Credit Cards requires security deposit and credit limits are between 70%-100%. It is generally for people having very bad credit history or no credit history at all. It helps them to slowly build their credit score from negative or zero to good credit score. Whereas, Unsecured Credit Cards don’t require any security and are given to people who are having excellent or good credit score.

Best Credit Card for LOW DEPOSIT:

Capital One® Secured Mastercard®

Intro APR: Not Applicable

Regular APR: 24.99% Variable APR

Annual fee: $0

• You will get $200 Credit Line on your secured credit card after you make the security deposit of $49, $99 or $200 which is determined on the basis of your creditworthiness.
• It is not like any prepaid card. If you use this card responsibly and make the payment on time, it will boost your credit score. It has regular reporting to 3 Major Credit Bureaus.
• The Best part about this card is it has no annual fee along with all the credit building benefits.
• This card is accepted worldwide at millions of locations.
• Your credit line will increase after you show them your credibility by responsibly making timely payment in your first 5 months without any extra deposit.
• You can manage your account online or by using mobile app or by phone 24×7 anytime.

Benefits:

Most of the secured cards, only provide credit limit upto the limit of your deposit. But Capital One® Secured Mastercard® provides you even Double or 4X of your deposit. Your deposit requirement will be depend on your creditworthiness or credit rating or credit score. You even have the option of paying the deposit in installments if you are unable to pay full upfront that is before your card gets activated. Also you need to make only first five installment on time to increase your credit limit.

Drawbacks:

This card is little stricter in its standards for qualifying. Your rent should not be close to your monthly income. You should not have any non-discharged bankruptcy or You will need a checking or saving account and with many other more reasons.

Conclusion:

Capital One® Secured Mastercard® is not good or suitable for person who is having very major credit damage or with very low credit score. It is definitely good for person who is going to use a credit card for the first time to build his credit score.

Best Credit Card for REWARDS:

Discover it® Secured

Intro APR: 10.99% on Balance Transfers for first 6 months.

Regular APR: 24.99% Variable APR

Annual Fee: $0

• You will receive alerts of Social Security Number when you access any risky websites at the time when you sign up.
• At the end of the first year, You will automatically get cash back on the basis of dollar-for-dollar match.
• You will automatically get cash back of 2% at restaurants and gas stations up to the amount of $1,000 every quarter. On other purchases, you will get 1% cashback on unlimited basis without limit.
• Your account will be reviewed after 8 months to check for your credibility and to consider you for an unsecured line of credit.
• You will need to deposit an amount of $200 which is refundable which will help in starting a new line of credit.
• You will get cashback on every purchase, there is no annual fee and you will build your credit responsibly.

Benefits:

For a secured card, rewards like 2% on gas & restaurants and 1% on other spending is very rare that too without any annual fee on card. Also your account can get upgraded for an unsecured card after 8 months of evaluation.

Drawbacks:

The maximum credit limit is $2,500 which can be too low for some people. It is must for you to have a bank account, if not then you cannot get this card.

Conclusion:

From Rewards Point of View, when there is no annual fee and upgradation opportunity to unsecured credit line after 8 months, it is the Best Secured Credit Card.

Best Credit Card for NO ACCOUNT OR BAD CREDIT

OpenSky® Secured Visa® Credit Card

Intro APR: Not Applicable

Regular APR: 18.89% Variable APR

Annual Fee: $35

• This card provides opportunity to everyone and anyone with very damaged credit can apply for this.
• You can choose your credit line limit by making the exact refundable deposit with a minimum of at least $200.
• You can build your credit line very quickly because OpenSky reports to all 3 major credit bureaus.
• 99% Customers of OpenSky earns a credit score record in as little as 6 months period with major credit bureaus.
• There is a Facebook Community, forum and a Fan Page for people having no credit score to share their insights and experiences.
• They have dedicated credit education page on their website and also provides credit tips to support their customer in getting knowledge and in building their credit.

Benefits:

This credit card is best for people who are having severely damaged credit because OpenSky® Secured Visa® Credit Card doesn’t run a credit check and good for people having no bank account. The minimum deposit is $200 and maximum is $3,000. Use it for Money Order, Wire Transfer, Paying your Bills that too without having any bank account.

Drawbacks:

Generally, You cannot upgrade the account to an unsecured credit line. Also there is an annual fee of $35 which is not very high but it is not $0 also.

Conclusion:

If you are not able to find a Card Issuer because you are having very low credit score, then OpenSky® Secured Visa® Credit Card is the Best Credit Card for you.

Best Card for LOW FEES AND LOW APR INTEREST

Digital Federal Credit Union Visa Platinum Secured Credit Card

Intro APR: Not Applicable

Regular APR: 13% Variable APR

Annual Fee: $0

• No Annual Fee.
• There is No Higher Rates or No Fee for Balance Transfers or Cash Advances.
• It works with Samsung Pay, Google Pay and Apple Pay.
• There are other benefits of warranty, travel, car rental and insurance.
• You will also get Optional Overdraft Protection on your DCU Checking Account.
• You can use it to buy online with Visa Checkout safely and easily.
• This card is embedded with EMV chip which will protect your card and your money.
• You can Borrow Money against your DCU Saving Account
• The Regular APR is 13% which is well below the standard average.
• No Upper Credit limit and equal to security deposit.

Benefits:

The Best Part about this card is that it has a very low Variable APR which is 13% and almost half the rate of most of the popular secured cards and also better than unsecured cards. There is no fee or charges on cash advances or balance transfer along with no annual fee. Again the good thing about this card is that you can have credit limit of your choice with no upper limit which will be equal to your security deposit unlike many other secured cards.

Drawbacks:

To get the card, You must be a member of Digital Federal Credit Union. You can become a member using different ways but still it is an extra task to take unlike other card issuer.

Conclusion:

The thing is you always need to clear your monthly balance on time to maintain your credibility. But in case, If You are not able to do so then because of its low APR, It is the best card for you. It is the best card in less expensive card among secured cards.