Best Credit Cards for Building Credit
Getting your first credit card (or a new one to rebuild credit) is a big deal. It’s the key to unlocking better financial opportunities—from qualifying for car loans and mortgages to getting lower interest rates on everything. But not all credit cards are created equal. The wrong card can bury you in fees, high interest rates, and low credit limits—while the right card can set you up for financial success.
In this guide, we’ll break down the best credit cards for building credit, how to choose the right one, and how to use it wisely.
How to Choose the Best Credit Cards for Building Credit
Not every credit card is beginner-friendly. Some have low limits, high fees, and confusing terms that can actually hurt your credit.
Here’s what to look for:
- No or Low Annual Fee – A good credit-building card shouldn’t cost you a fortune just to own it.
- Reports to All Three Credit Bureaus – The whole point is to build your credit score, so your payments must be reported to Experian, Equifax, and TransUnion.
- Reasonable Interest Rate – You should always pay your balance in full (to avoid interest), but having a lower APR is still a plus.
- Graduation to a Better Card – Some beginner credit cards automatically upgrade you to a better card with higher limits once your credit improves.
So, What Are The Best Credit Cards for Building Credit?
1️⃣ Discover it® Secured Card – Best for Cashback & No Annual Fee
Why It’s Great:
- No annual fee
- 1-2% cashback on purchases (rare for secured cards!)
- Graduates to an unsecured card after responsible use
Best For: Anyone who wants cashback rewards while building credit.
2️⃣ Capital One Platinum Secured – Best for Low Deposit Requirements
Why It’s Great:
- No annual fee
- Low refundable deposit (as low as $49)
- Higher credit line after 6 months
Best For: Those who don’t want to put down a big security deposit but still want a trusted, major credit card.
3️⃣ Petal® 2 “Cash Back, No Fees” Visa® – Best for No Security Deposit
Why It’s Great:
- No security deposit required
- Up to 1.5% cashback on all purchases
- No annual fee, no late fees, no foreign transaction fees
Best For: People with no credit history who want a card without a security deposit.
4️⃣ Chime Credit Builder Visa® – Best for No Credit Check
Why It’s Great:
- No credit check to apply
- No interest charges
- Credit limit based on your Chime account balance
Best For: People with bad credit or no credit who don’t want a hard inquiry on their credit report.
5️⃣ Self Visa® Credit Card – Best for Credit Building & Savings
Why It’s Great:
- Works like a credit-builder loan (savings + credit card in one)
- No hard credit check
- Great for people rebuilding credit
Best For: Those who want to build credit while also saving money.
If you want to compare even more options, Credit Karma’s card comparison tool can help you find the beginner-friendly cards based on your credit profile.
How to Use Your Credit Card to Actually Improve Your Score
Having a credit card isn’t enough—you need to use it wisely to get the best credit score benefits. Stick to these helpful tips:
Pay On Time (Every Time) – Your payment history is 35% of your credit score—one late payment can tank your score.
Keep Your Utilization Low – Never use more than 30% of your available credit (ideally under 10% for max benefits).
Don’t Open Too Many Accounts at Once – Each credit card application creates a hard inquiry, which can lower your score temporarily.
Use It for Small, Regular Purchases – Buy something small (like gas or groceries) and pay it off in full each month.
To learn more about different credit scores, click here.
Credit Card Mistakes That Can Wreck Your Score
We just learned things you can do to help your score with your card. But is it always rainbows and sunshine? Not exactly. Avoid these mistakes if you want to build up that score:
🚫 Maxing Out Your Card – This tanks your utilization rate and lowers your score fast.
🚫 Only Making Minimum Payments – Paying the minimum = high interest charges + long-term debt.
🚫 Closing Your Oldest Credit Card – This shortens your credit history length, which hurts your score.
🚫 Applying for Too Many Cards at Once – Multiple applications = multiple hard inquiries, which can lower your score.
Final Thoughts: The Right Card Can Change Everything
The right credit card can be a game changer – helping you build credit, earn rewards, and qualify for better financial opportunities. Just remember to be responsible!