Best credit cards to build credit for July 2024

Whether your credit history is limited or downright messy, the following credit cards will give you a chance to improve it. Credit-building credit cards are often unmemorable, offering few perks and meager return rates for spending. Secured credit cards are typically the best bet for those having trouble being approved for a credit card.

Best credit cards for building credit

card_name: Best for a flat return rate

Chase Freedom Rise℠

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Chase Freedom Rise℠

Credit score

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Annual fees

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Welcome bonus

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Why we like it

The no annual fee Chase Freedom Rise℠ Credit Card is an easy win for those with limited (or no) credit history. You’ll get a respectable 1.5% cash back on all purchases, as well as a $25 statement credit after enrolling in autopay.

The main draw of this card is its low approval standards. If you’re new to credit, this unsecured credit card is a top-notch option to build your credit profile. It offers a credit limit increase in as soon as six months (based on healthy usage), and it lets you track your credit score for free.

It’s not often that a credit card requiring zero credit history offers a respectable return rate for all spending. The card_name is one of the few, delivering 1.5% back on all purchases — making it one of the best rewards credit cards for those hoping to build credit. Plus, you can strengthen your approval odds with a Chase checking account containing at least $250.

This card also helps you upgrade your credit by increasing your credit line (the amount of money you can borrow) if you meet Chase’s criteria in as soon as 6 months. That means if you never miss a payment and you show responsible use, you can increase your debt to credit ratio with minimal effort, which can improve your credit score.

card_name: Best for a partially unsecured credit line

Self - Credit Builder Account Secured Visa(R) Credit Card

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Self - Credit Builder Account Secured Visa(R) Credit Card

Credit score

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Annual fees

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Welcome bonus

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With most secured credit cards, the size of your credit limit will depend on the size of your deposit. The card_name works similarly: You open a Self Credit Builder account, which is a certificate of deposit loan that you’ll pay off in monthly installments. Each month, your payments will be deposited into a savings account, which dictates the size of your credit limit.

However, by sharing your income information with Self, and by keeping your card_name in good standing for at least six months, you may qualify for a portion of unsecured credit. This means you can have a credit line that’s larger than your Credit Builder account.

U.S. Bank Cash+® Visa® Secured Card: Best for choose-your-own bonus categories

U.S. Bank Cash+® Secured Visa® Card

U.S. Bank Cash+® Secured Visa® Card

Credit score

Bad/Poor

Annual fees

$0

Welcome bonus

None

The U.S. Bank Cash+® Visa® Secured Card is one of the only credit-building cards that allows you to select your own bonus categories. You’ll earn 5% cash back for up to $2,000 in combined purchases each quarter, then 1% on two eligible categories of your choosing. These include fast food, cell phone providers, department stores, home utilities and more.

You’ll also get to select either restaurants, grocery stores or gas/EV charging stations to earn 2% back.

OpenSky® Plus Secured Visa® Credit Card: Best for no credit check

OpenSky® Plus Secured Visa® Credit Card

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OpenSky® Plus Secured Visa® Credit Card

Credit score

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Annual fees

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Welcome bonus

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Truly one of the easiest credit cards to be approved for, the OpenSky® Plus Secured Visa® Credit Card doesn’t require a credit check or a bank account. Regardless of your credit history (or lack thereof), it’s possible to be approved for this card. Just note that approval isn’t guaranteed; you could be denied for other factors, such as insufficient income.

OpenSky Plus also has no annual fee, unlike its sibling the card_name. There are penalties for late and returned payments (late_payment_fee), but if you’re carefully building credit, you will avoid those penalties.

card_name: Best for students

Capital One SavorOne Student Cash Rewards Credit Card

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Capital One SavorOne Student Cash Rewards Credit Card

Credit score

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Annual fees

annual_fees

Welcome bonus

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The card_name is bafflingly valuable for a credit-building card. You’ll earn 10% cash back with Uber and Uber Eats through Nov. 14, 2024, 8% cash back for Capital One Entertainment purchases, 5% cash back on car rentals and hotels booked via Capital One Travel and 3% cash back for dining, grocery stores, eligible streaming services and entertainment.

Even if you have a limited credit history, you can be approved for this card — as long as you’re a student (that is, either enrolled at a four-year university, community college or other higher education institution or admitted and enrolling within three months).

Chime(R) Credit Builder Secured Credit Builder Visa(R) Card: Best for no security deposit

Chime Credit Builder Visa® Credit Card

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Chime Credit Builder Visa® Credit Card

Credit score

credit_score_needed

Annual fees

annual_fees

Welcome bonus

bonus_miles_full

Perhaps the biggest pain point of a secured credit card is the fact that you must submit a refundable security deposit that you won’t get back until you either cancel your card or upgrade it to an unsecured option. The Chime(R) Credit Builder Secured Credit Builder Visa(R) Card is different (and better).

Here’s how it works: You’ll deposit money into a Chime Credit Builder account. You’re free to withdraw or deposit into the account at any time, but the Chime(R) Credit Builder Secured Credit Builder Visa(R) Card credit limit will match whatever your Credit Builder account’s balance is. This means you’ll never have money tied up in a security deposit you can’t touch.

Mission Lane Visa®: Best for prequalification

Mission Lane Visa®

Mission Lane Visa®

Credit score

300

Annual fees

$0, $39, and $59

Welcome bonus

None

The Mission Lane Visa® is one of the few unsecured credit cards that can look past your messy credit history and philanthropically extend credit to you. But make no mistake — this is not a good credit card. It charges up to $59 in annual fees for a paltry offering of benefits.

One advantage of this card is the ability to prequalify. You can enter a few personal details before you apply, and it’ll give you an indication of your credit card terms and fees before you formally submit an application. This ability to peek at the specific offer you’ll (likely) get helps you to gauge whether it’s a good option for you.

How we chose the best credit builder credit cards

We compared card offers based on the following criteria: Rewards rates (when applicable), welcome offers (when applicable), rewards flexibility, introductory APR offers, variable APRs, annual fees, included consumer protections included, travel benefits and perks, travel insurance benefits and required credit rating.

Ultimately, we looked for credit cards that offer the most lucrative rewards structures and welcome offers, as well as flexibility within their designated rewards programs. Some cards that don't offer rewards were evaluated based on other factors, including their fee structure, introductory interest rates and regular variable APR. In all cases, benefits such as consumer protections and travel insurance perks were taken into account.

Choosing the best credit card to build credit: Where to begin

Eligibility

If you’re on a mission to build credit, you likely have either no credit score or a poor credit score. Ensure that you’re only applying for credit cards that approve applicants like you. If you apply for a credit card that’s out of your league, you’ll only set yourself up for a denial.

Annual fee

Some starter credit cards charge an annual fee in exchange for rock-bottom approval standards. These cards often provide virtually no worthwhile benefits. However, many folks consider the ability to build credit worth the price tag.

If you can help it, apply for a secured credit card or other credit-building card that doesn’t charge an annual fee. Otherwise, you should cancel your annual fee-incurring credit card as soon as you qualify for a better card.

Ongoing benefits

The primary goal of a credit-building card is to help you establish or repair your credit profile. You typically won’t find valuable perks such as high return rates, free memberships and annual statement credits on these cards — though there are exceptions. Keep in mind that your main reason you’re opening one of these cards is to bolster your credit to eventually qualify for better cards in the future.

Path to upgrade

Again, credit cards designed to build credit are largely forgettable. Many of these cards allow you to “product change” to a better card once you have improved your credit. In other words, you can open a milquetoast credit-building card and turn it into a lucrative rewards card later on. You’ll even get to keep your same account number.

Rewards

Some credit-building cards (particularly secured credit cards) earn cash back for purchases. These are the no-brainer options to open, if you qualify. Swiping a credit card that doesn’t earn rewards means you’re forfeiting free money.

Why is building credit important?

Your credit profile is like a financial report card. Lenders will examine your credit to decide if you’re a trustworthy customer. Because of this, building credit is one of the most important steps you can take to improve your financial well-being — and your life, for that matter.

Without a respectable credit score, you’ll have a hard time being approved for an auto loan, a mortgage or even a tenant application. Conversely, a good credit score can unlock favorable interest rates for any loan you might want, and you’ll qualify for rewards credit cards that can unlock hundreds of dollars in cash back each year, as well as (nearly) free travel.

How to build credit

Building credit with a credit card is simple, though not necessarily easy, particularly for those that have trouble spending within their means. Here’s what you need to do:

• Use your credit card. A robust credit history is built when you use your credit card. It’s not enough just to open one and throw it in the sock drawer. Lenders want to see that you’re good at actually managing credit.
• Keep your amounts owed low. Credit utilization makes up 30% of your overall credit score. The rule of thumb is to keep your balance at or below 30% of your credit limit. A higher percentage could negatively affect your credit score. For example, if you have a $10,000 credit line, your balance should never be higher than $3,000.
• Pay your bills on time. Your payment history accounts for a whopping 35% of your credit score. To build healthy credit, you must pay your credit card bill on time each month. You don’t even have to pay the entire balance (though you should). Just keeping up with the minimum payment will result in a stellar payment history.
• Keep your credit card open. The longer your credit card stays open, the longer your average account age will be. This positively affects your credit, as your length of credit history makes up 15% of your credit score.

Frequently asked questions (FAQs)

How many credit cards do I need to build credit fast?

Just one credit card is enough to build your credit. Holding multiple credit cards won’t necessarily build your credit faster.

Related:

• How long does it take to build credit?
• How to fix your credit score

Do certain credit cards build credit faster?

Certain credit cards do not build credit faster than others. That said, some credit cards report to more credit bureaus than others. Lenders use credit bureaus to examine your credit profile before approving you for a loan, so the more credit bureaus your credit card reports to, the better.

Related: How many credit cards should I have?

What are the best credit card offers right now?

The best credit card offers right now are reserved for those with “good” credit (defined by FICO as 670 or above). These include cards with large bonuses and hundreds of dollars in annual statement credits, such as the card_name, card_name and the card_name.