9 Best Credit Cards for Building Credit in 2024

If you’re getting a credit card primarily to build your credit, keep these points in mind while shopping for a card and while using it:

• Secured vs unsecured. Secured cards require a deposit, which becomes your credit limit. They are often available without a credit check. Secured cards are often the best choice for building credit.
• Watch your credit utilization. To build credit, you must keep your balance below 30% of your credit limit. Even less is better. This can be difficult if your credit limit is low, but it’s a vital part of building credit.
• Make every payment on time. On-time payments build credit, late payments destroy it!
• Pay your balance in full. If you pay your balance in full by the statement date, you will never pay interest. Carrying a balance is expensive. Never make just the minimum payment. That’s designed to trap you in a high-interest cycle!

A credit card can help you build credit, but only if you use your credit card wisely.

Now let’s look at the top credit cards for building credit!

From application to account upgrade, there are multiple ways that the Discover It secured credit card can help you build better credit.

Application

Discover offers a preapproval process that lets you check your eligibility before committing to a hard pull. This secured Discover card does not require a minimum credit score; you can qualify with no credit history.

Once approved, you set your own credit limit based on your deposit. You can start with as little as $200 or as much as $2,500. Be aware of your credit limit. It has a large impact on your credit utilization which is a major part of your credit score.

Credit Reporting

This secured card will report to all 3 credit bureaus every month, just like an unsecured credit card does. And you can check your credit progress monthly using the free TransUnion FICO score Discover provides you.

Discover also offers account lock, and credit freeze features to protect you in the event of fraud and/or identity theft.

Upgrade Process

The Discover It Secured card offers a path toward upgrading to an unsecured card. After 7 months, Discover will begin automatically reviewing your account to determine if you qualify for an upgrade.

If you qualify, your deposit will be returned to you, and you will be upgraded to Discover’s unsecured IT credit card. 

If you are a student looking to build credit, there are Discover products dedicated to students.  

Discover it® Student Chrome – $500 starting credit with an APR range of 18.24% – 27.24%. Comes with a 6-month 0% APR offer plus 2% cash back on restaurant and gas purchases, 1% on general purchases, and unlimited cashback match at the end of your first year.

Discover it® Student Cash Back – $500 starting credit limit with an APR range of 18.24% – 27.24%. Comes with a 6-month 0% APR offer plus 5% cash back on rotating quarterly categories, 1% on general purchases and unlimited cashback match at the end of your first year.

From application onwards, Capital One offers you a step-by-step process for rebuilding your credit with the Platinum Secured card.

Application

Capital One offers a soft pull preapproval process for the Platinum secured card. If you are preapproved and go forward with the application, there will be a hard inquiry.

Once approved, you’ll need to pay a deposit that varies depending on your creditworthiness. Deposit values are $49, $99, or $200. Regardless of the deposit amount, your starting credit line is $200.

If you want a higher initial credit line, you can increase your deposit up to $1000 for a $1000 credit limit.

Credit Reporting

Capital One reports your credit line and payment activity to all 3 credit bureaus. Because the starting credit limit is so low, you’ll need to keep your reporting balance very low to keep your utilization down.

As part of your account, you get access to CreditWise, which provides you with credit alerts and free VantageScores from Transunion.

Upgrade Process

Capital One begins reviewing your account at the 6-month mark. If you have a good payment history and improving credit, Capital One can extend you an unsecured credit limit increase. No extra deposit is necessary.

If you maintain this excellent payment history, Capital One may extend an offer to refund your deposit and upgrade your account to the unsecured Platinum card.

In addition to the Platinum Secured, Capital One offers several other credit cards designed for poor credit.

Capital One Quicksilver Secured Cash Rewards Credit Card – this secured card has the same APR but a higher max credit limit ($3,000+), 1.5% cash back on all purchases and 5% cash back on hotel and rental car bookings. Plus, you can qualify for unsecured credit limit increases and an upgrade to the unsecured Quicksilver card.

Capital One Platinum Credit Card (unsecured) – the unsecured version of the Platinum card has all the same features and benefits as the secured version, with no deposit required.

The Platinum Prestige card has no preapproval option or upgrade feature, but the high credit limit and low APR are still decent features for building credit.

Application

First Progress does not offer a preapproval process, so you must risk the hard inquiry. But, as Frist Progress doesn’t require a minimum credit score, approval chances are high.

If you are approved, you will be approved for all 3 Platinum Prestige secured cards if you are approved. After choosing the card you want, you must provide a security deposit. The minimum deposit is $200, and the max is $2000. The higher the deposit, the higher your credit limit will be. This will make it easier to keep your credit utilization low.

Credit Reporting

The Platinum Prestige card will report to all 3 credit bureaus each month. But you must keep a close eye on your utilization if you want to build good credit.

For instance, with an initial line of $200 and a $49 annual fee, your available credit line for your first month will be $151. This is already a 24% utilization rate. You can improve utilization by paying a higher initial deposit or requesting credit limit increases later.

Upgrade Process

First Progress does not offer an upgrade option. Instead, after 6 months of on-time payments, they let you open a second card with them. This ability to immediately qualify for a second card could help you build credit faster.

In addition to the Platinum Prestige, First Progress offers two other secured credit-building cards.

First Progress Platinum Select Mastercard® Secured Credit Card – annual fee of $39 with a variable APR of 19.24%.

First Progress Platinum Elite Mastercard® Secured Credit Card – annual fee of $29 with a variable APR of 25.24%. After 6 months of on-time payments, you could receive an invitation to apply for an unsecured card.

If you qualify for one of First Progress’s secured cards, you’ll qualify for all three. And you can have multiple cards open with First Progress.

With a preapproval process, free credit monitoring, and automatic credit line increases, Capital One’s Quicksilver secured card can help you take the necessary steps to improve your credit.

Application

Capital One offers a preapproval process that helps you avoid an unnecessary hard pull of your credit. For approval, Capital One requires “fair” credit, which they define as those with a little credit history or those with a single default.

Once approved, you must provide a minimum deposit of $200. Depending on your creditworthiness, you can pay an additional deposit to set your credit limit at $1000 – $3000. The more you add to your deposit, the easier it will be to keep your credit utilization low.

Credit Reporting

The Quicksilver secured card will report to all 3 credit bureaus. And you can keep track of your credit-building process using CreditWise. This service sends you credit alerts and gives you free access to your TransUnion VantageScore.

Upgrade Process

After 6 months of opening the account, Capital One begins automatic reviews of your credit. With good payment history and no new concerns on your credit report, Capital One may extend you a no-deposit required credit limit increase.

If your credit continues improving, Capital One may offer to convert your account to one of their unsecured Quicksilver cards. If you qualify, you’ll receive a refund of your deposit.

Capital One offers 4 versions of their Quicksilver Rewards card specifically designed for varying credit levels. Each subsequent card has better features and higher credit requirements.

Capital One QuicksilverOne Cash Rewards Credit Card – no deposit required, but comes with a $39 annual fee. Ideal for those with fair credit.

Capital One Quicksilver Secured Cash Rewards Credit Card – no deposit and no annual fee. Ideal for those with good credit.

Capital One QuicksilverOne Cash Rewards Credit Card with Intro Offer – intro offer includes 0% for 15 months and a one-time $200 cash bonus. Regular APR is 19.99% – 29.99%. Ideal for those with excellent credit.

Capital One’s preapproval process will let you know which of these cards you qualify for.

Starting with no credit check, the OpenSky Secured Visa utilizes several account features to help you on your path toward better credit.

Application

The application process consists of entering in some basic personal and income information and selecting the amount of your deposit. Deposit amounts start at $200 and go up to $3000. This deposit will serve as your credit limit once you are approved.

If you don’t have a bank account, no problem. OpenSky lets you fund your deposit by sending them a money order; no linking to a checking account is needed. 

OpenSky does not perform a credit check, so even if your application is denied, there is no damage to your credit score.

Credit Reporting

OpenSky reports your account activity to each of the three credit bureaus monthly.  How much your initial deposit is versus how much you spend will be a significant factor in your credit score growth. OpenSky recommends utilizing no more than ⅓ of your credit limit.

Upgrade Process

In as little as 6 months, you can qualify for an upgrade to OpenSky’s unsecured account. This allows you to receive unsecured credit limit increases on top of your existing deposit-funded credit limit. Your security deposit is only refundable when you close your OpenSky account.

OpenSky does not offer any other credit cards, but there are a few other no-credit-check cards on the market.

Chime Credit Builder Visa –  you can use your Chime banking account to secure the card; no credit check is needed.

Self Visa^® Credit Card – funded with your Self credit builder loan, doesn’t require a credit check or deposit.

Applied Bank Secured Visa^®Gold Preferred^® Card – this low APR secured card does not require a credit check. Warning: there is no grace period on this card. Purchases incur interest charges on day 1.

In addition to no-credit-check cards, you can also explore other secured credit cards. 

When you are trying to build credit after bankruptcy, the Destiny Mastercard application and credit reporting process can help you achieve a better score and let you qualify for better products.

Application

The Destiny Mastercard offers a pre-qualification process that performs a soft pull to see if you are eligible for the card. A hard inquiry is only completed once you move forward with the application.

As an added benefit, Destiny is an unsecured card (no deposit required) and has few credit requirements. Destiny states, “All credit histories will be considered, even with a prior bankruptcy!”

Credit Reporting

The Destiny Mastercard reports account activity to all 3 credit bureaus. Since the credit limit is relatively low compared to the annual fee ($700), you must pay close attention to your utilization ratio. Just the annual fee charged your first month (max $175 for the first year) will increase your utilization ratio.

Keeping your utilization low and making your payments on time will help you improve your credit score over time.

Upgrade Process

Destiny does not offer any kind of upgraded product, nor do they offer unsecured credit limit increases.

Once your credit is improved enough to qualify for better credit cards, you should close your account with Destiny to avoid the high annual fee.

While there are no other cards in Destiny’s portfolio, there are several nearly identical credit cards geared towards those with poor credit history, such as:

• Indigo Mastercard
• Milestone Mastercard

These cards all have APRs and fee structures similar to those of the Destiny Mastercard.

From application through college graduation, the Capital One SavorOne student credit card with no annual fee and great rewards program is a valuable tool for building your credit and beyond.

Application

Capital One offers a preapproval process that lets you see if you are likely to qualify for the card without risking a hard inquiry. Once you proceed with the application, you must agree to a hard pull.

Since this card is geared toward college students, there is no minimum credit score required. In fact, you don’t even need to have a credit score. However, you will need to be a college student to qualify.

Credit Reporting

Capital One reports your account activity to all 3 credit bureaus. Since this is a student card, you might not have a high credit limit, so you’ll need to watch your credit utilization closely.

On the upside, your purchases will qualify for cashback. Plus, you’ll be eligible to earn a $50 cash bonus when you open the card. Using this cashback as a statement credit can help lower your credit utilization.

Upgrade Process

When you graduate, you keep the SavorOne card; it is exactly the same as the non-student version. You might want to update your income info once you get a job after college, as this could qualify you for a credit limit increase.

If the SavorOne isn’t the right fit, Capital One offers several other student credit cards.

Journey Student Rewards from Capital One – a flat 1% cashback card with a 29.99% interest rate. Provides a bonus of 0.25% cash back for on-time payments.

Capital One Quicksilver Student Cash Rewards Credit Card for Students – a flat 1.5% cashback card with the same APR range as the SavorOne for students.

In addition to student cards, you can look at Capital One’s secured credit cards if you don’t have much credit or income.

With a preapproval process and the credit leap program, the Petal 2 card can be a good resource for building or rebuilding your credit.

Application

Petal offers a preapproval process for their cards. This lets you see which card(s) you are eligible for before risking a hard inquiry.

Additionally, if you don’t have much credit history, Petal will request linking to your bank account. This allows them to generate a CashScore in place of a credit score. Your CashScore can qualify you for a Petal card even if your credit score doesn’t.

Credit Reporting

Petal reports your account activity to all 3 credit bureaus. Depending on your creditworthiness, you could be approved for a credit limit as low as $300. But, using Petal’s Leap program, you can qualify for credit limit increases every six months. The maximum credit limit is $10,000!

You should always strive to make your payments on time, but if you are late, Petal does not charge you a fee. A payment more than 30 days late will negatively affect your credit score.

Petal also offers free access to your Experian credit score on the Petal app to help you track your progress.

Upgrade Process

Petal does not offer any kind of upgrade process. Whichever Petal card you start with is the one you keep. If you are not initially approved for the Petal 2, you can reapply in as little as 30 days.

The Petal 2 card comes with the highest credit score or CashScore requirements of all the Petal cards. If you don’t qualify for Petal 2, you might be eligible for one of the other Petal cards.

Petal 1 – $0 annual fee card that earns cashback with select merchants. Credit limits range from $300 to $5,000, and APRs start at 25.24% and go as high as 34.74%. 

Petal 1 Rise – card has a $59 annual fee, the lowest eligibility requirements, but still earns cashback at select merchants. Credit limits are capped at $3,500, and APRs go as high as 35.74%. 

You can also take a look at other poor-credit, unsecured card options.  

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The card offered by Tomo offers automatic payments and no credit requirements. It can help you build credit without incurring debt.

Application

There is no pre-approval process for Tomo, but when Tomo checks your credit, they will only perform a soft inquiry. Applying for a Tomo card will not hurt your credit.

Tomo also doesn’t have any minimum application requirements. They consider alternative information, such as banking history, so your credit score is not a disqualifying factor.

Unfortunately, if your application is denied, you cannot reapply.

Credit Reporting

Tomo reports your account activity to all 3 credit bureaus each month.

Your credit limit, which Tomo calls your spending power, is set based on your banking history and account balance. This limit can be as low as $100 or as high as $30,000. To help keep your utilization low, Tomo auto-deducts payments every 7 days.

Because you cannot carry a balance, you cannot incur a late payment.

Upgrade Process

There is no upgrade process for Tomo, nor is there a credit limit increase program. Tomo suggests the best way to increase your spending power is to consistently make on-time payments and link your Tomo account to all your bank accounts.

For more information on Tomo, read our full review here.

Tomo does not offer any other credit-building products. But there are a few similar products available from other lenders.

Grow Credit – a virtual card that you use to pay monthly subscriptions. This card reports like a loan instead of a credit card.

Chime Credit Builder Visa® – a zero-fee charge card that works with your Chime checking account.

Sesame Cash Credit Builder – a virtual card linked to your Sesame Cash account. This card uses your regular debit purchases to build your credit history and lets you set your utilization.

Charge cards aren’t just for credit building. There are premium charge cards with great rewards that you can graduate with when you are ready.