Do you need to build your credit? Perhaps you are a young adult who has never had a credit card, or maybe you are a new arrival to the U.S. without a credit history here. Others may need to build credit after having gone decades without applying for any type of loan.
Thankfully, the right credit card can help you quickly build your credit. To choose the best one for this purpose, look for cards that are targeted at students, newcomers, or those with average credit. (You can check your credit scores for free on Credit.com.) If you are unable to qualify for one of these cards, then you will need to consider applying for a secured card. Finally, new credit card users should always be looking for cards that are simple to use, with low costs and few fees.
This card offers low rates and a simple fee structure, making it ideal for students and young adults. For example, there is no annual fee for this card and no penalty interest rate. Plus, cardholders automatically receive their first late payment fee waived. In addition, this card offers 2% cash back on up to $1,000 spent each quarter at gas stations and restaurants, and 1% cash back on all other purchases. Finally, the Discover card boasts 100% U.S.-based customer service and it is well known for having a high rate of customer satisfaction.
BankAmericard Secured Card
This card requires a minimum refundable security deposit of $300, which helps to determine your credit limit. But in all other ways, it acts just like a standard credit card. Cardholders must make a payment each month, and will be charged interest if they carry a balance. To help remember, customers can set up account alerts via email or text. After one year of use, your account can be reviewed and you can qualify for a standard unsecured card. There is a $39 annual fee for this card.
This card is designed for those with merely average credit, and it is a very simple product. It has no annual fee or foreign transaction fees, but it offers no rewards either. This card includes perks such as extended warranty coverage, price protection and auto rental insurance.
US Bank Secured Visa Card
New cardholders fund their accounts online or can mail in a cashier’s check or money order. Once the account is opened, cardholders can use it just like any other credit card as they build their credit. Features include auto rental insurance and automatic bill pay. Customers can also set up automatic payments to their account using US Bank’s FlexControl feature. There is a $39 annual fee for this card.
This card currently offers 2,500 bonus ThankYou points after new applicants spend $500 on their card within the first three months. This card also offers double points for spending on dining and entertainment and one point per dollar spent elsewhere. ThankYou points can be redeemed for about one cent each worth of gift cards, travel reservations, merchandise and other options. Benefits include auto rental coverage, extended warranty policies, trip cancellation and interruption protection and damage and theft purchase protection. There is no annual fee for this card.
At publishing time, Discover it Chrome for Students, Capital One Platinum and Citi ThankYou Preferred Card for College Students are offered through Credit.com product pages, and Credit.com may be compensated if our users apply and ultimately sign up for this card. However, this relationship does not result in any preferential editorial treatment.
Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.
More on Credit Cards:
Sign up for our weekly newsletter.
Get the latest tips & advice from our team of 30+ credit & money experts, delivered to you via email each week. Sign up now.
Note: It's important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.