A good or great credit score is one of the most important financial milestones to hit. After all, a good credit score is required for everything from renting an apartment to opening a new credit card. And, like any important financial milestone, earning a fantastic score requires some planning and baby steps! So take a look at the best credit cards for building credit…
Journey Student Rewards From Capital One
While this card might have “students” in the title, anyone can use it! However, its truly perfect for young adults looking to build credit quickly and effectively. With the Journey Student Rewards from Capital One, users will not need to pay any annual fees, whatsoever. Meanwhile, the card also comes with a great beginning rewards program: 1% cashback on all purchases. And that’s bumped up to 1.25%, after the first five on-time payments. The credit line also increases after on-time payments, increasing the owner’s “available credit” and improving their scores.
Capital One Secured Card
If you’re rebuilding credit, and having issues getting approved for a credit card, think about a secured card. These cards require a higher upfront deposit, usually because of a user’s past, bad credit. If this sounds like you, the Capital One Secured Card might be just for you. Capital One will charge anywhere from $50-$200 upfront, keeping that money in the event that the cardholder cannot pay the credit back. However, it’s refundable! As long as you make the payments, the cardholder will receive this deposit back as soon as they close the account.
Already have a credit card but still need to build some more credit? The Indigo Mastercard is just a perfect match for those who don’t want to further harm their credit by applying for multiple credit cards. The pre-qualification tool used does not negatively affect your credit, in any way. However, because of this, the card is a bit harder to acquire. Moreover, it could include an annual fee, based on your current credit score.
Discover It Secured
Looking for a secured card but don’t like Captial One? Well, check out Discover It Secured. Similarly, Discover’s secured card also required a full, upfront deposit and has no annual fee. However, it also has amazing cashback rewards: 2% back on restaurants and gas stations, and 1% back on everything else! And, with a year of on-time credit card payments, Discover will double the initial deposit when it pays the deposit back.
Petal Visa Credit Card
The Petal Visa features tons of great features, which can make it a bit more difficult to acquire with bad credit. However, if you can, it’s certainly worth it! WebBank, the lender, charges no annual fee and increases rewards over time, with continue on-time payments, something few card lenders do. For example, cashback will grow from 1% 50 1.5% to 2% over time, with on-time payments.
Paying back loans and credit cards is one of the best methods to build credit, and these cards can help. Of course, make sure to contact a financial advisor if you need more serious help!