The listings featured on this site are from companies from which this site receives compensation. This influences where, how and in what order such listings appear on this site.
Last updatedFebruary 2023

Best Credit Cards for Building Credit February 2023

Boost your credit score

A credit building card is a great way to build or repair your credit history. Compare our credit cards and start improving your credit today.

What type of card are you looking for?
BestMoney Total Score

Our product scores consist of a combination of the following 2 components:

People

Click Trend

Products & Features

BestMoney measures user engagement based on the number of clicks each listed brand received in the past 7 days. The number of clicks to each brand will be measured against other brands listed in the same query. Therefore, the higher the share of clicks a brand receives in any specific query, the higher the Click Trend Score. BestMoney accepts advertising compensation from companies, which impacts their (and/or their products’) position, and in some cases, may also affect their Click Trend Score.

How Credit Cards Work

Credit cards take the form of a revolving debt instrument. This means you can carry a debt balance on the credit card from month to month without paying off the balance in full.

When you make a purchase, the money doesn’t come out of your bank account. Instead, you build a balance on your credit card. Until you pay this amount off, you owe a debt to the credit card company. 

Credit card companies report this debt to the credit bureaus, which helps you build your credit history based on your payment and other debt habits. If you miss payments or incur a large debt balance, these negative credit actions could harm your credit score in addition to the interest payments and other fees you may have to pay.

Most credit cards offer grace periods where you don’t incur interest on the amount owed immediately. As long as you pay your statement in full and on time every month, you usually get around 20-25 days after the statement date to pay without incurring interest. After the grace period expires, interest charges start getting added to your balance.

Credit cards may offer benefits, such as credit card rewards on your purchases. These can take the form of cash back, rewards points, statement credits, and more. These payment cards may also offer protection when you make purchases, such as extended warranties, travel insurance, or auto rental insurance. Cards with more benefits may come with an annual fee.

Credit cards typically offer more robust fraud protection than debit cards. The money doesn’t come directly out of your bank account, so the credit card companies have a vested interest in fighting fraud. While laws limit your liability for fraudulent purchases to $50, most credit card companies have better fraud policies that won’t hold you liable for any fraud as long as you report it immediately.

Pros & Cons of Credit Cards

ProsCons
Credit card rewardsInterest
Build credit historyAnnual fees
Credit card benefits, such as extended warranties, purchase protections, and moreCan incur debt
Fraud protectionCould hurt your credit score
Grace periods to make payments

Disclosures:

Chime:

Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC. The Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.

*To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits

** Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.

***On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score. Results may vary.

****Out-of-network ATM withdrawal fees apply except at MoneyPass ATMs in a 7-Eleven location or any Allpoint or Visa Plus Alliance ATM.

Prosper:

The Prosper® Card is an unsecured credit card issued by Coastal Community Bank, member FDIC, pursuant to license by Mastercard® International.