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Best Credit Cards for Building Credit June 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.
Pros
- No credit check required
- No annual fee or interest rates
Cons
- Requires a security deposit
- Doesn't offer rewards
- Get approved without a credit check (requires a $200 deposit to a Chime® checking account)
- Deposit any amount as a security deposit and change your deposit amount over time
- The company reports your on-time payments to all three major credit bureaus
- No annual fee or interest rate****
Pros
- 1% cash back on your payments
- Choose a credit limit between $100 and $2,000
Cons
- Requires a deposit to open
- Fair APR for a secured card, but higher than many unsecured cards
- Credit limit between $100 and $2,000, depending on the size of your deposit
- Reports payments to the three major credit bureaus
- 1% cash back on payments
- A low annual fee of $25 for the 1st year and $35 after that
- No minimum credit score required
- Apply online in minutes
Pros
- Opportunities for credit limit increase
- No credit check required
Cons
- No rewards
- You need a Credit Builder Account to obtain the card
- Straightforward eligibility rules
- Helps impact multiple factors that influence your credit score
- No minimum credit or credit check required
- Opportunities to increase your credit limit
Varo reports payment activity to the credit bureaus each month to help build your credit, and you can track your score in the Varo app. Best of all, applying for the card won’t impact your credit score and no security deposit is required.
Pros
- No minimum security deposit required
- No annual fee, interest, or APR
Cons
- Doesn't offer any rewards
- Spending limit is dependent on the amount added to your account
- Earn cash back from more than 50 brands when you shop with your Varo Believe Card, either in-store or online
- Increase your credit score by approximately 40 points after 3 months with no late payments
- Unlike other secured cards, there is no minimum deposit required
- Track your credit score in the Varo app
- Applying for a Varo Believe card will not impact your credit score
Pros
- Generous cash back rewards
- Unsecured credit card
Cons
- High annual and monthly fees
- High APR
- A cash back rewards program that offers 3% cash back on eligible gas, grocery, and utility payments, and 1% for all other eligible purchases
- Doesn’t require a deposit, unlike many other credit-building cards
- All payments are reported to the three major credit bureaus
- No penalty APR
- Opportunities to increase your credit limit over time
- Lets you check your credit score for free
Pros
- Initial credit limit up to $1,000
- Card issuer reports your payments to the major credit bureaus
Cons
- High annual fee and monthly maintenance fee
- Foreign transaction fee
- Initial credit limit up to $1,000
- Credit limit doubles automatically after first six on-time payments
- Card issuer reports your payments to major credit bureaus
- Free credit score when you sign up for e-statements
- Mobile app for managing your account on the go
Pros
- Reports payments to the three major credit bureaus
- No minimum credit score to qualify
Cons
- One-time setup fee and steep annual fee
- Very high interest rate
- Available to individuals with bad credit or no credit history
- Reports monthly payments to the three major credit bureaus
- Apply online and get a decision in minutes
- Manage your account with a mobile app for iOS and Android
Pros
- Low credit score limit
- No security deposit required
Cons
- High fees
- High regular APR
- $300 introductory credit limit that you can increase each year for a 20% fee based on the amount of the credit increase
- Low credit score limit of 550
- Payment history reported to all three major credit bureaus
- Earn 1% cash back on all purchases and redeem points for a statement credit
Our product scores consist of a combination of the following 2 components:
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
| Pros | Cons |
| Credit card rewards | Interest |
| Build credit history | Annual fees |
| Credit card benefits, such as extended warranties, purchase protections, and more | Can incur debt |
| Fraud protection | Could 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.
