Best Credit Builder Credit Cards

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September 17, 2023

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Starter credit cards aren’t only for college students and other newbies who are just starting their financial lives in the world of credit.

Whether you’re building a credit report from scratch because you have no credit or rebuilding credit because your credit score has sunk like a stone in the ocean, the best credit builder credit cards can help establish and raise credit scores so you can qualify for cheaper loans.

Among the types of credit to help build a credit history, the best credit cards for building credit usually have no frills, and there isn’t much need to keep them once you have a good credit score. They’re often secured credit cards requiring users to deposit money as a “credit line.”

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Overview of the best credit builder credit cards

Credit Builder Credit Card	Best For
Capital One Platinum Secured Credit Card	Low security deposit
Discover it Secured	Cash back rewards
Petal 2 Visa	$0 security deposit
Chime Credit Builder Secured Visa	No interest charges
BankAmericard Secured	Bank of America customers
Truist Enjoy Cash Secured	Gas, groceries, utilities

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Competitive fixed rates and fixed monthly payments
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Best credit builder credit cards

Capital One Platinum Secured Credit Card

Card Name

Capital One Platinum Secured Credit Card

APR

29.99%

Recommended Credit Score

Limited, Bad

Annual Fee

Special Offer

No annual or hidden fees.

Special Offer Terms

See if you're approved in seconds.

Rewards Rate

N/A

Terms

See Terms

Why We Like It

No annual or hidden fees.
You could earn back your security deposit as a statement credit by making on-time payments.
Be automatically considered for a higher credit line in as little as six months with no additional deposit needed.
Monitor your credit score for free with CreditWise from Capital One.

Discover it Secured credit card

Discover It® Secured Credit Card

Card Name

Discover It® Secured Credit Card

APR

28.24%

Recommended Credit Score

N/A

Annual Fee

Rewards Rate

Earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, automatically. Earn unlimited 1% cash back on all your other purchases automatically. 2x cash back with Cashback Match, get an unlimited dollar-for-dollar match of all the cash back you've earned at the end of your first year, automatically.

Why We Like It

Credit-building credit card with limit you set with your deposit.
Automatic review in 7 months to see if you can transition into an unsecured line of credit and return your deposit.

Petal 2 Visa

Petal 2

Card Name

Petal 2

APR

18.24% – 32.24%

Recommended Credit Score

None

Annual Fee

Rewards Rate

You can earn up to 1.5 percent cash back on eligible purchases (with 12 on-time payments).

Why We Like It

No credit history need; build your credit
No annual fees
No late payment or returned payment fees

Card Details

Credit limit of $300 to $10,000

Chime Credit Builder Secured Visa

Chime® Credit Builder Secured Credit Builder Visa® Card

Card Name

Chime® Credit Builder Secured Credit Builder Visa® Card

APR

29.99%

Recommended Credit Score

N/A

Annual Fee

Rewards Rate

Credit Builder is a secured credit card. The money you move to the Credit Builder secured account is how much you can spend with the card. To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account.

Why We Like It

No annual fee or interest
No credit check to apply
No minimum security deposit required

BankAmericard Secured credit card

BankAmericard Secured

Card Name

BankAmericard Secured

APR

26.24%

Recommended Credit Score

690+

Annual Fee

Intro Offer

0% Introductory APR for the first 18 Statement Closing Dates following the opening of your account.

Why We Like It

No annual fee.
Free monthly access to your FICO Score.
Credit education topics.

Truist Enjoy Cash Secured credit card

Truist Enjoy Cash Secured Credit Card

Card Name

Truist Enjoy Cash Secured Credit Card

APR

24.49%

Annual Fee

$19

Rewards Rate

Earn up to 3% cash back on gas, and 2% on utilities and groceries (with a combined $1,000 monthly cap) — and 1% on all other eligible purchases.

Terms

https://www.truist.com/credit-cards/enjoy-cash-secured/enjoy-cash-secured-disclosure

Why We Like It

Customizable card controls for added security.
Contactless payments and mobile wallets for faster checkout.
Visa® Zero Liability protection against unauthorized card use.

Card Details

Earn unlimited cash back rewards on everyday purchases.
Monthly payment history will be reported to three major credit bureaus.
Loyalty Cash Bonus based on your Truist deposit relationship when cash rewards are redeemed into a Truist deposit account.

Best credit builder credit cards summary

Credit Card	APR	Annual Fee	Reports to 3 Credit Bureaus	Deposit Required
Capital One Platinum Secured Credit Card	28.49%29.99%	$0$0	Yes	$49
Discover it Secured	28.24%	$0	Yes	$200
Petal 2 Visa	18.24% – 32.24%	$0	Yes	$0
Chime Credit Builder Secured Visa	0%	$0	Yes	$0
BankAmericard Secured	26.24%	$0	Yes	$200
Truist Enjoy Cash Secured	24.49%	$19	Yes	$400

Borrowing Solutions For You

Join Over 4 Million Members Nationwide

Borrow up to $40,000
Receive money fast, upon approval
Competitive fixed rates and fixed monthly payments
No prepayment fees
Automatic payment withdrawals

Choose Your Offer

FAQs

How do I know if I need a credit builder credit card?

If you’re being turned down for credit cards and loans or can’t rent an apartment because your credit score is too low, you should check your FICO score and learn how to improve a bad credit score while getting a credit builder credit card. If you can only afford the minimum payment on a credit card bill, a low credit limit can make low payments easier. If you don’t have much credit history and are just starting on the road of credit building, a credit builder card can help you establish good credit for a credit check. On-time payments are the best way to build credit.

How old do I have to be to get a credit builder card?

You must be 18 or older to sign a credit card contract, even for a secured card. Proof of a steady income is also needed in the application process to qualify for what are sometimes called student credit cards. While people under 18 can’t get a credit card to start building their credit, they can become authorized users on their parent’s credit card to start their credit history. The primary cardholder’s credit history will be reflected on the child's credit report, making it one of the easiest ways to lay a foundation for a good credit score.

How long should I keep the card?

If you don’t have much of a credit history, you should be able to build good credit within six months. With poor credit, it could take a little longer. However, you might see immediate improvement if you start good financial habits, such as making monthly payments on time and keeping a low credit utilization ratio if it’s reported to the credit bureaus for lenders to see. Most companies that offer secured cards review your profile in about six months, and definitely at the end of your first year as a customer. If you’ve made consistent on-time payments, your security deposit may be returned to you, and your credit limit may increase. You may then keep the card, which can be an easy choice if it doesn’t have an annual fee, to lengthen your credit history. Or, with responsible use, you may be able to transfer to an unsecured card that the company offers.

Why you should use credit builder credit cards

Secured credit builder credit cards are an easy way to build credit. For many cards, you’re essentially using your own money as a credit line by only being allowed to have a credit limit up to the amount you’ve submitted as a deposit. It’s almost like having a debit card. The security deposit means little risk for the credit card company, which sends information about your on-time payments. Like using training wheels to learn how to ride a bike, consider these starter credit cards a first step in credit building.

The bottom line

It’s no fun rebuilding or establishing a credit score. Credit builder credit cards can make it easier, though probably not much fun.

It’s easy to find a secured credit card without an annual fee and a low security deposit amount, and some even offer a little fun with perks such as cash back rewards. But you may have to have a checking account with the card provider, which may not be the best checking account you can find. Many cards also charge high interest rates on balances, though some don’t allow balances to be carried at all.

With good credit habits, you should be able to build your credit score within six months with a secured credit card, and you can then choose to move up to an unsecured card or leave the card behind entirely and take your good credit score elsewhere to find a better card.

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Aaron Crowe is a freelance journalist who specializes in personal finance writing and editing. He has worked at newspapers, where he won a Pulitzer Prize, and has written for numerous online publications. These include AOL, US News & World Report, WiseBread, Bankrate, AARP, and many websites focusing on housing, credit and insurance. He lives in California with his wife and daughter.

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