Best Credit Cards to Build Credit in 2025

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Key takeaways

Credit builder cards are easy to qualify for, even with a poor score.
Use your card responsibly and your score will grow.
Once your score improves, you can upgrade to rewards cards with perks like cashback, travel points, and higher limits.

Credit cards are one of the easiest ways to build credit. The problem is that they aren’t always easy to get if your score isn’t up to snuff. That’s where credit cards for rebuilding credit come in.

These cards are designed for consumers with poor scores or limited credit history. They provide an accessible way to establish or rebuild your score. Snag a card, use it responsibly, and you can upgrade to better ones in the future.

Choosing the right card can make all the difference. Let’s go over the top credit cards to build credit and how to use them effectively.

What is a credit builder card?

A credit builder card is a special type of credit card. It helps people improve their credit scores. These cards are especially helpful for people with little or no credit history. They are also good for those trying to increase their rating after money problems.

Most credit building cards have lenient requirements. They target consumers whose FICO scores fall below 670. Many will even accept applicants with scores below 580.

What to look for in credit cards to build credit with no credit

There are plenty of cards on the market, but no issuer offers everything. You’ll need to be realistic and look for features that matter the most. The best credit cards for bad credit can help you achieve a good score while avoiding high fees and unreasonable terms.

Here’s what you need to consider.

Credit bureau reporting

Credit cards only affect your score if your provider reports your activity to all three credit bureaus – Experian, Equifax, and TransUnion. It’s not worth applying for a card that does not report.

Prequalify

While second chance credit cards with guaranteed approval don’t exist, some cards let you prequalify. When you prequalify, the issuer does a soft inquiry – no impact on your score. Prequalifying helps you gauge your chances of approval. If you like the offer, you can formally apply.

Manageable fees

Most second chance credit cards for bad credit with no deposit have an annual fee. Some come with an additional monthly maintenance charge. Make sure these fees fit your budget before you apply.

A lot of secured cards do not charge annual fees. You do have to put down a security deposit, but it’s 100% refundable.

Upgrade path

A credit builder card is not a permanent card. Use it to strengthen your score, then move on. In the best-case scenario, you upgrade with the same issuer. Not all companies offer an upgrade option.

Not upgrading with the same issuer is not a significant concern. Simply close your account and apply for a new card elsewhere.

Flexible deposit

Secured cards require you to put down a cash deposit. Having $100-$300 locked away can be tough. Look for providers with flexible deposit options.

Some will raise your spending limit without requiring a larger deposit. Others let you pay for your deposit in installments or let you add money at any time.

Rewards and perks

Even subprime cards offer rewards programs. You can find ones with cashback, points, or miles. While earning rewards is tempting, only spend what you can afford. Your focus should be on attaining a good score.

Want a higher spending limit?

Credit cards with a $2,000 limit guaranteed approval!

Best credit cards for beginners

When you’re new, you’ll be limited to starter credit cards. Starter cards include secured cards, store cards, and subprime cards.

Let’s review your options to select the best first credit card to build credit.

Secured cards

Secured cards require a cash deposit. The security deposit sets your spending limit. For example, putting down a $200 deposit will give you a $200 limit.

The issuer holds the money as collateral in case you don’t pay your bill. This reduces their risk significantly. As a result, secured cards are among the easiest to qualify.

Store cards

Certain retailers offer credit cards for shopping at their stores. Many are easy to qualify for and provide rewards and discounts. The catch is that they often come with high interest rates and low limits.

Subprime cards

Subprime cards are unsecured credit cards with lenient requirements. Many issuers approve applicants with poor scores and no security deposit. In return, they charge extra fees, high interest rates, and set low limits.

If you have your heart set on credit cards to build credit with no deposit, look into a store card from a retailer you shop at often. You may benefit from additional discounts and rewards.

How to use credit cards to build credit

Using credit cards to improve your credit score is relatively easy. You need to pay on time and only spend a small amount. Consistently do these two things and your score will improve.

Let’s go over in more detail how to make the most of credit cards to help build credit.

Pay your bill by the due date

The best way to build credit with a credit card is to pay on time every month. Paying the balance in full each month is even better.

Always make at least the minimum payment on your credit card. Your account will stay current, and your score will go up.

If you stop paying your credit cards, your unpaid balance will accrue interest and fees. Your issuer will report the missed payments to the credit bureaus. Your score will take a significant hit.

When should I pay my credit card bill to increase my credit score? Pay it in full before your due date. If your balance is too high, pay it down throughout the month.

Does paying rent build credit? Rent payments can affect your score if your landlord reports them to the bureaus. You can use a rent reporting service to get this boost.

Learn more about your score with credit score builder!

Credit card utilization

Your revolving utilization is how much you’ve spent compared to your limit. The basic guideline is to keep your utilization below 30%. To improve your credit score fast, aim to keep it below 10%.

For example, if your limit is $1,000, your usage should be less than $100.

One trick is to pay down your balance before your issuer reports it to the bureaus. Most issuers report at the end of the billing cycle. If you make a payment before this date, you’ll have a lower utilization rate.

Keep track of important credit card dates. Knowing when your billing cycle ends will help you maintain a low usage and achieve a higher score.

Monitor your credit score

Regularly monitor your credit score to track your progress. Many issuers offer free access to your FICO score, making it easy to stay informed.

You can also view your credit report once a year for free via annualcreditreport.com. Look for any errors and dispute mistakes with the issuing bureau.

Building credit for beginners takes time and self-control. The effort is worth it. A strong score brings long-term benefits.

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How many credit cards should you have?

Starting with one or two credit-building cards is ideal. The number may appear small, but it allows you to establish responsible habits. You won’t overwhelm yourself with too many accounts to manage. You’ll be able to pay on time and keep your usage low.

Too many cards can lead to overspending or missed payments, harming your score.

As your score improves, you can add more cards to your wallet.

Tired of being denied credit?

Guaranteed approval credit cards with $1,000 limits for bad credit!

Best secured credit cards to build credit

Secured cards are some of the best credit cards to build credit fast. Some issuers offer rewards, the ability to graduate to an unsecured card, and won’t charge you an arm and a leg. Look for cards with low or no annual fees and a low APR.

The ideal card will have a reasonable security deposit requirement. Issuers know that locking away cash is challenging. Some set their deposit as low as $100. Others will raise your spending limit after a few months of on-time payments without requiring you to put down more cash.

Certain fintech apps offer secured cards linked to your bank account. The money in your account serves as your deposit. You do not have to worry about tying up cash as you work on your score.

Only consider cards that report your payments and usage to all three credit bureaus. You never know where a potential lender will pull your score from.

Pros and cons of second chance credit cards with no security deposit

Pros:

No upfront cash deposit
Easy approval
Helps rebuild credit history
Reports to major credit bureaus
Potential for limit increases

Cons:

High interest rates
Annual and monthly fees
Lower limits
Fewer rewards or perks

Prepaid credit cards to build credit

Prepaid cards do not build credit. They function similarly to debit cards. You load money onto the card and can only spend what you have deposited. Since you are not borrowing money, there is no activity to report.

If you want to use a prepaid credit card to build a credit history, you’re better off using a secured card.

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Credit Score Range 300-579

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Are you struggling with a low credit score and feeling the impact on your financial opportunities? It's time to turn the tide with our specially designed credit cards for bad credit! Our cards offer a lifeline to those who need a fresh start, providing the perfect tools to rebuild your credit score and regain financial stability.

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Frequently asked questions

1. How many credit cards should I have to build credit?

Start with one or two cards. You will only have one or two due dates to remember, making it easier to pay on time. Too many cards can lead to overspending or missed payments. Focus on responsible use rather than quantity.

2. What are good credit cards to build credit?

Good credit cards to build credit have lenient approval requirements and report to all three bureaus. Secured cards are an excellent choice since they tend to have fewer fees. While you have to put down a cash deposit, it is refundable when you close the account in good standing.

3. What builds your credit score the most?

Your payment history is the biggest factor in calculating your score. Consistently paying your bill on time is the best thing you can do.

4. Do you need a credit card to build credit?

You do not need a card to improve your score, but it is the easiest method. Your other option is to take out a loan and make timely payments. You can also have your rent and utility payments reported for an additional boost.

5. How to properly use a credit card to build credit?

Only spend what you can afford to pay for in full every month. Pay your bill on time and keep your balance low.

Bottom line

Getting a credit card when your score is poor is challenging, but that’s what credit builder cards are for. Take the first step toward raising your rating by choosing a card with lenient approval.

Next, use your new card responsibly. Pay your bill on time and in full every month. Don’t overspend or carry balance. Apply sparingly. Over time, your score will grow, opening doors to better financial products.

Once your score reaches the good range, you can upgrade to a rewards card with perks like cashback, travel points, or other benefits. Your first card is only the beginning.

1. Paycheck Advance is For eligible customers only. Your actual available Paycheck Advance amount will be displayed to you in the mobile app and may change from time to time. Conditions and eligibility may vary and are subject to change at any time, at the sole discretion of Finco Advance LLC, which offers this optional feature. Finco Advance LLC is a financial technology company, not a bank. Expedited disbursement of your Paycheck Advance is an optional feature that is subject to an Instant Access Fee and may not be available to all users. Expedited disbursements may take up to an hour. For more information, please refer to Paycheck Advance Terms and Conditions.

2. Paycheck Advance is an earned wage access service and is not a loan or credit product.

3. Current is a financial technology company, not an FDIC-insured bank. FDIC insurance up to $250,000 only covers the failure of an FDIC-insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply. Banking services provided by Choice Financial Group, Member FDIC, and/or Cross River Bank, Member FDIC. The Current Visa® Debit Card, which may be issued by Choice Financial Group and/or Cross River Bank, and the Current Visa® secured charge card, which is issued by Cross River Bank, are all issued pursuant to licenses from Visa U.S.A. Inc. and may be used everywhere Visa debit or credit cards are accepted. A Current debit account is required to apply for the Current Visa® secured charge card. Independent approval required.

4. Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits.

5. Debit card: Fees may apply, including out of network cash withdrawal fees, third-party fees, cash load fees, inactivity fees, account closure fees, international transaction fees, replacement card fees, express mail fees and escheatment fees. Build Card: Some fees may apply, including out of network ATM fees of $2.50 per transaction, late payment fees of 3% of any total due balance outstanding and past due for two or more billing cycles, foreign transaction fees of 3% of the full transaction amount (minimum $0.50), card replacement fees per card of $5 for regular delivery and $30 for expedited delivery, cash deposit fees of $3.50 per deposit, and third party processing fees.

6. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group, Member FDIC, and Cross River Bank, Member FDIC. The Current Visa® Debit Card is issued by Choice Financial Group pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. The Current Visa® secured charge card is issued by Cross River Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your Card for its issuing bank. Current Individual Account required to apply for the Current Visa® secured charge card. Independent approval required.

7. Individual results may vary. Using your credit card responsibly may allow you to improve your credit score. Credit building depends on various factors, including your payment history, credit utilization, length of credit history, and other financial activities.

8. Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits.

9. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. Funds held in Savings Pods are FDIC-insured on a pass-through basis up to $250,000 at our partner bank Choice Financial Group, member FDIC.

10. Paycheck Advance is For eligible customers only. Your actual available Paycheck Advance amount will be displayed to you in the mobile app and may change from time to time. Conditions and eligibility may vary and are subject to change at any time, at the sole discretion of Finco Advance LLC, which offers this optional feature. Finco Advance LLC is a financial technology company, not a bank.

11. Expedited disbursement of your Paycheck Advance is an optional feature that is subject to an Instant Access Fee and may not be available to all users. Expedited disbursements may take up to an hour. For more information, please refer to Paycheck Advance Terms and Conditions.

12. Actual overdraft amount may vary and is subject to change at any time, at Current’s sole discretion. In order to qualify and enroll in the Fee-Free Overdraft feature, you must receive $500 or more in Eligible Direct Deposits into your Current Account over the preceding 35-day period and fulfill other requirements subject to Current’s discretion. Negative balances must be repaid within 60 days of the first Eligible Transaction that caused the negative balance. For more information, please refer to Fee-free Overdraft Terms and Conditions. Individual Current Accounts only.

13. For eligible customers only. You may earn Points in connection with your Build Card purchases at retailers whose merchant code is classified as: Dining (e.g., restaurants) and Groceries (e.g., supermarkets) and by completing other actions that Current designates as subject to the Current Points Program. The amount of Points granted for different actions as well as the purchase requirements necessary to earn Points will vary, and is subject to Current’s sole discretion. After qualifying, please allow 3-5 business days for points to post to your Current account. Points will expire 365 days after they settle. For more information (including specific eligibility criteria), please refer to the Current Points Terms and Condition.

14. Some fees may apply, including out of network ATM fees of $2.50 per transaction, late payment fees of 3% of any total due balance outstanding and past due for two or more billing cycles, foreign transaction fees of 3% of the full transaction amount (minimum $0.50), card replacement fees per card of $5 for regular delivery and $30 for expedited delivery, cash deposit fees of $3.50 per deposit, and third party processing fees.

15. Boost Bonuses are credited to your Savings Pods within 48 hours of enabling the Boost feature and on a daily basis thereafter, provided that the Savings Pod has accrued a Boost Bonus of at least $0.01. No minimum balance required. The Boost rate on Savings Pods is variable and may change at any time. The disclosed rate is effective as of August 1, 2023. Must have $0.01 in Savings Pods to earn a Boost rate of either 0.25% or 4.00% annually on the portion of balances up to $2000 per Savings Pod, up to $6000 total. The remaining balance earns 0.00%. To earn a Boost rate of 4.00%, the sum of your Eligible Payroll Deposits over a rolling 35-day period must be $500 or more, with at least one Eligible Payroll Deposit equalling a minimum of $200. For more information, please refer to Current Boost Terms and Conditions.

16. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. Your money is FDIC-insured on a pass-through basis up to $250,000 at each of our partner banks, Choice Financial Group and Cross River Bank, members FDIC.

17. Average value based on Fine Hotels + Resorts bookings in 2023 for stays of two nights. Benefits include daily breakfast for two, room upgrade upon arrival when available, $100 amenity, guaranteed 4PM late checkout, and noon check-in when available. Certain room categories not eligible for upgrade. $100 amenity varies by property. Actual value will vary based on property, room rate, upgrade availability, and use of benefits.

18. Up to $500 per Covered Trip that is delayed for more than 6 hours; and 2 claims per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

19. The maximum benefit amount for Trip Cancellation and Interruption Insurance is $10,000 per Covered Trip and $20,000 per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

20. Baggage Insurance Plan coverage can be in effect for Covered Persons for eligible lost, damaged, or stolen Baggage during their travel on a Common Carrier Vehicle (e.g. plane, train, ship, or bus) when the Entire Fare for a ticket for the trip (one- way or round-trip) is charged to an Eligible Card. Coverage can be provided for up to $2,000 for checked Baggage and up to a combined maximum of $3,000 for checked and carry-on baggage, in excess of coverage provided by the Common Carrier. The coverage is also subject to a $3,000 aggregate limit per Covered Trip. For New York State residents, there is a $2,000 per bag/suitcase limit for each Covered Person with a $10,000 aggregate maximum for all Covered Persons per Covered Trip. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

21. Car Rental Loss and Damage Insurance can provide coverage up to $75,000 for theft of or damage to most rental vehicles when you use your eligible Card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the Commercial Car Rental Company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. Geographic restrictions apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.

22. Coverage for a Stolen or damaged Eligible Cellular Wireless Telephone is subject to the terms, conditions, exclusions, and limits of liability of this benefit. The maximum liability is $800, per claim, per Eligible Card Account. Each claim is subject to a $50 deductible. Coverage is limited to two (2) claims per Eligible Card Account per 12 month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

23. When an American Express® Card Member charges a Covered Purchase to an Eligible Card, Extended Warranty§ can provide up to one extra year added to the Original Manufacturer’s Warranty. Applies to warranties of five (5) years or less. Coverage is up to the actual amount charged to your Card for the item up to a maximum of $10,000; not to exceed $50,000 per Card Member account per calendar year. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

24. Purchase Protection is an embedded benefit of your Card Membership and requires no enrollment. It can help protect Covered Purchases made on your Eligible Card when they’re accidentally damaged, stolen, or lost, for up to 90 days from the Covered Purchase date. The coverage is limited to up to $10,000 per occurrence, up to $50,000 per Card Member account per calendar year. Coverage Limits Apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

25. 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.

26. The secured 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.

27. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.

28. The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.

29. There’s no fee for the Chime Savings Account. Cash withdrawal and Third-party fees may apply to Chime Checking Accounts. You must have a Chime Checking Account to open a Chime Savings Account.

30. To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime 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.

31. 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.

32. Based on a representative study conducted by Experian®, members who made their first purchase with Credit Builder between June 2020 and October 2020 observed an average FICO® Score 8 increase of 30 points after approximately 8 months. On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score.

33. On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.

34. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

35. SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your Visa debit card. Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions.

36. Tipping or not tipping has no impact on your eligibility for SpotMe®.

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

38. Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more from your Checking Account into your savings account.

39. Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.

40. Mobile Check Deposit eligibility is determined by Chime in its sole discretion and may be granted based on various factors including, but not limited to, a member’s direct deposit enrollment status.

41. Funds are automatically debited from your Checking Account and typically deposited into the recipient’s Checking Account within seconds. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed.

42. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed. Non-Chime members must use a valid debit card to claim funds.

* EarnIn is not available for Connecticut residents

Rachel Alulis

Rachel Alulis has been the lead editor for Moneyfor’s credit cards team since 2015 and for the financial rewards team since 2023. Before joining Moneyfor, Rachel worked at USA Today and the Des Moines Register. She then established a successful freelance writing and editing business specializing in personal finance. Rachel holds a bachelor’s degree in journalism and an MBA.

Best Credit Cards to Build Credit in 2025

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