If you’re new to credit and don’t have any credit history, a credit building card is a great way to start. This type of card can help you build a credit score, so you can qualify for more traditional unsecured cards later on.
What is the benefit of building credit?
A credit builder card may have a low limit and a high APR (Annual Percentage Rate) to start with. However, if you manage your account responsibly and make payments on time, you can use a credit builder card to establish good payment habits that will boost your credit history and increase your chances of obtaining more competitive credit cards.
Chime Credit Builder
The Credit Builder Visa secured credit card is a unique card that’s ideal for people who are rebuilding their credit history or starting from scratch. The $0 annual fee and no interest charges on purchases make it one of our picks for the best credit cards to build credit.
Other ways to build credit
Using other types of loans, such as student loan or car loans, is another way to build your credit history. These can also be reported to the credit bureaus and will help your credit score improve.
Becoming an authorized user on a family or friend’s credit card is another option for someone who doesn’t have a credit card of their own yet. This will add that person’s credit report to your own credit files, but you should be careful not to misuse the card.