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What Are the Best Credit Cards for Building Credit?

Summary:Discover the best credit cards for building credit, including secured credit cards, student credit cards, and credit-builder loans. These options can help establish and improve your credit score over time.

What Are the Best Credit Cards for Building Credit?

When it comes to building credit, having a credit card can be a useful tool. However, not all credit cards are created equal. Some cards are specifically designed to help people establish and improve their credit scores, while others are better suited for those who already have good credit. In this article, we'll take a closer look at some of the bestcredit cards for building credit.

Secured Credit Cards

For people with little or nocredit history, a secured credit card can be a good option. These cards require a security deposit, which serves as collateral for the credit limit. The deposit is usually equal to the credit limit, so if you put down $500, you'll have a $500 credit limit. Secured cards are often easier to qualify for than unsecured cards, and they can help you establish a credit history.

One popular secured credit card is the Discover it Secured card. This card offers cash back rewards, and after eight months of responsible use, Discover will review your account and may upgrade you to an unsecured card. Another option is the Capital One Secured Mastercard, which offers a low deposit requirement and the opportunity to increase your credit limit over time.

Student Credit Cards

If you're a college student, a student credit card can be a good way to start building credit. These cards are designed for people with little or no credit history, and they often come with perks like cash back rewards and no annual fees.

One popular student credit card is the Discover it Student Cash Back card. This card offers 5% cash back on rotating categories like gas stations, restaurants, and, and 1% cash back on all other purchases. The card also offers a $20 statement credit each year for maintaining a GPA of 3.0 or higher.

Credit-Builder Loans

Another option for building credit is a credit-builder loan. These loans are designed specifically to help peopleestablish credit. The lender will give you a small loan, usually between $300 and $1,000, and you make regular payments until the loan is paid off. The lender reports your payments to the credit bureaus, which helps you establish a credit history.

One popular credit-builder loan option is offered by Self Lender. This company offers loans ranging from $500 to $1,500, and the loan payments are reported to all three credit bureaus. Self Lender also offers credit monitoring and identity theft protection.

In Conclusion

Building credit can be a slow and steady process, but having the right tools can make it easier. Secured credit cards,student credit cards, and credit-builder loans are all good options for establishing and improving your credit score. Remember to make your payments on time and keep yourcredit utilizationlow, and over time, you'll see your credit score improve.

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