If used right, a credit card can be just the tool you need to rebuild your credit score. However, this requires you to not only use the card responsibly but also choose the right one. No need to worry! We have done the homework so you don’t have to. Here are Top 5 credit cards to build credit that many customers have used to reach their target score. If you’re not sure what your credit score is then don’t worry you can check your credit score through creditsesame.com
Capital One Platinum Card
Capital One Platinum card is an ideal choice for those with average credit scores. Since it does not charge any annual fee, the card is easy to maintain and reports to 3 major credit bureaus to help you rebuild your credit score.
All the more fun is that now Capital One bank sends out pre-approved mail offers to eligible candidates who can then log into www.getmyoffer.capitalone.com to complete credit card applications quickly.
Although this does not guarantee your approval, it ensures you get to apply for the card easily. You can do it without a pre-approved mail offer as well but that would require you to enter all the personal data manually.
One thing to watch out for with the Capital One Platinum card is that it carries a hefty APR. Therefore, you would have to pay a high-interest amount if you forget to clear the bills before the due date.
The next in line on the list of credit rebuilding cards is our all-time favorite, Indigo Platinum Mastercard. This credit card is specifically meant to take care of those with a poor credit score or even with previous bankruptcy.
The card is available at www.indigoapply.com. You can apply via a pre-approved mail offer or even without one. However, you need to keep in mind that Indigo Mastercard charges an annual fee as well as a heavy APR on late payments.
These charges can be explained keeping in view that this is an instant approval credit card open to those with a very doubtful credit history. Since the bank is still trusting you with their services, it imposes additional charges to make sure you stick to responsible behavior as a card user.
Discover it Card
As the name suggests, Discover it is a card for students who wish to earn epic rewards as they start to build their credit history. Therefore, most of the benefits offered on this credit card also relate to the student’s achievements and needs.
First of all, there is no annual fee so the newbies do not need to worry about dealing with regular charges at the end of every year. Other than that, Discover it Student credit card reports to the major bureaus to keep them updated on your financial habits that would eventually reflect on the credit report.
Students can earn 5% cashback on everyday purchases. This is applicable in different places each quarter and includes grocery stores, restaurants, gas stations, Amazon.com, etc. Other than that, students can also earn $20 statement credit each year if they achieve a GPA higher than 3.0.
Citi secured Mastercard is a trustworthy choice not only for customers who wish to build their credit score but also the users who have just started to establish a credit history.
Since it is a secured card, you will have to start with an initial deposit. That can range from anywhere between $200 to $2,500. This initial deposit would automatically be considered your credit line as you start to use the account.
Other than that, you also need to watch out for the variable APR 22.49%. It is easy to avoid if you continue to make timely payments. Luckily, Citi Secured Mastercards offer $0 fraud liability so will be safe against unauthorized charges on your account.
Note! We vouch for this credit card personally as it allows for the selection of due date as per your choice. You can decide whether you wish to pay the bills at the start, middle, or end of the month.
First Progress Platinum Mastercard
The First Progress Platinum Mastercard does come with an annual fee of $49 but that does not stop it from being a reliable option for credit rebuilding.
One reason is that the card carries a low APR. Although it is always discouraged to pass due dates for paying bills especially when you are working towards an improved credit, minimum APR ensures you only have to pay an acceptable amount even if you are late.
With First Progress Mastercard, your application would be accepted even with a minimum score or no credit history at all. It is a secured card that requires an initial deposit of $200 to $20,000 for account opening.
How Should You Make The Final Choice?
When you take a closer look you will realize that most credit cards have the tendency and features that can help build credit. Therefore, the real challenge is to use the tool responsibly for the best results.
Nonetheless, if you are wondering how we were able to shortlist these 5 options and furthermore, how you can make a final pick, here’s the trick!
A credit card that is good for credit rebuilding should preferably carry no annual fee. If the same card can offer some rewards such as cash back or bonus points, then that is a combination you should not say no to.
The annual percentage rate is often not considered important while deciding on cards for building credit since it is a prerequisite for improvement that you should not be late with payments. Therefore, it should not be whether the APR is high or low. However, if you still want to play safe, credit cards with low APR can be a bit helpful in this regard.
So these are the 5 options that you should consider next time you are applying for a credit card for building credit. Hopefully, this will make the choice easier for you. Let us know if you like our review. Looking forward to hearing from you guys!