Building a strong credit score is essential for your financial well-being, as it can affect everything from getting a mortgage to securing a car loan. So, if you're just starting out with credit or have had some missteps in the past, these credit cards can be a great way to build or rebuild your credit. Make sure you read until the end because the last two cards are my most ideal cards to get if I had no credit history.
1. The OpenSky Secured Visa Credit Card is a great option for people with no credit who want a low annual fee. It requires a security deposit of $200 and has an annual fee of $35. It doesn't offer a rewards program, but it does report to all three major credit bureaus every month which can help you build your credit over time, if you’re responsible with paying it off on time. With this card, you can set how much you can spend each month, with a maximum of $3,000, which is a much higher cap than many other secured cards. If you deposit less than $3,000 to start, you can increase your limit at any time by adding more money to your OpenSky account. The relatively higher credit limit might be good for you if you want to keep your credit utilization ratio low. Lastly, there is no credit check required, so it’s possible to get this card when you have no credit history at all.
2. The Credit One Bank Platinum Visa is another good option for people with no credit or low credit. It requires no security deposit and offers a rewards program where you can earn 1% cash back on eligible gas and grocery purchases as well as mobile phone, internet, cable and satellite TV services. However, there is an annual fee of $39 and a foreign transaction fee of 3% or $1, whichever is greater.
3. The First Progress Platinum Elite Mastercard is another great option for people with no credit or low credit. However, there is an annual fee of $29 and a $200 security deposit. To be honest, this is probably my least favorite card out of the list, but the next two are going to be my favorite.
4. The Capital One Platinum Secured is a great option for people with no credit or low credit. It requires a security deposit of $49, $99, or $200, depending on your creditworthiness. Plus, there's no annual fee or any foreign transaction fees. If you use this credit card responsibly, like you know, making payments on time, you’ll be automatically considered for a higher credit line in as little as 6 months. Lastly, with responsible card use, you could earn back your deposit and upgrade to an unsecured Platinum card.
5. The Discover it Secured Credit Card is another great option for people with no credit or low credit. It also requires a security deposit, but offers a rewards program where you can earn 2% cash back on up to $1,000 in combined purchases each quarter at restaurants and gas stations, and 1% cash back on all other purchases. Plus, there's no annual fee. After 7 months, Discover will begin automatic monthly account reviews to see if you qualify to convert to a standard, 'unsecured' card and get your deposit back. This card is by far my favorite one, and no, this isn’t sponsored in any way.
Remember that the goal is to build or rebuild your credit so you can then upgrade to a better credit card with better benefits. Your goal is to show these credit card companies that you are responsible for paying off your credit cards on time so they can trust you with higher tier cards.
Have a wonderful day!
Steve 😀
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