Top credit cards for building credit in the U.S.

When you’re starting to build or rebuild your credit, finding the right credit card can be a game changer.

Whether you’re a student, a young professional, or someone recovering from a credit setback, there’s a card out there designed to meet your needs.

Let’s dive into the top credit cards for building credit in the U.S. and explore how you can use them wisely to boost your financial future.

What is credit building, and why is it important?

Credit building isn’t just about getting access to loans or credit cards—it’s about establishing a solid financial foundation.

Your credit score influences your ability to rent an apartment, secure low-interest rates, and even get approved for a job in some cases.

Starting with the right card ensures you’re making progress from day one.

Types of credit cards designed for building credit

Not all credit cards are created equal, especially when it comes to building or rebuilding credit. Here are the main categories you should know about:

1. Secured credit cards

These are the go-to cards for those with no credit history or poor credit. They require a security deposit, which typically becomes your credit limit. Think of it as training wheels for your credit journey.

2. Student credit cards

Designed specifically for college students, these cards often have lower credit limits and relaxed approval requirements. They’re great for young adults just starting out.

3. Credit-builder cards

These cards work similarly to secured cards but often come with additional features, such as tracking tools and automatic upgrades to unsecured cards after demonstrating responsible use.

4. Store credit cards

Although not ideal for everyone, some store cards are easier to get approved for and can be a stepping stone for those building credit. Just be cautious of high-interest rates.

Top secured credit cards for building credit

1. Discover it® Secured Credit Card

Why it stands out: This card not only helps you build credit but also offers cash-back rewards—a rarity among secured cards.

• Key benefits:
  • Earn 2% cash back at gas stations and restaurants (on up to $1,000 in combined purchases each quarter)
  • Unlimited 1% cash back on all other purchases
  • No annual fee
• Ideal for: Those who want to build credit while earning rewards.

2. Capital One Platinum Secured Credit Card

Why it stands out: Flexible deposit requirements make it accessible to many.

• Key benefits:
  • Low minimum security deposit (as low as $49 for some applicants)
  • Automatic consideration for higher credit limits
  • No annual fee
• Ideal for: Individuals looking for flexibility and a potential path to an unsecured card.

Best student credit cards for beginners

1. Discover it® Student Cash Back

Why it stands out: Cashback rewards and a forgiving approval process make this a top choice for students.

• Key benefits:
  • Earn 5% cash back in rotating categories each quarter (like Amazon or grocery stores) after activation
  • Unlimited 1% cash back on all other purchases
  • No annual fee
• Ideal for: Students who want to start building credit with added perks.

2. Chase Freedom® Student Credit Card

Why it stands out: Offers a simple rewards program and opportunities for credit limit increases.

• Key benefits:
  • Earn 1% cash back on all purchases
  • $20 Good Standing Reward each account anniversary for the first five years
  • No annual fee
• Ideal for: Students who want long-term rewards.

Credit-builder cards that work for everyone

1. Petal® 2 “Cash Back, No Fees” Visa® Credit Card

Why it stands out: No security deposit is required, and it’s designed for those with limited credit history.

• Key benefits:
  • Earn 1% cash back on eligible purchases, increasing to 1.5% over time
  • No annual fees or late payment fees
  • Uses a cash flow-based approval process
• Ideal for: Individuals with limited credit history but solid financial habits.

2. Tomo Credit Card

Why it stands out: No credit check required for approval.

• Key benefits:
  • No fees or APR
  • Weekly automatic payments help prevent debt accumulation
  • Earn cash-back rewards
• Ideal for: Those new to credit or who want to avoid traditional credit checks.

Store credit cards: a risky but effective option

Store credit cards can be useful for building credit, but they come with risks—namely, high-interest rates and limited usability.

1. Amazon Prime Store Card

Why it stands out: Offers great rewards for frequent Amazon shoppers.

• Key benefits:
  • 5% back on Amazon purchases (with Prime membership)
  • Special financing options available
• Ideal for: Amazon enthusiasts who can pay off balances in full.

2. Target RedCard™ Credit Card

Why it stands out: Provides everyday savings and potential credit-building benefits.

• Key benefits:
  • 5% off purchases at Target
  • No annual fee
• Ideal for: Frequent Target shoppers who are disciplined about payments.

Tips for using credit cards to build credit effectively

1. Always pay on time: Payment history accounts for 35% of your credit score. Even one late payment can hurt.
2. Keep credit utilization low: Aim to use less than 30% of your available credit.
3. Don’t apply for too many cards: Multiple applications within a short period can lower your score.
4. Monitor your credit: Use free tools like Credit Karma or your card issuer’s app.
5. Upgrade when possible: Move to an unsecured card when your credit improves.

Mistakes to avoid when building credit

• Maxing out your card: High balances hurt your credit score.
• Only making minimum payments: This leads to interest charges and prolonged debt.
• Closing old cards too soon: Length of credit history matters.
• Ignoring fees and APR: These can add up quickly.

How long does it take to build good credit?

Building credit is a marathon, not a sprint. If you start with no credit history, it could take six months or more to establish a score. However, consistently making on-time payments and keeping balances low can lead to a good score within a year or two.

Frequently asked questions

Building credit may seem daunting at first, but with the right card and habits, you’ll be on the path to financial success in no time. Start small, stay consistent, and watch your credit grow—because a healthy credit score opens doors to opportunities you might not have imagined.