There are many types of credit cards to build your credit. The best credit card for you depends on your financial situation and personal goals. The best credit cards to build your credit include rewards credit cards that don't charge an annual fee, which report to all three credit bureaus, and offer extra cardholder perks. You should look into secured cards first if your goal is to quickly build credit. In general, secured cards are less expensive than unsecured.
Starter Cards offer cash back incentives
Your credit history can be built by using a starter creditcard. Although these cards can be used for many reasons it is crucial that you make your payments on time. If you don't have enough cash, you shouldn't use these starter cards. They can charge high interest rates. To avoid APR, ensure you pay the entire balance each month.
Be aware that starter credit cards often come with additional fees when comparing them. Consider balance transfer fees. Foreign transaction fees. Returned payments. Penalty APRs. You should use a starter card to build your credit score for bigger purchases later in life. You can qualify for the best credit cards by paying your bills in full and on time.
Secured cards are more affordable than unsecured cards
For people who want to build their credit history, a secured loan is the best option. These cards don't require you to have a good credit history or to have a minimum credit score. The money you deposit will be repaid every month. This type of credit card has a small credit limit so those with high spending habits may want to look elsewhere. Secured cards are less expensive than unsecured cards, but they have higher costs to help build credit.
Another disadvantage of secured cards is their fees. Some require a large deposit or charge high annual fee. Others do not have an annual fee and are recommended for people with poor credit. Some issuers may even transition your account after a few months of use, so it's important to choose wisely. Some issuers will transition your secured card to anunsecured card after about a year.
It's simple to get a student card
When you're still building your credit record, college is the best time for you to open a student account. Your first card will have a limited credit limit. This time is the best time to be responsible with your credit cards and build a payment history. It is important to realize that credit card openings while still in school don't bring any rewards.
It's easy to obtain a student card. Many credit card issuers aggressively market these cards on college campuses, and even send direct mail promotions. However, stricter requirements now apply to get a student credit card. You must be at least 21 years old and demonstrate adequate income to service the account. Student card applications from underage students are still possible, provided they have a co-signer. Federal law mandates that borrowers of this age must have a stable job.
Capital One Quicksilver Secured Card offers higher credit limits
Capital One Quicksilver Secured Card is available with a $200 minimum investment and offers a $1,000 - $3,000 credit card. You can also build your credit by using this card over time. The card does have some limitations so it is a good idea to compare offers before applying. You may have trouble getting a credit card if you have poor credit. The Capital One Quicksilver Secured Card will not work for everyone. If you have recent loan defaults or a minimal credit history, this card is probably not for you.
You may find that the Capital One Quicksilver Secured Card offers a lower credit limit than Quicksilver Secured Card. This card can still be used to make purchases. You should always aim to spend no more than 30% of the available credit limit to avoid interest charges. The card will also report payments to the three major credit agencies, building your credit history.