Having a good credit score can make a significant difference in your life.
When you are finally ready for your first credit card, or you want to repair your credit report, choosing a credit building credit card for bad credit is a really good idea.
But searching for the right credit card company from a reputable agency can be daunting. Whether you want your first credit card or want to repair a bad credit history, the goal remains the same–you need a good credit card for building credit.
We’ve done our research to help you acquire a good credit card for building credit. First, make sure you go through our mini-reviews to learn more about the best cards for building credit. Then, read the FAQs for more information about credit building credit cards for bad credit.
- Credit Cards for Building Credit FAQs
Our buying guide reviews the top five best credit cards for building credit. This buying guide goes a step further to list the pros and cons of each credit card to help you make informed decisions.
Don’t be a victim of fraud! Our review also covers secured credit cards for building credit. Maybe you have a bad credit history? If so, we also cover the best credit-building cards for bad credit.
Still have questions? Don’t worry, as we list several frequently asked questions about cards for building credit at the end of this buying guide. The FAQs are comprehensive enough to give you the best possible answers.
Winner: Lexington Law
Lexington Law is renowned as the best credit repair company around, which was established in 2004. Since its establishment, the company continues to thrive in the credit building industry and takes pride in having settled around 183 million disputes for its clients.
You’ll be happy to know that in 2019 alone, Lexington Law cleared about 1.5 million bad records from clients’ credit reports! This solid reputation is enough to identify Lexington Law as having the best credit cards for building credit.
If you’ve been irresponsible with your finances and have a bad credit score, Lexington Law has the solution for building your credit. Get your bad credit card history repaired by Lexington Law, as this company has by far the best cards for building credit.
Lexington Law ensures that you always keep your spending under control to build a good credit score. There’s nothing as bad as starting a credit path with a bad credit rating, which is where Lexington Law can help you.
Check out the pros and cons of Lexington Law to further understand why it has the best cards for building credit.
- Use of technology: Lexington Law leverages changing technology by creating mobile apps for both IOS and Android users to help track expenditure. You can easily monitor your credit scores using their app. Constant monitoring of your credit score enables you to make necessary adjustments to your spending behavior.
- Efficient dispute resolutions: Lexington Law has actual attorneys who handle all your credit card dispute resolution, and they guarantee quality and professional work. Lexington Law tops the credit building cards for bad credit with its ability to remove negative records from your credit reports.
- Discounts: Lexington Law has the best credit-building cards that come with discounts for military personnel and households.
- Efficient customer service: Lexington Law delivers the best customer service experience. Whenever you face a problem, their online chat feature offers efficient responses and resolution of your issues.
- Free consultations: Lexington Law provides free consultations on how you can best manage your financial responsibilities. Experts advise you on the areas you should improve to help you build credit. In addition, they help track your spending and analyze your credit history before giving you advice, making them an excellent option for the best credit cards for building credit.
- Security: Lexington Law has the most secure credit cards for building credit. Complex algorithms constantly monitor your credit cards to detect any anomalies before they become a disaster. They go a step further to monitor the dark web to check whether any of your credit information is publicly available.
- Efficient cancellation: Forget the hassles and endless cycles that give you the run around when dealing with untrustworthy agencies. Lexington Law has the best cancellation policy, and you can call their customer helpline to cancel their services.
Despite having a solid reputation, Lexington Law has several weaknesses. However, it still reigns as providing the best cards for building credit.
- Not accredited by BBB: Lexington Law does not have any accreditation with the Better Business Bureau, meaning that you should be cautious when dealing with them.
- Not easily affordable: Their plans are quite expensive.
Runners Up: Self Inc.
Build credit. Build savings with Self Inc.! Self Inc has good credit cards for building credit and helping you to handle your financial responsibilities wisely. This company has the best cards for building credit, which is suitable for someone who focuses on saving.
Self Inc’s customer rating forms the backbone of a solid reputation as the best card for building credit. In addition, we recommend Self Inc as the runner-up for good credit cards for building credit due to multiple unique features.
Maintaining good credit scores has a lot to do with financial management. With Self Inc, you’ll overcome poor financial habits thanks to its forced savings account.
Self Inc is also the best option for credit building credit cards for bad credit through their Self Inc lending tool. Self-lender helps you get back on track and start building credit after unfortunate incidences that leave you with a poor credit rating.
If you are starting on your credit journey, use Self Inc. to build your credit as it instills excellent financial responsibility. In addition, you’ll learn best practices for maintaining good credit scores in your credit reports when using their services.
Ultimately, Self-Inc. has the best cards for building credit.
Most customer reviews rate Self Inc. as having good credit cards for building credit thanks to its many benefits:
- Steady increase of credit scores and credit limit: Using Self Inc. guarantees a steady rise in your credit limits. This favorable situation influences how lenders rank your credit capabilities. Get rid of embarrassing rejections by financial lenders by using Self Inc. to rebuild your credit record.
- Enhanced features: Self Inc. has a mobile app with valuable tools to help you become better with the way you use your credit. This tool analyzes your credit spending and guides you on the best approaches to using your credit with care.
- Security: Self monitors the dark web and sends alerts if your credit card information leaks to the outside world. It has one of the most secure credit cards for building credit.
- Readily available customer support to help provide solutions.
- Give you access to FDIC banks.
- User-friendly website: The website design is straightforward and user-friendly. You won’t need special technical knowledge to use their platform.
- It helps you save money while building credit.
- One-time administrative fee: Many customer reviews indicate a dislike of Self Inc’s one-time administrative cost that you pay after registration.
- High APR: You must pay your card balance in full after building your credit score every month.
- Credit limit based on saving progress: If you don’t save, your credit limit may not increase.
Alternative 1: Experian
Experian is the pick of the bunch for secured credit cards for building credit. It’s also the finest choice for someone with a family.
A good credit score will make a massive difference in your quality of life, but it might take years to establish one. So one of the three credit reporting bureaus, Experian, wants to make things simpler.
Experian Boost is a free service that allows people to add more information to their credit histories to improve their FICO scores.
The first step requires you to link your checking account to the one you use to pay your utility bills, mobile phone, and video streaming media plans. Then, users can pick their good payment histories from these providers to include in their Experian credit report.
Experian notes that its service can only obtain read-only data from a bank. They cannot access further data, so there is no need to be apprehensive about allowing third-party access to your account in this case.
- Experian is a free service. It gives you some discretion over which accounts it will include in your credit report. Unfortunately, the other credit bureaus do not notify you of your monthly utility payments. This means you won’t get any credit for paying your phone, internet, or power bills on time.
- If you only have a few accounts on your Experian credit report, adding additional positive information can positively influence your credit score. For example, perhaps you’ve only recently begun to use credit and have only one credit card. It will be challenging to establish a solid credit history (and good credit score) with only one account, so listing other accounts is beneficial.
- Launched to assist credit building: The average credit score improvement, according to Experian, is 14 points. For certain people, this might make a huge impact, especially if they pass one of the critical score thresholds from “poor” to “fair” or “fair” to “good.” It’s improbable that you’ll go from “okay” to “great,” but improvement is what counts in this scenario
- User-friendly website: The website is friendly and straightforward so that anyone can navigate their site quite easily without technical knowledge.
- All your utility bills payments must be from your online checking account: This is the only method Experian Boost will be able to scan from your bank account for utility payments. Unfortunately, this means you won’t be able to make your payment with a credit card and earn reward points.
- Experian will need access to your online banking account: For some people with security concerns, this is a no-go.
Alternative 2: Credit Karma
Credit Karma is a personal finance service with a fitting name which has made it a good credit card for building credit. For example, you’ll get an excellent credit score as a reward if you are diligent about paying the total outstanding amount on your credit card on time every month.
Likewise, you can improve your credit score if you don’t start and cancel accounts frequently, maintain loan payments, and avoid bad occurrences like bankruptcies and tax liens.
Credit Karma not only keeps you informed about your credit score but also warns you about potential credit breaches. In addition, this company also offers tools to help you locate and obtain the greatest credit, loan, and car insurance rates.
- Free: Credit Karma is a card for building credit that is free to access and use.
- Excellent user experience: The website design helps clients build their credit without any technical assistance.
- Explains rationale scores and reports: Credit Karma explains and helps clients attain a better credit score. This service ensures it has a considerable customer base and is well known as the best credit building credit card for building credit.
- Pulls data from third-party services: This enables the company to keep track of payments that negatively impact your credit score.
- Available customer support: The firm is always ready to assist its clients in the case of any technical difficulty.
- Intrusive financial product recommendations.
- It only displays two credit scores.
Alternative 3: Sky Blue Credit
Use Sky Blue credit for building good credit scores. We recommend Sky Blue for someone willing to take action and improve their credit ratings. Sky Blue has the best cards for building credit and restoring your credit scores.
This company also offers secure credit cards for building credit. If you have a poor credit history, check out Sky Blue because they’ll repair your credit card history for you!
One thing unique about Sky Blue is their willingness to put their customers first. So you can rely on these best cards for building credit in every situation, and you won’t regret using their services.
Examine the pros and cons of this credit-building credit card for bad credit to help you make the best possible decision:
- Competent handling of disputes.
- Fast dispute resolution.
- Expert analysis of your credit history.
- Consultations on how to improve your credit score.
- This best card for building credit focuses on more than just dispute resolution. They clear all errors in your credit history.
- Free cancelation.
- No fees are charged for six days after registration.
- Debt validation features: Sky Blue allows you to verify all debts.
- Only sends 15 disputes per month.
- No credit monitoring.
- Paid consultations: You must pay the initial service fee.
Credit Cards for Building Credit FAQs
Can you get a credit card with a 550-credit score? What is the fastest way to boost good credit? Who will approve me for a credit card with bad credit?
These are some questions that consumers ask regularly.
Well, we have intensively researched these questions to bring you results.
After reading our mini-review on building credit, grow your knowledge by browsing through these FAQs.
Can you get a credit card with a 550-credit score?
Your credit scores are three-digit figures with a lot of weight attached to them. Higher credit scores often link to a better probability of providing you with credit at cheaper interest rates. Consequently, working up to a 550-credit score may make it difficult to qualify for an unsecured credit card.
There are many other forms of credit scores, but lenders frequently use your FICO Score to measure risk and determine your creditworthiness. FICO Scores always range from 300 to 850, with a credit score of 670 or above being excellent. Conversely, a credit score of 579 or lower is bad for your reputation, and lenders may be hesitant to extend an unsecured credit card.
A good credit score demonstrates to creditors that you know how to manage your credit responsibly and are a low-risk borrower. But when your credit score is around 500, it indicates that you’ve had credit issues in the past, such as missing payments or going bankrupt.
Secured credit cards are a good option if you’re in this situation. However, borrowers must make an upfront, refundable security deposit, which sets them apart from anyone who qualifies for unsecured cards.
In most situations, your deposit determines your credit limit. It also gives the card issuer peace of mind, as they can use the deposit to cover their losses if you miss enough payments. Basically, you can get a secured credit card with a 550-credit score by choosing the right company if you can make the required deposit.
What is the fastest way to build credit?
Although you won’t be able to develop outstanding credit overnight, there are specific strategies you can use to improve your credit score rapidly. The best way to enhance your credit is to deliberate in how you approach each credit account. For example, you can focus on establishing a positive payment history and avoiding damaging credit mistakes.
Expect to wait six months before receiving a credit score if you’re starting from nothing with your credit. Before the credit scoring system can create a credit score for you, you must have at least one account open for three to six months.
Below are the strategies to use when you want to build your credit:
- Becoming an authorized user: You can use another person’s credit card as an authorized user, but you are not responsible for making payments. Your complete account history must reflect on your credit report and count towards your credit score once you have authorization as a designated user. If you’re added to someone’s credit card, it should preferably be a friend or family member’s account with a low amount and no payment history. It may be detrimental to your credit report if you become an authorized user on an account with a bad credit history.
- Pay on time: Once you have your own accounts, the most significant thing you can do to improve your credit score is to pay on time. Your payment history has the greatest impact on your credit score. The higher your percentage of on-time payments, the better.
- Keep your credit card balances low: The quantity of debt you have is the third most crucial element influencing your credit score. Therefore, it’s best to keep your credit card debt under 30% of your credit limit when building credit.
Who will approve me for a credit card with bad credit?
When you have a bad credit score, it might be difficult for a company to grant a credit card. And, because each credit inquiry on your credit report counts and you apply for a card and are denied credit, it can negatively influence your credit score.
When you have bad credit and want a credit card, you usually have two options. First, apply for a secured card, where you put down a security deposit equivalent to the credit limit you want, or an unsecured credit card tailored for those with bad credit.
If you don’t want to put down a deposit, keep in mind that many unsecured cards for those with terrible credit come with a slew of fees and exorbitant APRs. If you pick a secured card, be sure it reports to all three credit agencies so that your timely payments can help you establish your credit as fast as possible.
Whatever you pick, strive to use the new line of credit as a steppingstone toward a higher credit profile. This strategy will allow you to qualify for better cards and rates on future loans.
Below is a list of the best-secured credit cards for bad credit:
- Discover it Secured credit card
- Bank of America Cashback Secured credit card
- Navy FCU nRewards Secured credit card
- Avant credit card
What is the lowest acceptable credit score?
Lenders use credit scores to determine if they want to do business with you. The most frequently used scoring model, the FICO Score, has a range of 100 to 850 points. This range’s lowest credit score is 300.
However, practically no one has a score so low. A score of less than 580 generally attracts a “poor credit” rating, whereas the average FICO score in the United States is 704.
When choosing the best cards for building credit, always be on the lookout for a service that will prioritize your interests.
Our top five secured cards for building credit guarantee you good credit reports. Cards for building credit help you by improving your credit report.
Ensure that you always prioritize services that help you grow financially, such as promoting financial responsibility through forced savings plans.
Cards for building credit improve your eligibility for getting loans and mortgages, so choose wisely.
Final thoughts–good credit cards for building credit have to offer more than just dispute resolution and removal of errors from your report: Security is paramount!
Paul Martinez is the founder of BendingDestiny.com. He is an expert in the areas of finance, real estate, and eCommerce.
Join him on BendingDestiny.com to learn how to improve your financial life and excel in these areas. Before starting this blog, Paul built from scratch and managed two multi-million dollar companies. One in the real estate sector and one in the eCommerce sector.