Building credit from scratch, or rebuilding after a rough patch, does not mean you are out of options. This is the entry lane of the US market: secured cards that look at your deposit and your habits, not just your score. Approval and terms still depend on the issuer’s review, but these cards are designed to open the door when a traditional card would turn you away.
We gathered the building-credit options below. Each one reports to the three major credit bureaus, which is what actually moves your score over time. The right pick depends on how you like to fund a deposit and whether you want to earn rewards while you build.
Cards for building credit
$0
1.5%-5%
N/A
300-629 (Poor)
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- No annual or hidden fees, and you can earn unlimited 1.5% cash back on every purchase, every day. See if you’re approved in seconds
- Put down a refundable $200 security deposit to get a $200 initial credit line
- Building your credit? Using a card like this responsibly could help
- Enjoy peace of mind with $0 Fraud Liability so that you won’t be responsible for unauthorized charges
- You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
- Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
- Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you’ll get Capital One’s best prices on thousands of trip options. Terms apply
- Monitor your credit score with CreditWise from Capital One. It’s free for everyone
- Enjoy up to 6 months of complimentary Uber One membership statement credits through 11/14/2024
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Pros:
- Unlimited 1.5% cash back reward on all eligible purchases
- No foreign transaction fees
- You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
- Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
Cons:- High APR
- Has a low maximum credit limit to start, which could make it more difficult to keep your credit utilization less than 30 percent.
$49
1%
N/A
Poor/Limited/No Credit
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- 1% Cash Back Rewards on payments
- Choose your own credit line – $200 to $2000 – based on your security deposit
- Build your credit score. Reports to all 3 credit bureaus
- No minimum credit score required for approval!
- Cardholders who keep their balance low and pay their credit card bill on time every month typically do see an increase in their credit score.
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Pros:
- Reports to all three major credit bureaus
- Low standard APR
- May be an option for those with bad credit seeking an approval
Cons:- $49 annual fee
- 3% Foreign transaction fee
- Deposit required
$0
1%-3%
N/A
New to Credit
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- Earn 3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores, or home improvement & furnishings
- Earn 2% cash back at grocery stores and wholesale clubs
- Earn unlimited 1% cash back on all other purchases
- You’ll earn 3% and 2% cash back on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%
- A minimum refundable security deposit of $200 (maximum of $5,000) is required to open this account
- Now, you can access your FICO® Score updated monthly for free, within your Mobile Banking app or in Online Banking
- No annual fee
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Pros:
- No annual fee
- Earns cash-back rewards on eligible purchases
- Potential for an upgrade to an unsecured card
Cons:- The rewards system can be complicated to track
- An opening deposit of $200 is required
- There’s a foreign transaction fee
$0
1.5%
N/A
Bad/Poor (0 – 649)
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- Earn unlimited 1.5% cash back on all purchases
- Cash rewards don’t expire
- Establish, strengthen or rebuild your credit
- No annual fee
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Pros:
- Simple rewards structure is easy to manage
- Potential to graduate to an unsecured card with good payment behavior
- Free access to your FICO Score
- No annual fee
- Cash rewards don’t expire
Cons:- There are other secured cards that may earn you higher rewards.
- There’s a foreign transaction fee
- Minimum deposit of at least $200 required
$0
1%
N/A
300-689 (Poor – Fair)
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- Cell phone protection
- No annual fee, cash advance fees, or balance transfer fees
- Earn 1X points per dollar spent
- No rewards limit
- Points can be redeemed for cash, statement credit, gift cards, and merchandise
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Pros:
- No annual fee
- No foreign transaction fees
- Earn 1 point per dollar spent
- No cash advance fees
Cons:- Navy Federal requires membership, which means you need to have at least a grandparent or grandkid that’s a veteran or active military member
- As a secured card, the account requires a deposit
$0
1x-4x
N/A
Bad/Poor (0 – 649)
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- Earn 4 points per dollar spent on dining and takeout, 2 points at grocery stores, gas stations and on streaming services and 1 point on all other eligible purchases
- Earn a $15 streaming credit for annual streaming service purchases like Netflix and Spotify
- $0 annual fee
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Pros:
- Reports to all three major credit bureaus
- No annual fee
- Comes with a $15 annual streaming credit for eligible services
Cons:- Minimum deposit of $300 is required
- Non-bonus categories earn so-so rewards
- Other secured cards may offer rewards that better align with your spending
$0
1%-5%
N/A
Bad/Poor (0 – 649)
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- Earn 5% cash back on the first $2,000 in combined eligible purchases each quarter in two categories you choose
- Earn 2% cash back on eligible purchases in your choice of one everyday category (like gas stations, grocery stores, and restaurants)
- Earn 1% cash back on all other eligible purchases
- Also earn 5% cash back on prepaid hotel, car, or air reservations when booked directly in the Rewards Travel Center
- Choose payment due date
- $0 annual fee
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Pros:
- High rewards potential for a secured card
- $0 annual fee
- Useful convenience benefits
Cons:- Requires a deposit as any secured card does
- High variable APR
- Foreign Transaction Fees: 3% of each foreign transaction
Why these cards work for building credit
Secured cards ask for a refundable deposit that usually becomes your credit line. That deposit is what lets the issuer say yes when your score is thin or damaged. It is not a fee, it is collateral, and responsible cardholders get it back when they close the account in good standing or graduate to an unsecured card.
The modest starting limit is a feature, not a flaw. It keeps the balance small enough to pay in full every month, which is exactly the habit that builds a score without turning into debt.
How a secured card builds your score
A secured card locks your deposit as collateral and gives you a matching credit line. You use it like any other card, and the issuer reports your activity to the credit bureaus every month.
That monthly report is the part that counts. On-time payments and a low balance are what the bureaus record, and over time that record is what lifts your score toward the good-credit range.
Some secured cards let you earn cash back while you build, so your deposit works a little harder.
How to raise your score from here
Score building is simple to describe and hard to rush: pay every bill on time, keep your balance well under the limit, avoid opening several accounts at once, and give it months, not days. There is no paid shortcut, and none of these habits cost anything.
Payment history is the single biggest piece of a FICO score, so one on-time payment at a time is what moves you toward the good-credit range and the cards that live there.
Graduating to an unsecured card
Most of these issuers review your account after a stretch of on-time payments to see if you qualify to get your deposit back or move to an unsecured card. That upgrade is the goal, and it often happens without a fresh hard inquiry on your credit.
Once your score climbs into the good range, a wider set of cashback cards opens up. That is the next step, and there is a full review for it when you get there.
Using a secured card the right way
Whichever card you choose, pay the statement in full by the due date. Carrying a balance means interest, and secured cards tend to run a high APR, which quietly eats any rewards you earn.
And treat the limit as a tool, not extra income. Small, regular purchases paid off on time are all it takes to send the right signal to the bureaus.
What to Expect in the First Year
The first year with a card for building credit is mostly about patience and routine. Your first statements start a record, and every on-time payment adds to it. Progress is usually slow at the start and then easier to see, because a score needs a stretch of steady history before it moves in a clear way.
Use the card for small, regular purchases you’d make anyway, pay the full statement balance and keep the balance low on the statement date. Check your score now and then through a free tool, but don’t read too much into small changes from one month to the next. The trend over several months is what matters.
If you also have bills that don’t usually show on your credit, like rent or utilities, some free services can add them to your file. It’s optional, but for people starting from zero it can help the record grow faster.
Mistakes That Slow Down Progress
The most common setback is a late payment. Even one can stay on your record for a long time, so automatic payment for at least the minimum is worth setting up on day one, with the rest paid by hand.
Other mistakes are quieter. Using most of your limit, even if you pay it off later, can make your file look stretched. Applying for several cards close together can make it look like you’re in a hurry for credit. And closing your first card once you get a better one can shorten your history. Keeping it open, with an occasional small purchase, often helps more.
Building Credit Without Spending More
A card for building credit is a tool, not a reason to spend. The goal is to show that you can use credit and pay it back. Putting a single small bill on the card each month and paying it in full builds the same history as spending a lot, without the risk of a bill you can’t cover.
If money is tight one month, pay at least the minimum on time and the rest as soon as you can. Staying on time is what protects your record.
Some people keep the card in a drawer and use it only for one automatic bill. That works well, as long as you still check the statement each month to confirm that the charge and the payment both went through.
Reading Your Credit Report Along the Way
Your credit reports are free to check at annualcreditreport.com, the official site. Look at them a few times a year while you build. Confirm that your new card shows up, that payments are marked on time and that nothing appears that you don’t recognize.
If something is wrong, such as a late payment you made on time or an account that isn’t yours, ask for it to be corrected. Fixing an error costs nothing, and it can make a real difference to how your file reads when you’re ready for your next card. Check your personal details too, like your name and address, since mismatched details are a common source of confusion and easy to fix.
Starting with the right card and building steady habits is what turns a thin file into a solid one. The path to good credit takes patience, but it is open to anyone willing to use the tool with intention.
*Approval, credit line, deposit and terms are determined by each issuer based on their own review. Approval is not guaranteed.