credit cards

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Learn the ins and outs of building credit with the appropriate card

Quick Notes:

  • Utilize preapproval tools before applying

  • Expect high-interest rates in the beginning

  • Pay the credit card off monthly

Building your credit can be quite daunting. Especially when you’re trying to do all that you can to get loans or credit cards and are constantly getting rejected. It can seem like an uphill battle with no relief in sight. Yet, there is relief! There are credit cards available that are specifically for individuals making a conscious effort to improve their credit. Keep reading to see the cards that are ideal and up for the task.

Capital One QuicksilverOne Cash Rewards Credit card

Capital one has a plethora of cards that are ideal for individuals that are in need of improving their credit. The Quicksilver One Cash Rewards card has great benefits! For one, cash rewards are great. When you spend the money, you get the cash. In addition, once you make five on-time payments then your credit score will be increased. That increase will improve the credit utilization and debt to income ration. Hence, an increase in credit score!

Capital One Secured card

You may have been trying to get a credit card for some time, but have yet to see an approval. If that is your experience, consider getting a Capital One Secured Card. Some people try to avoid secured cards because it requires the cardholder to have the money upfront as a deposit. For this card, the deposit amounts range from $49-$200. Capital One will keep the money just in case you go delinquent. However, if you stay on top of it you will get your money back once you close the account. Don’t let the deposit discourage you from getting this card. Instead, understand that in order to build credit it will take some investment.

Indigo Mastercard

Repeatedly applying for credit cards can be harmful to your credit. The Indigo Mastercard helps by utilizing a pre-qualification tool. It determines if you would be approved for the card without having it hit your credit. However, applicants must keep in mind that it is not a 100% guarantee. There is still a chance you could not be approved. Also, there is the possibility of an annual fee. The fee is based on your credit score and can range from $0 to $99.

Discover It Student Cash Back card

Everyone attempting to build credit is not doing so because their credit is poor. Some individuals don’t have credit at all. When trying to establish credit it can be just as difficult as if you have bad credit. The Discover It Student Cash Back Card provides the cardholder with similar benefits with the top tier reward cards. Also, students are able to receive rewards for having good grades! How cool is that?! Most importantly, there are no annual fees.

Choosing the best card for establishing credit

There are so many more cards available for building upon your credit. The majority of banks offer secured cards. Also, consider secured loans. Secured loans are also a fantastic way to build credit and savings. With so many options it can be a challenge to decide just what is the best route to take. When considering which card you want to select to build your credit there are a few things to consider. Try your best to avoid annual fees if you can. If you are actually a student, regardless of age, get a student card. Once you are approved for one card, utilize that one card. Don’t continue to apply for other cards and take those hit to your credit. Lastly, read reviews from people in a similar situation as yourself and see how the card has worked for them.

A deeper dive — Related reading from the 101:

Pay down your credit cards without going broke | Finance 101

            Examples on how to pay off credit card debt without breaking the bank

Here’s exactly how your credit score is calculated | Finance 101

           Details on how your credit score is calculated