Best Credit Cards to Build Credit
Best Credit Cards to Build Credit
Why Credit Building Matters
A credit score isn’t just a number—it’s your financial reputation. When you apply for a loan, rent an apartment, or get a job that runs background checks, your credit file speaks before you do. Building credit early helps you access better interest rates and keeps future financial goals within reach.
Your first credit card plays a big role in shaping that profile. It reports your spending and repayment habits to the credit bureaus, building the track record lenders rely on. Even small, consistent payments can lead to a stronger score over time.
What Makes a Credit Card Beginner-Friendly
Not every credit card is designed for someone new to credit. A good starter card is simple, fair, and focused on helping you build responsibly. Look for a card that reports to all three major bureaus and doesn’t overload you with fees.
Some cards offer low limits to start, which helps you stay in control. Others include basic alerts and payment reminders, which can help you avoid missed due dates. If you’re just starting out, approval odds are better with cards that don’t require a long history or high income.
Choosing the Right Card: Secured vs. UnsecuredIf you're new to credit, you’ll come across two main options: secured and unsecured cards. The key difference is that secured cards require a refundable deposit to get started, while unsecured cards don’t.
A secured card often starts with a $200 deposit, which becomes your credit limit. Getting approved for and reporting your activity to the major credit bureaus is easier. That makes it a good first step if you’re just starting out.
Unsecured cards don’t require a deposit but can be harder to qualify for. Some are made for beginners, but watch out—they may come with high interest rates or extra fees.
The best card is the one that fits your current credit profile. If you don’t have a score yet, go with a secured card that has no annual fee. If your score is in the mid-600s or higher, you might qualify for a basic unsecured card. Don’t worry about perks for now—focus on paying on time and keeping your balance low. Better offers will come as your score grows.
3 Tips for Managing Your First Credit Card
Getting approved is just the first step. What really builds your credit is how you manage the card after that. Focus on these three key habits to set yourself up for success:
- Keep your balance low.
Try to use less than 30% of your limit to show lenders you can borrow responsibly. - Pay your bill on time every month.
You don’t need to carry a balance to grow your credit—paying in full actually protects you from interest charges and helps your score stay strong. - Go slow with new applications.
Every time you apply for a card, it creates a hard inquiry on your report. Too many in a short time can make it harder to get approved, so start with one good card and build from there.
Building credit is a marathon, not a sprint. Good habits now will make everything easier down the road—from getting approved for better cards to qualifying for loans and lower interest rates.
How Cheers Credit Builder Helps
While your credit card builds one part of your score, Cheers Credit Builder works on another. It’s a simple, low-commitment loan designed to build credit in the background. Here’s how it helps:
- You don't need good credit to start. You can open a Cheers Credit Builder account even if you’re starting from scratch.
- Payments are reported to all three major credit bureaus. This helps you build a consistent payment history, which is one of the biggest factors in your credit score.
- It strengthens your credit mix. Using both a credit card (revolving credit) and a builder loan (installment credit) shows lenders you can manage different types of accounts, adding depth to your profile.
- Your money stays safe. All payments are held in a secure, FDIC-insured account until the end of your plan, helping you build both credit and savings simultaneously.
Conclusion
Choosing your first credit card is a key moment in your financial journey. The right one will help you build a strong score, open future opportunities, and lay the foundation for bigger goals. Combine your card with Cheers Credit Builder to speed up your progress and strengthen your profile across the board.
It’s not about finding the flashiest card—it’s about starting smart, staying steady, and letting the right tools work for you.
References:
https://www.americanexpress.com/en-us/credit-cards/credit-intel/credit-inquiries/?utm_source
https://www.discover.com/credit-cards/secured-credit-card/
https://www.capitalone.com/learn-grow/money-management/secured-vs-unsecured-credit-card/
