Even if you have no credit history, or made mistakes with credit in the past, there are plenty of credit card options that can put you on track to a great credit score.
If you pay your balance in full and on time each month, a credit card can help you improve your score with a positive payment history. That’s because credit card issuers report your payments to each of the three credit bureaus (Equifax, Experian, and TransUnion).
But some of our favorite credit-building options take these credit building benefits even further, by offering extra incentives for responsible credit use. Most commonly, these benefits come in the form of automatic reviews for the chance to upgrade your card or earn a credit limit increase after a certain number of on-time payments.
Here are a few of our favorite cards with these built-in perks for credit-building, along with some best practices for using credit to improve your score:
requires a cash security deposit of at least $200 (and up to $2,500), which acts as your line of credit. After seven months, Discover automatically reviews your account to determine whether you’re eligible to upgrade to an unsecured credit card or get a refund on your deposit. This card also doesn’t require credit history — which is perfect for beginners.