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Credit cards can build or fix your credit

If you have bad or no credit, a secured credit card can help you build or rebuild it. These cards are easier to get, making them ideal for those who can’t qualify for a regular credit card. We have identified1 top credit card options for building credit.

Here’s how secured credit cards work: To get one, you need to make a security deposit, which usually becomes your credit limit. For example, if you deposit $200, your credit limit will be $200. You can use the card just like any regular credit card to make purchases. By using a secured credit card and paying your bills on time, your payment history will be reported to the three major credit bureaus (TransUnion, Equifax, and Experian). This will help improve your credit score, which is important for getting car loans, buying a house, and even job applications.

Although secured credit cards require a deposit and may not have some of the features of regular credit cards, they are a very important tool for building and rebuilding your credit. Make sure to use them responsibly to see positive changes in your credit score.

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  1. WiseOwlFinance has partnered with CardRatings for our coverage of credit card products. WiseOwlFinance and CardRatings may receive a commission from card issuers. ↩︎