If you’ve been thinking that you need to start building credit and would like to know where to start. There are three credit card accounts that we recommend that can help you get started. They report to all three CRAs. These cards don’t have the good perks, but they will help you get there.
The Capital One Platinum Secred Credit Card is one of the best:
There is no annual fee and the security Deposit can be $49, $99 or $200 minimum. This deposit is refundable deposit. Included are tools to help you on your credit building journey. With responsible card use, you could earn back your deposit and upgrade to a standard, unsecured Platinum card. If you pay your statement balance in full each month, you won’t pay interest.
The Discover it® Secured credit card is only $200 to secure, $0 annual fee, you get 2% percent cash back on purchases and Discover matches your cash back total for your first year. There, of course, will be a low $200 credit limit, but you can start using it just like a regular credit card. So just charge some purchases and make your payments. When you close that account, to get better card accounts, you get your $200 back of course.
One great idea to use your new cards is to buy some groceries and pay them off quickly. That way you aren’t spending any “new money” to build credit. You’re buying groceries anyway.
The next card is good for people who are trying to get a home mortgage. This is the OpenSky secured credit card does have a $35 annual fee, but the OpenSky Plus Secured Visa does not. There is only a $200 upfront security fee. What’s interesting is that the Open Sky company does not pull your credit reports so you don’t get a hard inquiry on your reports. I think that if you have a job, you’re in. There is no cash back or perks with this card, but you will be 99.9% approved.
The Current Build Card is a secured charge card offered by Current in partnership with Cross River Bank. You must have a bank account with this company. It features no annual fees, no interest (0% APR), and no credit check required to apply. It uses reserved funds from your account balance to cover purchases and automatically pays your balance to report on-time payments to credit bureaus.
There is another way to start your credit or enhance your credit and that is to become an authorized signer on a relatives credit card account. Of course you want to make sure they have good credit. This “piggy backing” method is just to give you a boost to your credit. You don’t want them to give you a physical card because you don’t want to charge on their account. They are only adding you as a signer.
Let us help you get the score you deserve.
