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Before you can get the best credit cards, you need to build credit. If possible, the best credit card is one that earns rewards you can use. With so many rewards cards to choose from, the decision can be harder than you realize. So what are the best credit cards to build credit scores?
Whether you want to earn cash rewards or the best credit card for travel miles, these two cards can build your credit score. Plus, you earn rewards at the same time.
Best Credit Cards to Build Credit Score
Always Pay Your Balance to Build Credit
Let’s cover the main rule of owning credit cards.
You must pay your credit card balance in full each month to boost your score. Missed payments remain on your credit report for up to seven years. Also, each missed payment reduces your credit score and your approval odds can be at risk for future credit applications.
The Best Credit Cards to Build Credit Scores
If you just want to start building credit, try getting an unsecured rewards credit card. You won’t pay an annual fee and you earn rewards points on every purchase.
Also, when you’re ready to apply for a different credit card, you can keep this first card for free.
Your credit card is made up of several factors. On-time payments are a driving factor, but the age of your credit accounts is important too.
At first, you will want to keep your card as a secondary card. It will still help your credit score grow, even if you only use it for one purchase a year. It’s also a free way to build credit because you don’t pay an annual fee.
The average American credit score is around 695. If you’re a few points below, you have good approval odds with these recommendations.
Option 1: Chase Freedom
The Chase Freedom offers tiered purchase rewards. Each quarter, there’s are revolving 5% bonus categories on the first $1,500 in combined spending. After that, you earn 1% on all purchases. Plus, you always earn unlimited 1% on all non-bonus categories.
Some of the bonus categories include:
- Gas Stations
- Grocery Stores
- Digital Wallet Payments
You can redeem your rewards for cash back, award travel, and gift cards.
More importantly, you earn Chase Ultimate Rewards points, some of the most valuable credit card rewards points. You can also pool them with your other Ultimate Rewards credit cards.
One of these cards is the Chase Sapphire Preferred. With the Sapphire Preferred, your points are worth 25% more for award travel. You can transfer them directly to airlines and hotel loyalty accounts.
But, you may need a credit score of 740 to qualify for the Chase Sapphire Preferred®.
Since Freedom is an easy way to earn bonus points on non-travel awards, you can continue to use it on a regular basis. Then, you can redeem the points for award travel with the Sapphire Preferred.
FYI: here’s a comparison post on the Chase Sapphire Preferred vs Capital One Venture
Option 2: Wells Fargo Propel
The information related to Wells Fargo Propel American Express® Card has been collected by Johnny Jet and has not been reviewed or provided by the issuer or provider of this product or service.
The Wells Fargo Propel is in the lifestyle rewards credit cards categories. You earn bonus points on many common purchases and you have some valuable redemption options too.
If you only want one credit card, it can easily be the Wells Fargo Propel American Expre ss® Card.
You earn unlimited 3 points per $1 on these purchases:
- Transit and Rideshares
- Popular Streaming Services
All other purchases earn 1 point per $1 spent.
Your redemption options include travel, cash, and gift card rewards. Although your points are worth 1 cent each for cash and gift cards, they can be worth 1.5 cents each for travel.
Also, you get free cell phone protection up to $600 per claim.
Finally, you won’t pay an annual fee or foreign transaction fees with this card either.
Option 3: IHG Rewards Club Premier Credit Card
Hotel credit cards are another way easy way to build credit. When you pick one with a reward anniversary night, the reward night usually offsets the annual fee. The IHG® Rewards Club Premier Credit Card is one of these cards.
Each card anniversary, you get a reward night. Since most IHG nights cost more than $100, this award is easily worth more than the $89 annual fee. Some of the places you can enjoy your reward night include Holiday Inn Express, Crowne Plaza, Candlewood Suites, and InterContinental.
If you sit through long security lines when you fly, IHG offers a fee credit for Global Entry or TSA PreCheck. For a limited time, new cardholders can earn 140,000 bonus points after spending $3,000 on purchases within the first three months of account opening.
To redeem your points, reward nights start at 5,000 points. An exclusive IHG® Rewards Club Premier Credit Card benefit is getting the fourth-night reward when you pay for your first three nights with points.
Option 4: Delta SkyMiles Blue American Express Card
It used to be that airline credit cards were not great for things other than a flight. That’s no longer the case. If you fly Delta, consider the Delta SkyMiles® Blue American Express Card.
You earn 2 miles per $1 on all purchases made directly with Delta and at restaurants. All other purchases earn 1 mile per $1. Plus, you get 20% savings on in-flight Delta purchases.
When you want a basic credit card that earns miles and builds credit, this is a solid choice. But, you will need to apply for the Delta SkyMiles Gold Credit Card if you want free checked bags and priority boarding.
With either of these Delta credit cards, you only need a credit score in the mid-600s.
What If You Don’t Have Good Credit?
If you don’t have a credit score in the 600s, you still have options to build credit. It’s still possible to get a rewards credit card. But, it may have to be a secured credit card. You won’t have a high credit limit, but you might qualify for an unsecured rewards card in one year.
Summary on Best Credit Cards to Build Credit
Any credit card you make on-time payments with will build credit. But, going with a rewards card that doesn’t charge an annual fee lets you do it for free. Plus, you “get paid” to build credit at the same time.
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Editorial Note: The editorial content on this page is not provided by any bank, credit card issuer, airlines or hotel chain, and has not been reviewed, approved or otherwise endorsed by any of these entities.