CNBC’s best credit cards for building credit of 2022

While there are thousands of credit cards available, most require some sort of credit history in order to qualify. This can make it hard for people with less than stellar credit (typically, a credit score below 580), or no credit at all, to qualify for a card.

Those building or rebuilding credit have the best chances of qualifying for secured credit cards. They’re similar to traditional cards (they extend credit, charge interest and may offer rewards) but require you to make a deposit (typically $200) in order to access a credit limit. Whatever amount of money you deposit becomes your credit limit and acts as collateral if you fail to make payments.

There are also some other, non-secured credit card options for people with no credit or poor credit who don’t want to — or are unable to — put down a deposit. While a credit card can be an easy way to build a strong credit history, you need to make sure you use it responsibly. After you open a credit card, make sure you spend within your means and pay your balance on time and in full.

To make your search easier, CNBC Select analyzed dozens of credit cards that are marketed toward consumers with no or poor credit. To determine the best cards for building credit, we considered a number of factors, including security deposit minimums, fees, rewards programs and APR. (Read more about our methodology below.)

Who’s this for? The Discover it® Secured Credit Card gives cardholders access to many of the perks and benefits available to people with higher credit scores, including a robust cash-back program, no annual fee and no foreign transaction fees. You must put down a minimum deposit of $200 to open a Discover it® Secured Credit Card, or as much as $2,500. Your credit limit is equal to your deposit.

Cardholders earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter (then 1%). Plus, you can earn unlimited 1% cash back on all other purchases. This card also comes with a welcome bonus for new cardholders: Discover will match any cash back you earn during the first 12 billing cycles. So, if you have $100 cash back at the end of the first year, Discover will give you an additional $100.

What makes this card really stand out is the ease with which cardholders can transition to an unsecured card. Starting seven months from account opening, Discover will automatically review your credit card account to see if you can transition to an unsecured line of credit and return your deposit. This takes the guesswork out of wondering when you can transition to an unsecured card.

Who’s this for? If you want to build credit while earning cash back, consider the U.S. Bank Cash+® Visa® Secured Card. As you spend on the card, you can earn:

• 5% cash back on your first $2,000 in combined eligible purchases each quarter in two categories you choose. Some categories include: TV, internet and streaming, home utilities, cell phone providers, fast food restaurants and movie theatres.
• 2% cash back on eligible purchases in your choice of one everyday category (like gas stations, grocery stores and restaurants)
• 1% cash back on all other eligible purchases

The cashback you earn can be redeemed in one of three ways: a statement credit to your account, direct deposit to your U.S. Bank checking, savings or money market account, or a U.S. Bank rewards card (similar to a Visa gift card).

New cardholders must put down a deposit of between $300 and $5,000 which acts as your credit line. If you spend within your credit limit and pay your bill when it’s due, over time, U.S. Bank could upgrade you to the U.S. Bank Cash+® Visa Signature® Card, but unlike some other cards on this list, there’s no clear timeline. Once you’re upgraded, your security deposit will be returned.

Who’s this for? If you’re looking for a secured card, but can’t afford the typical $200 deposit, take a look at the Capital One Platinum Secured Credit Card. It has no annual fee and varying minimum security deposits of $49, $99 or $200 — based on your creditworthiness.

If you qualify, you can still access a $200 credit limit while only depositing $49 or $99.

In addition to lower security deposits, Capital One automatically considers cardholders for a higher credit line in as little as 6 months with no additional deposit needed. This is a great incentive to practice responsible card management.

Unlike the Discover it® Secured Credit Card, there is no rewards program or welcome bonus. Capital One also doesn’t offer a clear timeframe for when secured cardholders can upgrade to an unsecured account.

Who’s this for? The Deserve Digital First Card™ is good for anyone with zero or limited credit history who doesn’t have the means to put down a security deposit.

There’s no annual fee and no foreign transaction fees. Plus if you’re approved for the card, you receive instant access and can add it to Apple Pay.

Cardholders also receive up to 1.5% cash back, based on the amount of money you spend each billing period. Here are the levels:

• 1% cash back: Purchases up to $500 earn 1% back.
• 1.25% cash back: After you spend $500 in a billing cycle, you’ll earn 1.25% back on purchases until you hit $1,000 in spending.
• 1.50% cash back: After you spend $1,000 in a billing cycle, you’ll earn 1.50% back on remaining purchases that billing period.

You can redeem cash back as a statement credit to offset your bill.

Who’s this for? The U.S. Bank Altitude® Go Visa® Secured Card is one of the few travel-focused secured credit cards on the market. So if you want to earn travel rewards on your purchases while building your credit, this card may be a great fit for you.

As you spend on the card, you can earn:

• 4X points per dollar spent on dining
• 2X points per dollar spent at grocery stores, gas stations and streaming services
• 1X points per dollar spent on all other eligible purchases

When these points are redeemed, they are worth 1 cent per point, giving you an effective 4% back in value on dining — an excellent value that even trumps some non-secured credit cards.

In addition, cardmembers are eligible for a $15 credit for annual streaming service purchases.

New cardholders must put down a deposit of between $300 and $5,000 which acts as your credit line. If you spend within your credit limit and pay your bill when it’s due, over time, U.S. Bank could upgrade you to the U.S. Bank Altitude Go Visa Signature Card, but unlike some other cards on this list, there’s no clear timeline. Once you’re upgraded, your security deposit will be returned.

The card doesn’t have foreign transaction fees, and you can choose the due date for your bill.

Who’s this for? Financial experts often stress the importance of building credit at a young age, and opening a credit card while you’re a student is one of the easiest ways to establish credit. The Discover it® Student Cash Back is our top pick for students looking to build good credit while attending college. You must be over 18 and a U.S. citizen to apply.

This card provides a generous cash-back program: Upon activation, cardholders can earn 5% cash back on rotating categories up to a $1,500 maximum each quarter (then 1%). All other purchases earn unlimited 1% cash back automatically.

This card also offers the welcome bonus of a dollar-for-dollar match of all cash back earned the first year for new cardholders. So, if you have $50 cash back at the end of the first year, Discover will give you an additional $50.

This card has no annual fee and no foreign transaction fees, so you can study abroad or vacation outside the U.S. without worrying about paying the typical 3% fee other cards charge. There’s also a 0% introductory APR for the first six months on new purchases, which is perfect for financing textbooks or dorm room essentials. After the intro period, there’s a 17.24% – 26.24% variable APR.

Who’s this for? If you have average credit and are looking to build up to a good or excellent credit score, it’s a good idea to consider a credit card designed for average credit applicants, such as the Capital One Platinum Credit Card. This card also provides travel benefits that can save you money and protect you against unexpected issues — most notably no foreign transaction fees.

This perk will save you the typical 3% fee many other cards charge on each purchase made outside the U.S. For example, the average American spends $2,154 a year on travel, and depending on how much of that is done abroad, you could potentially save up to $65 with the Platinum Credit Card from Capital One (and even more depending on your travel spending habits).

This card also offers travel accident insurance, auto rental collision damage waiver, roadside assistance and 24-hour travel assistance services — all at no extra cost, though third-party service fees apply for roadside assistance. These perks are a great way to make traveling less stressful and provide you with coverage for eligible issues.

This card doesn’t offer a rewards program, so you don’t have the opportunity to earn cash back, points or miles from your everyday spending. But with no annual fee, it can be a good starter card if you want to eventually upgrade to another card in the Capital One family.

A good credit score is necessary for many major financial moves, including taking out a mortgage, opening a credit card, getting car insurance and sometimes even landing your dream job. If you don’t have a good or excellent credit score, you may not get approved for a certain financial product or may pay higher interest rates.

Nearly every facet of your financial life is impacted by the strength of your credit score. Building a good credit score helps improve your approval odds for financial products, helps you qualify for lower interest rates and better terms and allows you to to benefit from robust credit card benefits.

It is possible to sign up for a credit card without having credit history. It’s generally easier to get approved for secured credit cards or starter credit cards, which are designed especially for those who are beginning to build their credit.

Becoming an authorized user on someone else’s credit card is a great way to build credit. So long as the primary cardholder has good (670-799) or excellent credit (800-850), it can be relatively low-risk and allows you to build or boost your credit score. However, there are also instances where being an authorized user can harm your credit score, such as if the primary account holder misses a payment.

To determine which cards offer the best value for building or rebuilding credit, Select analyzed 29 of the most popular credit cards available for consumers building or rebuilding their credit.

We compared each card on a range of features, including: annual fee, minimum security deposit, credit limit, rewards program, introductory and standard APR, welcome bonuses and foreign transaction fees, as well as factors such as required credit score and customer reviews when available. We also took into account how easy it is to upgrade the card from secured to unsecured and how quickly you can get your security deposit back.

Because it’s unusual for credit cards aimed at consumers looking to build (or rebuild) their credit to have robust rewards programs, we did not analyze how many rewards points you can earn in the first year. For cardholders looking to rebuild credit, it’s more important to practice good credit card habits — spending within your means, paying your balance on time and in full — than try to optimize your points balance.

Petal 2 Visa Credit Card issued by WebBank.

For rates and fees of the Discover it® Student Cash Back, click here.

For rates and fees of the Discover it® Secured Credit Card, click here.

For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.