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The 5 Best Credit Builder Cards By Digital Banks

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The 5 Best Credit Builder Cards By Digital Banks

A credit score has major impact on your financial needs. You can’t borrow loan from bank or take out a mortgage. If you lack credit history or has bad score, it will also affect on your returns like high interests and the fees.

However, it doesn’t matter what was your past credit, you can still improve your credit rating. The best method to boost your credit score is to apply for credit builder cards. The best thing about this is you don’t need to physically visit any bank, you can apply it through online digital banks.

In Financial space, digital banks are becoming the new verge. Digital banks or you can say challenger banks are now providing services to their customers at home. You don’t need to go out and visit physical banks. All banking services are boxed in mobile-first service banking apps. It is the best option for the persons who have bad or no credit history.

Now we have discussed above what is credit builder card and for what they are used. Its time to show you some best credit card for rebuilding your credit or improve your score. Let’s take a closer look at them below!

Top 5 Credit Cards For Rebuilding Credit

As we have discussed above credit builder cards are aimed to help low credit score or no history people to gain their score again. Now we will share 5 best of them below:

1. Discover Secured Credit Card

The secured Discover credit card can be used for poor score or no history customers. As it name implies, the main requirement for this is you need to submit a refundable cash deposit. The best thing about this card is there is no hidden fees and also you need not to worry for annual fees as it is ZERO.

Another thing that attracts most people is Discover’s reward system. If you have spend $1000 a quarter at any gas station or a restaurant, you will instantly get 2% cashback. On other purchases you will get 1% cashback. After successful sign up, you will get variable APR of 22.99%. The bank offers no fees on first late payment which is a good thing to go with. The bank checks you for 8 months and if you return them on time, after 8 months they will issue you a unsecured credit card.

Read Also: Curve Cards Review – Is It Right For You?

2. Chime Credit Builder Visa Card

If you want to improve your credit score by 30 points, you must try Chime Credit Builder Visa Card. Chime is a financial company launched back in 2020 that offers secured credit card for poor or no history. Their card works same like a debit card to only spend money on the account.

By using Chime secured credit card, you can Money Transfer from one account to any other secured account. Also you can do shopping of groceries and can fill up at gas station or can do subscriptions.

The best thing about this card is on end of every month Chime gives report to credit bureaus including Equifax, Experian, and TransUnion. After they see your credit history it helps to rebuild you credit score.

Why most people are attracted to this secured card is because they have no fees for borrowing. Their is no hidden fees or annual fees. Also no minimum security is required to get started.

3. Capital One Secured Mastercard

To gain access to your future credit score/history, Capital One Secured Mastercard can help you out. With this card, you get a limit of $200. The refundable deposit is $49, $99, or $200. If you pay your credit back on time, bank will consider you a good customer after 6 months and will issue you a higher credit limit.

You can watch your credit score easily with CreditWise without any fees. Also you don’t need to pay any annual fees which is the best thing.

4. Avant Credit Builder Card

For poor or no credit history, Avant was launched back in 2017. With effective use, you can rebuild your credit score over time. The application process for this bank card is really quick and they are available for 24/7 for online banking.

The good thing that we love is they have zero fraud liability for unauthorized charges. They require no credit deposit to get started and zero hidden fees. But they have annual fees.

If we look at the annual fees, they charge $0-$59 if your credit limit is between $300-$1000. Avant card gives variable APR between 24.99%-29.99% depending on how good or bad your credit history is.

The bad thing about this card is they have no reward system and also no cashback given for any transaction. Another bad thing is they don’t allow you to transfer balance from any other credit card. Also before applying for their card, you need to match yourself with their pre-quality score. For this you need to visit their website.

5. Petal 2 Visa Credit Card

The most advanced credit card to solve your credit score issue is Petal 2 Visa Credit Card. It is specially designed for Gen Z clients who have no history or bad score with a credit limit between $500-$10,000.

If we look at the variable APR, they offer 12.99%-26.99% APR depending on your credit history. As it is a credit newcomer card, you can’t transfer any existing balance onto it.

The Petal 2 Visa Credit Card attracts the new customers due to its fast rebuilding of credit score. Another thing that attracts customers is after successful sign up, customers get 1% cashback straightaway. If you pay back on time, you will also get 1.5% cashback. You can redeem these rewards any time without any hidden expiry date.

If you follow responsible spending habits and pay back your bill on time, Petal 2 helps you to improve score by sending your report to credit bureaus.

To get started, you need to submit a pre-approval form which company will see and evaluate your eligibility for the card. For complete credit offers, you must submit full application for review.

Final Words:

Credit builder cards are the best option to boost your poor credit history. These cards work same like any other credit card just the difference is they offer higher APR and there is an agreed limit that allows the customers to spend on services or goods. Its better to apply for these cards for small and essential purchases as you need to pay back on time to improve your credit score.

James Smith is the writer for Munchkin Press. He is a young American writer from California and is currently traveling around the world. He has a passion for helping people and motivates others.