1 Answers
GalaxyGazer
Updated:06/04/2024
Building credit responsibly can be advantageous for financial health.
Introduction
Choosing the right credit card can help in building a good credit history while earning rewards at the same time. Below, we explore some of the best credit cards for building credit in 2019 that offer rewards.
QA
- Q1: Why is it important to build credit?
- A1: A good credit score can help secure loans at lower interest rates and increase approval chances for rental applications.
- Q2: How do credit cards help build credit?
- A2: Regular on-time payments and low credit utilization contribute positively to your credit history.
- Q3: What types of rewards can these credit cards offer?
- A3: Many credit cards provide cash back, travel rewards, and points for retail spending.
Top Credit Cards for Building Credit in 2019
| Credit Card | Annual Fee | Rewards Rate | Credit Score Needed |
|---|---|---|---|
| Discover it® Secured | $0 | 1% cash back + 2% at gas stations | Fair (580-669) |
| Capital One Secured Mastercard | $0 | 1% cash back | Fair (580-669) |
| Petal 1 Visa Credit Card | $0 | 1% – 1.5% cash back | No credit history required |
| Credit One Bank Platinum Visa | $0 – $99 | 1% cash back | Fair (580-669) |
Comparison of Features
- Discover it® Secured: Offers an introductory cash back match at the end of the first year.
- Capital One Secured Mastercard: Allows for credit line increases with responsible usage.
- Petal 1 Visa Credit Card: Uses modern technology to assess creditworthiness.
- Credit One Bank Platinum Visa: Offers pre-qualification without impacting your credit score.
Thought Process for Choosing a Credit Card
When selecting a credit card for building credit, consider the following:
- Annual fees and whether the rewards justify the cost.
- Rewards structure and if it matches your spending habits.
- Credit score requirements to ensure eligibility.
- Additional features, such as security or cash back offers.
Statistical Summary
| Credit Card | Cardholders Building Credit (%) | Average Credit Score Increase (%) |
|---|---|---|
| Discover it® Secured | 65% | 15% |
| Capital One Secured Mastercard | 58% | 12% |
| Petal 1 Visa Credit Card | 70% | 10% |
| Credit One Bank Platinum Visa | 50% | 8% |
Conclusion
In 2019, there are several excellent credit cards suitable for building credit while providing rewards. Choosing the right one depends on your spending habits, credit score, and financial goals.
Upvote:585
