Ever been denied an apartment or loan because of your credit score? It happens all the time. A low or nonexistent credit score can hold you back, but the right tools can help you fix it.
Secured credit cards and credit-building accounts are two of the best ways to improve your score. Secured cards require a refundable deposit, while credit-building accounts help you establish a payment history without taking on debt.
The key is choosing the right bank. Below are seven banks offering credit-building options that can help you raise your score and unlock better financial opportunities.
1. Current
If you want to build credit without taking on debt or putting down a security deposit, Current makes it simple. Unlike secured credit cards or credit-builder loans, it uses your own money—so there’s no risk of overspending or paying interest.
2. Chime
Building credit can be frustrating when traditional credit cards come with high fees, interest, and credit checks. Chime’s Credit Builder Secured Visa® Credit Card takes a different approach—no credit check, no annual fees, and no interest charges. It’s designed to help you build credit safely while keeping full control of your spending.
3. Chase
The Chase Freedom Rise℠ Credit Card is a great option for building credit while earning rewards. Unlike many beginner cards, it offers cash back on purchases and doesn’t charge an annual fee. Chase also provides tools to help you track and improve your credit score over time.
4. Capital One
The Capital One Platinum Secured Credit Card is a flexible option for building or rebuilding credit. Unlike many secured cards, it offers a low refundable deposit and the potential for a credit limit increase with responsible use.
5. Discover
The Discover it® Secured Credit Card is one of the few secured cards that offers cash back rewards while helping you build credit. It also provides a clear path to upgrading to an unsecured card with responsible use.
6. U.S. Bank
The U.S. Bank Cash+® Visa® Secured Card helps you build credit while earning cash back rewards. With customizable bonus categories and a refundable security deposit, it offers flexibility that many secured cards don’t.
7. Bank of America
The BankAmericard® Secured Credit Card is a solid choice for building or rebuilding credit with the potential to transition to an unsecured card.
Choosing the Right Bank to Help You Build Credit
The best bank for building credit depends on your financial situation. Some offer secured cards with refundable deposits, while others provide unsecured options. Some include cash back rewards, while others focus solely on improving your credit score.
- Secured vs. unsecured options: If you’re starting with little or no credit, secured cards from Capital One or Bank of America may be the best fit. If you want to skip the deposit, unsecured cards like Chase Freedom Rise℠ offer a way to build credit while earning rewards.
- Credit-building vs. rewards: Discover and Chase provide cash back on purchases, while Chime and Current focus entirely on helping you grow your credit with no interest or security deposit required.
- Existing banking relationship: Some banks, like Chase, may offer better approval odds if you already have an account. If you prefer an option with no credit check, Chime or Current may be a better choice.
Choosing the right bank can make it easier to build credit while fitting your spending habits and financial goals.
How to Use a Credit-Building Account Effectively
Getting a credit-building account is just the first step. To see real improvement in your credit score, you need the right habits.
- Keep utilization low: Using less than 30% of your available credit shows lenders you can manage debt responsibly. If your card has a $500 limit, aim to keep your balance under $150 at all times.
- Always pay on time: Payment history is the biggest factor in your credit score. Even one missed payment can hurt your progress. Set reminders or alerts to stay on track.
- Set up AutoPay: Automating your payments helps ensure you never miss a due date. Even the minimum payment will keep your account in good standing and prevent negative marks on your credit report.
A credit-building account works best when paired with smart money habits. Stick to these steps, and you’ll see steady progress over time.
How long does it take to see credit score improvements?
Building credit takes time, but small changes can add up faster than you think.
- Typical credit score changes over time: Most people see improvement within three to six months of consistent on-time payments. Larger gains may take a year or more, depending on your starting point.
- Factors that influence how fast your score improves: Payment history, credit utilization, and the length of your credit history all play a role. Using your credit-building account responsibly will speed up the process.
- How to track your credit progress: Many banks offer free credit score tracking. Check your score monthly and look for trends, but don’t stress over small fluctuations. The goal is steady, long-term growth.
Final Thoughts
The best time to start building credit is now, and the sooner you begin, the faster you’ll see results. Choosing the right bank and using your account responsibly will help you raise your score and unlock better financial opportunities.
Good credit isn’t built overnight, but consistent on-time payments, low balances, and smart habits will put you on the right path. Stay patient, keep up the good habits, and your efforts will pay off.
