Credit Cards to Improve Credit Scores

Responsible usage of credit cards can increase your credit score and help you access several financial products and benefits. These days, various credit cards are available that can help improve your credit score and enable you to maintain a positive payment history.

It also shows your responsible credit usage to the lenders which can further speed up your approval for loans and credit cards.

Keep reading to learn about the various types of credit cards that can help improve your credit score, the key benefits, and ways to improve your credit score.

Table of Contents:

• ⇾ Benefits of Using Credit Cards for Credit Score Growth
• ⇾ Top Secured Credit Cards for Improving Credit Scores
• ⇾ Best Unsecured Credit Cards for Credit Score
• ⇾ Tips to Improve Credit Score With Credit Cards
• ⇾ Alternative Ways to Build Credit Without a Credit Card
• ⇾ Frequently Asked Questions

Benefits of Using Credit Cards for Credit Score Growth

You can enjoy various benefits from using credit cards to boost your credit score:

• It helps establish a good payment history or credit history which boosts your credit score.
• Low credit utilization ratio can significantly increase your credit score.
• It provides access to loans and lower interest rates.
• It can enhance your credit mix as you responsibly manage your credit card repayments.

Top Secured Credit Cards for Improving Credit Scores

Secured credit cards like FD credit cards serve as a convenient way to help build your credit score as long as you practice on-time repayments. These cards require a refundable security deposit, which acts as collateral, and report usage to major credit bureaus.

Here are some of the top secured credit cards you can apply for:

• Capital One Platinum Credit Card: It is designed for those individuals who want to rebuild their credit score and maintain it in the long run.

Features

• Provides tools like CreditWise to track credit progress.
• No annual fee.
• No foreign transaction fees.
• Chime Credit Builder Secured Visa Credit Card: This card is mainly designed for those who have no credit history yet and want to start building their credit score.

Features

• No annual fee.
• No interest charges.
• No minimum security deposit.
• Discover It Secured Credit Card: First-time credit card users, those with no credit history, can apply for this card.

Features

• No annual fee.
• Provides cashback rewards.
• Refundable security deposit.
• Automatic monthly reviews.

Tips to Improve Credit Score With Credit Cards

Below are the measures you can take to improve your credit score via credit cards:

• Ensure to pay your bills on time as debts and poor payment history can lower your credit score.
• Do not apply for multiple credit cards at the same time as it can result in hard inquiries which can affect your credit score.
• Keep your old credit accounts as it can lead to a longer credit history and boost your credit score in the long run.
• Check your credit score & report regularly to make sure there are no errors and take the necessary steps to fix any inaccuracies if any.
• Practice responsible credit management by minimizing the utilization of your credit limit.

So far, we have looked at the various ways that can help build your credit score via credit cards.

In addition, there are many other ways to build credit without using a credit card.

Alternative Ways to Build Credit Scores Without a Credit Card

If you want to build your credit score via other means instead of a credit card, here’s what you can apply for:

• Secure small cash loans can promote timely repayments and will lead to a good payment history and credit score.
• Secure peer-to-peer loans come with shorter repayments and come with low interest rates.
• Involving rent payment reporting services connected to credit bureaus can enable timely repayments and a positive credit history.
• Use your Savings Account as a Fixed Deposit as it can help build credit indirectly.