The best credit cards for building credit of October 2023

If you lack a credit history or have poor credit, opening a credit card can be a smart way to build or rebuild credit — as long as you practice responsible financial behavior.

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.

Secured credit cards are one of your best chances at qualifying for credit. 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 — if you want a higher credit limit, you'll need to deposit more money. Your security deposit acts as collateral if you fail to make payments. But don't worry about losing that money; your deposit is refundable if you pay your balance in full and close your account.

In addition to secured cards, there are some other credit card options for people with no credit or poor credit who don't want to — or are unable to — put down a deposit.

CNBC Select analyzed 29 credit cards that are marketed toward consumers with no or poor credit to determine the best cards for building or rebuilding your credit. We considered a number of factors, including security deposit minimums, fees, rewards programs and APR. (See our methodology for more information on how we choose the best cards).

• Winner: Petal® 2 "Cash Back, No Fees" Visa® Credit Card
• Runner-up: Discover it® Secured Credit Card
• Best for cash back: U.S. Bank Cash+® Visa® Secured Card
• Best low deposit: Capital One Platinum Secured Credit Card (see rates and fees)
• Best for international applicants and instant access: Deserve Digital First Card™
• Best for travel rewards: U.S. Bank Altitude® Go Visa® Secured Card
• Best for students: Discover it® Student Cash Back
• Best for average credit: Capital One Platinum Credit Card (see rates and fees)

Who's this for? The Petal 2 "Cash Back, No Fees" Visa Credit Card is ideal for applicants who may not have any credit history because it considers a range of other factors such as bank statements and earnings to determine eligibility. However, if you do have a credit history, that does factor into the credit decision.

Standout benefits: The Petal 2 card charges zero fees*: no annual fee, no late payment fee and no foreign transaction fees. It also offers a rewards program with higher returns for those who pay their bills on time.

Minimum deposit: N/A

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Who's this for? The Discover it® Secured Credit Card is ideal for those looking for a secured card with many of the same perks as a standard card, such as a robust cash-back program, no annual fee and no foreign transaction fees.

Standout benefits: Cardholders earn cash back on all everyday spending, including elevated returns for gas station and restaurant spending. Plus, 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.

Minimum deposit: 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.

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Who's this for? If you want to build credit while earning cash back, consider the U.S. Bank Cash+® Visa® Secured Card.

Standout benefits: The U.S. Bank Cash+ card offers up to 5% cash back on certain purchases. 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. Once you're upgraded, your security deposit will be returned.

Minimum deposit: New cardholders must put down a deposit of between $300 and $5,000 which acts as your credit line.

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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.

Standout benefits: In addition to lower security deposits, Capital One automatically considers cardholders for a higher credit line in as little as six months with no additional deposit needed.

Minimum deposit: This card has varying minimum security deposits of $49, $99 or $200 — based on your creditworthiness. If you qualify, you can access a $200 credit limit while only depositing $49 or $99.

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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.

Standout benefits: There's no annual fee and no foreign transaction fees. Cardholders receive up to 1.5% cash back, based on the amount of money they spend each billing period. Plus if you're approved for the card, you receive instant access and can add it to Apple Pay.

Minimum deposit: N/A

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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.

Standout benefits: This card offers generous bonus spending categories that even compete with some non-secured credit cards. Card members are also eligible for a $15 credit for annual streaming service purchases. In addition, it doesn't have foreign transaction fees, and you can choose the due date for your bill.

Minimum deposit: 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. Once you're upgraded, your security deposit will be returned.

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Who's this for? 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.

Standout benefits: This card provides a generous cash-back program and welcome bonus. It also has 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. In addition, there's a helpful 0% intro APR for the first six months on new purchases (after, 18.24% - 27.24% variable).

Minimum deposit: N/A

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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.

Standout benefits: This card provides travel benefits that can save you money and protect you against unexpected issues. These benefits include no foreign transaction fees, travel accident insurance, auto rental collision damage waiver, roadside assistance and 24-hour travel assistance services.

Minimum deposit: N/A

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The Petal 2 "Cash Back, No Fees" Visa Credit Card, issued by WebBank, is a unique card that takes a different approach to the credit card application process. Instead of judging your creditworthiness solely based on credit history, Petal may ask you to link bank accounts during the application process. Then, WebBank, analyzes your bank statements and other data, such as bill payments and earnings, to determine your eligibility.

Rewards

• 1% cash back on eligible purchases right away, which can increase up to 1.5% cash back after you make 12 on-time monthly payments
• 2% to 10% cash back at select merchants

Welcome bonus

None

Annual fee

$0

Notable perks

The Petal 2 Card charges no annual fee, no late payment fee and no foreign transaction fees. The ability to earn up to 1.5% cash back after making 12 on-time monthly payments is not only a nice perk but a great way to encourage responsible behavior. The card also stands out for consumers trying to build credit because there's no security deposit required.

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The Discover it® Secured Credit Card gives cardholders access to many of the perks and benefits available to people with higher credit scores. 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.

Rewards

• 2% back at gas stations and restaurants on up to $1,000 in combined purchases each quarter
• 1% back on all other purchases

Welcome bonus

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.

Annual fee

$0

Notable perks

Cardholders enjoy a robust cash-back program, no annual fee and no foreign transaction fees. 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.

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The U.S. Bank Cash+® Visa® Secured Card allows you to build credit while earning cash back. New cardholders must put down a deposit of between $300 and $5,000 which acts as your credit line.

Rewards

• 5% 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% back on eligible purchases in your choice of one everyday category (like gas stations, grocery stores and restaurants)
• 1% back on all other eligible purchases

Welcome bonus

None

Annual fee

$0

Notable perks

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). 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.

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The Capital One Platinum Secured Credit Card stands out from other secured cards for offering lower minimum security deposits — either $49, $99 or $200, depending on your creditworthiness. If you qualify, you can still access a $200 credit limit while only depositing $49 or $99.

Rewards

None

Welcome bonus

None

Annual fee

$0

Notable perks

Capital One automatically considers cardholders for a higher credit line in as little as six months with no additional deposit needed. This is a great incentive to practice responsible card management.

Unfortunately, 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.

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The Deserve Digital First Card™ is a virtual product, so you can begin to use it through your mobile wallet right away. You don't need to link a bank account to qualify or put down a security deposit.

Rewards

• 1% back on all purchases of up to $500
• 1.25% back on all purchases once you've spent $500 in a billing cycle
• 1.50% back on all remaining purchases after spending $1,000 in a billing cycle

Welcome bonus

None

Annual fee

$0

Notable perks

If you're approved for the Deserve Digital First Card, you receive instant access and can add it to Apple Pay, making it extremely convenient. It also comes with Mastercard World benefits, such as Mastercard Global Emergency Services and Mastercard ID Theft Protection™. You can redeem cash back as a statement credit to offset your bill.

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The U.S. Bank Altitude® Go Visa® Secured Card stands out for being one of the most rewarding secured credit cards on the market. When redeemed, points are valued at 1 cent each, providing you with virtually 1% to 4% back on your purchases. New cardholders must put down a deposit of between $300 and $5,000 which acts as your credit line.

Rewards

• 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

Welcome bonus

None

Annual fee

$0

Notable perks

The U.S. Bank Altitude Go Visa Secured Card doesn't have an annual fee or foreign transaction fees, and you can choose the due date for your bill. Cardmembers are also eligible for a $15 credit for annual streaming service purchases. As your credit improves, you may be given the option to upgrade to the U.S. Bank Altitude Go Visa Signature Card and claim your security deposit.

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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 stands out for being one of the more rewarding student credit cards on the market.

Rewards

• 5% back for up to $1,500 in purchases in rotating quarterly bonus categories you activate (then 1%)
• 1% back on all other purchases

Welcome bonus

Discover will match the cash back you earn during the first year with no minimum spending requirement or cap on the match.

Annual fee

$0

Notable perks

Outside of its cash-back earnings, the Discover it Student Cash Back offers 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 18.24% - 27.24% variable APR.

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The Capital One Platinum Credit 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 (see rates and fees), it can be a good starter card if you want to eventually upgrade to another card in the Capital One family.

Rewards

None

Welcome bonus

None

Annual fee

$0

Notable perks

The Capital One Platinum Credit Card charges no foreign transaction fees (see rates and 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.

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There are a number of easy-to-get credit cards that can help you build credit and earn rewards at the same time. 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.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best credit cards.

To determine which cards offer the best value for building or rebuilding credit, CNBC 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.

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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.

Information about the U.S. Bank Altitude® Go Visa Signature® Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.