New credit cards that are good for building credit

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A credit card is a great way to create or replenish credit, when managed responsibly.

But there’s a catch-22 when it comes to credit: you need it to get it. Overcoming past credit mistakes can be more complex than creating new credit, but both are possible if you start with cards designed to help those in that situation.

Some new credit cards and new offers on existing cards can help you if you need to build or replenish your credit.

Pro tip

Stay in control by checking your credit report frequently. You can do this for free on a weekly basis right now via annualcreditreport.com.

This includes longer zero-interest financing, higher sign-up bonuses, and benefits that are more in line with the financial situation many people have found themselves in as a result of the pandemic. Some issuers also offer incentives to use your card responsibly and create credit; the new Chase Slate Edge℠ is one such example.

If you’re just starting to build or replenish credit because of past credit errors, these new cards can be a good place to start.

Bank of America Unlimited Cash Rewards Secured is a new secure card that stands out even among the best secured credit cards. Unlike most secure cards, it offers rewards as well as the ability to create credit with no annual fee.

You don’t get a lot of bells and whistles with the secure Bank of America Unlimited Cash Rewards card compared to other credit cards, but it’s a great option for people with limited credit history or bad credit. . Because this is a secured card, you are more likely to be approved with a lower credit score, but you will need to make an initial security deposit of at least $ 300 (up to a maximum of $ 4,900). Once you start using the card, you will earn 1.5% unlimited cash back on all your purchases.

The card comes with a high variable APR of 23.99%. High interest debt can build up very quickly on any balances you carry on that card. To effectively build your credit score with this card, you will need to pay off your balances in full and on time each month, while keeping your spending well below your credit limit.

Chase recently launched the Chase Slate Edge Card for consumers trying to pay off their credit card debt and increase their credit score.

The biggest draws on the card are the introductory 0% 12-month APR on purchases and balance transfers (followed by a variable APR of 14.99% to 23.74%), incentives to use your card responsibly and the absence of annual fees.

For example, you can reduce your interest rate by up to 2% each year if you make all the payments on time and spend at least $ 1,000 on purchases. But the benefit is capped once you hit the prime rate (currently 3.25%) plus 9.74%. There is also an automatic credit limit review when you make all payments on time and spend at least $ 500 in the first six months.

Just keep in mind the limitations of these benefits. The variable APR range is similar to other credit cards and can lead to high interest debt if you start to have a balance. There is also no reward for your spending, but you can earn a $ 100 bonus when you spend $ 500 within six months of opening the account.

Overall, the Chase Slate Edge is a solid option if you’re trying to boost your credit score, especially if you’re planning to upgrade to one of the Chase’s Freedom or Sapphire reward cards in the future.

Citi just rolled out the Custom Cash card, which pays up to 5% cash back on the first $ 500 spent in certain categories each month. It also comes with no annual fee, a $ 200 sign-up bonus, and a 0% 15-month interest rate on new purchases and balance transfers (then 13.99% to 23.99%). .

This card can be a way for you to start dipping your toes into credit card rewards, but only makes sense once you’ve improved your credit and are ready to switch to another card. We recommend that you have a good credit score (above 670) before applying.

Citi Custom Cash Card’s long introductory APR offer makes it a good option if you are considering a large purchase in one of the rewards categories, or want to consolidate high interest debt from other cards. To earn the $ 200 signup bonus, you will need to spend $ 750 within three months of opening the account.

The structure of rewards on the card is simple: you don’t need to register to earn 5% cashback – it’s automatically determined with each billing cycle. This makes earning 5% cash back easier than with 5% revolving cards like the Chase Freedom Flex℠ or Discover it® Cash Back.

  • Introductory bonus:

    No current offer

  • Annual subscription :

    $ 0

  • Regular APR:

    Variable APR of 23.99%

  • Recommended credit:

    (No credit history)

  • Learn moreexternal link icon on the secure site of our partner.
  • Introductory bonus:
  • Annual subscription :

    $ 0

  • Regular APR:

    14.99 – 23.74% variable

  • Recommended credit:

    670-850 (good to excellent)

  • Learn moreexternal link icon on the secure site of our partner.
  • Introductory bonus:
  • Annual subscription :

    $ 0

  • Regular APR:

    13.99% – 23.99% (Variable)

  • Recommended credit:

    670-850 (good to excellent)

  • Learn moreexternal link icon on the secure site of our partner.

If you have a limited credit history or a low credit score, you may want to try any of these three cards. Just make sure you understand how credit cards work and use any new credit card like a debit card: only charge what you can afford to pay each month, and always make payments on time. This is the key to the success of credit cards.

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