7 Best Prepaid Credit Cards To Build Credit

Chime® Credit Builder Visa® is the best credit-building card that charges a 0% interest rate and has no fees. It is a super cheap and convenient card to get and manage, especially for those who do not have a high income like students and young adults. It is great for people with poor or no credit as it reports to the three major credit bureaus that can help build credit if the card is used responsibly.

Your credit limit is equal to the security deposit you make into your Chime account. The good this about this card is that it does not pre-set a credit limit or security deposit. The holder can deposit any amount in the account that will become their spending limit and you can use it to pay for your outstanding balance too. Chime® Credit Builder Visa®, however, does not offer any cash back rewards or bonuses as it is built to help people in building credit mainly.

Bank of America® Customized Cash Rewards Secured Credit Card is designed specifically for building credit. No matter if you have no credit or have a poor score, you can qualify for this card and build your score from scratch or improve your existing credit. You can even track your score on a monthly basis for free using their Mobile Banking app or via Online Banking. However, to open this credit card account, you will need to make a deposit between $200 to $5,000. Your spending limit also depends on the amount you deposit.

This card is one of the few secured cards that offer great rewards and benefits too. It offers a 3% cash back in the category of choice, 2% at grocery stores, and an unlimited 1% cash back on all other purchases. These rewards are non-expiring for the life of the account. Moreover, the card charges 0 annual fees. It does, however, charge other types of fees like foreign transactions, late payment, and balance transfer fees.

The SDFCU Savings Secured Platinum Rewards Credit Card is a great option for improving your credit score or building it from zero. It is linked to your SDFCU savings account and the spending limit depends on how much money you deposit in your savings account. There is a minimum deposit limit of $250, but there is no maximum pre-defined.

Since it is connected to your savings account and the amount you spend depends on how much you have, it can help avoid irresponsible card overuse. This can help you build a good history and credit score over time that you can also track for free via their SDFCU Mobile App. After 12 months of responsible use, you may automatically qualify for a Platinum Rewards Credit Card.

Moreover, the Savings Secured Visa Platinum Card offers a low interest rate compared to many of its competitors and also offers 1 Flexpoints Reward for each dollar spent. These rewards can be redeemed in multiple ways like cash back, gift cards, hotel stays, and flight discounts. It also has a 25-day grace period on purchases and charges no annual fee, balance transfer fee, or foreign transaction fee.

Its various travel benefits and Mastercard payment network also make it a travel-friendly card to get.

First Progress Platinum Select Mastercard® Secured is a card designed for helping people with bad credit in building it up. Since it is designed for building credit, you do not need to go through a credit check to get approved for it. It also reports to all the major credit bureaus and has a quick application process that does not ask for a minimum credit score or history length. You can even track your score for free via their mobile App.

Moreover, being a Mastercard, it is accepted by merchants worldwide – both in-store and online. You can even earn a 1% cash back on the payments made to your First Progress Secured credit card account. Your spending credit limit will depend on the amount you deposit in your account which can range from $200 to $2000. After 6 months of responsible use, you can get an upgrade to an unsecured credit card and may get your security deposit refunded.

First Progress Platinum Select Mastercard® Secured does have various fees associated with it including an annual fee of $39, a late payment fee of $41, and a 3% charge on foreign transactions.

Applied Bank Secured Visa® Gold Preferred® reports to three major credit bureaus and is the best secured credit card to build credit with the lowest interest rates. Like a prepaid card, this secured credit card also only allows you to spend the amount you deposit, but it requires a checking account. It features a significantly low fixed interest rate of 9.99%, but charges an annual fee of $48.

With the Applied Secured card, you can have a spending limit of a maximum of $1,000 initially as that is the maximum security deposit you can make when you are applying for the card. Once you are approved, you can increase your spending limit on the card by making additional deposits up to a total of $5,000.

Applied Bank Secured Visa® Gold Preferred® does not require a credit check and does not have a minimum score requirement which makes it an easy card to get for people who do not have a good score.

OpenSky Secured Visa Card, like prepaid cards, does not require a checking account before or even after approval. You can pay for it via money orders and Western Union. OpenSky Secured Visa Card can also be used to build credit as it reports to the credit bureaus and it is easier to get for people with poor credit as it requires no credit check for approval. You can spend equal to the amount of your deposit which can be between $200 to $3,000.

OpenSky Secured Visa Card however may be a little expensive compared to some other cards as it charges an annual fee of $35 and also a foreign transaction fee of 3% of the purchase. There are also no rewards associated with this Visa card.

The Capital One Quicksilver Secured Cash Rewards credit card offers an accessible entry point for those new to credit. There is no annual fee and you get automatic credit line reviews after six months. You can check if you’re preapproved online with no risk to your credit score.

There is a 3% balance transfer fee as well as a cash advance fee of $3 or 3%, whichever is higher. Late payments can attract a penalty fee of up to $40.

With a refundable security deposit and a credit line of up to $1,000, this card not only helps ‌establish credit but also rewards you with 1.5% cashback on every purchase.