Best Ways to Build Credit History with Credit Cards or Alternative Products
Searching for the best credit cards or alternative products to build credit? The most effective options are designed to help you establish a positive payment history, report activity to all three major credit bureaus, and offer low fees or security deposits. Whether you're new to credit history or working to rebuild yours, the right option can give you the tools to improve your credit score over time—starting with on-time payments and responsible usage.
Let’s explore the best credit card features and alternative products to build credit history and how to manage this effectively.
Best Features to Look for In Credit Cards to Build Credit History
Typically, most credit cards that help you build credit history share some important features:
| Feature | Why It Matters |
|---|---|
| Reports to all 3 credit bureaus | Essential for building credit history |
| Low or no annual fee | Keeps costs down while you're building credit history |
| Graduation path | Gives you a path to a card with better rewards or interest rates |
| Credit education tools | Helps you learn how to improve your credit score |
Common Types of Credit Cards That Help Build Credit History
When comparing the best cards to build credit history, you’ll typically be looking at one of these categories:
1. Secured Credit Cards
- Requires a security deposit that is typically refundable
- Credit limit typically matches the deposit
- Bank sets your spend limit
- Late fees and other fees may apply
2. Student Credit Cards
- Designed for college students with no credit history
- May include educational tools and credit tracking
- May have lower credit limits
3. Unsecured Credit Cards
- No deposit required
- Bank sets your spend limit
- May be accessible to those with a score in the “fair” range (580–669)
4. Credit Builder Credit Cards
- Tailored specifically to those trying to rebuild or establish credit history
- Monthly reporting to all three major credit bureaus
- May require a deposit (in the case of secured cards)
Credit Card Alternative: Boost Money™ Card
An alternative to traditional credit cards, Boost MoneyTM Card which helps you build credit with responsible use, comes standard with Boost Money™, an all-in-one app that also features cash advances and an industry-leading savings APY (annual percentage yield) when you subscribe to Premium. The secured Boost Money™ Card is reported to all three major credit bureaus, allowing you to build credit over time.# In addition, it features:
- Secured card with no set limit - spend up to your available balance in your Spend account
- No minimum deposit
- No interest
- No late fees
How to Build Credit History with Boost Money™ Card or a Credit Card
Getting the Boost Money™ app with Boost Money Card or opening a credit card is just step one—how you use the card is what builds your credit history. Follow these best practices:
- Pay on time, every time: Payment history makes up 35% of your FICO® Score
- Keep balances low: Aim to use less than 30% of your credit limit
- Don’t carry a balance if you can avoid it: Interest adds up quickly
- Review your credit report regularly: Monitor your score and watch for errors
- Ask for credit line increases over time: This can lower your credit utilization rate
❓ FAQs: Credit Builder Cards & Building Credit
What’s the difference between a credit builder credit card and a secured credit card?
A secured credit card is a type of credit builder credit card that requires a security deposit. All secured credit cards are typically credit building credit cards, but not all credit builder credit cards are secured credit cards.
How long does it take to build credit history with a credit builder credit card?
It depends, but if you’re just starting out, it typically takes up to six months to generate a FICO credit score. With the VantageScore® credit score, you can get a score as soon as the first time your new account gets reported to the credit reporting agencies. If you have a credit score, you may begin to see improvements in as little as a few months if you pay on time and keep your credit utilization low.
Do credit builder cards charge interest?
Sometimes, depending on the type of credit builder card. For example, the Boost Money™ Card, uses a structured payment model that avoids interest, but still builds credit history.
Can I build credit without a credit builder credit card?
Yes, other options include credit builder loan products, rent reporting services, and becoming an authorized user on someone else’s card, but credit builder cards are among the most common ways to build credit history.
What credit score do I need to qualify for a credit builder credit card?
There is no exact credit score you need to qualify, but many credit builder credit cards are available to those with no credit history or lower credit scores.
📈 Final Thoughts
A credit builder card is more than just a financial product, it’s a stepping stone to financial independence. Whether you're starting from scratch or rebuilding after setbacks, the best cards and alternative products to build credit will give you the tools, structure, and opportunity to succeed, like the Boost Money™ Card.
Focus on consistency, stay within your limits, and review your progress. You may be able to unlock better rates, a stronger credit score, and more financial freedom.
*The Boost Money™ Card requires a Boost Money™ Spend account, a deposit account with funds held as security for the Boost Money™ Card. Credit Lines feature an Annual Percentage Rate (APR) of 0.00% and a single 1 month repayment term and are subject to verification and approval. Your line is determined by the amount deposited into your Boost Money™ Spend account. At your option, repay your transactions each month with your Boost Money™ Spend account funds. For example, a $100 card purchase with a 1 month term and a 0% APR has a required single installment payment of $100. There is no fee to use an AllPoint® ATM. ATM withdrawals outside the AllPoint® ATM network are subject to a $2.50 per withdrawal fee, which will increase your finance charge and APR. The Boost Money™ Card is unique in that it allows you to obtain a series of closed-end loans which you may access through transactions such as card purchases up to your line amount. The Boost Money™ Card is not available in all states.
#Add funds to your Boost Money™ Spend account, and spend up to the available balance with Boost Money™ Card. We'll report on-time payments to the three major credit bureaus (Transunion®, Experian®, and Equifax®) to help you build credit over time. Late payments, delinquencies or other derogatory activity on this account or your other credit card accounts and loans may adversely impact your ability to build credit.
