With loan approval still difficult for the average consumer, it's become increasingly important for the average American to build a solid credit profile.
San Diego, Calif. (PRWEB) February 22, 2013
With loan approval still difficult for the average consumer, it's become increasingly important for the average American to build a solid credit profile. According to Creditnet.com, one of the best ways to begin - or continue - the credit building process is to open a new credit card account.
"A lot of people are afraid that they won't be approved for a credit card because they waited too long to open an account," explains Jason Bushey, Vice President of Operations for Creditnet.com. "But there are several solid credit cards on the market today targeted at consumers with limited or no credit that are ready to begin building a credit profile."
Today, Creditnet released its list of the five best credit cards for building credit in today's current economic climate. Creditnet used factors that include a credit card's approval rate, ongoing interest fees, annual fees and - most importantly - whether or not a credit card reported to the major credit bureaus when creating its list of the best credit cards for building credit.
According to Creditnet, one of the best secured cards to rebuild credit available nationwide today is the Capital One® Secured MasterCard®. Creditnet pointed to the card's low annual fee ($29), its reputation as a proven credit builder and the credit monitoring tools that it includes at no additional charge as its greatest strengths.
Like all secured cards, the Capital One Secured MasterCard requires a security deposit guaranteeing a consumer's credit line. However, this security deposit is fully refundable, and consumers can track the credit-building process with the included credit monitoring tools.
Overall, this is Creditnet's favorite credit card for building credit.
2.) First Progress Platinum Prestige Secured MasterCard®
Another excellent secured credit card for building credit is the First Progress Platinum Prestige Secured MasterCard®, according to Creditnet.
This secured card for building credit has a low ongoing interest rate, it reports monthly to the three major credit bureaus - Experian, Equifax and TransUnion - and its annual fee is $44.
The required minimum security deposit on this secured card from First Progress is $300 and is again fully refundable. This is another solid secured option for consumers hoping to build credit from scratch.
While receiving a student credit card isn't as easy as it used to be, college students can still get approved for a credit card one of two ways:
a.) By showing proof of sufficient income (unfortunately, "sufficient" means different things to different credit card issuers)
b.) By having an adult co-sign on the card
College students lucky enough to secure either of the above requirements will find few student credit cards better than the Journey (SM) Student Rewards from Capital One® card. Not only is this credit card great for building credit, but it also rewards students with 1% cash back on all purchases and a 25% bonus each month a bill is paid on time.
Consumers that make on-time payments with this card will see improvements in both credit score and credit statements, making this one of the most rewarding credit-building cards available today.
4.) Unsecured Credit One Bank Visa® Credit Card
While many unsecured cards for no credit are riddled with fees, Creditnet.com says this bad credit or no credit card from Credit One is one credit newbies can build a history with.
Credit lines start from $300-$500 with this card, which reports to the major credit bureaus each month. It also includes free online monthly credit score tracking - a rarity for unsecured credit cards for bad or no credit.
The annual fee is $75 the first year and $99 thereafter, but unlike the aforementioned secured cards there is no security deposit required upon approval. According to Creditnet, this is one of the best unsecured cards for no credit consumers.
Finally, another popular card for college students hoping to build credit is this new option from Discover.
Unlike many cards for credit newcomers, this student rewards card includes a 0% intro period applied to purchases for up to six months. There's also a cash back program that rewards cardholders with 5% cash back on up to $1,500 in purchases made on rotating categories. Students will receive another 1% cash back on all other purchases.
Other perks - aside from major credit bureau reporting - include no annual fee and award-winning customer service from Discover. This is one more credit card to build credit that Creditnet.com recommends.
Creditnet.com is a credit card comparison website that also specializes in credit repair, debt management and personal finance advice.