Nerdy Choice

The Best Credit Cards To Build your Credit Score in 2018

Top 5

Credit Cards

To Build Your Credit In 2018

Best Credit Card
Nerdy Choice Best Over All Credit Card

Best Overall Credit Card

Fees: ★★★★★
Credit Line: ★★★★☆
Interest Rate: ★★★★☆
Approval Rate: ★★★★☆
Customer Service : ★★★★★

8.8
2 Synchrony Credit Cards Review

Best Customer Service/Easy To Get Approved

Fees: ★★★★★
Credit Line: ★★★★★
Interest Rate: ★★☆☆☆
Approval Rate: ★★★★☆
Customer Service : ★★★★★

8.4
3 Home Depot Credit Card Review

Generous Credit Line/Easy To Get Approved

Fees: ★★★★★
Credit Line: ★★★★★
Interest Rate: ★★★★☆
Approval Rate: ★★★☆☆
Customer Service : ★★★★☆

8.4
4 Capital One Credit Card Review

Reputable Company

Fees: ★★★★★
Credit Line: ★★☆☆☆
Interest Rate: ★★★☆☆
Approval Rate: ★★★★★
Customer Service : ★★★☆☆

7.2
5 CreditOne Credit Card Review

Easy To Get Approved

Fees: ★☆☆☆☆
Credit Line: ★★★☆☆
Interest Rate: ★★★☆☆
Approval Rate: ★★★★★
Customer Service : ★★★★☆

6.5

CASH TALKS

CREDIT TALKS

Why Should I build My Credit?

Undoubtedly, credit cards are integral parts of our lives. If you are young and you have no idea why you need to build your credit, you should be seriously looking at the ways to build your credit over time. Soon or later, you will need to purchase a house or better car, or maybe you will need to get a loan for your business or personal use (medical expenses, travel, etc…). Some employers run your credit before they want to hire you. Even if you are about to rent a house, you should be really about building your credit history.
Another important reason to improve your credit is to get access to lower APR/Interest rates. There will be a huge difference between a %1.5 APR on a 60-month car payment compare to a %17 APR car loan in 60 months. You can save thousands of dollars every year!

How Long Does It Take To Build My Credit?

Building your credit takes time and that is why you should start the journey as soon as possible. The longer credit history you have, the more chance you have to get approved for credit cards, credit cards, etc… DON’T WAIT until it’s too late!
A few months after you get your first credit card/loan and you make your monthly payment on time, you see a jump in your credit score. Typically, it takes 1 to 5 years to build an average credit score, and 5 to 15 years to build an exceptional credit score/history.

What Does Impact My Credit?

There are 8 main criteria which affect your credit:

  1. Bankruptcy
  2. On-time payments
  3. Length of credit history
  4. Usage to available credit ratio (balance)
  5. inquiries
  6. A mix of different credit cards and loans
  7. Total Available credits
  8. New Credits

What Is a Good Credit Score?

A good score is anything between 670 to 800+. But keep in mind a good or excellent credit score does not guarantee your approval for borrowing money from lenders. Your credit history over time and your financial situation (e.g., income, home ownership, liquid assets, bankruptcy background, etc…) play important roles in making a decision on your application. With that being said, you can get approval for most of credit cards/loans with a credit score of 720+, good credit history and an acceptable financial situation.

FICO SCORE Measurement:


Poor < 580
Fair 580 – 669
Good 670 – 739
Very Good 740 – 799
Exceptional 800+

How Can I Built My Credit?

  1. On-time payments
    DO NOT pay your credit cards/loans late! There is a late fee for each credit card/loan and on top of that, lenders will not raise your credit limit for a long time, even if you are late 1 day! Additionally, if one of your payments is late more than 30 days, the lenders will report the late payments to the bureau and that when you start getting in trouble; Almost no lender will you lend you any money for a minimum of 2 years if you are lucky. If not, you have to wait 5 to 7 years for your late payment reports to be wiped out of your credit history.
    So, try your best to pay all your credit cards, loans, rents, car payments and anything else that has an impact on your credit history, a few days earlier than the due dates. Setting up an automatic monthly payment is a brilliant idea to prevent late payments and its long-term consequences.
  2. Length of credit history
    The longest your credit history is, the better credit score and credibility you will get. For example, if a 60-year-old person gets a credit score of 800, a 23-year-old person with the exact credit cards, inquiries, balance ratio, etc… will get a score of 720. Although the credit score is the most important indicator of your credibility, the age of the credit history is another important indicator for lenders to make a decision on your application.
    This is another reason to start building your credit as soon as possible.
  3. Usage to available credit ratio (Credit Utilization)
    Another important piece of the credit puzzle is the percentage of the money that you have borrowed from all lenders combined.
    For example, let’s say you are approved for 5 credit cards with the amount of $10,000 combined. If you spend $6,000 on your credits, it shows that you are dependent on your credits and you can’t pay your balance.
    Not only the combined balance to available credit ratio is important, but also each individual credit card has an impact on your total credit score. This is why we recommend you to keep all your credit card balances under %30 which is a magical number in the credit score system. You can periodically use up to %90 of your available credit, but you not for a long time. Anything over %90 of your credit limit will be considered as “Maxed-out” which hurts your credit big time!
  4. inquiries
    Every time you apply for a credit card, personal loan, business loan, car loan, mortgage, etc…, the lenders ask for a copy of your credit history and credit scores from at least one of the bureaus. This inquiry will hurt your credit slightly. This is why you need to be very careful when it comes to applying to borrow money from lenders.
    There are 2 different kinds of inquiries; Hard inquiries and Soft Inquiries. When you are trying to purchase something, %99 of the time they pull credit history in a way that is considered as a hard inquiry. On the other hand, most of the governmental organizations and most companies leave a soft inquiry on your credit when you are not asking for money.
    You never know if they are pulling your credit history in a hard inquiry or a soft inquiry unless you ask them before applying for anything! It is absolutely worth it to ask a question when applying for anything important.
    other common reasons for hard inquiries are as a result of applying for the cell-phone carriers, cable TVs, internet and other credits which are in a form of installments.
    Always try not to exceed 3 inquiries a year! Anything more than 3 inquiries a year, will not only have a negative impact on your credit score, but it will most probably a reason for lenders to deny your request for borrowing from them.
  5. A mix of different credit cards and loans
    It is important not to borrow money in one form of credit only. You should diversify your credits. For example, having three regular credit cards (Discover, Visa, and AMEX), a store card, a personal/business loan, a car loan and a student loan can get you a perfect credit diversity rate, which can help your credit score to rise. having a mortgage under your name is another strong and positive indicator in this category as well.
  6. Total Available credits
    Your total available (not used) credits are another important measurement.  The more, the better! It indicates that you have you have money but you typically don’t need to use them and in case of emergency, you can live on credits for at least a few months.
    Measurement:Below average: Less than $2.5k
    Average: $2.5k to $15k
    Good: $15k to $50k
    Excellent: More than 50k
  7. New Credits
    Having too many new credit cards or loans indicates that you are in need of money and your income is not sufficient. That is why it can be a red flag in your credit report.

How Can Track My Credit Score and Credit History?

There are 3 bureaus which record and report your credit history.

  1. Experian
  2. Transunion
  3. Equifax

Some lenders pull your credit history directly from one or more bureaus directly and some others use credit simulating services like Fico Score, Vantage Score, or CreditWise. The most popular one is Fico Score (MyFico.com) which almost 80%-90% of lenders use it. With My Fico, you will get access to your credit reports, credit score and you will also receive identity theft alerts which is a very cool feature.

Check Your Credit Score For Free
Get graded on important credit factors, plus your free score. See how you score on the most important credit factors and get your free score from TransUnion updated every month. Understand your best next steps with a free credit strategy. Get personalized tips on how to manage your credit and loans, based on your credit profile and goals. Know your best options. Know if you are overpaying on credit card and loan interest, and see your best options to save money.
The Best Credit Cards To Build your Credit Score in 2018

What If I Don't Get Approved For Any Credit Card?

If you cannot get approved for a credit card or a loan at the beginning, you should try to apply to secured credit cards. A few months after opening your first secured credit card, you will be able to apply for unsecured (regular) credit cards and loans.
Scroll down to the bottom of the page to find the best secured credit cards.

Be Smart!

  • Use some of your credits for gas or food and get cash back from them. Then pay it off (or at least most of it) before the end of the billing period or the end of the month. In this case, you won’t be charged for interests on those purchases.
  • Do not spend more than 30% of your credit cards. It has a huge impact on your credit.
  • If you are making a major purchase from a reputable store, it is better to check their store credit cards to see if they have any 0% APR (Interest-Free) offer. For example, Home Depot credit card has 6 months, 12 months and 24 months “No Interest” offers for major purchases. You can save tons of money on these purchases.

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2 Comments
  1. Interesting! I liked the credit card hack tips

  2. Very cool

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