Whether you’re a student looking to build credit or an adult trying to rebuild your credit history, a credit building card can help. These cards typically offer low fees, report to the major credit bureaus and provide free credit scores so you can track your progress.

Which credit builder is the best?

When it comes to establishing a good credit history, making on-time payments and keeping your credit utilization low are the most important factors. These two factors account for almost two-thirds of your credit score.

These features are found in most applying for a credit card with bad credit, but there are also a few that specifically target people who are new to the credit world or who have poor credit. These cards may be more difficult to qualify for, but they can make the process easier if you use them responsibly.

The Chime Credit Builder, for example, works like a secured credit card but reports to the three main credit reporting agencies. It does have a few drawbacks, including no rewards and no path to a regular credit card once your score improves.

Another option for beginners is to become an authorized user on someone else’s card. This will show lenders that you’re responsible with debt and can be helpful in rebuilding your credit.

If you’re not yet ready to apply for a regular credit card, you can still build credit by opening a secured credit card or a store card. These credit cards require a security deposit, but the funds can be refunded if you pay off your balance in full each month and maintain a good credit utilization ratio.