A credit building credit card is a type of credit card that is designed to help people with no credit or poor credit build their credit history. These cards typically require a security deposit, which is a sum of money that is held by the issuer as collateral. The credit limit on the card is then equal to the amount of the security deposit.

There are many benefits to using a credit building credit card.

  • First, it can help you establish a credit history. This is important because lenders use your credit history to assess your creditworthiness when you apply for loans or other forms of credit. A good credit history can help you get approved for loans at lower interest rates, which can save you money in the long run.
  • Second, using a credit building credit card responsibly by paying the minimum payment on-time can help you improve your credit score. Your credit score is a number that lenders use to assess your risk as a borrower. A higher credit score means that you are considered to be a lower risk, which can make it easier to get approved for loans and other forms of credit.
  • Third, credit building credit cards can help you learn how to manage your credit. By using your card responsibly and paying your bills on time, you can develop good financial habits that will serve you well in the future. For example, a secured credit card, like the U.S. Bank Secured Visa® Card, may let you set your credit limit based on the amount you are willing to put on deposit.

If you are looking to build your credit history or improve your credit score, a credit building credit card can be a great way to get started. Just be sure to use your card responsibly and pay your bills on time.

Here are some things to know when looking for a credit building credit card:

Points and Cash. Some credit building credit cards offer cash back, like the U.S. Bank Cash+® Secured Visa® credit card or points like the U.S. Bank Altitude® Go Secured Visa® Card. Credit building credit cards that offer cash back or points allows for both the opportunity to build credit in a responsible manner and to earn rewards while you spend.

  • Building your credit limit. The credit limit on a credit building credit card is typically equal to the amount of the security deposit you make. Using your card responsibly and making your payments on time may eventually enable you to “graduate” to an unsecured credit card product.
  • No annual fees. Many credit building credit cards do not charge annual fees. This can save you money in the long run.

If you are considering getting a credit building credit card, there are a few things you should keep in mind:

  • Make sure you understand the terms and conditions of the card. This includes the interest rate, the fees, and the credit limit.
  • Use your card responsibly. This means paying your minimum payment on time each month.

If you use your credit building credit card responsibly, you can start building your credit history and improving your credit score. This can lead to more favorable loan terms and other financial benefits in the future.

U.S. Bank offers a selection of credit-building cards

U.S. Bank Secured Visa® Card

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U.S. Bank Altitude® Go Secured Visa® Card

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U.S. Bank Cash+® Secured Visa Card

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Disclosures

The creditor and issuer of these cards is U.S. Bank National Association, pursuant to separate licenses from Visa U.S.A. Inc., or Mastercard International Incorporated or American Express, and the card is available to United States residents only. Mastercard is a registered trademark, and the circles design is trademark of Mastercard International Incorporated. American Express is a federally registered service mark of American Express.

The Contactless Symbol and Contactless Indicator are trademarks owned by and used with the permission of EMVCo, LLC.