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Building credit can be challenging, especially for those new to the credit world or looking to rebuild their credit history. Fortunately, innovative financial products have emerged to help consumers build credit without the risks associated with traditional credit cards. Here are the top five debit cards designed to help you build credit:
1. Chime Credit Builder Visa® Credit Card
The Chime Credit Builder Visa® Credit Card stands out as a top choice for those looking to build credit with minimal risk.
Key features:
- No annual fee or interest charges
- No minimum security deposit required
- Reports to all three major credit bureaus
- No credit check needed for approval
Pros:
- Helps build credit without the risk of debt
- Adjustable credit limit based on funds moved to the secured account
- Automatic payment option with Safer Credit Building feature
Cons:
- Requires a Chime Checking Account
- No rewards program
- No upgrade path to a traditional credit card
2. Extra Debit Card
The Extra Debit Card offers a unique approach to credit building by functioning like a debit card while reporting to credit bureaus.
Key features:
- Reports to two major credit bureaus (Equifax and Experian)
- No credit check required
- Connects to your existing bank account
Pros:
- Easy to use and understand
- Offers rewards on purchases with the premium plan
- No risk of overspending or debt
Cons:
- High fees (monthly or annual subscription required)
- Doesn’t report to TransUnion
- Some users report customer support issues
3. Cred.AI Card
The Cred.AI Card, also known as the Unicorn card, offers a tech-forward approach to credit building with unique security features.
Key features:
- Reports to all three major credit bureaus
- No fees or interest charges
- Innovative security features like Stealth Card and Flux Capacitor
Pros:
- No credit check required
- Optimizes credit utilization automatically
- High-tech security features
Cons:
- Doesn’t support all banks
- No rewards program
- Requires a linked bank account
4. Current Build Card
The Current Build Card combines credit building with modern banking features and rewards.
Key features:
- Reports to TransUnion
- No annual fee or APR
- Earns rewards points on purchases
Pros:
- No credit check or minimum security deposit required
- Offers cash back rewards (up to 7x on some purchases)
- Provides high APY on savings (up to 4.00%)
Cons:
- Reports to only one credit bureau
- Requires opening a Current account
- No upgrade path to a traditional credit card
5. Sesame Cash Debit Card
The Sesame Cash Debit Card rounds out our top five with its credit-building features and unique rewards structure.
Key features:
- Reports to major credit bureaus
- No fees or credit check required
- Offers cash rewards for improving credit score
Pros:
- Allows users to set their own credit utilization
- Provides daily credit score updates
- No risk of overspending or debt
Cons:
- Limited information on specific credit bureaus reported to
- May require linking to existing bank account
- Rewards structure may be complex for some users
In conclusion, these innovative credit-building debit cards offer unique solutions for those looking to establish or improve their credit scores. Each card has its strengths and weaknesses, so it’s essential to consider your specific financial needs and goals when choosing the right option for you.