For today’s GET LYFE article, we’re talking about credit-building debit cards. If you’re looking to build or improve your credit score, a debit card that reports to the credit bureaus could be a great tool to help you get there. Here are some of the top credit-building debit cards and their pros and cons:
What can I use my Credit Builder card for?
Your Credit Builder card can be used just like any other debit card to make purchases online and in-store. However, the main benefit of a Credit Builder card is that it reports your account activity to the credit bureaus, which helps you build or improve your credit score over time. To get the most out of your Credit Builder card, it’s important to use it responsibly and make all payments on time. Some Credit Builder cards may also offer additional features, such as rewards programs or high-interest savings accounts, that can help you manage your finances and achieve your financial goals. Overall, a Credit Builder card is a great tool for anyone looking to build credit and improve their financial well-being.
- No monthly fees or minimum balance requirements
- Offers early access to your paycheck and a savings account with a high-interest rate
- Automatically reports account activity to all three credit bureaus
- No rewards program or cashback options
- May have limited features compared to traditional banks
Visit Chime Credit Builder for more information.
- No credit check is required to open an account
- Offers credit monitoring and education tools to help you understand your credit score
- Allows you to adjust your payment due date to align with your pay schedule
- Requires a one-time administrative fee to set up the account
- Limits the amount you can deposit into the account
- Interest rates may not be as high as other savings accounts
Visit Self Credit Builder for more information.
- Offers a cashback program with up to 5% cash back on purchases made with select retailers
- No monthly fees and no overdraft fees
- Plant trees with your purchases and enjoy the satisfaction of contributing to a better world!
- A minimum deposit of $10 is required to open an account
- May not be accepted by all merchants
- The monthly ATM withdrawal limit may be lower than other banks
Visit Aspiration Spend & Save for more information.
Overall, extra credit-building debit cards can be a useful tool to help you build credit over time. Each card has its own unique features and drawbacks, so it’s important to do your research and choose the card that fits your specific needs. Also, remember building credit takes time and will require patience and discipline. For more tips, tricks, and strategies for improving your credit score, be sure to check out Get Lyfe, your go-to resource for all things personal finance.