Credit cards that rebuild credit (and the ones that do not)

What makes a card useful for rebuilding

Only three things matter: it reports to all three bureaus, it lets you keep utilisation low (a limit you can stay under 10% of), and its fees do not eat the benefit. Rewards, apps and "credit-building tips" are noise.

Secured cards: the reliable route

You deposit $200–$500, which becomes your limit. Approval is nearly automatic because the bank holds your deposit. After 6–12 on-time months, most issuers refund the deposit and convert the card to unsecured.

• Look for: no annual fee, reports to all three bureaus, automatic upgrade review, deposit as low as $200.
• Avoid: monthly "maintenance" fees, application fees, or cards that do not report.
• Use it like this: one small recurring charge (a streaming bill), autopay in full, balance under 10% of the limit when the statement closes.

Unsecured "fair credit" cards: read the fee page first

Some issuers approve scores in the 500s without a deposit. The good ones charge no annual fee and start with a $300–$1,000 limit. The bad ones charge a $75–$99 annual fee, a monthly fee after year one, and a "program fee" before the card arrives, on a $300 limit. That is 30–40% of your limit gone before you buy anything, and the fees themselves count as utilisation.

Cards that do not help

• Store cards that only report to one bureau or report "as agreed" without a limit.
• Prepaid debit cards, which are not credit and never report.
• Catalog or "merchandise" cards usable only on the issuer's site with high fees.
• Any card that requires a fee before approval.

The playbook for 12 months

1. Open one secured or no-fee fair-credit card. One.
2. Put a single small bill on it; set autopay for the full statement balance.
3. Keep the statement balance under 10% of the limit.
4. At month six, request a limit increase or upgrade review.
5. At month twelve, with a 670+ score, apply for a prime no-fee card and keep the first card open.

Pair it with a small reported installment loan if your file has no installment history; the mix matters for 10% of the score. See raise your score in 90 days for the utilisation tactics.