Credit card accounts are essential financial tools that offer convenience, rewards, and the opportunity to build credit or rebuild credit. For those with average credit scores of 600 or less than 600, selecting the right credit card company can be a pathway to building credit and financial growth. Understanding how to build credit with various credit card options, from low APR cards to those with flexible deposits and cashback rewards, is crucial. 

Each card comes with unique features and benefits tailored to different needs and financial backgrounds. Making an informed decision to build credit with an unsecured credit card can improve credit scores, financial flexibility, and access to valuable perks and rewards. Let's explore the best credit card company to build credit for those with average scores.

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Read more: Navigate the credit card landscape with confidence by exploring these valuable guides:

• How to Choose the Right Credit Card? Step-by-Step Guide
• How do Credit Cards Build Credit?
• What is a Credit?

7 Best Credit Card Options for Average Credit Scores

1. Citi Secured MasterCard

The Citi Secured MasterCard is designed for those looking to build or improve their credit score. With no annual fee, it requires a security deposit between $200 and $2,500, which will be held for up to 18 months. The card offers monthly FICO credit score access and reports to the three main credit bureaus, helping you track and enhance your credit development.

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Features:

• Penalty APR: Up to 29.99% (Variable)
• Credit Needed: Limited Credit History
• Balance Transfer Fee: 5% for each transfer, $5 minimum
• Cash Advance Fee: 5%, minimum $10
• APR: 22.49%
• Foreign Transaction Fee: 3%
  
  

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2. First National Bank Secured Visa Card

The First National Bank Secured Visa Card is tailored for individuals with poor credit or limited income. With a security deposit ranging from $300 to $5,000, cardholders can set their credit limit. Monthly payments may lead to credit limit increases without additional deposits in just seven months, and the deposit may be returned in 11 months. Benefits include zero liability, fraud protection, and free monthly access to the FICO score.

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Features:

• Penalty APR: None
• Credit Needed: No history/Limited Income
• Balance Transfer Fee: $10 or 5%, depending on the transfer amount
• Cash Advance Fee: $15 and 5%, whichever is higher
• APR: 20.24%
• Foreign Transaction Fee: 3% in U.S. Dollars

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3. Capital One QuicksilverOne Cash Rewards Credit Card

The Capital One QuicksilverOne Cash Rewards Credit Card is designed for frequent shoppers with average, fair, or limited credit. This offers earning reward like 1.5% cashback on all purchases, this card includes benefits like fraud protection and Mastercard identity theft protection. Cardholders may be considered for a higher credit line in as little as six months, and the card comes with a user-friendly mobile app for account management.

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Features:

• Penalty APR: None
• Credit Needed: Average, Fair, Limited
• Balance Transfer Fee: $0
• Cash Advance Fee: $10 or 3%, whichever is higher
• APR: 26.99% (Variable)

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4. Credit One Bank Unsecured Visa with Cash Back Rewards

The Credit One Bank Unsecured Visa with Cash Back Rewards is designed for customers with poor credit. Offering 1% cashback on eligible purchases like gas, groceries, and telecom services, this card provides free pre-qualification and an annual fee ranging from $0 to $99. Additional benefits include access to FICO credit scores, zero-dollar fraud liability, and the ability to choose from over 20 card designs.

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Features:

• Penalty APR: N/A
• Credit Needed: Good
• Balance Transfer Fee: N/A
• Cash Advance Fee: $5 or 8%, depending on the transaction amount
• APR: 17.99% to 23.99%
• Foreign Transaction Fee: $1 or 3% for each purchase in U.S. Dollars

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5. Navy Federal Credit Union nRewards Secured Card

The Navy Federal nRewards Secured Credit Card is designed to help individuals build credit or repair their credit. With no annual fee and a $200 minimum security deposit, cardholders earn 1 point for every dollar spent. 

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The card offers additional benefits like free access to FICO credit scores, cell phone protection, and the ability to redeem points for merchandise, cash, or statement credit.

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Features:

• Penalty APR: 18%
• Credit Needed: Poor/Limited History
• Balance Transfer Fee: N/A
• Cash Advance Fee: None at ATM/Navy Federal branch, $1 foreign, $0.50 domestic
• APR: 18.00%
• Foreign Transaction Fee: None

6. Genesis FS Card Services Indigo Platinum Mastercard

The Indigo Platinum Mastercard is tailored for individuals with poor credit scores, offering a chance to build or maintain credit without a security deposit.

With an annual fee ranging from $0 to $99, the card provides benefits like fast pre-qualification without affecting credit scores, custom card design, extended warranty coverage, roadside assistance, and rental car insurance. Though it doesn't offer a rewards program, responsible management can aid in improving credit.

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Features:

• Penalty APR: N/A
• Credit Needed: Bad/Poor
• Balance Transfer Fee: N/A
• Cash Advance Fee: N/A
• APR: 24.90%
• Foreign Transaction Fee: N/A

7. Fifth Third Secured Card

The Fifth Third Secured Card is designed to help cardholders build or improve their credit scores. With a required security deposit ranging from $300 to $5,000, the card charges a $24 annual fee and offers an APR of 23.99%. 

The card's unique features include earning interest on security deposits and benefits like airport concierge service, identity theft protection, and zero liability coverage.

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Features:

• Penalty APR: N/A
• Credit Needed: Poor/Limited/No histories
• Balance Transfer Fee: $5 or 4%, depending on the transfer amount
• Cash Advance Fee: $10 or 5% for each Cash Advance
• APR: 23.99%
• Foreign Transaction Fee: 3% in U.S. Dollars
  
  

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Alternatives to Credit Cards for Building Credit

While credit cards are a common tool to build credit, they're not the only option. Brightmoney.co offers alternative methods that can be effective. Explore alternative solutions at Brightmoney.co and find the best way to build your credit.

Here's an overview of alternative methods that can be effective:

• Credit-Builder Loans: These are loans designed specifically to help individuals build credit. You borrow a small amount, and the lender holds the funds in a secured account until the loan is paid off. Your payments are reported to credit bureaus, helping you build a positive credit history.

• Rent Reporting: Some rent reporting services allow your regular rent payments to be reported to credit bureaus. This can be a great way to build credit without needing a credit card.

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• Becoming an Authorized User: If a family member or friend with good credit adds you as an authorized user on their credit card, their positive credit behavior can reflect positively on your credit report.

Conclusion

Exploring the world of credit can be complex, especially with a good credit card score. This guide has explored various credit card options tailored for those scores, strategies for responsible usage, and alternative methods for building credit.

The journey to a better credit score is filled with opportunities and challenges. Approach it with responsibility, awareness, and a willingness to explore various tools and strategies. Whether through credit cards, credit-builder loans, or other means, the path to building credit and improved financial well-being is within reach.

‍Want to Build Credit and Secure Your Financial Future? Don’t worry; Bright Builder helps you!

Bright Builder presents an exclusive opportunity to:

• Build Credit Responsibly: We help you build a strong credit score, opening doors to better loan options and lower interest rates in the future.

Save While You Build: Your deposit is secured in a Bright Builder Savings Account, so your money works for you while you build Credit.

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Further Reading

• How to Read a Credit Card Statement?
• The Key to Financial Security: Secured Credit Cards
• What is a Credit Score?

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FAQs

1. Can Utilizing a Credit Card Designed for Average Credit Scores Actually Lower My Score?

While these cards are designed to help build or maintain credit, irresponsible usage can lead to a lower score. Missing payments, maxing out the card, or applying for multiple cards simultaneously can negatively impact your credit. Understanding the terms and using the card wisely is key to leveraging its benefits.

2. Are There Any Hidden Perks to Cards for Average Credit Scores?

Some cards for average credit scores offer unexpected benefits like rental car insurance, fraud protection, or even cashback on certain purchases. While these perks may not be as prominent as those on premium cards, they can provide valuable advantages that are often overlooked.

3. How Can I Transition from an Average Credit Score Card to a Higher-tier Card?

With consistent, responsible usage, some cards allow for an upgrade to a higher-tier card with better rewards and lower fees. Knowing the criteria for upgrading and actively working towards meeting them can open doors to more advantageous credit options.

4. Is It Possible to Negotiate Terms on a Credit Card for Average Credit Scores?

While it's less common, some issuers may be open to negotiating terms like interest rates or annual fees, especially if you have a positive history with the bank. It's worth inquiring and presenting your case, as this unconventional approach might lead to more favorable terms.

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References

• https://fortunly.com/credit-cards/best-credit-cards-for-a-600-credit-score/#:~:text=Best%20Credit%20Cards%20for%20a%20600%20Credit%20Score%20%2D%202023%20Picks,free%20monthly%20credit%20score%20reports 
• https://www.bankrate.com/finance/credit-cards/credit-cards-for-600-credit-score/ 
• https://www.moneyunder30.com/credit-cards/best/credit-score-600-649/ 
• https://www.badcredit.org/how-to/credit-cards-for-600-credit-score/