Build Your Credit With These 3 Credit Cards

Hey credit heroes, what's the best credit card for building credit? Well, to be honest, I hate credit cards. I'm not paid to endorse any of them. So today I'm going to help you to protect your credit repair clients by sharing the three best credit cards for building credit. So you better stick around. My name is Daniel Rosen and welcome to Credit Repair Business Secrets. There are about 550 million open credit card accounts in the U.S. the average American has 3.8 credit cards with a credit limit of about $30,000, a balance over $5,000, and an interest rate slightly over 19%. Credit cards have a bad reputation because of high interest rates, hidden fees, and often shady practices. And everyone who works in credit repair knows that credit cards cause people a whole lot of trouble. But because credit cards are one biggest factors affecting credit scores, that makes them a necessary evil in our culture that's so dependent on credit. See my holiday debt episode for more information about that. Credit heroes work hard every day cleaning up credit reports. But being successful in credit repair is much more than just deleting and disputing. It's also about coaching, encouraging and teaching your clients to have better financial habits. Here's the thing to remember. The number one way that credit card companies make money is from interest on credit card accounts and fees from late payments. The number two way that credit card companies make money is through fees collected from merchants, meaning your transactions. So basically they make money every time you spend, and they make even more money when you spend too much and you get penalties and higher fees when you miss a payment. And that in turn lowers your credit scores. And then other credit card companies can also raise your fees. And the whole system is designed to encourage you to overspend and to push you over that edge. But that shouldn't surprise you. The goal of a credit card company, like any for profit business, is to make money. And the best way for them to make money is to get people to overuse their product and then charge a ton of fees. That's why so many credit repair companies report that their client's biggest problem is credit card debt. Credit cards are easy to apply for, they are addictive, and they're technically more secure than using a debit card. But if you close your account, your credit score goes down. And the Bureau's recommend that if your goal is to get or maintain a good credit score, you should have two to three active credit cards so they're unavoidable. And then they do that trick where they send you those blank checks. I used to love when those blank checks would come because I'd be able to pay my rent. But then I learned that those were the biggest trap of all because it's treated like a cash advance which brings the highest fees and all this is why it's so important to understand the credit card system. If you know what to watch out for and a few safe options to recommend, you'll be able to guide your clients to build and repair their credit a whole lot faster. Here's why this is important. According to the analysis site Answer the Public, three of the most common searches people make about credit cards are credit card for bad credit, credit card to build credit, and what credit card should I get now? It's perfectly fine to avoid credit cards. You may not need them. Roughly 20% of American adults don't own any credit cards. If your clients struggle with debt management, you may want to press them to avoid credit cards altogether. I don't use credit cards myself. Don't get me wrong. I do have credit card accounts that I opened many years ago, but I never use them. And I never use them because they got me into so much trouble in the past. But for those who do want credit cards, who need them, or who already have them, it's your job as a credit hero to guide them to the safest options available. Here's what you need to know. There's always risk involved when people use credit, but if credit is going to be used, it needs to be used the right way, and different types of credit fit different personalities. I hate credit cards, but they can be a tool to build and repair credit when used responsibly. Here are the three best credit cards for building credit the Petal one no annual fee Visa Credit Card According to Forbes, Petal one is one of the best credit card options for people wanting to build credit and the best overall card for people with bad credit. It was chosen because there is no security deposit required, no credit score required, and no annual fee. It provides 2% to 10% cash back with certain merchants. It has a reasonable 300 to $5,000 starting point credit limit and people can earn credit limit increase in six months. The Capital One Platinum Credit Card According to WalletHub, the Capital One Platinum card is the best starter credit card of 2022. The card is intended for people with fair to limited credit. There are no annual or hidden fees. It includes a fraud liability protection so customers won't be responsible for unauthorized charges and after six months customers will automatically be considered for a credit line increase. The OpenSky secured Visa credit card. According to LendingTree, OpenSky is the best credit card to build credit. With no credit, There is a $200 minimum deposit and a $35 annual fee, but it doesn't require a credit check or a bank account approval. It reports your credit usage to the bureaus, allowing virtually anyone to build their credit. They also claim that nearly half of OpenSky cardholders who make on time payments improve their credit score by 30 points or more in the first three months. So if you need to establish credit and to build credit, I recommend these three cards. Now, none of the cards I mention today are affiliated with me or CRC in any way. Most people on the Internet who recommend a credit card, they're doing that because they're getting paid by that credit card company. So they're going to drive you to an affiliate link where you'll pay a higher fee and then they're going to gouge you and take a lot of your money. And that's how that person gets paid. So know that that's not the case here. There's no affiliate link. I don't get paid for promoting them. I am recommending them simply because their offers are good and I truly want to help people. Their terms are accurate as of December 2022 and they may change. And here's my final point. As always, no matter the recommendation, it's still important for people to match the type of credit to their personality. And as a credit hero, you need to figure out which option fits your client before you recommend anything. I may not like credit cards, but with responsible usage, these three cards can help your clients to build their credit and achieve their financial dreams. And I'll end by saying if you don't already have a credit repair cloud account, check it out. It's the software that most credit repair businesses in America run on. Just sign up for a 30 day free trial at creditrepaircloud.com freetrial. And if you'd like to change lives and grow your own credit repair business, check out our Credit Hero Challenge. It's a live experience that has helped tons of credit heroes to get certified in disputing and gain confidence in as they run their credit repair business on a solid foundation so they can change a whole lot of lives and make a great living in the process. We're starting the next challenge very soon, so you want to join before the doors close or you're going to have a long wait until the next one. So sign up right now@creditherochallenge.com and if you're finding value in the things that I share on this podcast, click below to subscribe and follow. Also, give me a five star review or share the show and help me to change more lives. And if you'd like to read the show notes, they're posted on my blog. And if you have a question or a comment, drop it down below because I read each and every one of them. And if you want to learn the secrets to turning the tables on the credit card companies, check out my interview with Dan B. So take care Credihero, and keep changing lives.