Hey there! If you're looking to boost your credit score, you’re not alone. Whether you’re just starting out, recovering from financial setbacks, or looking to improve your score for a big purchase, there are some great credit builder products out there that can help. I’ve done some digging and compiled a list of the best options for 2024. Let’s dive in!
1. Secured Credit Cards
Secured credit cards are one of the most popular tools for building credit. With these cards, you deposit a sum of money as collateral, which then becomes your credit limit. They work like regular credit cards—make purchases and pay them off on time to build your credit history.
Recommended Option: Discover it® Secured Credit Card
- Annual Fee: $0
- Rewards: 2% cash back at gas stations and restaurants (on up to $1,000 in combined purchases each quarter)
- Credit Reporting: Reports to all three major credit bureaus
This card is great because it also allows you to earn cash back while building your credit.
2. Credit Builder Loans
Credit builder loans are designed specifically for building credit. You borrow a small amount of money, but instead of receiving it upfront, the lender holds it in a savings account while you make regular payments. Once you’ve paid off the loan, you get access to the funds.
Recommended Option: Self Credit Builder Account
- Loan Amount: Typically between $500 and $1,500
- Term: 12 or 24 months
- Credit Reporting: Reports to all three major credit bureaus
This is a fantastic option if you want to save money while building your credit at the same time.
3. Authorized User Accounts
If you have a trusted family member or friend with a good credit history, becoming an authorized user on their credit card can be a quick way to boost your score. This means you can use their card, and their positive payment history will also reflect on your credit report.
Tip: Make sure they have a solid payment history and low credit utilization. You don’t want to hitch your credit wagon to someone who might negatively impact your score!
4. Credit Monitoring Services
While not a traditional credit builder product, using a credit monitoring service can help you track your progress and stay on top of your credit. These services often provide credit score updates, alerts for any changes, and tips for improving your score.
Recommended Option: Credit Karma
- Cost: Free
- Features: Credit score monitoring, credit report insights, and personalized recommendations
It’s a great way to keep yourself accountable and informed about your credit situation.
5. Retail Store Credit Cards
If you frequently shop at a specific retailer, a store credit card might be worth considering. These cards often have lower credit score requirements, making them easier to obtain. However, be mindful of high-interest rates and ensure you can pay off your balance to avoid debt.
Recommended Option: Amazon Store Card
- Annual Fee: $0
- Rewards: 5% back for Prime members on Amazon purchases
- Credit Reporting: Reports to the major credit bureaus
If you’re already a frequent shopper on Amazon, this can be a useful tool for building credit while earning rewards.
Final Thoughts
Building credit doesn’t happen overnight, but with the right products and strategies, you can make steady progress. It’s all about managing your credit wisely—pay your bills on time, keep your credit utilization low, and monitor your credit regularly. By taking advantage of these credit builder products in 2024, you’ll be well on your way to a healthier credit score.
If you have any personal experiences with these products or other tips, feel free to share in the comments! Happy credit building!