Do I Really Need Credit?
You may think you don’t need to establish credit until you need it. A credit score is just not for applying for loans or a mortgage. Most jobs, especially financial institutions, run applicant’s credit, as part of a candidate’s background check to determine their eligibility for employment. Utility companies, postpaid phone plans, apartments etc. also check your creditworthiness when you apply. So if you have no credit or have bad credit, you may have to get a cosigner.. Therefore, it is better to start building credit early so that when you need it, which you most likely will, you will be all ready and set.
As an immigrant, I wish I started building credit early. I started too late and when I went shopping for my first car, I got rejected by most lenders, which lowered my credit even further. This is because my credit was too new. I only had a year of credit history. This is not enough time in the eyes of lenders to determine your creditworthiness. Even though I was eventually approved for an auto loan, I paid heavily in terms of a higher interest rate. To learn more how you can shield yourself from mistakes like this, check out how to get started building credit as an immigrant woman.
What Unsecured Credit Card Is Best for Me as an Immigrant?
There are two main types of credit cards to build credit with: secured credit cards and regular unsecured credit cards.There are plenty of options when it comes to choosing the best credit cards. If you are new to credit building, this may be overwhelming and you may make a choice that you may later regret. It could be the credit card you chose has a high annual fee or late fees or a very high interest rate. This may force you to close the credit card, but you don’t want to close credit cards too soon either as it will lower your credit score. Therefore, making the best choice early is vital.
Payment history makes up 35% of your credit score. By opening a credit account and making your monthly payments on time, you can build a positive payment history. Here are the top best credit cards to build credit for immigrants, from my personal experience and research.
The Top Best Unsecured Credit Cards to Build Credit for Immigrant Women
Capital One Platinum Mastercard
The Capital One Platinum Mastercard was the second credit card I got as an immigrant in the United States. This is a great option when you are establishing credit for the first time, or trying to rebuild a damaged credit score. You can check if you are pre-approved with no impact to your credit score.
With the Capital One Platinum Mastercard, you get automatic credit line reviews and automatically considered for a higher credit line in as little as 6 months. It also comes with $0 Annual Fee and a Purchase Rate of 26.99% variable APR.
Wells Fargo Rewards Card
My very first credit card was the Wells Fargo Rewards Card. At the time of applying for the card, I had no credit history. I therefore started with the Wells Fargo Secured Rewards Card. Due to my limited credit history, I was viewed by the bank as ‘risky’ and therefore I had to secure the credit with a security deposit. Financial institutions use this security deposit as collateral in case you’re unable to pay your credit card bill. Usually, you are issued a credit limit equal to the security deposit. So if you put down a security deposit of $300, your credit limit will also be $300. I started with a $300 limit.
The Wells Fargo Rewards Card welcome offer includes a 0% intro APR for 18 months from account opening on purchases and qualifying balance transfers. After that your variable APR will be 16.49% to 24.49%. Balance transfers made within 120 days qualify for the intro rate and fee. This card also has a $0 Annual Fee which is a plus plus for me.
Capital One QuicksilverOne Cash Rewards Credit Card
The Capital One QuicksilverOne Cash Rewards Credit Card is a good option for people who want to build credit. If offers unlimited 1.5% cash back rewards on every purchase. Plus, your rewards won’t expire for the life of the account. You can redeem your rewards for cash and a check will be sent to you or you can apply the rewards as a statement credit.
There are no transaction fees when making a purchase outside of the United States. There is however a $39 annual fee.
Capital One QuicksilverOne credit card offers automatic credit line reviews where you are automatically considered for a higher credit line in as little as 6 months.
Capital One also offers CreditWise which gives unlimited access to your credit score and tools to help you monitor your credit profile. It’s free and available to anyone, whether or not you have a Capital One product.
You also get fraud Coverage. You’re covered by $0 Fraud Liability if your card is ever lost or stolen. That means you will not be responsible for fraudulent purchases.
The card has Tap to Pay capability. You can check out faster and securely with your contactless card. Simply hold or tap your card on a contactless-enabled card reader and you are good to go.
You also get the convenience and security of virtual card numbers. This helps to keep your real card number private and shop online more securely with virtual card numbers.
Is the Capital One QuicksilverOne Cash Rewards Credit Card a good deal for Immigrant Women?
If you don’t mind the $39 annual fee that comes with having the card, you will enjoy the cash back rewards as you use the card for daily purchases. Also the flexibility to use virtual card numbers offers a layer of security by keeping your actual card number private.
Credit One Platinum Visa for Rebuilding Credit
The Credit One Platinum Visa credit card is designed for people who need to build or rebuild their credit. with no need to put down a security deposit. Most credit cards designed for people with poor credit or no credit are secured, meaning you are required to put down a security deposit when applying.
While there is a $75 annual fee the first year (then $99 annually), it also offers 1% cash back rewards on eligible purchases of gas, grocery, and internet, cable, satellite TV and mobile phone services. You also get regular reviews for credit line increases, therefore you do not have to request a credit line increase.
The Credit One Platinum Visa credit card also offers protection against unauthorized charges. You get to use the card worry-free with zero fraud liability, which protects you against any unauthorized charges.
The card has a variable rate APR of 17.99% – 23.99%.
Is the Credit One Platinum Visa for Rebuilding Credit a good deal for Immigrant Women?
The Credit One Platinum Visa for Rebuilding Credit is great if you have poor or no credit as no security deposit is required. Most credit cards designed for people with poor credit or no credit are secured, meaning they require a security deposit. The cash back rewards is also a huge plus.
Credit One Bank American Express Card
The Credit One Bank American Express Card offers people with low to average credit rewards usually available to people with excellent credit. The card offers unlimited 1% cash back rewards on all purchases. Earned rewards are credited to your account automatically.
The Credit One Bank American Express Card offers retail protection which gives the peace of mind that comes from knowing your purchases are covered. You get reimbursed if an eligible item is accidentally damaged or stolen. You also get up to $150,000 in travel accident insurance coverage when you travel using your Credit One Bank American Express Card.
There is an annual Fee of $39 and an APR of 23.99% (variable). The card also offers free online access to your Experian credit score where you can monitor your credit score every month. You also get the ease of mind through the protection against unauthorized charges with the Zero Fraud Liability.
Is the Credit One Bank American Express Card a good deal for Immigrant Women?
Although the Credit One Bank American Express Card has a high annual fee and high APR, it offers those with imperfect credit cash back and travel benefits normally reserved for cardholders with good credit.
Petal 2 Visa Credit Card
The Petal 2 credit card is a great no fees starter credit card designed to help you build credit. With this credit card you get 1% cash back right away and earn up to 1.5% when you pay on time plus 2% – 10% bonus cash back at select merchants. With responsible spending and on-time payments, your payment will be reported to all three major bureaus helping you to grow your credit score. This card offers a minimum credit limit of $500 to a maximum limit of $10,000. In addition there are no annual or international fees including no late or returned payment fees. The APR is 12.99% – 26.99%.
Is the Petal 2 Visa Credit Card a good unsecured credit card to build credit for Immigrant Women?
The Petal 2 Visa Credit Card offers people with little to average credit to build or rebuild their credit. The zero annual fee and zero foreign transaction fee is a win for people who travel outside the United States.
Jasper Cash Back Mastercard
The Jasper Cash Back Mastercard is designed for people with no credit history or no social security card. It is a great option for people who have just located to the United States.
Jasper offers up to 6% cash back through referrals. Start at 1% and get an extra 0.5% for a full year for every friend you bring on board.
You’ll also earn at least 1% cash back as long as your account is in good standing. Your cash back maximum varies based on your credit limit, and you’ll receive your cash back automatically every month as a statement credit after three months of on-time payments.
Jasper requires no security deposit, has no annual fee, and charges no foreign transaction fees. Your first cash back redemption requires three on-time payments.
Is the Jasper Cash Back Mastercard a good unsecured credit card to build credit for Immigrant Women?
The Jasper Cash Back Mastercard is certainly a good option for people who have just relocated to the United States. It requires no credit history of social security number to qualify which is of great benefit for people who are just starting out to build credit.
Self Credit Builder Account
While the Self Credit Builder Account is not a credit card, it is a good alternative to building credit. This account will also get you access to the Self Visa Credit card in as little as 3 months* with no hard pull on your credit.
Apply for a Credit Builder Account. No hard pull on your credit.
Pay off your Credit Builder Account in the specified amount of time. You can choose the payment term and dollar amount that best fits your budget.
Each on-time monthly payment builds credit history and adds to your savings. Your monthly payments are reported to all three credit bureaus.
Unlock your savings. Once you’ve paid off your Credit Builder Account, your CD unlocks and the money is yours (minus fees and interest).
Self Visa Credit Card
A Self Credit Builder Account can get you access to the Self Visa Credit card in as little as 3 months with no hard pull on your credit. To qualify for the self visa credit card, you first must have an open Credit Builder Account and meet the eligibility requirements which include but not limited to:
- Make 3 monthly payments on time
- Have $100 or more in savings progress
- Have your account in good standing
Then you will choose what portion of your savings progress ($100 or more) is used to secure your card and set your limit.
Deserve Digital First Card
The Deserve Digital First Card is a virtual credit card, so you don’t have to wait for a physical card to arrive in the mail. When you apply, you get a decision in minutes and then can instantly use the card to make purchases through Apple Pay with your phone. You can earn up to 1.5% cash back on purchases.
Currently the Deserve Digital First Card is only offered on Apple Pay but an Android app and physical card are coming soon. This will offer a variety of options and convenience for those who prefer a physical card. The Deserve Digital First Card charges no annual fee, no foreign transaction fees and offers Mastercard World benefits.
Is the Deserve Digital First Card a good unsecured credit card to build credit for Immigrant Women?
If you prefer convenience and ease of application then this card has you covered. When you apply for the card, It takes only five minutes to get a decision and you can start using it right away. Unlike regular credit cards, the Deserve Digital First Card transactions are reported in real time. This makes it easy and convenient to track your spending. The downside of the card though is it depends on whether or not a merchant accepts Apple Pay. But since Deserve plans to avail it in the android App store and physical cards soon, this is not a major downside.
First PREMIER Bank Mastercard Credit Card
The First PREMIER Bank Mastercard credit card is aimed at people looking to build or rebuild their credit score. There is no credit history required to apply and offers a chance to access a higher credit line. You also have access to cash advances from your card. Cash advances cannot exceed your current available credit. However, this has a Program Fee, an Annual Fee and a Monthly Fee. This may be a deal breaker for most people, including me.
Is the First PREMIER Bank Credit Card a good deal for immigrants?
With the First PREMIER Bank credit card, your performance is reported directly to the major Consumer Reporting Agencies (credit bureaus). This helps build credit provided you are making timely payments and using your card responsibly. Additionally, you get a free FICO credit score on every monthly statement.
You also have access to cash advances from your card at any Cirrus ATM. The downside to this card is there is a Program Fee, an Annual Fee and a Monthly Fee. They don’t charge a Monthly Fee in the first year. The Annual Fee and Monthly Fee will change in the second year.
Although First PREMIER Bank Mastercard credit card is an option for people looking to build or rebuild their credit score, I would only recommend it as a last choice due to the number of fees it has.
Upgrade Credit Card
The Upgrade Credit Card is an option for people with lower credit scores to improve their credit. If requires no security deposit. Before applying, you can get pre-approved without hurting your credit score. It also offers unlimited 1.5% cash back rewards on payments, charges no fees, no late fee, no annual fee, and no foreign transaction fee. You can qualify for a credit line from $500 to $25,000 depending on your creditworthiness.
Unlike other credit cards, balances on the Upgrade credit card are converted to installment loans at a fixed interest rate. If you carry a balance beyond the due date, you can repay it in equal monthly installments over a set period.
You can also request a cash loan which is sent directly to your bank account. Like the credit balance, you can pay back the loan at a fixed interest rate on equal monthly installments over a set period.
Is the Upgrade Credit Card a good unsecured credit card to build credit for Immigrant Women?
You can use your card to make purchases or have funds transferred directly into your bank account in the form of a personal loan. Balance is automatically put into an installment plan with fixed, equal monthly payments.
The Upgrade Credit Card’s blend of a credit card and personal loan is a convenient way to have access to a credit loan or a personal loan while paying off your purchases within a set period at a fixed interest rate. This saves the uncertainty that comes with the variable interest rate on credit card balances.
Unlike other credit cards, the Upgrade Credit Card offers higher personal credit lines from $500 to $25,000, depending on your credit history.
