You need a credit card for the first time, with no credit history, to help you start your credit files fresh and improve you credit score. This will help you build your credit score over time. The Ascent has compiled a list with the best credit card issuers for this type.
For your first credit card, discover rewards
To build credit history, you can apply Discover rewards credit cards even if you have poor credit or no credit history. As long as you pay your bills on time, you can upgrade to an unsecured card with no annual fee or foreign transaction fees. You will not be charged a late payment fee if you first use the card.
Discover has a range of rewards credit cards that are suitable for different financial situations. While some cards don't offer one-time bonuses like double cash back after your first year, others offer benefits such as double cash back. This is a huge benefit, especially if the card is used wisely. Other features include unlimited earning opportunities, flexible rewards redemption, as well as 0% APR during the first 14 months.
Discover lets you earn rewards for every purchase. You can use the cash you earn to redeem for statement credits and cash. Redeem your rewards online, or by phone. There is no minimum amount required to redeem your rewards. You can also redeem all your rewards at once. If you want to redeem them in cash, you can do so in any amount you wish, but remember that you must maintain a good credit score.
Secured credit card
Secured credit card are a great way start building credit history. You won't be denied for having derogatory marks on credit reports, unlike unsecured credit cards. This means you'll have a better chance of approval, and you can avoid interest charges, which can seriously harm your score.
Secured cards also offer other benefits. Many of them offer credit score tracking and rewards programs. Some of them also offer cash back rewards. They are usually around 1% in size and sent as a check at end of year.
You must make a deposit to secure a secured bank card. This is usually between several hundred and thousands of dollars. You may have to pay an annual fee which will reduce your available balance. For example, a $400 deposit can get you a $400 spending allowance, while a $75 annual fees will reduce that to $325.
Card for department stores
Credit cards are offered by department stores to increase customer loyalty and revenue. They also give credit card users incentives to shop at their stores, including cash back and other benefits. Make sure you understand the requirements for each card before you apply.
Typically, department stores offer store credit cards with low credit limits. These cards may have a negative impact on your credit score due to the high utilization rate. Credit scoring models are based on the utilization rates of your cards. This means that a storecard with a low credit limit may affect your credit score.
For people with poor or bad credit, department store credit cards are a great option. In addition to offering a variety of rewards, these cards are easy to obtain. For you to be eligible to apply, your credit score must be good or acceptable. You should know that not all store credit cards are approved without credit history. If you apply for a JCPenney Credit Card, you will be required to disclose information about your income as well as housing costs.