If you want to start your credit file fresh and improve your credit score, you will need a first time credit card with no credit history. You will see a rise in your credit score if you do it right. The Ascent compiled a list that includes the best credit cards issuers.
Discover rewards for first-time credit card
A Discover rewards credit card can be applied for by people with poor credit scores or no credit history. This will help them build a strong credit history. With no foreign transaction or annual fees, an unsecured card can be upgraded as long you pay your bills promptly. You will not be charged a late payment fee if you first use the card.
Discover offers a variety rewards credit cards, each designed to suit different financial situations. While many cards don't offer any one-time bonuses or other benefits, they do offer double cash back within the first year. This is a big benefit, especially if you use the card wisely. Other benefits include unlimited earning potential and flexible rewards redemption.
Discover allows you to earn rewards for almost any purchase. The cash you receive can be used for statement credits, cash, or both. You can redeem your rewards online as well as by phone. There is no minimum redemption amount, and you can redeem your rewards in any amount you want. All your rewards can be used at once. Cash redemptions can be made in any amount, but credit must still be maintained.
Secured credit card
Secured credit cards are a great way to start building a credit history. These cards can be approved even if you have negative marks on your credit report, which is a big advantage over unsecured ones. This will give you a better chance to be approved and can help you avoid interest fees, which can severely harm your credit score.
A secured card has other benefits. Some cards offer rewards programs, credit score tracking, and credit score monitoring. Some of them offer cashback rewards. You will receive a check at the close of the year with the rewards, which are usually less than 1%.
In order to qualify for a secured card, you need to put down a deposit, usually a few hundred or thousands of dollars, to secure the card. An annual fee may be charged, which reduces the balance. For example, a $400 deposit will get you a $400 spending limit, while a $75 annual fee will cut that down to $325.
Shop cards
Department stores offer credit cards to encourage customer loyalty and improve revenue. Credit card holders are also offered cash back and other incentives when they shop in department stores. You should be familiar with the requirements to apply for these credit cards before you do.
Many department stores offer store-credit cards with low credit limit. These cards may have a negative impact on your credit score due to the high utilization rate. Credit scoring models evaluate your utilization rate. Store cards with low credit limits may lower your credit score.
For people with poor or bad credit, department store credit cards are a great option. These cards offer numerous rewards and are easy-to-get. For you to be eligible to apply, your credit score must be good or acceptable. If you apply for a store credit card, even if you don't have a credit record, most will require you to submit a hard-check. You will be asked for information about your income, housing costs, and other pertinent details when you apply for a JCPenney credit cards.