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 created a list of top credit card issuers offering this type of card.
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. This card waives the late payment penalty fee your first time you use.
Discover offers many rewards credit cards for people with different financial circumstances. Some cards do not offer traditional one-time bonuses, but they do offer benefits like double cash back on your first year of use. This is an important benefit, especially when you use the card well. Other features include unlimited earning potential, flexible rewards redemption, and 0% APR for 14 months.
Discover offers rewards on almost all purchases. The cash you receive can be used for statement credits, cash, or both. Your rewards can be redeemed online or over the phone. There is no minimum redemption amount and you can redeem your rewards at any amount that you choose. You can also redeem all your rewards at once. Cash redemptions can be made in any amount, but credit must still be maintained.
Secured credit card
Secured credit cards are an excellent way to begin building your 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. Some offer credit score and reward programs. Many of them offer cash back rewards. They are usually around 1% in size and sent as a check at end of year.
A deposit is required to obtain a secured card. It can usually be between a few hundred and thousands of dollars. There may also be an annual fee, which takes away from the available balance. A $400 deposit will allow you to spend up to $400, but a $75 annual fee can reduce this down to only $325.
Department store cards
Credit cards can be offered to department stores in order to build customer loyalty. The department stores offer credit cards to encourage customers to shop in their stores. You should be familiar with the requirements to apply for these credit cards before you do.
Typically, department stores offer store credit cards with low credit limits. However, your utilization rate of these cards can hurt your credit score. 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.
Bad or poor credit may find department store credit cards a good choice. These cards can be obtained quickly and offer many rewards. To apply, you must be 18 years old with good or fair credit. If you are applying for a store card credit without having a credit history, it is important to know that many of these cards require 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.