You will need a new credit card for your first time with no credit history if you want to rebuild your credit file and improve your credit scores. 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
If you have no credit history or a bad credit score, you can apply for a Discover rewards credit card to help you build a good credit history. An unsecured card is available to you if you pay your bills in full. There are no foreign transaction fees or annual fees. This card also waives the late payment penalty fee for the first time you use it.
Discover offers a variety rewards credit cards, each designed to suit different financial situations. 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 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. You can use the cash you earn to redeem for statement credits and cash. Redeem your rewards online and by phone. There is no minimum redemption amount and you can redeem your rewards at any amount that you choose. All your rewards can be used at once. Cash redemptions can be made in any amount, but credit must still be maintained.
Secured credit cards
Credit cards that are secured can help you build credit. Secured credit cards are not subject to rejection like unsecured credit card applications. 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 of them have rewards programs and credit score tracking. Some also offer cash back incentives. The rewards are usually modest, around 1%, and are sent out to you as a check at the end of the year.
To qualify for a secured credit card, you will need to make a deposit. This can be a minimum of a few hundred dollars or thousands. 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.
Card for department stores
Department stores offer credit card options to boost customer loyalty and increase their revenue. You can also get cash back or other benefits by shopping at department stores with your credit card. Be sure to review the eligibility requirements before applying for any of these cards.
Store credit cards are usually offered by department stores with low credit limits. But, these cards could lower your credit score by increasing your utilization rate. Credit scoring models consider the utilization rate of your cards. Therefore, a store card with low credit limits can affect your credit score.
If you have poor credit, a department store credit card can be a good choice. These cards come with a wide range of benefits and are easy for anyone to obtain. 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. For instance, when applying for a JCPenney credit card, you'll be asked to provide information about your income and housing costs.