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. Your credit score will improve over time if you do this correctly. The Ascent compiled a list that includes the best credit cards issuers.
Get rewards for your first 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. You can upgrade to an unprotected card without any foreign transaction fees or annual fees as long as your bills are paid on time. This card also waives the late payment penalty fee for the first time you use it.
Discover offers several rewards credit card options that can be used to help people with different financial needs. 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. Additional features include unlimited earning possibilities, flexible rewards redemption, 0% APR, and 14-months of free interest.
Discover allows you to earn rewards for almost any purchase. You can redeem the cash back you earn for cash or statement credits. Redeem your rewards online, or 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. Redeem your rewards in cash at any amount you choose, but you must have a high credit score.
Secured credit cards
Secured credit cards can be a great way for you to build your 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 means you have a better shot of approval. You can also avoid interest charges that could seriously hurt your score.
A secured card also offers other benefits. Many of them offer credit score tracking and rewards programs. Some also offer cash back incentives. 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. There may also be an annual fee, which takes away from the available balance. A $400 deposit would get you a $400 spending limitation, while a $75 annually charged fee will lower that limit to $325.
Cards for Department Stores
Department stores offer credit cards to encourage customer loyalty and improve 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.
Department stores often offer store credit cards with very low credit limits. Your credit score can be affected by the rate at which you use these cards. Credit scoring models consider the utilization rate of your cards. Therefore, a store card with low credit limits can affect your credit score.
People with poor credit or no credit can get department store credit cards. These cards offer a range of rewards and are easy to get. The minimum age to apply is 18 and you should have fair or good credit. 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.