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. If you do this right, your credit score will rise over time. The Ascent compiled a list that includes the best credit cards issuers.
Get rewards for your first credit card
To help you build credit, you can apply to a Discover rewards creditcard even if your credit score is not good. 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 waives the late payment penalty fee your first time you use.
Discover offers a variety of rewards credit cards designed for people in 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 great benefit, especially if your card is used responsibly. Other features include unlimited earning opportunities, flexible rewards redemption, as well as 0% APR during the first 14 months.
Discover offers rewards on almost all purchases. The cash back you earn is redeemable for statement credits or cash. Your rewards can be redeemed online or over the phone. There is no minimum redemption amount, and you can redeem your rewards in any amount you want. 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 Cards
Secured credit cards can be a great way for you to build your credit history. Secured credit cards are not subject to rejection like unsecured credit card applications. This gives you a greater chance of approval and helps you avoid interest penalties that can really harm your score.
A secured card has other benefits. Some offer credit score and reward programs. Some of them also offer cash back 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. The annual fee can also reduce 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
Credit cards are offered by department stores to increase customer loyalty and revenue. The department stores offer credit cards to encourage customers to shop in their stores. Before you apply for one of these cards, make sure you're aware of the qualifications for such a credit card.
Typically, department stores offer store credit cards with low credit limits. But, these cards could lower your credit score by increasing your utilization rate. This is because credit scoring models look at the utilization rate of your cards, so having a store card with a low credit limit can lower your score.
If you have poor credit, a department store credit card can be a good choice. These cards offer numerous rewards and are easy-to-get. The minimum age to apply is 18 and you should have fair or good credit. 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.