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. Doing this correctly will lead to a higher credit score. The Ascent has put together a list highlighting the top credit card issuers who offer this type credit card.
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. If you pay your bills on-time, you can upgrade to an Unsecured Card with no foreign transaction fees and no annual fee. You can also get the card without paying a late payment penalty fee the first time you use it.
Discover has a range of rewards credit cards that are suitable for different financial situations. Although some cards do not offer one-time bonuses they offer benefits such double cashback after the first year. This is a huge benefit, especially if the card is used wisely. Other features include unlimited earning opportunities, flexible rewards redemption, as well as 0% APR during the first 14 months.
Discover allows you to earn rewards for almost any purchase. You can use the cash you earn to redeem for statement credits and cash. You can redeem your rewards online or by phone. There is no minimum redeemable amount. You can also redeem your rewards in any amount that you wish. All of your rewards can be redeemed at once. If you want to redeem them in cash, you can do so in any amount you wish, but remember that you must maintain a good credit score.
Secured credit cards
Credit cards that are secured can help you build credit. 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.
Secured cards also offer other benefits. Some have credit score tracking and rewards 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 give you a $400 spending cap, while a $75 fee will bring it down to $325.
Cards for Department Stores
Credit cards are offered by department stores to increase customer loyalty and revenue. You can also get cash back or other benefits by shopping at department stores with your credit card. 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. These cards may have a negative impact on your credit score due to the high utilization rate. Credit scoring models take into account the utilization rate on your cards. So, having a store credit card with a low credit limit could lower your 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. You must be at least 18 years of age and have good credit. If you don't have credit history and are applying for store credit cards, be aware that they often require a hard screening. When applying for a JCPenney card, you will need to give information about your income and housing expenses.