If you have no credit history or a score below 600, these are the cards that you should be able to get. Secured credit cards are a great option for someone with no real credit history. With secured credit cards, the cardholder makes a deposit, and the bank will hold the deposit, so if a cardholder is unable to pay, the deposit is used. This is low-risk for the bank or credit union and can be a great first step in building your credit history. After regularly making payments, you should be able to upgrade to a non-secured credit card and get the deposit back.
Another type of credit-building card that you should consider are cards that are designed for students. These cards frequently have rewards(unlike secured cards) and resources to support you as you learn to use your card. Student credit cards also often allow you to increase your credit limit after making regular on-time payments.
Applying for credit-building cards when you have low or no credit is a great idea, as you’ll most likely be approved.
If you plan on only using your card in case of emergencies and you have a good credit score, you should look into credit cards with low interest or introductory 0% APRs. These cards are also good if you plan on maintaining a certain amount of debt.
One thing to remember about low APR cards is that the interest rate won’t last forever. Be sure you know how long the 0% APR period will last and make plans to pay off your balance while it is still interest-free.
Cards that offer you rewards like miles, points, or cashback on purchases are definitely worth it if you can pay off your balance in full each month. Because they come with a lot of perks, they have higher APRs.
Rewards credit cards usually are the credit cards with the most complicated contracts, so be sure to review the fine print. You’ll want to do your research to make sure you understand how rewards work and select the card that matches what you already are spending money on.
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