Credit Card No Credit Check

A plain fact is that credit cards are useful. You need one to check into a hotel or motel; you need one to rent a car or book airline tickets. Finding that credit card with no credit check is fairly easy. Actually, there are many credit cards that you can purchase that do not require having a bank account or credit history. They are called pre-paid credit or debit cards, guaranteed cards, secured cards and gift cards.

Pre-paid debit cards are just what they sound like. You buy them with cash in advance and can use them up to their limit. With some, it is possible to load more cash onto the card whenever your pre-paid amount gets low. These are available many places, including banks, retail stores, grocery stores, cash advance stores and other outlets. They bear the logo of Master Card or Visa and function the same way. They make a terrific gift or reward. Activities using these cards are never reported to credit bureaus. There are no bills, no interest, and no after-purchase payments.

Gift cards are very similar, but they are purchased in advance for use at one retail store only. Examples include Applebee’s, Target, Kmart, Chile’s, Starbucks and many other stores. It is important to watch for expiration dates and fees. These are not reported to credit agencies; they are the same as cash.

Some pre-paid retail cards charge a fee per transaction and an activation fee or a fee for not using the card. This can reduce the balance on the card quickly. The bankcard type pre-paid debit cards also may have various fees attached. Read all the small print to understand the individual card charges and requirements.

Guaranteed credit cards are another option for those who want the benefits of a credit card without a credit check. You make a security deposit that the lender holds to cover any charges you make with that card. When the billing time arrives, you are expected to return payment up to your secured amount. If you take time to make the repayment, you will pay interest while the lender holds onto your original collateral amount. Lenders retain the security deposit until you close the account. Activity on these cards is reported to credit bureaus.

Pre-paid and secured no credit check credit card bills will not have overdraft fees or penalty fees because you can only withdraw the amount you have set aside as a security deposit. They may charge activation fees, monthly fees, PIN (personal identification number) number withdrawal fees, ATM withdrawal fees and other fees that add up. Pre-paid cards do not improve or impact your credit history, but secured cards do.

Secured cards are bank issued credit cards with no credit check. You put down a deposit which is your credit limit. These cards impact your credit score because your payment history is reported to the credit reporting agencies. There are other requirements such as having a checking or savings account with that same bank. You do make payments just like you would with a regular credit card. Secured cards also have higher interest rates than unsecured credit cards.

Finding a credit card that has no credit check requirements is easy enough, and it can be a good way for someone with no credit history or poor credit history to build or rebuild their credit history report.