Finding No Credit Check Credit Cards
With the current credit crisis in the U.S. and abroad, the flow of credit card offers that used to pour into so many mailboxes has slowed to a trickle. For those who have credit, maintaining a good score is crucial; but for the literally hundreds of thousands of men and women who have damaged or even ruined their credit as a result of the recent economic downturn or just due to poor money habits, getting credit reestablished seems nearly impossible.
Ironically, one of the best ways to build a good credit score is through the wise use of credit cards. But the credit industry is unforgiving; even one mistake can cause your credit score to plummet, and may result in other accounts being cancelled, as well. So, if you need credit to build a good credit score, how do you start that process when you have no credit history, or a very poor credit history?
Fortunately, there is a way to get a credit card with no credit check even with a bad credit history. Secured credit cards are an ideal way to build an initial credit history, or to rebuild a less-than-perfect credit score. They are the perfect no credit credit cards. A secured card is like a prepaid credit card: you sign up for a card and place a certain amount of money in a bank account that is held by the card issuer. Your credit limit is based on the amount of money you deposit in that account. The amount of credit required for a particular limit is determined by the card issuer. For instance, for a $500 credit limit, some issuers may ask for a $500d eposit, while other issuers may require $750 or even $1,000 to be deposited.
You use a secured card just like you would a regular credit card or prepaid card. But the primary difference and potentially major benefit- between a prepaid card and a secured card is that most secured card companies report to the major credit bureaus. Prepaid cards like your bank debit card do not report to major credit bureaus, and so do not influence your credit score unless, of course, your card is tied to your bank account and you become overdrawn. With a secured card, if you do not make a payment on time, the credit card issuer has the right to deduct your payment from the secured account you establish with them. Of course, to rebuild credit history and increase your credit score, it is VITAL that your repay these cards on time.
Posted in Financial Services Post Date 05/01/2017