No Credit Check Credit Cards
The current credit crisis sweeping the United States, as well as the rest of the world, has slowed the one flowing stream of credit card offers to a trickle that might not even get to your mailbox. If you’ve got credit, then you know that keeping your credit score good is of the utmost importance. However, thousands of men and woman all over the country may not have been as vigilant about their credit as they ought to have, and the recent economic uproar has only made it more difficult for these already troubled folks to find firm footing. No credit check credit cards provide the perfect solution for those with bad credit who get rejected for regular cards because of their poor credit history.
Oddly enough, one of the best ways of establishing good credit is through the careful use of credit cards. The credit industry is brutal. One small mistake can tank your credit score, and cause other accounts in your name to be closed. So, how do you start building a good credit history when you have no or poor credit to start with?
Well, luckily enough, you can still get a credit card without a credit check – even if you have poor credit history. The best way to get started building (or rebuilding as the case may have it) your credit is to get a secured credit card. These are the ideal credit cards for those who don’t have, or have very poor, credit! A secured credit card works a lot like a prepaid or gift card: you sign up for your card, and put money into your creditor’s bank account. The amount of money that you deposit will determine the amount of money available on your credit card. Depending on what card issuer you go with, you will be able to deposit more or less for a given credit limit. Let’s say that you want a $500 credit limit on your card – your lender may ask you for a $500 deposit, others may require $750 or even $1000.
Using a secured credit card is no different from using a regular credit card or a prepaid one The main difference is that secured cards are actually reportable, and will influence your credit score. Your debit card and prepaid cards don’t count for or against your credit, and therefore don’t report to any of the major credit bureaus. The only exception is if your card is tied to your bank account, and your bank account gets overdrawn. When you use a secured card, if you miss a payment or are late sending one, the issuer of the card can deduct the cost of your payment from the amount you deposited to their account when you first opened the card. It’s absolutely crucial to your credit that you repay any debts you incur on these cards on time, so don’t be late or miss a payment!