How Do I Get a Credit Card Without a Credit Check
For people with a bad credit rating, the intelligent use of a credit card is one of the methods that make it possible to regain points. However, this is often denied to those who have a low credit score. Are there ways to get out of this vicious circle and obtain a credit card without a credit check?
Take out a secured credit card
It’s rare to be granted a conventional credit card when you have a bad credit rating. However, there are other forms of credit cards that are accessible to the majority of applicants, because they allow financial institutions to avoid taking risks. One of the alternatives to the traditional credit card is the secured credit card. This is intended for people with a credit score lower than 500 points who no longer have access to credit after—for example—payment defaults. The condition is that they must make a deposit at the financial institution that issues it. The amount of its limit is equal to the amount blocked, which guarantees to the financial institution the payment of all purchases made with the card.
Opt for a prepaid card
Another solution is to apply for a prepaid card. This works somewhat like a debit card, since this type of card only allows you to spend up to the amount transferred to the prepaid card. To use it, simply load the card with the desired amount and use it to make your purchases. However, this option is of limited benefit: because the payments made with these cards are rarely reported by lenders to credit bureaus, they don’t always help you regain credit points.
Apply for a credit card with home equity as collateral
This solution reserved for property owners involves offering the lender a guarantee on your property within the credit limit granted. You therefore obtain a credit card without depositing funds. In case of a payment default, the financial institution can use their guarantee to recover the funds loaned. Obtaining this type of card is usually accompanied by membership and guarantee fees. It should be noted that this solution must be used with caution and the card must come with a reasonable limit to avoid any abuse and endangering the estate.
Obtain a pre-approved card
It’s not uncommon to receive offers for pre-approved credit cards with no conditions. Generally speaking, these cards have high interest rates. However, they are often accompanied by a promotion offering a low rate—or even no rate—for a limited time. As long as you only use it during the promotional period, this type of card may be an attractive option for regaining credit points.
At first glance, the credit card without a credit check may seem unappealing, since you must first make a deposit for a secured card or a prepaid card, or else pay fees in the case of a card with home equity as collateral. However, it’s a good way to rebuild your credit report as long as you pay your bills on time and don’t exceed half of the authorized limit. In addition, after one year of incident-free use, it’s usually possible to obtain a conventional credit card and recover your deposit.