Finding a No Credit Check Credit Card

by Tracy Murray-Crouch

Part of becoming an adult is establishing your credit. As much as we’d all love never having to borrow money for anything we need, that’s just not realistic. If you want to own a home or a car, you probably have to have credit (well, I supposed you don’t have to borrow for cars, but most people aren’t willing to save enough to buy the car they want, and they’re not willing to drive the car they could actually pay cash for). So you’re going to need some credit, which means you need to use the right tools to help you start building your credibility as a borrower. A no credit check credit card is going to be one of those tools.

Let’s be clear about what credit cards with no credit check are. They’re not high limit cards; they’re very low limit. They’re not fee free cards, they almost always come with fees. And they’re usually not unsecured cards; they’re usually prepaid or secured. So, you’re going to be paying for this credit building tool, and it’s not going to be glamorous. We’re not talking about an Amex Black card you see the rich folks and the celebrities walking around with.

Essentially what’s happening here is the credit card provider is saying “you have no experience with credit, and there’s no proof or even evidence that lending to you is a good idea. We’ll give you a card that allows you to borrow up to the amount you keep on deposit with us, and then we’ll watch how you use it. If you’re smart about it we’ll start to bump up your privileges with the card and eventually allow you to use the card beyond the amount of your security deposit.”

This is one of the real ironies of building up your credit with a no credit credit card. The more effectively you do it, the more easy it becomes to bury yourself in credit card debt. Don’t make that mistake. I personally don’t think it’s a bad idea to have a couple of credit cards with high limits, but you want them there strictly for emergencies. There’s no reason at all to get in the habit of actually using these cards or carrying a balance.

So yes, you need credit, and getting credit cards with no credit can help you make your name with the credit agencies. You really just need to be so careful about how you do it because credit can either be your best friend or your absolute worst enemy, and you get to decide which.

Related posts:

1. Finding High Interest Loans for People with Bad Credit
2. Finding Secured Credit Cards During Chapter 13 Bankruptcy
3. Getting a No Credit Credit Card
4. Should You Get a Secured Credit Card?
5. The Best Credit Card Offers
6. Should You Do a Credit Card Consolidation?