Credit card regulations have made it difficult for people with bad credit or no credit to gain approved for a credit card account. Most credit card companies also require account holders to show proof of a savings or checking account through a bank. If you have no credit, bad credit or no bank account, it can seem impossible to be approved for a credit card. Fortunately, even people in these circumstances have options. Some lenders will approve credit cards at extremely high interest rates with annual fees, while others offer pre-paid cards.
Do an online search to compare current credit card rates. Bankrate.com offers a search feature for those with no credit, bad credit or those looking for pre-paid cards. The website also compares rates and information about each card to help you determine which is best suited to your needs.
Apply for credit cards that require no bank account. Your options might be limited, and expect high interest rates if approved. If not approved, contact the lender and request a detailed explanation. Ask for advice on how to be approved in future. If you are not approved, try another lender.
Purchase a pre-paid credit card. With a pre-paid credit card, you load money onto the card and purchases are subtracted from that amount each time you use it to make a purchase. You can add money to the card as many times as you wish. Carefully read the card’s requirements before purchase. Pre-paid cards can have many fees, including ATM cash withdrawal fees and minimum deposit fees. However, you also receive the convenience of paying with a card without having to worry about missed payments or late fees since once the amount you loaded has been spent, you can't charge anything further.
- Bankrate.com: Are Prepaid Cards Worthwhile?
- Discover Credit Card Resource Center. "What is a Secured Credit Card?" Accessed Feb. 28, 2020.
- Experian. "Prepaid Card Basics." Accessed Feb. 28, 2020.
- Consumer Financial Protection Bureau. "What Types of Fees Do Prepaid Cards Typically Charge?" Accessed Feb. 28, 2020.
- Discover. "Discover it Secured." Accessed Feb. 28, 2020.
Angela Campbell began writing professionally in 1997 for Easley Publications in Easley, SC, and later for Gannett newspaper properties. A graduate of the University of South Carolina's mass communications and journalism program, she has won numerous South Carolina State Press Association awards for spot news reporting, business reporting, feature writing, photography and page design.