Where to Get No Credit Check Credit Cards?

If you are searching for credit cards with bad credit rating that do not require credit checking, then you can easily find them out via searching the market. According to the Bank of America, the charge-off rate peaked in August 2009 when a change from 13.81 to 14.54 was recorded in these rates. In past recent years, lending institutions and lenders have become more careful regarding lending money to borrowers. If you are facing earlier bank default then bad credit rating credit cards are perfect for you. These credit cards enable you to pay freely for the services and other items you buy. Moreover, these credit cards also help you to raise your credit rating.

Credit Cards without Credit Checking

Credit Cards without Credit Checking

You can take out bad credit rating credit cards that are available without credit checking only if lender can provide protection to its legal business interest. In the current economic recession, lenders do not provide unsecured credit cards without credit checking. This is because the risk of not getting repayments is very high. When it comes to guaranteed bad credit rating cards then it mean secured credit cards and other prepaid credit cards. The worth of these cards depends upon the retailers concern to these cards. However, the ways by which these cards are funded are quite different from normal cards.

Secured Bad Credit Rating Cards

These credit cards are of great help of earlier defaulters, as these credit cards offer a considerable credit limit that depends on the provision of the type of collateral. This condition allows lenders to recover the lending money from the borrower who becomes default. Cash deposit or property, these two are the commonest types of collateral that are most widely used.

The monthly repayments will be the same as the any other conventional credit card. However, if the borrower fails to comply with the terms and conditions of their loan agreement then in this event they could loss the collateral.

Guaranteed Approval Prepaid Credit Cards

Guaranteed Approval Prepaid Credit Cards

If you are not able to provide security can take out a prepaid credit card and this is the perfect alternative for them. This is because you can save your collateral loosing their possession if you become default. These cards do not require credit checking and their approval is guaranteed, as there is no limit for the credit. Borrower has to pay a registration fee and a percentage for transferring onto the prepaid credit card.

Advantages & Disadvantages of Credit Cards

With a bad credit rating credit card, borrower can raise his/her poor credit history. They can control their expenditure and keep themselves away from personal loans. This clearly shows that borrowers can apply for mainstream credit cards in future by raising their poor credit score. The downside is the high interest rates. Moreover, the payments for prepaid credit cards are not notified to the credit bureaus, so there is no credit facility.

 

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One Response to “Where to Get No Credit Check Credit Cards?”

  1. sarena says:

    Great post

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