What Are No Credit Check Credit Cards?   by Jack Bent

in Finance / Credit    (submitted 2011-05-05)

Using a credit card or debit card is an important financial tool. If you don't have plastic in your wallet, you won't be able to buy things online, and you'll be forced to carry hard currency everywhere you go, which can be dangerous. Getting a bank account with bad credit is next to impossible. If you try to apply for a traditional credit card with poor credit, you're very likely to be declined.

Since credit and debit cards are important financial tools, it is up to the consumer to do whatever they have to do to get hold of one. It is really common for retailers to accept only cash or plastic (as checks go the way of the Dodo) and paying bills online is impossible without a credit or debit card.

No credit check credit cards are very similar to debit cards in that your balance must be maintained in order to use the cards for purchases. Having bad credit history means you aren't going to be extended a line of credit that you pay off from month to month like with a traditional credit card. But using a prepaid debit card means you will be able to use your card to make purchases both online and in retail stores.

Almost every prepaid debit or credit card product is going to come with some fees. The trick is to find one with low fees and no annual fee. The actual amount of your monthly maintenance fee will be different from one card to the next, and it is common to find "hidden fees" after you activate the card . . . fees for reloading your card with cash, Direct Deposit fees, and annual fees on top of monthly fees. Before you select a no credit check credit card or prepaid debit card, read all the fine print. Remember that there are hundreds of prepaid debit cards to choose from, so you have no reason to use a card that charges both an annual and a monthly fee or any fee that you don't like.

Here are some of the more consumer friendly and most popular prepaid debit cards along with information about their fees.

AccountNow Prepaid Visa Card - $0 monthly, $0 annual
Upside Visa Prepaid Card - $2.99 monthly, $0 annual
Capital One Reloadable Prepaid Mastercard - $4.95 monthly, $0 annual
Green Dot Gold Prepaid Visa Card - $5.95 monthly, $0 annual
REACH Visa Prepaid Card - $8.95 monthly, $0 annual
Prepaid Visa Purple Diamond RushCard - $9.95 monthly, $0 annual
NetSpend MasterCard Prepaid Card - $9.95 monthly, $0 annual

Owning No credit check credit cards is an important financial tool, allowing you to pay bills online, use Direct Deposit for your paycheck, shop at stores, use ATM machines, and even build your credit. A prepaid credit card works like having an "online checking account" where your money is stored rather than in your wallet or a lockbox under your bed. Also, like a traditional bank based checking account, your money is FDIC insured up to $250,000.

About the Author

Jack Bent is a writer for NoCreditCheck.org, featuring financial advice on loans and other financial products available without credit checks.