Credit cards that advertise “no credit check” may be attractive to people with poor credit history (FICO scores 629 or lower) as applying for them will not affect your credit ratings. But often these cards come with high fees and interest rates – hence the name. header cards.
They can let you dodge it hard thrust on your credit report, but you end up paying for it.
But some credit card companies, especially new startups in the industry, do not advertise any credit checks or any fees. Many of these so-called alternative credit cards have patented underwriting technology that can assess creditworthiness by looking at other factors, such as your bank account, instead of traditional FICO scores and credit histories.
In short, if you have bad credit, harvest cards and traditional secured credit cards are no longer your only options. Here are some low and free payment cards that don’t require a credit check.
Best credit cards without credit checks
Our pick: Awards
WHY WE LIKE IT
Issued by the Community Federal Savings Bank, the Tomo Card is ideal for people with or without bad credit. It returns 1% cashback and can offer a possible credit limit of up to USD 10,000, depending on eligibility. TomoCredit, the card company, has patented technology that analyzes a variety of data points, including but not limited to income (or potential income), account balances, and contact information. The bank uses this information to determine if you are eligible to receive the card.
To provide this information, you need to link at least one account through Plaid, a third party service provider. You can link a checking account, savings account, investment account, or other suitable account. Payments are communicated to everyone three main credit bureaus: TransUnion, Equifax and Experian. This is a must-have feature when you are trying to get a loan because these companies collect information used to calculate your credit ratings.
After receiving pre-approved the card may require a long waiting period to receive an invitation to formally apply. The Tomo Card may also have some features that may not work for everyone. For example, you cannot transfer the balance from one month to another using a card. Also, you need to start with a seven-day schedule where payments are automatically debited from your bank account.
Enlarge Credit Card Mastercard
Our pick for: Subscriptions
Credit check: The company only conducts a soft credit check, which will not affect your credit rating.
Fees: No with free membership tier. (Other levels will cost you.)
WHY WE LIKE IT
Grow Credit Mastercard is a virtual card issued by Sutton Bank that is convenient for people with or without bad credit. Grow Credit uses patented technology that checks income to assess creditworthiness. To weigh this information, the company requires you to link a bank account through Plaid.
With the card, you select one of three membership plans to help you accumulate credit when you pay for your eligible monthly subscriptions or bills. For example, if you usually pay $ 8.99 a month for Netflix, you can make that payment using your Grow Credit Mastercard. Payments, if made on time and in full, will increase your creditworthiness. (Eligible subscriptions and bills vary by membership plan.)
Line of credit actually installment loan and this is reported to all three major credit bureaus.
You cannot use the card for any transactions other than the corresponding accounts and subscriptions. Also, you cannot transfer the balance from one month to another. Plus, it’s tied to an installment loan, so it doesn’t stay open like a traditional line of credit. If you want to keep the loan open after a 12 month period, you will have to renew it.
Note that the two paid membership plans – the Grow membership tier (about $ 60 per annum) and the Accelerate tier (about $ 120 per year) – don’t pay off. You will not return that kind of money. You are better off using the free membership plan or opt instead secured credit card which gives you a chance to get your deposit back.
Chime Credit Builder
Our pick for: Chime users
Pledge: No advance deposit required. You set your credit limit based on how much you transfer to your secure account.
WHY WE LIKE IT
For those with bad credit or no credit, Chime Credit Builder’s Visa-protected credit card lifts many of the limitations of traditional secured credit cards. BUT Chime Spending Account – a free bank account that allows you to receive direct deposits – required to receive the card. You will also need at least $ 200 in direct deposit to your Chime Spending Account within the last 365 days to show that you have a source of income.
However, this card does not require an upfront deposit as is required for many secured credit cards, so you are not paying $ 200 to be packed and unavailable indefinitely.
You can also decide how much you spend. The money you transfer from your Chime Spending Account to your Credit Builder secured account determines your credit limit. Thus, if you move, say, $ 25 to your secure account, you can spend $ 25 with a card. The money in the secured account can also be used to pay off the balance, and these payments will allow you to get a loan. For example, if you spent $ 15 on gas with a secure card, you would be able to use that same $ 25 to pay out $ 15. Your payments are reported to all three major credit bureaus.
Chime Credit Builder Visa-protected credit card requires a Chime Spending account. It’s free to open the map, but it takes extra effort beyond the map app. And if you prefer to carry over your balance from month to month, this card doesn’t allow that.
OpenSky® Visa® Secured Credit Card
Our choice for: those who are not covered by banking services
Pledge: A minimum deposit of $ 200 is required.
Fees: BUT 35 USD annual fee. Other fees may apply depending on your transactions and payments.
Annual interest rate: The current annual interest rate is 17.39% variable per annum.…
WHY WE LIKE IT
IN Secured OpenSky® Visa® Credit Card This is a traditional secured credit card ideal for people with bad credit. Among the secured credit cards, this is one of the few that allows you to qualify without a credit check or bank account. It also reports payments to all three credit bureaus and allows you to keep a running balance.
Requiring a minimum $ 200 card bond may be an obstacle for some. And while 35 USD the annual fee is low, you can find secured credit cards that do not charge an annual fee. IN Secured OpenSky® Visa® Credit Card also doesn’t offer the option to switch to an unsecured card after you’ve set up a good payment history, so you’ll have to close your account if you want to get your security deposit back.
Secured credit card GO2bank
Our choice: Low security deposit.
Pledge: A minimum deposit of $ 100 is required.
Fees: Annual fee of $ 0. Other fees may apply depending on your transactions and payments.
Annual interest rate: The current annual interest rate is 22.99% (at the time of writing).
WHY WE LIKE IT
The GO2bank secured credit card is a great option for those with poor creditworthiness. To apply, you need to have a GO2bank account and direct deposits totaling at least $ 100 in the last 30 days. No credit check is required and it has a relatively low minimum margin requirement among secured credit cards: $ 100. The deposit amount determines your credit limit.
As with a regular credit card, the lower your credit limit, the less you will want to spend. Using less than 30% of the available credit limit your credit score can help. The secured credit card GO2bank also reports your payments to all three credit bureaus, which helps you get a loan.
In addition to the required security deposit, using a GO2bank secure credit card also requires you to have a GO2bank account, which adds an extra step to the application process. It doesn’t offer the option to switch to an unsecured credit card after you’ve established a good payment history, so you’ll have to close your account if you want to get your security deposit back. The card also charges a 3% overseas transaction fee on every purchase, so it’s not ideal for traveling overseas.