No Credit Credit Card

A "no credit" credit card could be your first step towards repairing or establishing your credit history. When you're trying to fix your credit score, or if you're new to the credit world and simply don't have a credit history, you may find it is difficult to acquire a credit card. If you’ve already tried applying for a credit card through your bank, department stores, or even by contacting the credit card companies directly and you have failed, have no fear -- applying for a no credit credit card is easy and you have a much better chance of being accepted than with traditional credit cards.

Secured Credit Cards

A no credit credit card is also known as a "secured card" -- when a credit card is referred to as being "secured", this means there is an asset linked to the credit card account that the lender can take if you fail to make your payments. Think of a these cards as similar to mortgages or car loans -- these are examples of "secured loans" that many people are familiar with. If you fail to make your car or house payments, the lender will take your asset in order to satisfy the debt. The best no credit credit cards offer more than just credit building -- many offer their members reward points and other bonuses, just like a more traditional credit card.

You can get a no credit credit card with many banks and credit card companies in much the same way. You deposit a certain amount of money in an account to secure the credit card. For example, if you apply for a secured credit card with a $500 credit limit, you will be required to put a $500 deposit in the bank that is linked to the card. If you fail to make your credit card payments, the bank takes your deposit -- your bank deposit is the asset that the secured credit card companies can bank on if your account becomes delinquent.

Choosing a No Credit Credit Card

When choosing a no credit credit card, check the fine print to be sure that this secured credit is "reported to the credit bureaus" -- this means that making regular payments on your secured credit card will have a positive impact on your credit score. Secured cards that report to credit bureaus are useful tools in the fight to establish credit history. After you maintain a secured card account in good standing for a period of time, your credit will have improved to the point that you may be able to obtain a "standard" credit card or loan from the bank.

Now that you're ready to choose a no credit credit card, you may find it difficult to select one. There are so many to choose from, and such a variety of terms and conditions, that it can be difficult to know what you're looking for. The best no credit credit cards satisfy a few simple requirements, and may even provide perks that make your ownership of the secured card even more enjoyable.

The best place to start your search for no credit credit cards is at Bankrate -- look around their site for secured credit cards that meet your needs. You don't have to pay to apply for a secured credit card, so look for a card that doesn't charge any application fees. Every no credit credit card charges an annual fee, there's no way around this fact, but you can save yourself a ton of money by comparing these annual fees and choosing a secured card that isn't going to wipe out your credit limit before you've even had a chance to use it.

Credit Card Features to Consider

Other features to consider when selecting a no credit credit card -- deposit amount, purchase points or bonus programs, and any "hidden" fees that may exist. Each secured credit card is different. The best no credit credit cards have a depost amount between $300 and $500, and offer their customers a credit limit that is a certain percentage above this low deposit amount. If you can find a secured card that also offers their customers rewards or a "purchase point" system, so much the better. You can use these purchase rewards to literally "reward" yourself for making your payments on time. Do be aware that some no credit credit card offers are little more than scams, and the existence of hidden fees will pretty much let you know right up front that a particular card is one to be avoided.

For example -- many secured cards "require" their customers to purchase what is called an "insurance policy" at the staggering rate of $50 or $60 monthly. At this rate, you will have spent as much on this unneccesary "insurance policy" as you did on your deposit in a short 5 or 6 months. Do not apply for a no credit credit card that requires you to purchase insurance or has built in monthly fees. Remember, every secured card charges an annual fee -- but you shouldn't have to pay much more than that.

Best No Credit Credit Cards

In my opinion, these are the best no credit credit cards on the market right now. They have low annual fees, no hidden fees, and many offer their customers reward programs for "good behavior". If you're looking to repair your credit or build credit history for the first time, these are the best no credit credit cards to start your search.

This is just a sample of the best no credit credit cards -- there are many more that are perfectly viable, and really want to help their customers establish or build credit. Remember, when looking for a secured credit card avoid cards that stack up hidden fees, monthly fees, "card fees", or require you purchase an expensive "insurance policy" in order to obtain your card. There are plenty of credit card companies that offer no credit credit cards to help their customers -- there's no need to get involved in a bad business deal just to put a credit card in your wallet.

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