Credit cards that advertise “no credit checks” may be attractive to those with low credit (FICO score of 629 or less) because their application will not impact your credit card. credit scores. But often these cards come with high fees and high interest rates – hence the name combine harvester cards.
They can let you dodge this Hard shot on your credit report, but you’ll pay it off in the long run.
But some credit card companies – especially the newer startups in the space – don’t advertise both without credit checks or fees of any kind. Many of these so-called alternative credit cards have proprietary underwriting technology that can assess creditworthiness by looking at other factors, like your bank account, instead of traditional factors FICO scores and credit history.
In short, if you have low credit, combine cards, and traditional cards secured credit cards are no longer your only options. Here are some low-cost, no-cost cards that don’t require a credit check.
Best credit cards without a credit check
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Chime Credit Builder Visa® credit card
Our choice for: Chime users
Security deposit: No initial security deposit is required. You decide your credit limit based on the amount you transfer to your secure account.
WHY WE LOVE
For those with poor or no credit, the Chime Credit Builder Visa® credit card removes many of the limitations of traditional secured credit cards. A Chime expense account – a free bank account which allows you to receive direct deposits – is required to obtain the card. You will also need at least $ 200 in direct deposits made to the Chime spending account in the last 365 days to show that you have a source of income.
However, this card does not require an initial security deposit like many secured credit cards do, so you are not paying $ 200 which will be wrapped up and untouchable for an indefinite period.
You can also decide how much you spend. The money you transfer from the Chime spending account to the secure Credit Builder account determines the amount of your credit limit. So if you move, say, $ 25 to your secure account, you will be able to spend $ 25 with the card. The money in the secure account can also be used to pay off the balance, and these payments will allow you to accumulate credit. For example, if you spend $ 15 on gas with your secure card, you can use that same $ 25 to pay off the $ 15. Your payments are reported to the three major credit bureaus.
The Chime Credit Builder Visa® credit card requires a Chime expense account to be eligible. It’s free to open one, but it takes some extra effort beyond just applying the card. And if you prefer the ability to carry a balance from month to month, this card doesn’t.
Tomo Credit Card
Our choice for: Rewards
WHY WE LOVE
The Tomo Credit Card, issued by the Community Federal Savings Bank, is ideal for those with poor or no credit. It earns 1% cash back and may offer a credit limit of up to $ 10,000, depending on eligibility. TomoCredit, the company behind the card, has proprietary technology that weighs many data points including, but not limited to, income (or potential income), account balances, and contact details. The bank uses this data to determine if you are a good candidate for the card.
To provide this information, you must link at least one account through Plaid, a third-party service provider. You can link a checking account, savings account, investment account or other eligible account. Payments are reported to all three major credit bureaus: TransUnion, Equifax and Experian. This is a must have feature when trying to establish credit because these companies collect the information used to calculate your credit scores.
The Tomo Credit Card may have features that are not ideal for everyone. For example, you cannot carry over a balance from one month to the next with the card. Plus, it forces you to start with a seven-day schedule in which payments are automatically deducted from your bank account.
Mastercard credit growth
Our selection for: Subscriptions
Credit check: The company only performs a smooth credit check, which will not impact your credit score.
Security deposit: None for most membership plans.
Costs: None with the free membership level. (The other levels will cost you dearly.)
WHY WE LOVE
The Mastercard credit growth is a virtual card issued by Sutton Bank that is user friendly for those with low or no credit. Grow Credit has proprietary technology that examines income to assess creditworthiness. To weigh this information, the company asks you to link a bank account through Plaid.
With the card, you choose one of four membership plans that help you build credit when you pay monthly subscriptions or eligible bills. For example, if you normally pay $ 8.99 per month for Netflix, you can make that payment with the Mastercard credit growth. Payments, if made on time and in full, will strengthen your credit. (Qualifying subscriptions and bills vary by membership plan.) It reports payments to the three major credit bureaus.
You cannot use the card for transactions other than eligible invoices and subscriptions. You also cannot carry forward a balance from one month to the next.
Note that two of the paid membership plans – the Grow membership level (cost about $ 60 annually) and the Accelerate membership level (nearly $ 120 per year) – are not worth the cost. It is money that you will not get back. You are better off with Grow Credit’s Free Membership Plan or Secure Membership Plan. It is also worth exploring a secure credit card which offers a chance to get your deposit back.
OpenSky® Secured Visa® Credit Card
Our choice for: Those who are not banked
Security deposit: A minimum deposit of $ 200 is required.
Costs: A $ 35 annual subscription. Depending on your transactions and payments, other fees may apply.
APR: The current APR is 17.39% variable APR.
WHY WE LOVE
The OpenSky® Secured Visa® Credit Card is a traditional secured credit card ideal for those with low credit. Among 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 the three credit bureaus and allows you to keep a permanent balance.
The card’s minimum deposit requirement of $ 200 can be a hindrance for some. And while the $ 35 the annual fees are low, it is possible to find secured credit cards that do not charge an annual fee. The OpenSky® Secured Visa® Credit Card also doesn’t offer a way to switch to an unsecured card once you’ve established a good payment history, so you’ll need to close your account if you want to get your security deposit back.
GO2bank secure credit card
Our choice for: A low security deposit
Security deposit: A minimum deposit of $ 100 is required.
Costs: Annual fee of $ 0. Depending on your transactions and payments, other fees may apply.
APR: The current APR is 22.99% (at the time of writing).
WHY WE LOVE
The GO2bank secure credit card is a solid option for those with poor credit. To apply you will need to have a GO2bank account and direct deposits totaling at least $ 100 within the last 30 days. There will be no credit check to apply, and it has a relatively low minimum security deposit requirement among secured credit cards: $ 100. The amount deposited determines your credit limit.
As with a regular credit card, the lower the credit limit, the less you’ll want to spend. Use less than 30% of your available credit limit can help your credit score. The GO2bank secure credit card also reports your payments to the three credit bureaus, which helps you build your credit.
In addition to the required security deposit, the GO2bank Secure Credit Card also requires that you have a GO2bank account to be eligible, which adds another step to the application process. It doesn’t offer a way to switch to an unsecured credit card once 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 an overseas transaction fee of 3% on every purchase, so it’s not ideal for traveling overseas.