It is possible to get a credit card without a bank account. That is a fact. This is more of a debit card than a credit card. However, if you are looking for a credit card without a bank account then a prepaid credit card could be the right choice for you.
If you have little credit or are trying to establish credit, it can be a Herculean task to get credit. Many people have already come to realize that in order to get credit, they should have credit. Many people opt for secured credit cards. For this type of credit card, you need to open a bank account with the card provider and put money into that account which will function as collateral against your spending limit. Your spending limit will not exceed the amount in the account. In case you fail to pay your bills, the lender will use the cash in the account to pay your bills.
However, a secured credit card has its own drawbacks. The interest rates are higher than an unsecured credit card and the annual fees to are quite high. There are many who do not want a bank account with the lender for them the best option is prepaid credit card.
A prepaid credit card is nothing but a debit card. You provide the issuing company with a cash deposit and your prepaid credit card is loaded with an equal amount of your deposit. Once this is done, you are free to use the credit card as your wish based on your deposit amount. With a prepaid credit card you are paying your bills in advance. There are no interest rates and a prepaid credit card look like an ordinary credit card and no one will know the difference other than you.
Many companies are now offering prepaid credit cards and these companies will submit your transaction records to major credit bureaus which could be of importance to those who are trying to establish a credit record.
A prepaid credit card is one of the best ways to establish credit and if you do not have a bank account then this is the best solution at hand.
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