No Credit Check Credit Cards: An Economical Aid or a Drawback?
It is a well known fact that the world is undergoing a rough financial situation nowadays. The international financial crisis has a global impact, leaving hundreds of people out of work every day. The people who were once in a good financial situation are now undergoing economical hardships and find it difficult to obtain a credit card.
In these cases, a no credit check credit card seems like the best way of getting back on your feet. The companies that offer them will provide you one of these also known as pay as you go credit cards and highlight their pros. They will tell you that you do not need a credit check or bank account to get one of them.
So you will probably wonder what is it that you do need to get a no credit check credit card. The answer is money, which is ironic since that is what you do not have in the first place. Getting a no credit check credit card requires an initial payment to buy the card, but as time goes by you will find that you will need to pay for a lot more.
There are extra fees for every transaction you make with your no credit check credit card. The point is you will be paying for using your own card, for the privilege of spending your own money. Sounds funny, doesn’t it? You will find yourself struggling to find extra money to pay for these fees every time you decide to do something as simple as going shopping.
Basically, these cards will provide you no benefits over a debit card; it is the same, but with a little difference: you pay more with no credit check credit cards. Pay as you go credit cards offer you an illusion, the idea of having a credit card makes you feel like you do not have as many economical issues as you do.
Do not let yourself be cheated by these companies. If your main problem is debts, no credit check credit cards are not the option for you. You will end up acquiring more debts just to try to pay for the credit card fees. There is no point in this at all. These cards offer you no advantages or benefits whatsoever.
Also, there is the common knowledge that using no credit check credit cards can help you rebuild your credit score. However, this is not true. As a matter of fact if you chose one of this cards instead of the regular ones that can worsen your credit score.
So be smart and get one only if extremely necessary, that is, if for some reason you cannot obtain a debit card. Remember that if you are looking to stay away from debt and from spending extra amounts of money, no credit check credit cards are not the right choice for you.