Similar to the bad credit credit card, a no credit credit card is issued to individuals who have no credit. These cards help in establishing or re-establishing credit. So the name 'no credit' here can mean that the person has not yet built up a credit rating or has lost his or her credit rating because of financial misfortunes. As such, a comparison of these cards will partially depend on which category you fall in. Persons with no credit history normally include students, young adults, immigrants, and divorced persons who had joint credit cards. Then of course there are those with a bad credit history due to bankruptcy or other financial difficulty. Firstly, choosing a secured is especially advisable if you have damaged credit history, and is trying to re-establish your credit rating? If bad credit is your problem and you want to improve your credit rating, a secured card is a viable option. Someone needing to establish a credit rating may be best suited to go with unsecured card unless they know their money management skills are inadequate. Regardless of the type of credit card being compared, the Annual Percentage Rate (APR) cannot be ignored. This is the annual rate at which interest is applied to credit card balances. This rate is of special concern to those who cannot or do not plan to pay off their balances monthly. Look for cards that report to credit bureaus, especially the main bureaus. If you obtain a card from an institution that does not report to these agencies your credit rating will not improve. Also, depending on your situation you may want to select a company that reports to more than one credit agency on a monthly basis. Monthly fees should also be compared, as well as the penalties for late payment. It is also important to see if there is a grace period from the due date of the card before penalties are applied. This is especially important for those cardholders who do not have a set date to receive their wages. All in all, no credit credit cards serve a useful purpose for those without credit. |
