Secured credit cards can give you purchasing power while helping you to build credit. As a condition of approval, you’ll typically need to offer up a security deposit which may also be your credit limit. The credit card issuer may ask you to link a bank account in order to transfer the funds for your deposit.
And this is where you might hit a snag. If you’re part of the 5.4 percent of American households that are unbanked, you might be wondering whether it’s possible to get a secured card with no bank account.
The good news is there are some secured cards that allow you to pay your security deposit using methods other than a bank account. For example, you might be able to mail in a money order or use a prepaid debit card to fund your account. Here’s a closer look at which secured cards you might be able to get, no bank account required.
When comparing secured credit cards, it helps to be conscious of your credit history and how much you can afford to put down as a security deposit. Some secured cards are suited to people with bad credit; others are designed for people who are starting from scratch with no credit history.
In terms of the minimum deposit, you might find cards that start as low as $49, while others might require $200 or more. Rewards are rare with secured credit cards, but there are some that offer cash back on purchases, which is something else to consider. Also, remember to weigh the fees and the interest rates.