Are you in need of a new credit card but don’t wish to make a deposit as is often required? Finding programs for bad credit with no deposit required can often be difficult, but if you know where to look there are offers that can help you avoid putting money down as collateral. Let’s explore some of the basics on how to find these offers and how to avoid a deposit.
When it comes to plastic there are a couple options that are traditionally offered, and it is important to know the difference to avoid any up front deposits for approval. Generally, when your credit rating is extremely bad, you are reduced in options to either prepaid program offers and unsecured. Let us explore the difference between the two and find out where to find the best offer for your situation.
When searching online, secured cards are a very common program that are easy to get approved for and do not require much in the way of a good credit history. These prepaid secured lines can provide easy approvals because they require you to fund, or deposit, cash into the account as collateral into the account before you are able to use them. These card offers are also sometimes called secured cards because of the requirement of up front deposits to offset the risks.
Some consumers stop their search right there, thinking there are no other alternative programs offered.
With a more in depth search one can also find that there are prepaid cards that offer programs that will fund that deposit directly from the credit line you get approved for, thereby making them no deposit credit offers for bad credit. Let us look at how these offers work.
These no deposit card offers will approve you for a credit line and instead of requiring a deposit will begin your credit line with this amount deducted from your total credit limit. In this way they can offset the higher risk of approval but still provide you with a secured credit line with no deposit required. When faced with few other available options, this program can often provide the second chance required for you to reestablish a good credit history.
In summary, to find the programs, you need to confine you search to programs that offer unsecured credit lines for people with bad credit. Secured cards and prepaid cards inherently require the deposit you are looking to avoid. Remember to maintain on time payments with your new credit card as there is no substitute for improving your credit score and the benefits that come from your rebuilt good credit history