Is it possible to get a credit card without a bank account?
Having a bank account is an important step towards financial independence and control.
Opening a suitable account that meets all your needs, whether that's a bank account that comes with online/SMS text banking, an overdraft or a cheque book, can give you a convenient, efficient and practical way of managing your finances - and will be a lot safer than keeping all your money under the mattress!
However, you don't have to have a bank account by law, and some people do go about paying their monthly bills and receiving payments without actually having an active current account - however complicated this can potentially make everyday money management.
There are various bank accounts out there. But can you get a credit card without having a bank account first? Let's take a quick look.
Borrowing without a bank account
Borrowing money if you don't have a bank account is generally more difficult - but not necessarily impossible. Some lenders may offer smaller loans to people without a bank account - but as a rule, borrowers may be expected to pay higher interest fees and charges for any credit they do successfully apply for.
When it comes specifically to getting a credit card without a bank account, a prepaid card may be the best option that will be available. They can be used in shops and online to pay for goods and services and basically work in much the same way as debit cards: money has to be loaded onto the card before it can be used, so there's no chance of you actually going 'overdrawn'.
But what approach could you take if you really want a bank account - but the debt problems you've had in the past mean you can't open a 'standard' bank account? A no credit check bank account could be suitable.
Getting the bank account you need
You may be in the position where you're looking for a suitable bank account that comes with a credit card - but your credit rating is stopping you.
If you've had financial problems in the past, and you've damaged your credit rating as a result, you may have problems opening a bank account - and therefore, getting a credit card with one.
If you have a bad credit history, it's likely you'll struggle to open a standard bank account. The same goes for applying for further credit - lenders may well be concerned that you won't repay everything you owe if you've had debt problems in the past, and therefore will generally be unwilling to let you borrow any further money.
However, one of the best ways around both of these problems is often to open a basic bank account. This type of bank account doesn't require a credit check (unlike most standard accounts), so you should be able to open one - and have a convenient way of storing your money and paying bills/receiving payments - even if your credit rating is less than ideal.
What's more, even though a basic bank account won't come with a credit card or overdraft, it could help you get back on your feet and repair your credit rating - so you could successfully apply for a credit card further down the line.
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