Credit Card Without Bank Account: The truth is more complex than the common misconception that obtaining a credit card requires having a bank account. Some options let people without bank accounts obtain credit, even though the majority of conventional credit cards require a savings account for verification and payments. Despite some limitations and requirements, these choices are intended for those with little access to banking.

Prepaid Credit Cards:

For those who don’t have a bank account, they can get prepaid or secured credit cards. This is one of the most accessible options. Prepaid cards work similarly to debit cards with credit-like characteristics, but you have to load money on them beforehand. Conversely, secured credit cards need collateral, like a fixed deposit. These products serve as a bridge for new or unbanked users because they don’t necessarily require an active bank account.

Also Read: H-1B Visa vs. Gold Card Visa: Key Differences Explained

Co-branded Credit Cards:

In recent times, many fintech firms have partnered with brands, retailers, and digital wallets to issue co-branded credit cards. Most of these credit cards give you a prepaid balance that is directly linked to your digital wallets. This allows you to do online shopping, booking tickets, and also paying bills. This is just like another credit card in a digital form. But the main difference is that these digital cards are not issued by the bank, and they won’t help you build your credit score.

Is Having a Bank Account for a Credit Card Important?

Even though you have various options for getting a credit card, experts suggest that you get a credit card linked to a bank account. This mainly helps you maintain a record of your credit history, income, spending, and also there will be creditworthiness with your lender too. For long-term borrowing or for better financial growth, it is advised to have a bank account.

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