Some credit card issuers actively solicit new cardholders with pre approval credit card offers. This type offer allows new cardholders to feel more confident applying for a new account. These cards offer intro offers up to $300 cashback. These offers are especially appealing if you have bad credit.
Pre-qualification
Pre-qualification for poor credit cards allows you to know your chances of approval before you apply. Pre-qualification tools allow you to avoid being declined for credit cards by using soft inquiries. This process will allow you to pick better products, terms, rate, and other benefits. It will likely take some time to fix your credit. Therefore, it is a good idea not to apply for a new card until you have repaired your credit.
Pre-qualification will only look at a part of your finances. However submitting a formal request with all information can help increase the chances of approval. Pre-qualification is available through major credit card companies, such as Capital One, Discover, and American Express.
Pre-approval
You can reduce the chance of your application being denied by pre-approval credit cards for people with bad credit. These cards are usually based on pre-screened consumer list that the card issuer has obtained from credit bureaus. These pre-screenings could give you more product options and better terms and rates. You should check your credit report for errors and other derogatory marks prior to applying for preapproval.
Pre-approval credit cards use a soft credit test that doesn't look at your full payment history or debt-to-income ratio. It will also not lower your credit score. However, a hard credit check will ding your score temporarily. This risk can be minimized by understanding the terms and condition of each preapproval credit-card offer.
Secured
If you have bad credit, a secured loan card may be an option. This card does not require a security deposit. It is only available for a very limited period of time. Most of them report payment activity to one of the three major credit bureaus, Experian, Equifax, and TransUnion. Before you sign up for any card, be sure to read the terms.
The primary difference between a secured and an unsecured credit card is the security deposit. A security deposit can be anywhere from $200 to $5,000. It serves as your credit limit, and will usually be required when you open an Account. The advantage of a secured card is that you have access to credit and can start building your credit history.
Unsecured
Bad credit can limit your access to unsecured credit cards, but that does not mean you can't get one. It is important to select one that is targeted at people with lower credit scores. You can still build credit by responsibly using these cards, even though they will have high annual fees or low credit limits. Avoid costly interest fees by making sure you pay your bills on-time and keeping a low balance.
An unsecured credit card is an option for people with bad credit, and it can make a huge difference in your budget. These credit cards can provide an emergency fund and allow you the ability to pay off any outstanding balances. You can even transfer your balances to unsecured credit cards, which can help you rebuild your credit.
Low-maintenance
Pre-approved credit cards with low maintenance fees can be a good option for people with low credit scores. These cards have a low annual charge, no monthly fee, as well as no international transaction charges. They also do not charge late fees. Cardholders will also be eligible for an increase in credit limits after six months provided that they keep within their credit score range. In addition, cardholders will be eligible for cashback of up to 10% at selected merchants.
Low-maintenance pre approval credit cards are available from many issuers. You should review your credit reports and find out about the APR before you apply for these cards. Many issuers will do a soft credit review on applicants before they approve them. This inquiry will not have a negative effect on your credit score, but it will lower your credit score temporarily. Before signing up for any card, it is important that you read all terms and conditions.