Some card issuers actively seek new cardholders by offering pre-approval credit cards. This type of offer helps new cardholders feel more comfortable applying for a new card. Some cards come with intro offers that offer up to $300 cash back. These offers are especially appealing if you have bad credit.
Pre-qualification
A pre-qualification is a way to find out your approval chances before you apply for bad credit cards. Pre-qualification tools make use of soft inquiries to ensure you are not denied for credit cards. This can help you select better rates, terms, or products. It may take time to repair your credit. So it is best to wait until you apply for a new credit card.
While pre-qualification only considers a portion of your finances, submitting a formal application with all of your information can help increase your chances of approval. Major credit card companies such as American Express, Discover, Capital One and Discover offer pre-qualification.
Pre-approval
Pre-approval credit cards for bad credit help you reduce your risk of being declined. The card issuer typically bases these offers on pre-screened consumer lists obtained from credit bureaus. These pre-screenings can give you better product selections and more favorable rates. Before you apply for pre-approval, make sure to verify your credit reports for any errors or derogatory markings.
Pre-approval credit cards do not require a hard credit check. It does not take into account your debt to income ratio or complete payment history. It will not reduce your credit score. However, a hard credit review will affect your score temporarily. To minimize this risk, it is important to fully understand the terms and conditions of each pre-approval credit card offer before proceeding.
Secured
People with bad credit may be able to get a secured card. This card requires a security deposit, and can only be used for a specific time. Most of them report payment activity to one of the three major credit bureaus, Experian, Equifax, and TransUnion. Before you signup for a card make sure that you read all terms and conditions.
Security deposits are the primary difference between secured and unsecure credit cards. The security deposit typically ranges between $200 to $5,000 and is used as credit limit when opening an account. Secured cards have the advantage that you can access credit and build your credit history.
Unsecured
Bad credit can restrict your access to unsecured cards but it doesn't mean you won't be able to get one. Choose a card that is designed for people with less-than-perfect credit. You can still build credit by responsibly using these cards, even though they will have high annual fees or low credit limits. Keep your balance low and pay all of your bills each month to avoid paying high interest rates.
Unsecured credit cards are an option for those with poor credit. They can make a big difference to your budget. These credit cards are a safety blanket for those in need of immediate purchases. They also allow you to repay balances over time. 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 don't charge late fees. In addition, cardholders will be able to get an increase in credit limit after six months, provided they maintain their personalized credit score range. You will also be able earn cash back of 2% to 10% on certain merchant purchases
Many issuers offer low-maintenance pre-approved credit accounts. Before you apply for these cards, you should check your credit report and learn about the APR. Many issuers will conduct a soft credit check on applicants before approving them. The inquiry will not have any adverse effect on your credit score but will temporarily lower it. Before you sign up for any card, make sure to carefully read the terms.