Some card issuers actively seek new cardholders by offering pre-approval credit cards. This type of offer makes it easier to apply for a new credit card. These cards offer intro offers up to $300 cashback. 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 allow you to avoid being declined for credit cards by using soft inquiries. This process can also help you choose better products, terms, and rates. In most cases, it will take time to repair your credit, so it's a good idea to wait before applying for a new card.
Pre-qualification does not consider all aspects of your finances. However, it can increase your chances of being approved by submitting a formal application that includes all your information. You can pre-qualify through the major credit card companies like American Express, Discover and Capital One.
Pre-approval
Pre-approval credit accounts for bad credit reduces your chance of being declined. These offers are typically based off pre-screened consumer data that is obtained from credit bureaus. These pre-screenings might give you a better selection and more favorable terms. However, before you take the pre-approval route, be sure to check your credit report for errors or derogatory marks.
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. This risk can be minimized by understanding the terms and condition of each preapproval credit-card offer.
Secure
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. They typically report payment activity to one the three major credit agencies, Experian Equifax, TransUnion or Equifax. 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. A security deposit, which is usually between $200 and $5,000, serves as your credit limit and limits 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 make it difficult to obtain unsecured credit cards. But, that doesn't mean you shouldn't try. The key is choosing one that is geared toward people with less than perfect credit. These cards will generally come with steep annual fees and low credit limits, but you can use them responsibly to build up your credit score. Avoid costly interest fees by making sure you pay your bills on-time and keeping a low balance.
Unsecured credit cards are an option for those with poor credit. They can make a big difference to your budget. These credit cards offer a safety net for emergency purchases, and they also let you pay off balances over time. Balance transfer offers are offered by some unsecured cards that can help you to rebuild your credit.
Low-maintenance
Low-maintenance pre approval credit cards can be an excellent option for those with a low credit score. These cards have a low annual fee, no monthly fee, and no international transaction fee. They also do not charge late fees. Cardholders are eligible to have their credit limit increased after six months. However, they must maintain their personal credit score. They will also be eligible to receive 2%-10% cashback on select purchases made at merchants.
Many issuers offer low maintenance pre-approved credit card options. You will need to check your credit history and understand the APR before applying. Many issuers will run a soft credit investigation on applicants before they approve them. The inquiry will not have any adverse effect on your credit score but will temporarily lower it. Before signing up for any credit card offer, be sure to review the terms and conditions.