Some credit card issuers are actively looking for new cardholders. This type offer allows new cardholders to feel more confident applying for a new account. Some of these cards have intro offers of up to $300 cash back. These are great for those with poor credit.
Pre-qualification
A pre-qualification for bad credit cards helps you know your approval odds before you apply. Pre-qualification tools are soft inquiries that help you avoid being denied for a credit card. This can help you select better rates, terms, or products. It can take time to repair credit so it's best to wait before you apply for a card.
Although pre-qualification is limited to a small portion of your finances it can greatly increase your chances for approval. You can pre-qualify through the major credit card companies like American Express, Discover and Capital One.
Pre-approval
You can reduce the chance of your application being denied by pre-approval credit cards for people with bad credit. These offers are often based upon pre-screened consumer databases that the card issuer receives from credit agencies. These pre-screenings might give you a better selection and more favorable terms. Before you apply for pre-approval, make sure to verify your credit reports for any errors or derogatory markings.
Pre-approval credit card cards do not use hard credit checks. They only look at your credit history and debt-to–income ratio. This will not affect 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.
Secure
People with bad credit may be able to get a secured card. This type of card requires a security deposits and is usually only good for a brief time. They report most payment activity to one or more of the major credit bureaus: Equifax, TransUnion, and Experian. Before you signup for a card make sure that you read all terms and conditions.
The security deposit is the main difference between secured and unsecured credit cards. The security deposit typically ranges between $200 to $5,000 and is used as credit limit when opening 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. The key is choosing one that is geared toward people with less than perfect credit. Although these cards come with high annual fees and limited credit limits, you can still use them responsibly to improve your credit score. Avoid costly interest fees by making sure you pay your bills on-time and keeping a low balance.
Bad credit can be helped by an unsecured credit line. These credit cards can provide an emergency fund and allow you the ability to pay off any outstanding balances. Balance transfer options are available on some unsecured credit card, which can help to repair 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 are low in annual fees and have no monthly or international transaction fees. There are no late fees. Cardholders can also get an increase in credit limit for six months if they keep their personal credit score. In addition, cardholders will be eligible for cashback of up to 10% at selected merchants.
Many issuers offer low-maintenance pre-approved credit accounts. 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. 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.