If you're struggling with bad credit, getting approved for a credit card can be a challenging process. But did you know there are pre-approved credit cards designed specifically for individuals with poor credit scores? In this article, we'll outline the best pre-approved credit cards for bad credit and help you get back on track with your credit journey.
Best Pre Approved Credit Cards For Bad Credit Table of Contents
What are Pre-Approved Credit Cards?
What are Pre-Approved Credit Cards?
Pre-approved credit cards are those for which you're likely to be accepted based on your credit profile. In most cases, issuers send out pre-approved card offers after analyzing your credit history and determining you meet their criteria. Although pre-approval doesn't guarantee approval, it significantly increases your chances, as issuers have already reviewed some aspects of your credit history.
Why Consider a Pre-Approved Credit Card for Bad Credit?
Having bad credit can limit your options for obtaining a credit card, making it difficult to rebuild your credit score. By using a pre-approved credit card responsibly, you can demonstrate to lenders that you're capable of managing credit and work toward improving your credit rating. Additionally, these cards often come with perks such as free credit score access or fraud protection.
Best Pre-Approved Credit Cards for Bad Credit
There are several pre-approved credit cards for individuals with bad credit. We've selected some of the best options to help you choose one that fits your needs:
- Capital One Platinum Secured Card
- Discover it® Secured Card
- Credit One Bank® Platinum Visa® for Rebuilding Credit
- Total Visa® Unsecured Credit Card
1. Capital One Platinum Secured Card
The Capital One Platinum Secured Card is designed for individuals with low credit scores. You're required to provide a security deposit, which can range from $49 to $200. This card offers a credit limit of $200 to $1,000, depending on your deposit. On-time payments can increase your limit without an additional deposit. Additionally, this card has no annual fees.
2. Discover it® Secured Card
A popular option, the Discover it® Secured Card, requires a minimum security deposit of $200, which also determines your credit limit. This card offers cashback rewards—a rarity among secured credit cards—giving you 2% cashback at gas stations and restaurants and 1% on all other purchases. You'll also benefit from free access to your FICO score, helping you monitor your credit rebuilding progress.
3. Credit One Bank® Platinum Visa® for Rebuilding Credit
The Credit One Bank® Platinum Visa® for Rebuilding Credit targets individuals with poor to fair credit. While this card doesn't require a security deposit, it does have an annual fee ranging from $0 to $99. You get 1% cashback rewards on eligible purchases and free credit score access with online monthly statements. This card can be a suitable choice for those looking to rebuild their credit without the need for a deposit.
4. Total Visa® Unsecured Credit Card
The Total Visa® Unsecured Credit Card is designed for people with bad credit and doesn't require a security deposit. However, there is a one-time processing fee and annual fees associated with this card. The credit limit is typically $300, and responsible usage can help improve your credit score over time.
Best Pre Approved Credit Cards For Bad Credit Example:
Imagine you have a credit score hovering around 550 and are looking to rebuild your credit. You decide to apply for the Discover it® Secured Card. After being pre-approved and providing the $200 security deposit, you receive a credit limit of $200. Over the next several months, you consistently use the card for small purchases and pay off the balance in full every month. You monitor your credit score and notice it gradually improving, thanks to your responsible use of the Discover it® Secured Card.
With the right pre-approved credit card for bad credit, you can start rebuilding your credit and work toward achieving a better financial future. Remember to use your new card responsibly, make on-time payments, and keep your credit utilization low. With the right habits and tools like the cards we've discussed above, you'll see your credit score improving in no time!
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