Aubrey Saffa Bender
Written by Aubrey Saffa Bender

Aubrey Saffa Bender has been a freelance journalist and journalist since 2013. She writes about topics that range from personal finances and education to technology and business. In her work for PaydayChampion, Aubrey primarily draws from her writing experiences regarding mortgages, home purchases, and real estate. She graduated with a B.A. with a major in English at The University of Colorado Boulder.

Pre-approved Credit Cards For Bad Credit

A pre-approved credit card is a credit card that has been issued to you based on your past credit history. The card issuer will have reviewed your credit report and decided that you are a good candidate for their card. You will still need to go through the application process, but it does mean you have a good chance of being approved, even with a bad credit score.

If you want a pre-approved credit card, compare credit card options and offers from different issuers. And remember: just because you are pre-approved for a card does not mean you must use it. Your payment history and annual income may affect your chances of getting a credit line increase. You can always decline the offer and look for another card that better suits your needs and gives you better access to credit.

Main Points

  1. Pre-approved credit cards are available for those with bad credit scores
  2.  The application process is still necessary even if pre-approved
  3.  Compare different credit card applications and options before making a decision
  4.  Consider factors like payment history, annual income, and access to credit
  5.  Being pre-approved doesn’t guarantee a credit line increase
  6. Credit card issuers offer pre-approved credit cards based on a user’s past positive credit history and a financial decision that demonstrates they are a good candidate for the card.
  7.  If you want a pre-approved credit card, shopping around and comparing offers from different Credit card issuers is important.
  8. Two distinct processes are receiving a pre-approved credit card and being authorized for the card after a credit application.
  9. Issuers run a mild credit check on you, paying attention to factors like late paymentstime payments, and credit utilization ratio, but it does not impact your credit rating.
  10.  Although there are offers for pre-approved student credit cards, getting one without a lengthy credit history could be more challenging.
  11. Preapproval for a credit card is never guaranteed since the card issuer decided you were pre-approved for a particular deal; your credit report may have changed due to factors like late payments or minimum payment fluctuations.
  12. Prequalification signifies that a lender has conducted a preliminary analysis of your financial situation or credit history, considering elements like annual percentage rate and savings accounts, and found that you have a reasonable possibility of being approved for credit if you apply.
  13. The best-preapproved credit cards include Destiny Mastercard, Credit One, and Milestone Gold Mastercard.

How Quickly Can I Obtain a Pre-approved Credit Card?

Receiving your card and being authorized for the card are two distinct processes. Depending on an issuer’s policies, the approval of an application often takes three to seven days. Some organizations undertake a soft credit check before immediately approving your online application. They may also check your income requirements and ratio to ensure you meet their criteria.

Before applying for the card, it is crucial to confirm the company’s approval time because it can differ from company to company. An issuer can hand assess your application and perform a hard check if you have a low credit score, especially if you are a bad credit borrower or have had credit issues in the past. This can take some time. It typically takes five to 14 business days after your card application is accepted for the mail to deliver your card to your mailing address.

Do Pre-approved Offers Have an Impact on My Credit Rating?

Issuers consider additional aspects, such as your income and monthly payment abilities, before granting a preapproval card. A pre-approved card might come with a statement credit offer, and it’s essential to check if the issuer will be considering a specific credit range or minimum credit history during the preapproval process.

They run a soft credit pull on you, but it does not impact your credit rating. The financial companies will thoroughly inquire about your limited credit if you accept the offer and apply for the card, which could temporarily reduce your credit score, potentially leading to a bad score.

Therefore, examining your credit history and report before applying for any pre-authorized cards is important. You must also understand the approval requirements to determine how negatively a company’s terms and conditions may impact your grades.

Card issuers can have unstated policies and fees, which might harm your credit and impair your capacity to pay credit card bills. Therefore, before applying, it is essential to know the annual cost, interest rates, balance transfer fees, and other hidden fees, such as refundable security deposit.

Along with the fees, it is good to know if the card issuer reports to the credit reporting agencies. This ensures that responsible card usage will positively affect your credit score. Additionally, be aware of the initial credit limit and how it might impact your monthly housing payment.

Can Students Access Pre-approved Credit Cards?

Yes, there are offers for pre-approved student credit cards. Although Discover is arguably the most well-known card provider for students, don’t limit yourself to just these cards. Other pre-approved credit card offers are visible to students (such as those for travel rewards cards), but getting one without a lengthy credit history could be more challenging. For future use of those kinds of offers, it is ideal for students to comprehend how to raise their credit scores thoroughly, Building Credit through options like an initial deposit or a credit-builder loan.

Can a Pre-approved Credit Card Be Denied?

Indeed, preapproval for a credit card is never a guarantee. Your credit report may have changed since the card issuer decided you were pre-approved for a particular deal. Because of this, card issuers still need to perform a hard check for approval on your credit report to see if you qualify for approval. The credit decision will depend on various credit scores and your Average credit standing.

How Is Preapproval Different From Prequalification?

Prequalification involves evaluating your eligibility for a financial product without affecting your credit score. It typically involves a soft credit check and results in various offers based on your creditworthiness. During the preapproval process, issuers assess your types of credit scores, Editorial content, and other data in detail to determine your eligibility. However, unlike the preapproval process, the issuer does not guarantee approval once they conduct a hard check for approval on your financial profile. The main difference is that preapproval is typically more likely to be approved than prequalification.

The distinction between “prequalification” and “preapproval” when discussing credit cards is less distinct than when discussing installment loans like mortgages.

Preapproval indicates that a lender has checked your credit and given you the green light. It typically signifies that you will be accepted when applying for credit.

Prequalification signifies that a lender has conducted a preliminary analysis of your financial situation or credit history and found that you have a reasonable possibility of being approved for credit if you apply.

However, credit card companies occasionally conflate these phrases. If you have been prequalified or pre-approved for a credit card, the issuer will probably approve you, but you will know once you apply.

Below are some statistics about pre-approved credit cards:

Number of pre-approved credit cards sent out each year1 billion
Percentage of pre-approved credit cards that are accepted20%
Average credit limit for a pre-approved credit card$5,000
Average APR for a pre-approved credit card15%
Most common reasons for getting a pre-approved credit cardBuilding credit, making purchases, emergencies
Most common risks of getting a pre-approved credit cardHigh interest rates, high fees, overspending
Best way to get a pre-approved credit cardCheck your credit report for offers
statistics about pre-approved credit cards

Best Credit Cards With Preapproval

Destiny Mastercard

The Destiny Mastercard is an unsecured credit card that can aid credit rehabilitation. The possibility of an additional deposit and a refundable deposit option offers more favorable terms to applicants. The card includes a Monthly reporting feature, which helps you manage your finances effectively. You can also benefit from cashback rewards at grocery stores and gas stations. The card offers online account access to manage transactions and track spending easily. It would help if you met the issuer’s basic criteria to qualify for this card. Suppose you’re looking for a card that offers flexible terms. In that case, Destiny Mastercard is the right choice for you, considering the additional deposit feature it provides for a specified time.

To raise your Cash Score, it helps to provide sound financial information to your record. It provides information on your financial situation and cash advance fee advancement to the three major credit bureaus in the US (TransUnion, Equifax, and Experian). You can also apply for your pre-approved Destiny Mastercard via a mobile device.

You must complete the online application form on their website to apply for the card online. It would help if you also considered looking for a card with rewards for educational purposes.

Furthermore, you don’t need excellent credit to apply for a Destiny card; you can still be authorized even if your financial position is unstable. A minimum deposit and an initial security deposit might be required, which can help with credit with savings.

Credit One

You may need to become more familiar with them because Credit One doesn’t offer travel rewards cards and only offers a few distinct credit card programs. However, they do have a cashback Circle program. Given that Credit One concentrates on offering services to persons with poor credit, it is an intriguing alternative for those trying to establish or repair their creditworthiness.

Be aware that most credit card providers that advertise their services to consumers with poor credit charge astronomically high-interest rates and other costs. Checking whether you have any prequalified offers is the most straightforward approach to determining if a Credit One credit card is your best option, especially when considering combined purchases and rewards for cash.

You may quickly determine if you are prequalified for any of their products by visiting their main website, or you can respond to a mailed offer. Other banks may not inquire about your total monthly income, phone number, or email address, among other things. Companies that offer competitive rates and Automatic reviews for account upgradeability could also be on your personalized list.

Understanding that submitting the prequalification form gives Credit One permission to share certain information with third parties is crucial. Credit One likewise requires your whole social security information, but it promises that filling out the form will keep your credit score the same. Look for additional features like unlimited cash rewards or an advantageous cashback rate.

Milestone Gold Mastercard

traditional card like the Milestone Gold Mastercard could provide options for Balance Transfers and offer the possibility of future balance transfers. It’s essential to carefully evaluate these options when choosing a credit card that suits your needs.

The wise usage of a credit card might help you improve your credit status if your credit is less than ideal and you need to rebuild it. An excellent choice for enhancing your credit and gaining financial security is the Milestone Gold Mastercard.

The Milestone Mastercard is unsecured for people who need credit but don’t want to put up a minimum security deposit. The card offers an affordable option with a payment schedule to help you manage your finances better. It is an excellent approach to improving your financial situation.

Additionally, applying for a Milestone card is much simpler than other cards on the market, as it requires only a soft pull on your credit report instead of relying solely on traditional credit scores.

The Milestone Mastercard is useful for tackling emergency expenses and having a quick approval process. Additionally, compared to many other credit cards on the market, this card has reduced upfront costs and automatic credit limit adjustments, making it more accessible.

One of the features of the Milestone Mastercard is its branded credit products, which help users establish credit without a large deposit credit limit. These products promote responsible usage and can lead to a credit limit increase over time, following a consistent payment schedule.

Indigo Card

If you are trying to raise your credit score and want to improve your credit history, the Indigo Platinum Mastercard is a great choice. The Indigo Card has yearly fees, but they’re worthwhile because it’s the greatest emergency credit card for credit repair. You can improve your financial status by paying your bills on time and following credit line reviews.

Additionally, students and those without credits can benefit from the Indigo Card. Since no credit check is needed to apply for the Indigo Card, people with bankruptcy are also eligible. However, the minimum credit score and applicable criteria should still be considered for better chances of approval.

The Platinum Secured Credit Card might be a good choice if you’re looking for an alternative. With an average approval rate, this card could help you build credit while offering benefits like credit against travel purchases. Just be mindful of meeting the requirements and maintaining accurate content in your application.

This card is a wonderful way to borrow money for unanticipated expenses despite the need for incentives and bonuses.

In addition, the Indigo Card is offered with prequalified and pre-approved offers. This preapproval card does not impact your credit ratings. In addition, obtaining a card only involves filling out a brief application. Our editorial staff ensures the presented information is accurate and up-to-date.

Surge Credit Card

Surge credit card app is a mobile app offered by some financial institutions that provide Surge credit cards. The app allows cardholders to manage their credit card account on the go. With the app, cardholders can typically:

  1. View their account balance and transaction history, including select merchants where they’ve made purchases.
  2.  Make payments on their credit card or claim their tax refund if applicable.
  3.  Monitor their credit score and aim to achieve maximum rewards for better credit management.
  4.  Receive real-time alerts for card activity impacting their $300 – $5,000 credit limits, such as large purchases or suspicious transactions.
  5.  By tracking eligible transactions, enjoy 2% – 10% cash back and other bonus offers.
  6.  Make use of the 1% flat-rate offer on various spending categories.
  7.  Utilize the 10-day grace period for late payment, minimizing potential penalties.
  8.  Experience the benefits of a $0-annual-fee Capital Surge credit card if available from their specific provider.
  9.  Freeze and unfreeze their card if lost or stolen, ensuring security, especially with select merchants.
  10.  Contact customer service for support or questions about their tax refund.

It is important to note that not all financial institutions offering Surge credit cards will have a mobile app, and the features available may vary. Cardholders should check with their specific provider for information on the availability and features of their Surge credit card app.

Pre-approved credit cards for bad credit chart

Frequently Asked Questions

Are there credit card options that guarantee approval for people with bad credit, and how do they work?

Yes, there are credit cards designed for people with bad credit that provide pre-approved offers. They work by having lower credit standards and higher fees and interest rates to offset the risk of lending to individuals with poor credit histories. These cards help consumers start building or rebuilding credit.

What are the key benefits and drawbacks of pre-approved credit cards for individuals with a bad credit history?

Benefits include guaranteed approval despite poor credit, ability to build credit by making on-time payments, access to credit for emergencies. Drawbacks include high fees, high interest rates, low credit limits, and lack of rewards compared to mainstream cards.

How can I find legitimate pre-approved credit card offers for bad credit, and what should I watch out for to avoid scams?

Check offers from major banks and lenders, be wary of unsolicited offers, research companies carefully before applying, look for secured cards which require a deposit, and avoid offers requiring upfront fees. Legitimate pre-approvals won’t guarantee a specific credit limit or rate.

What criteria do credit card companies typically consider when offering pre-approved credit cards to individuals with poor credit scores?

Credit card companies look at income, existing debts, payment history, length of credit history, bankruptcy status, and use of available credit when making pre-approved offers to those with poor credit. They use customized scoring models to estimate default risk.

How can using a pre-approved credit card responsibly help improve my credit score over time?

Making on-time minimum payments builds payment history, keeping balances low on credit limits shows credit restraint, and maintaining the account for the long-term demonstrates creditworthiness. This responsible card use can gradually improve poor credit scores.

Aubrey Saffa Bender

Aubrey Saffa Bender

Content Editor and Writer

Aubrey Saffa Bender has been a freelance journalist and journalist since 2013. She writes about topics that range from personal finances and education to technology and business. In her work for PaydayChampion, Aubrey primarily draws from her writing experiences regarding mortgages, home purchases, and real estate. She graduated with a B.A. with a major in English at The University of Colorado Boulder.