Credit Card Debt Relief

Wednesday, March 7, 2012

Pre Approved Credit Cards For Bad Credit

Understanding Pre Approved Credit Card Offers

Pre-approved credit card offers are quite tempting. Most try to lure consumers in with extremely low interest rates. In some cases, there is no rate at all. This is known as the 0% APR offer. For some situations, such an offer can get a person's credit back on track; for others it could lead them to financial ruin. To determine which side you are on, there are a few things you need to think about.

First, you need to evaluate your credit score. Pre-approved credit card offers are sent to two parties: those who have a good financial history, and those who are struggling. The latter often centers on people with bad credit or individuals who just filed for bankruptcy.

If you fit into either category, you may not get approved for the interest rate being advertised. This is because legally credit card companies are not obligated to a particular set of terms when sending out pre-approval offers. The deal presented through your mailing may not be what you end up with.

This leads to a second element of concern. If you have bad credit, you must weigh the risks of applying for a pre-approval offer. In addition to possibly getting a higher interest rate, you may suffer a lower credit score due to the inquiry process. For those who are trying to re-establish their credit history, these risks may be worth it. However, if you are trying to buy a house, the lowered score may hinder your mortgage application.

Finally, whether you have good credit or not, you must think about how you are going to use your credit card. If you got approved at 0% APR, now is the time to transfer your highest balance and make as many payments as you can to remove it from your financial history. It is best to do this before the introductory APR ends, so you do not get charged interest. Do this enough times and you will eliminate your debt while still establishing credit. This will help offset any negative effects your credit experienced during the inquiry process.

In conclusion, pre-approved credit card offers can be helpful for the right situation. For those who get 0 percent interest, these cards present an opportunity to pay off debt without incurring more fees. In other cases, such offers do not provide anything special. Still, for those recovering from bankruptcy, such cards still give them a chance to clean up their financial history. In either case, make sure you carefully read the terms and conditions before committing yourself to any offer.

Are you interested in balance transfer credit cards and other special offers? visit for information you need for successful credit card applications.

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