Pre Approved Credit Cards - Are They Really Pre Approved

By: Art Penz

Nearly every time you look in your mail box, there it is another letter saying you're pre approved. Should you take it? Are you really pre approved? Or is it just the same old junk-mail? Well, it could be any of the above. Before most institutions send you a pre approval letter through the mail service, they already have a pretty good idea of your previous credit history.

Generally, you have filled out some kind of form in the past, perhaps was denied, or even maybe even approved, and the lender does have knowledge of this. Thus, the offers for cards start to arrive. Even if you have poor credit, you may still qualify for these types of credit cards. The offers for pre approved credit you get will depend on your FICO score. These offers can be secured or sometimes unsecured.

If you have poor credit, it is most likely your cards will be secured. This will mean that you have to pay some kind of deposit in order to have any kind of credit line. Furthermore, your available credit will never be more than your deposited amount. The amounts you can deposit usually will be listed in your offer, typically between 250 and 1,500 dollars. This type of card usually will have higher rates of interest and little to no perks, compared to other types.

If you have a good to perfect credit score, your pre approved offers will normally be unsecured, which means no deposit is typically required and you might benefit from a wide variety of perks, better interest rates, and rewards.

Either way, if you have great or poor credit; you can still obtain pre approved credit card offers from the most popular lenders. For those with a bad credit history, you do have a chance to work on re-building your credit and may be improving your credit score with these types of programs.

Make sure before you accept any offer, you check out the lender, their reputation, and make sure it is a valid offer, from a reputable lender. Never give your personal information without first checking out the credentials of the lenders, otherwise you may be accepting a fraudulent offer designed just to get your financial information.

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The author is the owner & operator of several successful financial websites for Mastercards and Visa Cards. For Visa cards for people with bad credit visit our website today.

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