When you are seeking pre-approved credit cards for bad credit, do not expect huge lines of credit or great interest rates. That said, you can get your hands on a credit card with no credit check and begin to rebuild your credit score a little bit at a time.
Getting More Credit and Better Interest Rates
Many of these cards require a processing fee that activates a $300 line of credit for you. As you pay back what you use on time, your credit line can be re-examined and raised. As you show the card issuer that you are wisely using credit, you can graduate into better card deals without the high interest rates that accompany most pre-approved credit cards for people with bad credit.
Pre-Approved Credit Card Fees
Some pre-approved cards have no credit check, no monthly fee and no annual fee. Those are the ones that you should opt for first. Others have annual fees that will cost you around $10/month, but they do allow for an increase your credit line from $300 once you use the card well.
Turning Bad Credit to Good Credit
Other cards work off an initial security deposit that you make. Then, they charge very high interest rates, but hopefully these are a temporary solution as you rebuild your credit score and can get access to other kinds of cards.
You also need to verify that your card issuer will report to all of the credit bureaus so that your score will be impacted. Your goal should be to move far beyond pre-approved credit cards for bad credit and into more normal credit agreements with reasonable interest rates and no strings attached.
If you are not able to pay the balance on these cards, the issuer will simply hold your security deposit and eventually nullify the agreement. Check for cards with low or no fees, a low interest rate and the ability to report to the credit bureaus.