Do you need a credit card but can’t get one because your credit is in the gutter? For some people this is a big issue however their are alternatives such as Pre Approved credit cards, and in this article I’m going to cover just what exactly they are, how they work, who is best suited for a card like this, and finally I’ll also show you which card I recommend to get.
What Are Pre Approved Credit Cards
A pre approved credit card is a secured credit card that is backed by an asset, cash. Unlike normal credit cards which are backed by the credit and good faith of the person using it. In fact these types of credit cards are typically tied to a checking or savings account and can be withdrawn from regularly. However the internal workings of these cards are total different than unsecured credit cards.
Here are a few to consider.
- Fees. First off these cards can have some terrible annual fees tied to them. In my research I’ve seen them range from as low as $29 to as high as $148.
- Rewards. These cards also carry no rewards what so ever. Unlike like normal credit cards which carry rewards such as 0% for 12 months, air miles, reward points, or even cash back options these cards usually do not carry any in fact if you do know of any pre approved credit card offers that do carry rewards leave a comment below.
- Signing Promos. These cards also do not carry any signing bonuses. For example, when I signed up for my Marathon Gas Card from Master Card they gave me 10% cash back any time I bought directly from Marathon for the first month. With a pre approved card you won’t get this kind of treatment.
Who Should Have This Card
With all the things you don’t get their are still a few groups of people who could benefit from having a card like this.
- Those With Bad Credit. First off, if you’re someone who has bad credit and can’t qualify for a regular credit card a pre approved credit card is the next best thing. On top of that these cards can also help in aiding to help build your credit as well.
- Online Users. This type of card is also great for those who like to buy stuff online but don’t want to use your normal credit card in fear that your information might fall into the wrong hands. With a pre approved visa credit card you could easily keep a small amount of cash on the card and use it specifically for online transactions.
- College Students. Finally if you have a son or daughter going to college and don’t want to give them a full blown credit card in fear that they might just cram it full of debt. A pre approved card would be a better option since it would allow the parent to monitor their transactions and keep a watchful eye over their money.
So now that we know who would best benefit from a card like this you might be wonder who has the best pre approved card with the lowest fees?
What Is The Best Pre Approved Credit Card
After all of my research of sifting through countless credit offers I found the Capital One Secured Master Card. This card has a $29 annual fee, no rewards, or sign bonus. On top of that this card also has no processing or application fees. This card also has an automatic reporting feature to report your info to the 3 major credit bureaus, helping you build up your credit. On top of that they also have tools to check your credit score and help you along the way.
In the end I feel this card is one of the best around. So what do you think is their a better card? Share your thoughts below.