Pre Approved Credit Card Application in the mail, Should I Accept?

Credit Cards Questions and AnswersI received a pre-approved credit card offer in the mail. I have never had a credit card before. This letter said I was pre-approved for a Visa credit card. This card has a forty dollar annual fee. Is that too much??? I was thinking of applying for a credit card with no annual fee.

Sarah P.
Tampa Bay, Florida


It would be in your best interest to sign and send that letter back. For your credit category of no credit, this is an excellent deal. Many people with no credit, get credit cards with very high fees. Some people have paid more than three hundred dollars in fees just to get a credit card in the bad credit or no credit category.

Keep in mind that the letter you were sent is not a one hundred percent guarantee for approval. Sometimes a credit card company will do what is called a look see into your credit history. At the time they reviewed your credit you may have had a completely clean credit report with no credit history. You may have been given this pre approval invitation for that reason. If you send your letter back a few weeks later and the credit card company has seen that since then you have eight credit inquiries. This would be eight credit inquiries where you requested credit from eight different lendors you could potentially be considered a credit risk. You may receive a letter from that credit card company that will deny you the credit card you were initially approved for. There could be a number of other reasons why you could be denied. Just remember a pre approved accteptance letter is never a guarantee for credit. What is a pre approved credit card invitation exactly? A pre approved credit card letter gives the recipient an excellent chance of getting accepted. These banks have pre selected individuals that they want to extend credit to. Most of these credit card invitations get approved.

In your particular circumstance you have received a letter where you will most likely receive a credit card if you mail the preapproved card invitation back. This is a far better deal you will get than anywhere else. Forty dollars is really nothing to pay for the opportunity to build credit. Remember the sooner you start building credit the earlier you will be able to qualify for better credit offers with lower interest and no annual fee. Keep in mind that it takes many years of established credit to get a approved for a home. It is a good idea to start building credit now.

Getting this credit card can be the first building block in building your financial future. Make sure each payment is on time and never use more than forty percent of your credit line. Using credit sparingly will look good on your credit report and raise your credit score. In time you will have many other credit card companies offering you credit. Do not accept every offer. You will need more credit cards in the future, but only take the ones that have special rewards and low interest. Remember having too many credit cards lowers your credit score, and can get you into a lot of financial trouble.

Monica Kowollik


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