Xlcreative

It is common knowledge that the main pre-requisite for issuing a credit card is credit history. No credit card passes the test unless verification of your credit history is complied with. Such cards are termed as pre-qualified credit cards and they are testimony to the fact that their holder’s credit history has been verified. Before going in for such a card, it would be worthwhile to scour the terms and conditions of the company and also compare it with others in the industry.

Exception

Subject to certain special conditions, a company could issue a pre-qualified credit card in spite of being aware of the applicant’s bad credit history. Generally, secured or unsecured credit cards are given. The person with poor credit history will be extended a secured pre-authorized credit card subject to furnishing a security deposit and the validity of the credit card will extend up to the period of the security deposit. If you apply for a credit card on the above terms, the rate of interest will be very high. No rewards or any offers can be availed on such credit cards.

Students could apply for a credit card with bad credit. However, you should verify the track record and trustworthiness of the companies offering pre-authorized credit cards for students. Coupled with this, the parents of the students should have sound credit history because they will act as lien for their wards. This will facilitate the students to avail a very low rate of interest.

These cards should be used only during certain exigencies and within reasonable limits, so as to be able to pay off the amount before the due date. The student should learn to operate within limits and budgets, so as to preserve their credit history.