Deciding on a Credit Card Offer

1. Pre approved doesn't always mean "pre approved"

It's ridiculous, I know, but just because you get a credit card offer in your mail with PRE APPROVED stamped across it in six inch red letters doesn't mean they've actually pre approved you. Often it just means "we really want you to apply for this card and we'll check you out later."

In other words, they will still conduct a credit check (which can have a negative impact on your credit score), and you might still be refused.

2. Read the fine print

If you have bad credit, you need to be particularly careful about any credit card offer you receive. This can be difficult because if you're in a tight financial situation, a credit card offer might seem like a godsend. But there are many bad cards that prey on people in tough situations.

In fact, many of them have already checked your credit and know that because of your score, you'll find it difficult to get a credit card. They use this knowledge to pawn off terrible cards with bad interest rates that will put you further into debt. No matter how bad your situation, there are better options than these cards.

3. Think about whether you need the card

Before you get all excited about your new credit card offer, stop and ask yourself: "Do I need a new credit card?" If the answer is no, shred the darn thing -- don't apply just for the sake of novelty. How many cards does one person really need, anyway? (Hint: if you're trying to manage debt, the answer is one -- two, tops).

So before you get excited about that credit card offer, stop to consider these important points.