Why Didcredit Card Approve Me

Q: I do not have the best credit. It was one of those mail "hey looook you've been pre-approved" mailings. Honestly, I applied because, "hey, my credit is already shot, and another rejected application won't make it any worse". I got instantly approved for $200, got the account number and all. A final limit is 'pending credit review' I'm not expecting anything more than $500 really if even that. Anyway, some questions: 1) How on earth did I get approved/accepted? 2) If I don't use this card, will it help or hurt to apply for another?

A: -The credit card issuer is taking a miniscule risk by offering you a credit card limit with $200. That's practically nothing, but if you fail to pay off any balance you may incur, or you pay late, or have other infractions, the credit card issuer will profit handsomely from the fees it will charge you. If your credit record is lousy, your best bet is probably to shred that credit card and never use it. -Within a few months, your interest rate will be raised. They raised mine from 9.9% to 19.9% for no reason .

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