How to become eligible for a credit card

When you're trying to figure out how to become eligible for a credit card, it can feel a bit overwhelming. Especially as each lender has its own criteria. But there are some common factors that can help you along the way.

We're here to guide you through the process with practical tips that you can start using right now. Let's explore what you can do to boost your chances of getting that credit card!

Use eligibility checkers before applying

Before you apply for a credit card, it's a good idea to check your eligibility using an eligibility checker. These tools let you see how likely you are to be approved for a specific card based on your financial situation.

Using an eligibility checker can save you time and prevent unnecessary hard searches on your credit report. Hard searches, which happen when a lender checks your credit as part of an application, can slightly lower your credit score.

By using an eligibility checker, you’ll know which cards you have the best chance of being approved for, and you can apply without worrying about damaging your score.

Many credit card providers and comparison sites offer free eligibility checkers, and the best part is, they don’t leave a footprint on your credit report.

Check your credit report

When you apply for a credit card, lenders will look at your credit report to see how responsible you are as a borrower. They use this information to decide whether to lend you money.

Before you apply, make sure you check your credit report yourself. This can improve your chances of approval by:

• Revealing what lenders can see, so you can spot any mistakes
• Helping you better understand your finances
• Showing you what’s hurting your credit score
• Helping you find ways to improve your credit score

Checking your credit report doesn’t have to cost you a penny. You can access it for free with the three main credit reference agencies in the UK: Experian, Equifax, and TransUnion. You can see your Equifax credit report free through CredAbility. Plus, you can check it as many times as you like, without leaving a footprint.

With this information in hand, you can make positive changes to improve your credit score and increase your eligibility for a credit card. Here are some effective strategies:

Register to vote

You might be surprised to hear that signing up to vote can boost your eligibility for finance.

Lenders will be able to check your identity and address. If you’ve lived at the same address for a while, you should come across as steady and reliable.

Don’t worry, registering to vote doesn’t mean you have to vote in the next election. It only takes a few minutes to sign up on the government’s website.

Note, you must be aged 16 years or over to be eligible. You must be either a British, Irish, or EU citizen with a permanent address. Or a Commonwealth citizen who is permitted to enter or stay in the UK.

Set up a Direct Debit

Setting up a Direct Debit for all of your bills can really benefit your credit score and help you become eligible for a credit card.

Paying your bills on time, every time, shows lenders that you’re on top of your finances and can afford extra credit. Plus, the impact of any negative markers (like missed payments) will decrease over time. Eventually, they will drop off your credit report after six years.

By setting up Direct Debits, you ensure that your payments are made automatically. This reduces the risk of missing a payment. This simple step can make a big difference in demonstrating your reliability to lenders.

Reduce debts

Managing your existing debts well can significantly boost your chances of getting approved for more credit.

If you already have an overdraft or credit card, focus on reducing your credit card debt. This will lower your credit utilisation ratio, which is the amount of available credit you’re using. Aim to spend 30% or less of your credit limit to improve your credit score.

By showing lenders that you’re a responsible borrower who can manage and pay down debt, you demonstrate your ability to handle additional credit. This is a crucial step in becoming eligible for a credit card.

Space out credit applications

Every time you apply for finance, a hard search is left on your credit report. This can cause your credit score to temporarily drop, whether you were successful or not.

If you make multiple applications back-to-back, some lenders could see this as a red flag. It could indicate that you’re struggling financially and might not be able to afford the repayments.

To avoid this, it's best to space out your credit card applications. Experian suggests making no more than one application every three months. This can vary depending on the lender’s criteria, but spacing out your applications shows lenders that you’re not desperate for credit.

And finally…

Don’t worry too much if you have a low credit score. There are lenders who offer credit cards for bad credit, which are designed for people with a limited or less-than-perfect credit histories. Just keep in mind that they may offer higher interest rates than mainstream lenders.

If you’re not quite eligible yet, don’t worry—you can always work on improving your chances for a better deal in the future. Learning what lenders look for can help you make smarter financial choices and find a credit card that suits your needs.

Small steps, like building your credit score and managing your money wisely, can make a big difference over time. Keep going, and you’ll be in a stronger position when the right card comes along!