How can I increase my eligibility for a credit card?
Increasing your chances of getting a credit card means showing you can manage money well. Here are some simple tips to help:
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Check your credit report. Get a copy of your credit report from Experian, Equifax, or TransUnion. Make sure all the information is correct and correct any mistakes.
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Improve your credit score by paying your bills on time and reducing existing debt.
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Register to vote. Make sure you’re on the electoral roll at your current address. This helps verify your identity.
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Stay in one job and home to help lenders see that you have a stable job and home address.
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Manage your money well by avoiding overdrafts, and keeping your credit usage below 30%.
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Build a credit history. Start with a credit builder card or a store card and use it responsibly.
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Increase your disposable income. Save more money or reduce your monthly expenses to show you have more money left over each month.
Does being rejected for a credit card affect my credit score?
Yes, being rejected for a credit card can have a minor impact on your score. However, denied credit card applications don’t appear on your file.
When you apply for a credit card, the provider does a hard search on your credit report to assess your creditworthiness. This hard search can temporarily lower your credit score by a few points, but the impact lessens over time.
If you're rejected for a credit card, the hard search still stays on your credit report, which may slightly lower your score. However, the impact is usually minimal compared to other factors like late payments.
You can avoid this by using an eligibility checkers to see how likely it is you’ll be accepted before you apply. An eligibility checker only performs a soft search on your credit file, meaning that it won’t impact your score.
How long does declined credit stay on file?
When your credit card application is declined, the hard search shows up on your credit report for 12 months. It doesn't say if you were declined, just that you applied. Too many applications in a short time can hurt your credit score.
What to do if you are rejected for a credit card
If you've been turned down for a credit card, don't worry. There are steps you can take to improve your chances of approval in the future and build a healthier credit profile. Here's what you can do:
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Contact the issuer to find out why your application was rejected. Understanding the specific reasons can help you address any issues and improve your chances in the future.
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Get a copy of your credit report and review it for any errors or negative marks that may be affecting your score. Each Credit Reference Agency uses their own scoring system. So, your score and the information held on you could differ slightly between one agency and the next. Make sure to get a copy of all three of your credit reports from the three Credit Reference Agencies (Experian, Equifax and TransUnion).
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Work on resolving any outstanding debts. Reducing the amount of debt you have can help to increase your credit score over time.
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Focus on building your credit. Make timely payments on existing debts, keep credit card balances low, and avoid applying for multiple lines of credit within 3-6 months.
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Wait and try again. Give yourself some time to improve your credit profile before applying for another credit card. Applying too soon after a rejection can further impact your score.
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Explore alternative options for accessing funds. If you’re unable to get a credit card yet, you could look at alternative ways of accessing funds. This could be taking on a second income, or speaking to friends and family. It’s important to weigh up the pros and cons of each before making a decision.
Ocean Credit Card
See if it's a YES before you apply
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Representative (variable)
Intelligent Lending Ltd (credit broker). Capital One is the exclusive lender.
Disclaimer: All information and links are correct at the time of publishing.
Fiona Peake
Personal Finance Writer
Fiona is a personal finance writer with over 7 years’ experience writing for a broad range of industries before joining Ocean in 2021. She uses her wealth of experience to turn the overwhelming aspects of finance into articles that are easy to understand.
