Will I be accepted for a credit card?

How do lenders decide who to approve? 

Lenders look at a variety of factors when deciding whether to approve you for a credit card. The criteria can also change from one credit card provider to the next.  

Usually, lenders will consider factors such as: 

• How high your credit score is and how long you’ve had one. There is no universal credit score, but as a rule, the higher the scores are, the better. A higher score usually means a better chance of approval. 

• Your total income compared to how much you owe each month. This is your debt-to-income ratio. Lenders want to see that you can afford to repay the amount you borrow from them.  

• Your employment status. If you have a stable income and permanent employment, this is likely to work in your favour. 

• Your age and where you live. You'll have to be over 18, and need to be a UK resident to get a credit card. 

How can I improve my chances of being accepted for a credit card? 

• Check your credit score to know where you stand. You can access your credit score and report for free. Remember to check all three credit reference agencies: Equifax, Experian, and TransUnion, as some lenders only report to one or two of these. 

• Look for any errors on your credit report that could negatively impact your score and ask the relevant credit reference agency to fix them.  

• Build your credit history. If you have a limited credit history, a good first step to building credit is joining the electoral roll. It takes 5 minutes, and helps verify your identity to lenders.  

• Pay bills on time to show lenders that you know how to manage your money well. 

• Reduce existing debt. Paying down debt can improve your debt-to-income ratio, boosting your chances of approval. 

• Avoid multiple credit applications within a short timeframe. Each credit application generates a hard inquiry on your credit report. This can temporarily lower your score. 

• Check pre-approval offers. Many credit card issuers offer pre-approval checks that won't affect your credit score. These can give you an idea of which cards you're likely to qualify for. 

• Apply for cards that suit your circumstances. For example, if you have a limited credit history or less-than-perfect credit score, you're more likely to be accepted for a credit builder card, but higher interest rates may apply. 

How long should I wait to apply again if my application is rejected? 

If you’ve been rejected for a credit card, try to avoid making multiple applications to other lenders right away. This can create further damage to your credit file and give lenders the impression that you’re desperate for money. As a rule of thumb, it’s best to leave at least three to six months between applications. 

What to do if my credit card application is declined 

Firstly, if your application was declined, you could ask the lender why this happened. You could also access your credit report for free to see if there are any mistakes that need fixing. If it’s your score, you can start working to improve it before you make another application. You can improve your credit score quickly by: 

• registering to vote 

• joining the Rental Initiative Exchange (if you’re a tenant) 

• lowering your debt.  

However, consistently managing any bills, Direct Debits, and debts will help your score improve the most. Just be aware that it can take time to see improvements in your credit score.