You want a credit card but do not understand what your credit rating needs to be. You have come to the ideal place. The answer to this concern depends on the kind of credit card you want, your existing credit rating, and even the business that is providing you with the credit card. The business evaluates your credit history, credit report, regular monthly income, and debts.
Most of the time, credit card businesses choose to offer credit cards to individuals with a credit history of 650 or higher. However, there are times when individuals with lower ratings can still get one.
What Credit Score Do You Need to Get Approved for a Credit Card?
In the UK, your credit report is crucial for your credit card. A credit history is a number that demonstrates how responsible you have been with your money in the past. You can get credit cards with better terms if your credit rating is high.
Most lenders generally look for an excellent credit rating before authorising an application. A credit report between 670 and 739 is considered excellent, and a rating above 740 is exceptional.
It's essential to bear in mind that various lenders choose whether somebody is creditworthy based on various things. Some might care more about how much money you make or if you work. At the same time, others may care more about your age or where you live. Ultimately, it depends on the lender and their loan requirements to choose whether to accept an application.
| Credit Score Range | Credit Card Approval Likelihood |
| Excellent (720-850) | High likelihood of approval |
| Good (680-719) | Good likelihood of approval |
| Fair (620-679) | Moderate likelihood of approval |
| Poor (580-619) | Limited likelihood of approval |
| Bad (below 580) | Minimal likelihood of approval |
Reasons Why You Might Not Get Approved for a Credit Card
You might not get a credit card in the UK for a number of factors. Among the primary factors is having a bad credit rating.
If you currently have too much debt, you may not be authorised. Businesses will check how much debt you have versus your income. They may be reluctant to provide more if you currently owe a lot of money.
If you've recently asked for a lot of credit cards or loans, this can make it harder for you to get authorised. When you request credit, it appears on your credit record as a "question." Lenders might think you are desperate for money and might be a dangerous debtor if you ask for a lot of credit in a brief period of time.
It's essential to understand that getting a credit card in the UK isn't always simple. Understand what lenders check before they decide to give you a credit card. Take action to improve your credit rating and settle your debt. You can increase your possibilities of being accepted and get all the advantages of having a credit card.
A graph shows how the UK credit card market size has changed.
Source: https://www.finder.com/uk/credit-card-statistics
Credit Card Eligibility in the UK
You should be at least 18 years old. You must live in the UK. You also need a reliable way to earn money, like a job or business.
If you apply, credit card businesses will also look at your credit history and rating to choose. This is why having an excellent credit rating is necessary. It indicates you are an accountable customer who is more likely to pay back loans on time if your number is higher.
Each credit card business has its own guidelines about who can get a card. Inspecting these guidelines is very important before requesting a particular item. Some might have more stringent fundamental income or credit rating requirements than others.
Generally, if you have a great credit report and fulfil the standard requirements, you can find an excellent credit card item on the UK market.
According to money.co.uk, credit card usage in the UK is widespread, with 59.9 million in circulation as of January 2022. Most of these cards are contactless, and credit card transactions have increased over the past decade. Credit cards are preferred for expensive items. The average transaction spend is around £55. However, credit card debt is also high, reaching nearly £60 billion in late 2020.
How to Pay Off Your Credit Card Debts to Get a New Credit Card?
You can improve your credit rating by paying back your debts. Obtaining debt consolidation loans for the unemployed in Ireland to pay off credit card debts and acquire a new card can be a favourable option. This loan allows consolidating multiple debts into a single manageable payment, reducing financial stress occurred due to sudden job loss.
Furthermore, it offers a chance to obtain a new credit card, enabling access to essential financial tools while reestablishing a positive credit history.
Suppose you are currently employed and seeking instant approval loans for bad credit in Ireland. In that case, you may consider using the funds to pay off your existing credit card debts, enabling you to start afresh with a new card. These loans can provide the financial support needed to consolidate your debts.
You can improve your credit score over time. Also, ensure it fits with your financial goals and repayment capabilities. You can make a huge difference in your funds if you take the best action. Your credit rating will improve with consistent income and the settling of bills.
How to Get a Much Better Credit Rating?
- Pay bills on time
- Keep credit card balances low
- Maintain a diverse credit mix
- Minimise new credit applications
- Regularly check your credit report
- Dispute any errors or inaccuracies
- Keep old accounts open
- Limit hard inquiries on your credit report
- Establish a solid payment history
- Seek professional advice if needed.
Conclusion
Whether you can get a credit card depends upon your credit rating. Various lenders and card businesses usually have various requirements. However, you usually need an excellent credit report of 650 or higher to get authorised.
Looking at other credit card deals can improve your chances of being accepted. Try to get a rating of a minimum of 700 as a basic guideline. You may be able to get an even much better credit card if you have this number.
