Credit cards seem to have become a staple payment option for the average joe in the UK. They make for a highly convenient payment method and come with a variety of valuable offers and benefits. Your eligibility for a credit card is typically determined by your expenditure pattern and the results of a credit card eligibility checker. If you are new to the world of credit, here is what you ought to know.
Which Credit Card should you get?
Selecting the right credit card is often easier said than done. If you have never had a credit card, choosing the right one becomes all the more arduous a task.
While a credit card eligibility checker is likely to filter choices, picking the right one is still a daunting task seeing how the wrong one can adversely affect your credit score. Here are some stellar credit cards worth looking into:
- M&S Bank Shopping Plus Credit Card
- Sainsbury’s Bank Credit Card
- Tesco Balance Transfer Credit Card
- British Airways Credit Card
- American Express Platinum Credit Card
When can you get a Credit Card?
You may apply for a credit card if you can fulfil the following conditions:
- You must be over 18 years of age when applying for the credit card. Get a student credit card and establish an excellent credit history. Some lenders may require you to be at least 21 years old before applying for a credit card.
- You need to know how to improve your credit score if you do not have a credit history.
- A savings account is required.
- You ought to be earning or have other sources of income to pay the monthly repayment. A failure to make the repayments may affect your credit score and reduce your chances of availing credit in the future.
- Finally, you need to take a test on the credit card eligibility checker and get positive results.
How to apply for a credit card?
Applying for a credit card involves the following –
1. Ensure the Application Fits the Requirements
The first step is to ensure the minimum requirements are fulfilled. Every institution has different criteria to check your eligibility.
2. See if you are Eligible
Taking a test on the credit card eligibility checker can significantly help your chances of getting a credit card.
You need to include your personal information, including credit history, annual income, spending patterns, and your UK address history. The software will calculate your eligibility based on the data you have entered and inform you if you are likely to get a credit card.
3. Pick the most suitable Credit Card
Choose the credit card that suits you the best from the list of cards given to you by the credit card eligibility checker. However, keep the following in mind –
- Annual Percentage Rate or APR
- Total amount due every month
- Additional fees charged by the lender
- Introductory period
4. Send your Application
You can either apply online, by post or by visiting the branch office. You need to fill a basic form and send it to the bank. The lender must give you the SECCI form and the credit agreement in detail.
If approved, you can expect to receive your credit card in 5 to 7 days.
How is my eligibility rating calculated?
Your eligibility rating is determined by matching your data against that of the lender. Lenders and other credit reference agencies may be contacted for information on you. Your credit report includes the following:
- How much money you already owe, for example, on a credit card or mortgage
- Whether you make your regular payments on time
- How many credit accounts you have and for how long you have had them
- Your credit limits and how much you make use of them
- If you are registered to vote or not
- The people with whom you share finances, also known as your ‘financial associates.‘
- Information about you that is publicly available
What do Lenders want from you?
You ought to meet specific criteria to be approved for a credit card. These criteria often vary with each lender and deal. However, some of the main things your lender look for are –
- If you’ve applied for credit in recent times
- Your outstanding balance on the other credit accounts that you may have
- If you’ve missed any payments in the recent past
- Whether or not you are employed full-time
- Your earing power
The Best Credit Card Eligibility Checkers
A credit card eligibility checker plays a vital role in helping the applicants determine their creditworthiness. It becomes more significant for the people who are applying for the first time, as they have no credit history to gauge their creditworthiness. Due to the sheer importance of it, there are plenty of websites available on the internet. Few of the credit card eligibility checkers that are suitable for first-timers in the UK are:
The credit card eligibility checker by MBNA shows the applicant an upfront credit limit, which is not the case with most other software. This is true of applicants who are applying for a credit card for the first time.
2. Money Saving Expert (MSE)
MSE has a different credit card test for each category.
This credit card eligibility checker tests you extensively to ensure the results are as accurate as can be. You can choose the credit card that suits you the best. MSE describes its credit cards to help you make an informed choice. Fill the form and check your chances of getting a credit card.
3. Halifax UK
The Halifax UK credit card eligibility checker is a simple and easy-to-follow questionnaire that helps applicants determine their credit card eligibility. You can get your results within minutes. Keep in mind that your credit rating will not be affected.