Credit Building > Best credit cards for new immigrants to the UK

Best credit cards for new immigrants to the UK

Wollit Team2 minute read · Updated 23rd July 2024

If you’re a new immigrant to the UK, one of the most important things you can do is building a strong credit history. Without one, it can be hard to get approved for credit cards, loans, or mortgages in the future.

One of the ways to build this credit history is by getting a UK credit card. Let’s have a look at the best options for new immigrants and whether they are the right ones for you.

How do I build credit as a new immigrant?

When you first arrive in the UK, you’ll usually have no credit history at all. This can make it difficult to get approved for any credit cards and other financial products. However, there are steps you can take to start building your credit history:

Register to vote. This helps lenders and credit reference agencies verify your identity and build your credit profile. You might think that you can’t register to vote as an immigrant but that’s incorrect. Depending on your country, your visa, and a few other factors, you probably have the right to vote in the local elections. You can check who has the right to vote in the UK on this guide.
Open a bank account. If you’re not eligible for a full current account, you can open a basic bank account. It works the same way except that it doesn’t come with an overdraft, which means it also doesn’t require a credit check.
Get a mobile phone contract, ideally one that comes with a phone. This will be your very first credit agreement în the UK and it will show on your credit file.
Consider a credit-building card. This is a kind of credit card that is aimed at people with a thin credit file, the idea being that your credit card monthly payments will build your credit history. However, you should keep in mind that they come with very high interest charges, often above 40% per year, short interest-fee periods, and very low credit limits.
Look into downloading a credit-building app such as Wollit. Unlike a card, a credit-building app reports your fixed fee monthly subscription to the credit reference agencies, helping you build a history of payments without the risk of maxed out card limits or high interest charges.

What are the best credit cards for people new to the UK?

If you’re still dead set on getting a credit card despite the drawbacks, here are some of the best credit card options for new immigrants in the UK:

A few things to keep in mind here:

Most of these cards offer very similar APRs.
They also have very similar credit limits, fees, and features.
And very few of them (such as the Tesco Foundation card and a few others) offer any rewards at all. Usually these rewards are also in the form of just a little bit of cash back or store points.

Because of this, our recommendation is to look for other credit building tools instead of a credit building card. It can be easy to overlook, especially as a new immigrant, just how much of an impact a missed credit card payment or maxed out card limit can have on your credit score.

Building your credit history with a credit building card like the ones above requires you to first buy things on debt and then repay them as soon as possible. With an app like Wollit, you only need to pay a fixed monthly subscription. Wollit then reports this subscription as a loan repayment to the credit reference agencies.

This directly builds your credit history and improves your credit score – while keeping you safe from high APR charges, maxed-out credit limits, or the risk of more debt.

More importantly, as your credit score increases, you’ll eventually become eligible for credit cards with higher credit limits and lower APRs.