Credit Building > Which credit cards can new UK residents get?

Which credit cards can new UK residents get?

Wollit Team3 minute read · Updated 14th October 2024

Getting a credit card in the UK has many advantages, one of which is that it can improve your credit score.

The main challenge as an immigrant is that you are usually not eligible for a credit card. Most credit card providers simply ask for at least a few years of UK address history before considering your application.

However, there are alternatives.

Why do I need a credit card as a new arrival to the UK?

You probably noticed how often you need a “credit score” if you just moved to the UK. You’ll run into this term when you apply for a loan and rent a flat, get a mobile phone contract, and even apply for a job.

A credit card is often the fastest way to build a credit score. In fact, paying your credit card balance and keeping a low credit utilisation ratio (not using more than 25% of the credit card limit) are some of the most important things you can do to build your credit history in the UK.

This is crucial for a few reasons:

• You’ll need a good credit score to live long-term in the UK and get loans and mortgages.
• You’ll also have an easier time renting property. Landlords and letting agencies might actually check your credit file when you try to rent.
• It may even make it easier for you to work in specific industries where employers check credit records, such as finance.

And, of course, credit cards also offer convenience for making purchases, let you spread the cost of expensive items, and can provide fraud protection and extended warranties on purchases.

Which credit card providers offer cards to immigrants?

While most credit card providers need at least a few years of UK credit history, some providers specialise in offering cards to people with no credit history. This includes immigrants.

Here are some of the main cards available to people new to the UK:

1. Yonder Credit Card. Yonder offers a credit card, allowing new UK residents to apply without a UK credit score. They use other pieces of data to figure out if you’re eligible.
2. Vanquis Credit Card. Vanquis Bank provides credit cards for people with poor or no credit history.
3. Bip Credit Card;
4. And the Aqua Classic Credit Card.

All of these credit cards are open to people with no credit history. However, note that you’ll often see these cards and similar ones say they’re open only to “UK residents”.

This means that you’ll at least need to show an intention to live in the UK. In most cases, this means being on a visa that allows you to earn Settled Status (British PR). Simply being on a visitor visa won’t be enough.

What else can I do to build my credit history in the UK?

The first thing you should do is register to vote.

Even though, as an immigrant, you might not have the right to vote in general elections (at least until you get your citizenship), you still have the right to vote in your local council elections – especially if you come from the EU.

Registering to vote is one of the most important things you can do to improve your credit score. Credit reference agencies use the Electoral Register to verify identity. This is why, even for people with a credit history, registering to vote can instantly boost their credit score.

You should also update your electoral registration every time you move. This will make it easier for lenders and credit agencies to verify your identity and keep your credit file in great shape.

The second thing you should do is open a bank account.

This shows that you have committed to living in the UK, and it will also bring you another step closer to building your credit file.

The next thing you should do is get a mobile phone contract.

This will actually be your first credit agreement. Make sure to pay your mobile phone bill on time every month – this will help build a history of timely repayments, which is the most important thing for your credit score.

Finally, you should register for a free Experian, ClearScore, and Credit Karma account.

This will allow you to check your credit score for free with the UK’s three leading credit reference agencies: Experience, Transunion, and Equifax.

This doesn’t mean you’re done with building your credit score. These are just the first steps from having no credit to having a basic credit file in the UK.

To eventually have an excellent credit score, you’ll need to invest in a tool to help you build a history of timely repayments. Until recently, the only tool you could have used to do this was a credit builder card – like the ones we discussed.

However, recently, several specialised credit-building apps have been launched in the UK.

One such app is Wollit.

Building your credit history with a credit builder card requires you to buy things on debt first and then repay them as soon as possible.

With 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 allows you to improve your credit score while keeping you safe from high-interest charges 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, lower APRs, and better rewards than what credit builder cards offer.

You might even end up a better credit score than the average British resident, which will put you in a great position as you put down roots here.

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