Credit Building > How to apply for a credit card

How to apply for a credit card

Wollit Team4 minute read · Updated 1st July 2024

To apply for a credit card in the UK, this is how the process works:

Check your eligibility. Eligibility checkers can help you see which cards you'll likely be approved for without harming your credit score.
Choose the right credit card for your needs. Look at the interest rate, fees, rewards or cashback, and 0% promotional periods on purchases or balance transfers.
Gather your details. This usually means ID, employment documents, and bank account information.
Apply for the credit card. Try to do it online if you can – in-person applications usually skip the eligibility check and go straight for the hard credit check, which can affect your credit score.
If approved, activate your new credit card and start using it responsibly by making timely payments and staying within your credit limit. This will help build your credit history.
If declined, talk to the credit card provider to understand why and take steps to improve your credit score before reapplying. Don't try to reapply straight away – this can again hurt your credit rating.

Why should I apply for a credit card?

There are plenty of reasons why a credit card is a good idea:

Build your credit score: Getting a credit card and using it responsibly can help improve your credit score by showing a history of repayments.
Convenience: credit cards make it easy to pay for things in stores or online and can even help you manage your money better.
Rewards: Some credit cards give you rewards like cashback or points for using them, which can save you money.
Protection: Credit cards often come with extra protections for your purchases, which can be helpful if something goes wrong.
Emergency cash: A credit card can provide a safety net for unexpected expenses or emergencies.

Some specific kinds of cards have other benefits, too:

Balance transfer cards help move existing debt to a new card at a lower interest rate, reducing how much you spend on interest (at least for a while).
Credit builder cards are meant for people with low credit scores. They have features meant to help improve your credit history.
Reward cards offer perks like travel miles or cashback – although they usually require a good credit score for approval.

How do I check if I'm eligible for a credit card?

To apply for a credit card in the UK, you usually need to be over 18 and a UK resident. Other factors also affect your eligibility, like whether you've had any bankruptcies in the past or what your credit score is.

To check if your credit card application is likely to be accepted, you should use an eligibility checker tool that won't impact your credit score.

A full credit card application involves a "hard check" that leaves an entry on your credit record. This entry is visible to all lenders for up to two years, and it may hurt your credit score as it signals that you might suddenly be struggling and need a loan to make ends meet.

An eligibility check is much safer, as it only runs a "soft check" on your file, which is only visible to you and doesn't affect your credit score. Based on the eligibility check, you'll receive a decision and an idea of the features, APR, and credit limit you may get on any cards you're eligible for – without damaging your credit score through multiple hard checks from full applications.

What should I look out for when applying for a credit card?

First, look at the APR (Annual Percentage Rate). This is the average annual cost of using the card, including both interest and fees. The APR you see when applying is the one you'll get if approved, but some providers may offer a different rate to some cardholders.

Second, check all those extra fees. You'll probably have to pay for going over your credit limit, any late or missed payments, or using the card for currency exchanges or cash withdrawals.

Third, read the fine print for introductory offers and ask what happens after. Check the details of any introductory offers, like 0% interest periods on purchases or balance transfers. When these offers end, you could end up paying high interest charges if you haven't cleared the balance.

Finally, credit limits. Your credit limit is the maximum amount the card issuer will allow you to borrow. This is usually based on your credit score and other factors – if you're not offered the limit you'd like, consider your other options to avoid borrowing more than you can manage.

What do I need to apply for a credit card?

For the eligibility check, you'll need details like:

Your name and date of birth;
Your UK residential address and housing status;
Your employment status and gross income before taxes;
Any dependents and additional household income;
Your email address and phone number.

To actually apply for the credit card, you'll also need:

Any previous addresses from the past two years;
Your bank account number and sort code (to set up repayments);
Details of any credit cards you want to transfer balances from.

Sometimes, card issuers may also ask you for additional documents, such as:

Driving license;
Bank statement;
Utility or council tax bill;
Rental contract;
And your latest tax return or SA302 tax calculation if you're self-employed.

Having all this information ready can help make the application process smoother.

How can I increase my credit card approval chances?

Your credit score is crucial for lenders when looking at your application, but it's not the only thing they care about. They also consider things like:

Your home address and how long you've lived there. Moving home often can be a red flag: is it because you struggled to pay rent? Will you be hard to reach in the future?
Your current job and how long you've been working there: Do you have a steady income?
Whether you have a current account and how long you've had it.
Your regular expenses like monthly bills.
The amount of money you've already borrowed, such as personal loans or other credit cards.
Your track record of managing past credit and debt: Do you pay your bills on time?
Your voter registration status – which helps confirm your identity.

What happens after I apply for a credit card?

If your credit card application is approved, you'll usually receive your new card and PIN in the mail within a few days. Once you get the card, you can activate it and start using it right away.

If your application was not approved, there could be a few reasons for that:

Your income may not be enough to comfortably make the required payments on the card.
You may have recently applied for or have an existing application for another credit card.
Your credit history shows you have too much existing debt or have missed payments in the past.

It's not a good idea to keep applying for credit cards if an application has already been rejected, as that can further damage your credit score. Instead, wait a few months and then check your eligibility again, as your situation may have changed.

If your application was declined, you might need to improve your credit history first. An easy way to do this is by downloading a credit-building tool like Wollit. Here's how it works:

Wollit reports your monthly subscription payments as loan repayments. This creates a history of timely payments in your credit report and might improve your credit score.
Wollit can also report your monthly rent payments to Experian, the largest credit reference agency in the UK. This adds another positive line to your credit report, showing lenders that you pay your bills on time.

This can improve your chances of getting approved not only for future credit cards, but also loans, mortgages, or other financial products. All without the downsides of a high-interest credit card.