New to the UK > How to get a credit card if you just arrived in the UK

How to get a credit card if you just arrived in the UK

Wollit Team2 minute read · Updated 18th September 2024

If you’ve just arrived in the UK, getting a credit card can feel overwhelming, especially if you don’t have any credit history here. You might actually find it impossible to get a credit card at all. Here is what you need to do first.

First, start building your credit history

Credit history is very important in the UK. You will often be asked to pass a credit check – not only when applying for a credit card or a loan, but sometimes even when you rent or apply for a job.

The bad news is that your home country credit history won’t transfer here. The good news is that you can easily build your UK credit history starting today.

If you don’t have any credit history in the UK yet, here are some steps to start building it:

Open a UK basic bank account: this is usually the first step for newcomers. Basic bank accounts don’t require a credit check.
Register to vote, if you have the right to (you’re an EEA citizen, for example). You don’t need to actually vote – this is just to help credit agencies verify your identity.
Register for services like gas or electricity in your name; paying these bills on time can help build your credit as well.
Consider a specialised credit building tool, like a credit building app or a credit building card.

Second, choose the right credit card

Look for credit cards that are designed for newcomers or people with limited credit histories. Some banks have special options for those just starting out.

Just be careful; credit cards that accept newcomers have outrageous interest rates (sometimes as high as 50%), and very low credit limits (only about £200).

Third, apply for the credit card.

When applying, make sure to fill out your personal information accurately, including your address and job details. You’ll have to be ready to show proof of income or savings. If you’re self-employed, you might need a reference letter from your accountant showing that you’ve started trading. If you have any current account in the UK, you’ll need to mention this, too.

Finally, make sure to use your card responsibly.

A credit card can help you build credit here in the UK only if you use it in a way that tells lenders that you’re responsible with money.

This means that once you get your credit card, you should only make small purchases and pay off the full balance each month.

The most important part here: avoid missing payments; late payments can hurt your credit score.

On top of this, you should keep track of how much you spend so that you stay below 30% of your total available credit limit. This is called credit utilisation, and the lower the better – otherwise lenders will think that you live on credit.

Can I get a credit card with no credit history at all?

Yes, it’s possible but can be difficult. Many lenders prefer applicants with some form of established credit history. However, options like secured cards or cards for newcomers may be available.

How long does it take to build a good credit score?

Building a good credit score usually takes several months of responsible borrowing and paying bills on time. Consistency is key – don’t be down if your credit score isn’t excellent straight away.

What should I do if my application is denied?

If you're denied, the lender should explain why. In most cases, it’s possible that lenders are not comfortable issuing a credit card if you have no credit history at all.

However, there are other options to build credit. One of these options is Wollit.

Wollit works by reporting a fixed fee monthly subscription as a loan repayment to the credit reference agencies (Experian, Equifax, and TransUnion). This helps you build or rebuild your credit history by showing that you can pay debt on time. It can even report your monthly rent payment to Experian, adding another line in your credit report that shows lenders you're responsible and pay your bills when they’re due. In time, this will help you improve your credit score so you won’t need to be worried about any credit check ever again.