New to the UK > What pre-settled status means

What pre-settled status means

Wollit Team3 minute read · Updated 25th July 2024

Pre-settled status is a kind of residence permit created specifically to protect the rights of EU citizens and their family members living in the UK after Brexit.

Let’s look at what it means, how it differs from settled status, the application process, and how being on pre-settled status affects your credit score.

What is pre-settled status?

Pre-settled status is a form of limited leave to remain in the UK granted to EU nationals and their families who were living in the UK before December 31, 2020, but had not yet lived there for five continuous years.

If you’re a EU citizen living in the UK, it basically allows you to stay here until you can meet the minimum requirements for settled status (British PR). During this time, you can work, study, and access healthcare just like if you already had settled status.

It’s a way to make sure that you can continue your life in the UK without interruption while giving you a legal way to settle in the UK permanently.

How is pre-settled different from settled status?

There are a few differences between the two:

Pre-settled status is limited to five years, recently increased until 2026. If you don’t apply for settled status before the end of this period, you’ll have to leave the UK or find another visa.
Settled status does not expire – which is why it’s also called indefinite leave to remain. If you have it you can stay in the UK permanently.
If you’re outside of the UK for more than two years, you’ll lose your pre-settled status. With settled status, you can also be outside the UK for up to five years.
If you have settled status, you can also apply for British citizenship (usually after a year).
Having pre-settled status gives you many, but not all of the rights of settled status. This is especially important when it comes to welfare benefits, some of which you might not be eligible for.

How do I apply for pre-settled status?

To apply for pre-settled status, you should have done so before December 31, 2020. In some cases, this was extended until July 2021, because of the pandemic.

The application was made through the EU Settlement Scheme, and the Home Office determined the outcome based on the applicant's documentation and national insurance records.

How do I maintain my pre-settled status?

To maintain pre-settled status, you must not spend more than six months outside the UK in any 12-month period. Exceptions apply for specific circumstances, such as serious illness or compulsory military service.

Pre-settled status can also be lost if you leave the UK for two consecutive years or if you fail to apply for settled status before the five-year period expires.

Does having pre-settled status affect my credit score?

While pre-settled status itself does not directly affect your credit score, it can impact your financial opportunities:

Lenders often look at your immigration status when reviewing your credit application. People with pre-settled status may find it harder to get loans or credit cards compared to those with settled status.
Many financial institutions require proof of stable residency. If you have pre-settled status, you must make sure that you keep your continuous residence in the UK, to avoid complications when applying for credit.
On the flip side, the ability to work in the UK under pre-settled status can mean you’ll have a steadier income compared with someone with a more limited visa. This means that you’ll get rejected less frequently and be eligible for more products than someone, for example, on a student visa.

To make sure that you can get the loans or even mortgages that you need after you apply for settled status, you should use this time on pre-settled status to build a strong credit score.

One of the ways to do this is by downloading a credit-building app like Wollit.

Wollit works by reporting your fixed fee monthly subscription to all major credit reference agencies (Experian, Equifax, and TransUnion). This helps you build your credit history in the UK 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 build your credit rating so you’ll be eligible for credit cards, loans, and mortgages as you settle in the UK for the long haul.