What Credit Score Do You Need For A Credit Card

Updated: January 26, 2024 Author:

Quick answer: The type of credit card you can get will depend on your credit history. There is no minimum credit score to get a credit card, but a higher credit score means more credit card options and a higher chance of acceptance. With a poorer credit score, use a service that enables you to check your eligibility and offers credit builder cards. 

    What is a credit score?

    A credit score is issued by a credit reference agency (CRA) based on your financial history. The three main CRAs in the UK are Experian, Equifax, and TransUnion, and each has a different scoring system, so your credit score will vary for each. However, you will probably find that the credit rating category (e.g. Poor, Good or Excellent) you fall into is consistent across them all.

    CRAPoorGoodExcellent
    Experian561 – 720881 – 960811 – 1000
    Equifax439 – 530671 – 810961 – 999
    TransUnion551 – 565604 – 627628 – 710

    Can I get a credit card?

    Your credit score is only one factor affecting your credit card application. Other factors include: 

    Age: You must be 18 to qualify for a credit card. Some credit card providers require applicants to be at least 21.

    Income: Most credit card providers will expect you to be employed and earn a minimum amount. A lower income likely means you are offered a lower credit limit and a higher interest rate.

    Residency: You will need to be a UK resident.

    CCJs: Some credit card providers require you to be free from County Court Judgements (CCJs), Individual Voluntary Agreements (IVAs) and bankruptcy. 

    What credit score do you need to get accepted for a credit card? 

    There is no minimum credit score to get a credit card, but your credit card options will be greatest the higher your credit score. Being in the Good or Excellent credit rating category will enable you to access the best available credit card deals. 

    Being in the poor credit rating category will limit your credit card options, and you may have to provide further information during your credit card application. You are more likely to be accepted for a credit builder card. These credit cards can help you build your credit score quickly. 

    What are credit builder cards?

    Credit builder cards are offered by lenders that specialise in bad credit. These credit cards are designed to allow you to improve your credit score, but you are likely to be offered a lower credit limit and higher interest rate. If you pay the balance in full each month, you will see credit score improvements within a few months.

    Where can I check my eligibility for a credit card?

    When you apply for a credit card, a “hard” search is performed, leaving a mark on your credit history. This mark will indicate whether your credit application was rejected or accepted. So, check whether an eligibility check is performed during your credit card application – a “soft” search. A soft search will tell you whether you will likely be accepted for the credit card without leaving a mark on your credit history. See Soft Search Credit Check vs Hard Search Credit Check for more information. Online credit card comparison services use soft searches to recommend credit cards to you.

    Why was my credit card application declined?

    Being declined for a credit card can be demoralising. A credit card provider will base their decision on three main factors:

    Your credit history may have something negative in it, like a missed payment or an outstanding debt. If these occurred within the last few months, it would be best to wait before applying for a credit card because their effect diminishes over time.

    Your affordability for a credit card is based on your employment status, income, and existing expenses. If you have a low income and high existing expenses then a credit card provider may be concerned that you will be unable to repay the credit card debt. 

    Do you have a limited credit history?

    You can have a limited credit history if you have never applied for credit, have not applied for credit for many years, or are new to the UK. Credit builder cards are aimed at helping you build up a credit history or improve your credit score after being refused credit. 

    How can I improve my chances of being accepted for a credit card?

    A credit monitoring app can help you understand what is affecting your credit score and what factors you need to improve to boost your credit score. Below are some common reasons for a poor credit score.

    High existing debts can signal to future lenders that you are struggling financially and being overly reliant on credit. Repaying what you owe will demonstrate that you are managing your debts and are a lower credit risk.

    Unused credit accounts may limit how much you can borrow from another lender. If you are not using some of your credit cards, closing them can also reduce the risk of fraud. However, be aware that closing your credit card could increase your credit utilisation rate. 

    Missed or late payments are seen as a high risk to a credit card provider. Keeping up with your payments is the best way to demonstrate that you are a responsible borrower. Setting up a direct debit can help you avoid missing a payment. 

    A history of defaults/CCJs shows lenders that you have been unable to repay a debt in the past. Lenders will see them less negatively if they are marked as “settled”. However, these will remain on your credit history for up to 6 years.

    If you are not registered to vote, lenders may find verifying your identity more difficult. Being on the electoral roll will record your name and address on your credit history and is one of the easiest ways to boost your credit score.

    Avoid making too many credit applications in a short space of time because each credit card application is recorded as a “hard” search on your credit report. Hard searches will be seen by other companies checking your credit history, and too many within a short period of time can negatively affect your credit score. It is recommended to wait 3 to 6 months between credit card applications.

    Summary

    There is no minimum credit score required for a credit card. A higher credit score and better credit history will give you more credit card options. You will be offered better credit card deals like lower interest rates, a higher credit limit, or reward credit cards. 

    A lower credit score will limit your credit card options, and your applications may be rejected. If you have been rejected your best option is to wait a few months before applying again. Without a change to your financial circumstances, like reducing your existing debts or higher income, immediately making a new application is very unlikely to result in a different outcome.

    Whatever your credit score, using a credit card comparison website with an eligibility checker can help indicate whether your credit card application will be successful. These tools perform a “soft” search before performing a “hard” search, which means that you check whether you are likely to be accepted without hurting your credit score.