Applying for credit in my experience is very strange. I’ve often been declined for main stream banks or been given very low limits like £500. (Only have around 2 credit cards and 2 loans and a few other finance things which are all up to date and no missed payments for 5 years). I did an eligibility for Amex and a box came up saying it’s unlikely I’ll be accepted. I applied anyway doing a hard search and a day later I was approved for £1k. My credit score is around 560 so only fair. Happy I was accepted but just find the credit scoring and acceptable levels very strange.
this was helpful, so I'm currently in colombia... won't be coming back for at least a few months, but i need a new laptop (And i mean really need), and also will be travelling in next few months, i have a perfect 999 experian credit rating, i'm aiming to get the laptop end of the week, what's your thoughts on best card? knowing there will be fees etc.
Hi, Have a look at this article that focuses on travel credit cards. moneytothemasses.com/using-credit/credit-cards/compare-the-best-travel-credit-cards-uk I can’t make a personal recommendation obviously. But the article will give you a range of options. Interestingly there are travel credit cards that do offer cashback. Such as the Barclays Rewards Credit Card. Obviously all the cards are for UK residents only.
"Does Natwest charge interest on purchases after the interest-free period? Or does it not charge anything if we repay our monthly expenses? In my understanding, which card is the best where there is no need to worry about any additional charges if we repay borrowed money? Does Natwest fall into this category?"
If I understand your question correctly you are asking whether you will ever be charged if you pay the balance of your credit card in full at the end of each month… after the interest-free period ends. The answer is that generally credit card companies don’t charge interest if you clear your balance at the end of each month, irrespective of the card.
With any offer for a new customer credit card companies will usually state that you have to have not been a customer for a set period of time after you have closed an account.
To obtain the highest credit limit on a credit card, it's essential to focus on improving your credit score and understanding the factors that influence credit limits. Here are some key points to consider: 1. Understand Credit Scores • A good credit score is crucial for securing higher credit limits. The main credit reference agencies in the UK (Experian, Equifax, and TransUnion) have different scoring systems: • Experian: Scores range from 0-999. A score above 961 is considered excellent. • Equifax: Scores range from 0-1000. A score above 811 is excellent. • TransUnion: Scores range from 0-710. A score above 628 is excellent. 2. Check Your Credit Report • Regularly check your credit report with all three agencies to ensure there are no errors or outdated information that could negatively impact your score. You can access your credit report for free through services like Clear Score and Credit Karma • 3. Improve Your Credit Score • Pay Bills on Time: Ensure all your bills are paid on time to avoid negative marks on your credit report. • Reduce Existing Debt: Lower your credit card balances to improve your credit utilisation ratio. • Stay on the Electoral Roll: Being registered can positively impact your credit score -Limit New Credit Applications: Too many applications in a short period can lower your score . 4. Use Eligibility Checkers • Before applying for a credit card, use eligibility checkers to see which cards you are likely to be approved for without affecting your credit score. This can help you target cards that offer higher limits . 5. Consider Your Income and Employment Status • Lenders often consider your income and job stability when determining credit limits. A higher income can lead to a higher credit limit . 6. Choose the Right Card • Some credit cards are specifically designed for higher limits, such as premium or rewards cards. Research and compare different options to find one that suits your needs. 7. Build a Relationship with Your Lender • If you have an existing credit card, consider asking your lender for a credit limit increase after demonstrating responsible usage over time.
Dear Damien, Thank you for providing the information. I am currently looking to build my credit score to qualify for a property purchase. Despite having a salary of £27,500, my applications for M&S, Barclaycard, and Tesco Bank have been declined. Could you please provide guidance on how I can improve my credit score and increase my eligibility for credit cards? Thank you very much for your assistance. Best regards, Iman
Hi Iman, We have quite a few articles on our website, including information on how to build your credit score. I'll post links to them below. As you've been declined for a number of credit cards already, I would recommend that you use an eligibility checker because further declined applications will only exacerbate the issue. A credit card eligibility checker is a way of checking to see what credit cards you are likely to be eligible for. An online tool can show the different cards you are most likely to be accepted for, including some that you may be 'pre-approved' for, though this will still require a credit check. You will have an idea of your chances of having a successful application without having to go through the process of fully applying for the credit card. The eligibility checker will run a 'soft' search on your credit file to get information on your financial situation without leaving a mark that will show up on future checks. You can therefore use an eligibility checker as often as you like without your credit score being affected, which wouldn’t be the case if you applied for a series of different credit cards instead. I'd suggest that you take a break before applying again. Credit card providers will see the declined applications when they run the credit check and so could view it as a sign that you are desperate for credit and use that as a reason to decline. We have some articles on the Money to the Masses website that you may find helpful in relation to building your credit score and finding the right credit card for you: "How to improve your credit score quickly" - moneytothemasses.com/using-credit/credit-report-2/improve-credit-score-quickly "The best way to check your credit score for free" - moneytothemasses.com/using-credit/credit-report-2/the-best-way-to-check-your-credit-score-for-free "What is a good credit score?" -moneytothemasses.com/using-credit/credit-report-2/what-is-a-good-credit-score-and-how-to-improve-yours "Check credit card eligibility: What credit cards am I eligible for?" - moneytothemasses.com/using-credit/credit-cards/check-credit-card-eligibility-what-credit-cards-am-i-eligible-for "Credit cards for not so good credit" -moneytothemasses.com/credit-card-2/credit-cards-for-not-so-good-credit I hope you find that helpful! 😊
Applying for credit in my experience is very strange. I’ve often been declined for main stream banks or been given very low limits like £500. (Only have around 2 credit cards and 2 loans and a few other finance things which are all up to date and no missed payments for 5 years). I did an eligibility for Amex and a box came up saying it’s unlikely I’ll be accepted. I applied anyway doing a hard search and a day later I was approved for £1k. My credit score is around 560 so only fair. Happy I was accepted but just find the credit scoring and acceptable levels very strange.
I need a credit card to build my credit history. What card should I go for ?
This article covers your question in detail moneytothemasses.com/using-credit/credit-cards/compare-the-best-credit-cards-if-you-have-bad-credit/amp
this was helpful, so I'm currently in colombia... won't be coming back for at least a few months, but i need a new laptop (And i mean really need), and also will be travelling in next few months, i have a perfect 999 experian credit rating, i'm aiming to get the laptop end of the week, what's your thoughts on best card? knowing there will be fees etc.
Hi,
Have a look at this article that focuses on travel credit cards.
moneytothemasses.com/using-credit/credit-cards/compare-the-best-travel-credit-cards-uk
I can’t make a personal recommendation obviously. But the article will give you a range of options.
Interestingly there are travel credit cards that do offer cashback. Such as the Barclays Rewards Credit Card.
Obviously all the cards are for UK residents only.
"Does Natwest charge interest on purchases after the interest-free period? Or does it not charge anything if we repay our monthly expenses? In my understanding, which card is the best where there is no need to worry about any additional charges if we repay borrowed money? Does Natwest fall into this category?"
If I understand your question correctly you are asking whether you will ever be charged if you pay the balance of your credit card in full at the end of each month… after the interest-free period ends. The answer is that generally credit card companies don’t charge interest if you clear your balance at the end of each month, irrespective of the card.
I was wondering this too. Thanks for clarifying
If I had a Barclays credit card, and then closed it, I don't qualify for their offer, do I?
With any offer for a new customer credit card companies will usually state that you have to have not been a customer for a set period of time after you have closed an account.
how can I get highest credit card limit in UK?
To obtain the highest credit limit on a credit card, it's essential to focus on improving your credit score and understanding the factors that influence credit limits. Here are some key points to consider:
1. Understand Credit
Scores
• A good credit score is crucial for securing higher credit limits. The main credit reference agencies in the UK (Experian, Equifax, and TransUnion) have different scoring systems:
• Experian: Scores range from 0-999.
A score above 961 is considered excellent.
• Equifax: Scores range from 0-1000.
A score above 811 is excellent.
• TransUnion: Scores range from
0-710. A score above 628 is excellent.
2. Check Your Credit Report
• Regularly check your credit report with all three agencies to ensure there are no errors or outdated information that could negatively impact your score. You can access your credit report for free through services like Clear Score and Credit Karma •
3. Improve Your Credit Score
• Pay Bills on Time: Ensure all your bills are paid on time to avoid negative marks on your credit report.
• Reduce Existing Debt: Lower your credit card balances to improve your credit utilisation ratio.
• Stay on the Electoral Roll: Being registered can positively impact your credit score
-Limit New Credit Applications: Too many applications in a short period can lower your score .
4. Use Eligibility Checkers
• Before applying for a credit card, use eligibility checkers to see which cards you are likely to be approved for without affecting your credit score.
This can help you target cards that offer higher limits .
5. Consider Your Income and Employment Status
• Lenders often consider your income and job stability when determining credit limits. A higher income can lead to a higher credit limit .
6. Choose the Right
Card
• Some credit cards are specifically designed for higher limits, such as premium or rewards cards. Research and compare different options to find one that suits your needs.
7. Build a Relationship with Your Lender
• If you have an existing credit card, consider asking your lender for a credit limit increase after demonstrating responsible usage over time.
Dear Damien,
Thank you for providing the information. I am currently looking to build my credit score to qualify for a property purchase. Despite having a salary of £27,500, my applications for M&S, Barclaycard, and Tesco Bank have been declined.
Could you please provide guidance on how I can improve my credit score and increase my eligibility for credit cards?
Thank you very much for your assistance.
Best regards,
Iman
Hi Iman,
We have quite a few articles on our website, including information on how to build your credit score. I'll post links to them below.
As you've been declined for a number of credit cards already, I would recommend that you use an eligibility checker because further declined applications will only exacerbate the issue.
A credit card eligibility checker is a way of checking to see what credit cards you are likely to be eligible for. An online tool can show the different cards you are most likely to be accepted for, including some that you may be 'pre-approved' for, though this will still require a credit check.
You will have an idea of your chances of having a successful application without having to go through the process of fully applying for the credit card. The eligibility checker will run a 'soft' search on your credit file to get information on your financial situation without leaving a mark that will show up on future checks. You can therefore use an eligibility checker as often as you like without your credit score being affected, which wouldn’t be the case if you applied for a series of different credit cards instead.
I'd suggest that you take a break before applying again. Credit card providers will see the declined applications when they run the credit check and so could view it as a sign that you are desperate for credit and use that as a reason to decline.
We have some articles on the Money to the Masses website that you may find helpful in relation to building your credit score and finding the right credit card for you:
"How to improve your credit score quickly" - moneytothemasses.com/using-credit/credit-report-2/improve-credit-score-quickly
"The best way to check your credit score for free" - moneytothemasses.com/using-credit/credit-report-2/the-best-way-to-check-your-credit-score-for-free
"What is a good credit score?" -moneytothemasses.com/using-credit/credit-report-2/what-is-a-good-credit-score-and-how-to-improve-yours
"Check credit card eligibility: What credit cards am I eligible for?" - moneytothemasses.com/using-credit/credit-cards/check-credit-card-eligibility-what-credit-cards-am-i-eligible-for
"Credit cards for not so good credit" -moneytothemasses.com/credit-card-2/credit-cards-for-not-so-good-credit
I hope you find that helpful! 😊