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AutoSergei's credit card eligibility checker takes the hassle out of finding a new credit card. Just enter a few details and see the cards you're most likely to be accepted for, all without affecting your credit score.Check now
Why should I use the credit card eligibility checker?
Use our eligibility checker if you want to see how likely it is that you’ll qualify for a card before you apply for it, without impacting your credit score. On average, it takes under 1 minute to do**. The results can help you to avoid applying for any credit cards that you’re likely to be turned down for. Applying for multiple credit cards and having the applications denied will impact your credit score, and this is likely to make it harder for you to borrow money in the future. So, seeing what cards you’re likely to be accepted for makes sense.
To use the eligibility checker, you just need to give us a few details, including:
- your personal details
- UK address history
- annual salary and other income
**On average it can take less than 1 minute to complete a credit card eligibility check through Compare the Market based on data in November 2020.
We understand that the outbreak of coronavirus (COVID-19) has caused financial difficulty for some of you. If you have a credit card and you’re worried about making repayments due to coronavirus, we’re here to help you understand the options available.Find out more
What are credit cards?
Credit cards offer a flexible way to delay paying for the things you buy. Your bank, building society or other credit provider will lend you the money to buy items online and in store. That means the amount you spend on them is a debt. You can spread the cost of expensive items, earn rewards on your spending and even use credit cards to reduce your debts.
You’ll pay back the money you owe each month, either the full amount or in instalments with interest on top. Used well, credit cards can be beneficial, but there are pitfalls to watch out for.
How do credit cards work?
You can use a credit card to buy goods and services, much like you’d use your debit card. The main difference is that, when you spend on a credit card, you’re borrowing from the card provider instead of spending your own money.
You’ll be given a limit as to how much you can spend on the card by the card provider. Depending on how big a risk they think you are for paying back what you borrow, the limit may vary from a few hundred pounds to thousands.
If you use your card to make cash withdrawals, you’ll have to pay interest from the day you borrow the money. You may also have to pay additional charges for borrowing cash.
If you pay your bill in full every month, the good news is that you won’t pay any interest for any purchases. But if you pay only the minimum amount, you could end up paying more in interest, fees and charges than you originally borrowed. It’s advisable, if you can afford it, to pay more than the minimum payment as this will help you pay off your debt sooner and make your borrowing cheaper.
Each month, your card provider will send you a statement (online or by post) telling you how much you owe. It will also show:
- any fees charged
- how much available credit you have left
- the minimum payment needed and the date it’s due.
You can make sure your payment always reaches your card provider in time by setting up a Direct Debit from your bank account. Late payments and non-payment will affect your credit rating.
A few cards also charge you a monthly or annual fee. Every credit card is different and so charges and fees will differ – always read your terms and conditions with care.
How do lenders decide whether to give you a credit card?
When you apply for a credit card, the lender has some big decisions to make. They won’t just hand you a card with no questions asked. Firstly, they have to decide if they’re willing to give you a card at all. They’ll then weigh up how much you can borrow and how much interest they’ll charge you. They’ll look at things like:
- your income – you’ll need to give details of your annual salary and any other money you have coming in
- your credit score – the lender will carry out a hard credit check to find out how trustworthy you’ve been in the past at paying back money you’ve borrowed. This will leave a mark on your credit file and could impact your credit score
- the amount of debt you have – the provider will want to feel confident you can afford to pay back any money owed on your credit card
Use our eligibility checker to get an idea of whether you’ll qualify for a card before you apply, to avoid impacting your credit score.
What are the different types of credit card available?
There are several types of credit card to suit different situations. Used wisely, a credit card can be great for life’s little emergencies, big purchases and to reduce monthly outgoings by consolidating debt. So you’ll need to consider which is right for you.
0% on balance transfers - These cards let you move debt from an existing credit card (or cards) onto a new credit card, and you pay no interest on the balance you transfer for a set period of time. But you could be charged a balance transfer fee for moving money onto these cards – often a percentage of the amount of money you want to move. You must pay off at least the minimum amount each month and the entire outstanding amount before the 0% deal expires to avoid being charged interest. The advantage of this type of card is that once the fee is paid, all the money you pay goes toward reducing the debt you owe rather than paying off interest.
Find out more or see what you can save on.0% on balance transfers credit cards
0% on new purchases - Useful if you’re planning to buy more expensive items, these cards allow you to spread the payment over a number of months without paying interest. That’s as long as you pay off at least the minimum amount each month and the whole of the outstanding amount before the 0% deal expires.
Find out more or see what you can save on0% on purchases credit cards
0% on balance transfer and purchases - These offer interest-free periods for new purchases and interest-free balance transfers from other credit cards. You could be charged a fee for transferring your balance, and you need to make sure you pay off the minimum amount each month and the outstanding amount before the 0% deal expires.
Find out more or see what you can save on0% on balance transfer and purchases credit cards
Reward cards - With these cards you can earn cashback, points, air miles or another rewards as you spend with your favourite retailers. The perks for exclusive high-end cards can include airport lounges and lifestyle management services too.
Each card will have its own terms and conditions, so be clear on what you’re signing up for. This kind of card can be suited to people who pay off their balance in full every month. If you don’t do this, you’ll end up paying interest charges that offset the rewards.
Find out more or compare deals now onRewards credit cards
Credit building cards – If you have a low credit score, these types of cards – also known as bad-credit cards – could help you out. They might give you access to funds and, when used in the right way, could help you build up your credit rating. If you haven’t had a card before, this could be a potential option as you begin to build up your credit rating. These cards can have a higher interest rate.
Find out more or find a deal onCredit building cards
Money transfer credit cards - These cards allow you to transfer cash from your credit card directly into your current account. You can repay the balance, often interest-free, over a set period of time. But watch out, there’s usually a money transfer fee, and if you don’t pay the minimum amount each month interest will be charged.
Find out more or see how much you can save onMoney transfer credit cards
Cashback cards - A cashback reward card gives you a percentage of the amount you spend on the card back as an incentive to use it. Check to see where you can earn cashback to make sure it’s a worthwhile choice. Cashback cards are ideal for people who pay off their balance in full each month, otherwise any cashback gains will be wiped out by interest costs. Some cards may have an annual fee.
Find out more or compare Cashback credit cards.Cashback credit cards
Make sure you understand any promotional offers on a card you’re considering – for example, the window available for balance transfers – and what happens once the offer has run out, for example, the interest rate increasing. And make sure you know what happens if you miss a payment or make a late payment.
You can also use our credit card eligibility checker to see in less than 1 minute** those cards you’d be likely to qualify for to help you decide.
**On average it can take less than 1 minute to complete a credit card eligibility check through Compare the Market based on data in November 2020.
Do I need a credit card?
You don’t have to have a credit card, but they can:
- be useful for emergencies
- give you some financial flexibility
- reward you with freebies, air miles or cashback
- be used abroad
- help build your credit score if you use them well
In some circumstances, under Section 75 of the Consumer Credit Act, you may be able to claim your money back for purchases you make with your credit card, should something go wrong. This protection can apply to purchases valued at between £100 and £30,000. But this isn’t automatic. It depends on all the relevant facts, including the supplier’s terms and conditions, the Mastercard or Visa scheme rules and the card issuer’s approach.
What are the pros and cons of credit cards?
Credit cards have many benefits, but they’re not always the right option. Let’s take a closer look at some of the advantages and disadvantages of credit cards.
- Spread the cost – if you suddenly find you need a new boiler or an expensive car repair, you could pay on your card. Spreading the repayments over a few months can make it more affordable in the short-term – but you’ll pay interest on top.
- Widely accepted – credit cards are easy to use and are accepted in more places than prepaid cards and charge cards. Some cards also offer rewards like air miles, cashback and reward points for your spending.
- Safer than cash – if your card is stolen, you can cancel it with the provider. If it’s used fraudulently you might be able to get your money back too, unlike stolen cash.
- Debts can soon mount up – people can get into serious debt when it comes to the misuse of credit cards. You should use them carefully, not spending more than you can afford to pay back.
- High interest payments – credit cards can have high rates of interest that can make purchases far more expensive if you only make the minimum repayment - and it’s important to be aware of fees and charges. Find out more about some of the charges that can affect credit card users.
- More expensive than other options – depending on how much you want to borrow and for how long, a personal loan can be a cheaper option as the interest rate can be lower than a credit card, depending on your credit rating. See more on personal loans.
What are the minimum requirements for applying for a credit card?
You must be 18 years old or over. For some credit cards, you might need to be 21 to apply. You also need to be a UK resident with full rights to live in the UK. Some cards or providers will set a minimum income too.
Frequently asked questions
What does APR mean?
The annual percentage rate (APR) tells you how much your borrowing will cost you over the course of a year. It includes the interest rate and any other standard charges, like the annual fee. Learn more about APR.
For most cards, you can avoid interest payments on transactions if you pay your balance in full each month by the due date.
Why should I pay off more than the minimum fee each month?
It sounds obvious, but the more you pay the faster your debt will disappear, so always aim to pay more than the minimum payment due. The minimum payment is the lowest amount you need to pay to avoid potential penalties. The minimum fee is usually calculated as a percentage of your balance.
Don’t think of it as a fixed amount as it’s not. The amount you need to repay each month as a minimum will fall as your balance reduces. See how this works in the table, and how paying more than just the minimum can reduce the time to clear the debt and the overall interest paid. This table assumes spending no more money on the card and the interest staying the same for the whole period.
|£1,000 balance on card||Interest paid||Total paid||Time to clear debt|
|Minimum repayment only (starting at £25 and decreasing as the debt goes down)||£1,336||£2,336||18 years and 7 months|
|£25 every month until debt cleared||£559||£1,559||5 years and 3 months|
|£40 a month||£270||£1,270||2 years and 8 months|
|£100 a month||£94||£1,094||11 months|
How can I check my credit score?
The three main credit reference agencies are Experian, Equifax and TransUnion (formerly Callcredit). These all have information about you that lenders can see before making a decision on offering you credit. Ideally you should check your score with all three to check that the information they have about you is correct, as different lenders use different agencies. Since May 2018 and with the introduction of new GDPR regulations, it remains free to check your credit score online. You may have to pay a fee for additional services, such as credit monitoring.
Lenders will carry out a hard search on your credit report every time you apply for a credit card. Too many hard searches on your file might make it look like you’re desperate for credit. A soft search is a way to find out which credit cards you’re most likely to be accepted for without your credit score being affected.
See more about building your credit score.
Why might I be rejected for a credit card?
Your credit history, also known as your credit report or score, is a major factor in determining if you’ll be accepted for a credit card. Lenders will take your score and use it to judge how likely they think you’ll be able to repay debt on a card. Learn more about credit building cards.
It’s worth knowing that you may be asked to pay higher interest rates if a lender sees you as a higher risk. Each lender will have their own reasons for the rates they set and so understanding what’s in your credit file is a good place to start.
If you’ve been rejected for a card, wait at least three months before you apply again. In the interim, do what you can to improve your credit score. When you apply again, use our eligibility checker to see which cards you’re likely to be accepted for.
What can I use a credit card for?
You can use a credit card to pay for bills and services. If you use a card to make cash withdrawals, you’ll start paying interest right away.
However you use your card, it’s important to be financially sensible. It’s wise to avoid paying for things like your mortgage and bills on your card, unless you’re sure you can pay the money back each month, as this can lead to a spiral of debt.
Can I get a joint credit card?
In the UK, there’s no equivalent of a joint bank account for credit cards, because just one person has to sign the credit agreement for a card. What you can do instead is add another cardholder to your card – known as an additional cardholder. They’ll get their own card, but you’ll be fully responsible for any debt on that card and all the administration involved, so there are risks involved. You can get an additional card for a partner, family member or friend. It’s important that you trust your additional cardholder not to run up big debts.
What happens when a car hire company or hotel asks for my card up front?
Some companies ask for pre-authorisations, so they can be sure they can collect the money owed to them if you don’t pay up – for example, if you use the mini-bar in a hotel or leave a car at the hire company without paying the bill at the time. The company puts a hold on some of your credit limit and while that’s in place you won’t be able to spend that money elsewhere. For example, if your credit limit is £1,000 and a car hire company puts a pre-authorisation of £500 on your card, you’ll only be able to spend £500 more on your card.
How can I improve my credit score?
There are several ways to build your credit score. These include registering on the electoral roll, correcting any mistakes on your credit file and paying your bills on time each month.
If you have a poor credit history, you could think about applying for a credit building card. This can help you prove you’re a responsible borrower, although interest rates are likely to be higher than a standard card, so try to pay off what you owe in full each month.
Do interest rates change?
They might well do. Most credit cards have a variable interest rate, which means the rate can go up or down at any time. Providers have the right to change their interest rates when they want, while changes to the Bank of England base rate can also affect credit card rates. That’s why it’s always a good idea to stay on top of your credit balance.
If you have a 0% credit card, you won’t have to pay any interest for a set number of months. But you should make sure you’ve cleared your balance before the introductory period ends, otherwise you’ll revert to the provider’s standard rate.
How do I apply for a credit card?
You can apply for a credit card online through Compare the Market or by going directly to the provider. You can also apply by phone, by post or in-branch.
Can I withdraw a credit card application?
Yes, you’ll get a 14-day cooling off period from when you receive your card to tell the provider you’ve changed your mind. There’ll be no penalty fee, but you’ll need to pay off any outstanding balance you’ve built on the card within 30 days.
Can I get a credit card with a bad credit score?
While the best credit card deals are offered to borrowers with flawless credit records, it’s possible to get credit cards for bad credit. Just bear in mind that they often come with high interest rates and low credit limits.
Used responsibly, this type of card can help you boost your credit score, so you could eventually benefit from credit cards with better rates and perks.
What happens if I miss a repayment on my credit card?
If you miss a repayment on your credit card, you’ll usually have to pay a penalty. You might also lose any introductory benefits, like 0% interest, and receive a black mark against your name on your credit report.
How can I get more credit?
Once you’ve proven yourself to be a responsible borrower by always repaying on time, you may automatically be offered a higher credit limit. Otherwise, you can contact your provider to ask for an increase, which you may or may not get. Be aware that a requested increase will appear on your credit file, whereas an automatic one won’t.
Can I pay off my credit card early?
Absolutely. Unlike with many loans and mortgage debts, you normally won’t be charged any fees or penalties for paying off a credit card debt ahead of schedule.
Does Compare the Market compare all the credit cards on the market?
We have many credit cards for you to compare, from major banks and leading credit card providers. But we don’t compare every single credit card available in the UK.
That’s because some credit card providers have exclusives through their own branches or websites, or on other price comparison websites – in the same way that we sometimes do. Also, there are credit cards which are only available to people in clubs or membership organisations.
Why compare credit cards with us?
We let you compare credit card deals quickly, so that you can find one most suited to your needs. It’s super-easy to filter your choices by card type, so when it comes to finding great credit card deals for you it won’t take long at all.
Why use Compare the Market?
1 minute** to see which cards you could be eligible for
Check without harming your credit score
Filter by type of card you are comparing
**On average it can take less than 1 minute to compare credit cards through Compare the Market based on data in November 2020.