Why can’t I get a credit card?

If you already have several outstanding loans and balances on credit cards, you could be declined for a credit card. This is because the lender may be concerned about whether you can afford to take on more debt.

Credit card providers want to see how much of your available credit you’re using. This is called your credit utilisation ratio. If they think it’s too high, they might see it as a sign you’re struggling with your finances.

Credit card providers tend to favour applicants who have a stable job history. Your application could be declined if a provider thinks you might be unable to keep up with your monthly repayments because you’re regularly out of work.

However, as flexible working contracts and self-employment increases, lenders are updating their policies to accommodate this.

Your credit card application can also be rejected if your income is too low. This is because providers aren’t confident that you can afford the repayments.

To be accepted for credit, you have to show you can effectively manage it. This is harder to prove if you haven’t had much (or any) experience of borrowing.

You need at least one account that requires credit, open for three to six months, to generate a credit score. This is a figure used by lenders to assess the risk of lending to you.

Managing payments on utility bills, an overdraft or even a phone contract can show lenders you’re responsible. A credit builder card could also be a good option to help you boost your credit score.

Find out how to build your credit score.

A late credit repayment could negatively impact your credit score. This could increase the likelihood of your application being rejected. It implies to a lender that you’re less likely to pay on time in the future.

To avoid late payments, it’s a good idea to set up direct debits. After a few months of paying your bills on time, you should see your credit score start to bounce back.

Every time you apply for credit, the lender will carry out what’s called a ‘hard search’ on your credit file. This leaves a mark that other lenders can see. Multiple applications in a short space of time can suggest you’re struggling to manage your finances effectively.

To avoid too many hard checks on your credit file, it’s a good idea to check if you’re likely to be eligible for a card before you apply.

We can help with that. Use our credit card eligibility checker to get an idea of which credit cards you’re likely to be accepted for, without impacting your credit score.

Credit providers normally use the electoral roll to verify your name and address. So make sure that you’re registered to vote. And if you’ve recently changed name or address, make sure that the lender is aware to avoid any confusion.

If you’re not able to join the electoral register, you should contact the three main credit reference agencies: Equifax, Experian and TransUnion. Ask them to put a note on your file explaining why. This is called a ‘notice of correction’.

You may be able to provide other forms of ID and proof of address when applying for credit, but this will likely delay your application.

If you’ve ever applied for credit with someone else – for example, a joint mortgage – you’ll be financially tied to that person on your credit report.

Even if you’re only applying for a credit card in your name, a lender may still investigate your financial partner’s credit history when considering your application. If they have a poor credit history, it could reflect badly on your own credit report. This could hinder your chances of being accepted.

To remove your financial links to a person on your credit file, you can apply for what’s called a ‘notice of disassociation’ from the three main credit reference agencies.

You’ll need to have closed and settled any joint accounts you hold together before you can do this.

Your credit report holds information including your current and previous addresses, bank accounts and borrowing history. Sometimes incorrect information can find its way on to your report.

Even a wrongly recorded missed payment can dent your chances of being approved for a new credit card. That’s why it’s important to make sure the information held on your file is correct.

Read our guide to find out how to check your credit report for free.

If you spot any mistakes, ask your lender to remove the incorrect information. You could also report any mistakes to the credit reference agency. They must either remove the information within 28 days or tell you why they think it’s correct.

You can also be denied credit if you inadvertently enter incorrect information on your application.

Even seemingly small mistakes, such as not writing your address exactly as it’s shown on the electoral roll, could lead a lender to reject your application.

If you realise you’ve made a mistake on your credit card application, contact the lender to let them know. That way they can review your application based on the correct information.

Bankruptcies or county court judgments (CCJs) stay on your credit record for six years. So lenders will know that you’ve got yourself into serious financial difficulties.

This makes you a very risky prospect in the eyes of lenders, so you’re likely to be turned down for most credit cards.

However, you could be eligible for credit cards that are aimed at people with bad credit, depending on your circumstances.