Guaranteed approval credit cards for bad credit in the UK
If you have bad credit, a guaranteed acceptance credit card may seem like the perfect answer. But do guaranteed credit cards actually exist?
Our guide will bust a few myths on guaranteed and pre-approved credit cards, and give you information on what you can do if you’re worried about having a poor credit rating.
If you have bad credit, a guaranteed acceptance credit card may seem like the perfect answer. But do guaranteed credit cards actually exist?
Our guide will bust a few myths on guaranteed and pre-approved credit cards, and give you information on what you can do if you’re worried about having a poor credit rating.
What is a pre-approved credit card?
A pre-approved or guaranteed approval credit card is one that a credit card provider thinks you’re likely to be accepted for based on the information they have about you. But here in the UK, a pre-approved or ‘guaranteed’ credit card doesn’t actually guarantee acceptance.
You’ll typically receive guaranteed approval credit card offers from banks and other credit card providers who already have some understanding of your financial situation. For example, it could be an offer from your current account provider, or you could be targeted after completing a credit card eligibility check.
If you’re pre-approved, it means that the credit card provider believes you meet their eligibility and affordability requirements based on what they know about you. But they may be basing their offer on out-of-date, incomplete, or inaccurate information.
All credit card providers will want to run further checks on your financial stability and borrowing history before they decide whether to accept your credit card application.
How do providers decide who to accept for a credit card?
Before offering you credit, lenders will want to feel confident that you can handle credit well and that you’ll be able to afford to pay back what you borrow. To do this they’ll review:
- Your credit history: this will show them how well you’ve handled debt in the past and how much you already owe to other lenders. Ideally, they’ll want to see that you have paid your bills on time and that you have a low credit utilisation ratio.
- Your affordability: lenders will look at your income and regular expenses to calculate whether you can afford to pay back what you borrow. Some credit card providers may also have minimum salary requirements.
When you apply for a credit card, you consent to the lender doing a hard search of your credit report. This gives them a more in-depth view of your credit history than the soft search they may have run initially to check your eligibility.
The information on your credit file is a deciding factor for lenders. And if you are accepted, it plays an important role in deciding what interest rate and credit limit you’ll get.
Compare the Market Limited acts as a credit broker, not a lender. To apply you must be a UK resident and aged 18 or over. Credit is subject to status and eligibility.
Top tipAvoid making multiple credit applications over a short period of time – they tend to suggest you’re desperate for money. It’s a major red flag for lenders as they’ll see how many times you’ve applied for credit on your credit report. |
What are the easiest credit cards to get in the UK?
Credit builder cards are credit cards designed for people with poor credit histories (or no credit history at all). They’re also known as bad credit credit cards, because you may still be eligible for one even if you’ve had financial difficulties or missed payments in the past.
You’ll still have to go through a credit check when you apply for a credit builder card, but the eligibility requirements tend to be less strict. Accordingly, they usually come with higher interest rates than other credit cards, and you might have a low credit limit to begin with.
However, as the name suggests, if you show you can use a credit builder card responsibly, by paying it off in full each month, it could help improve your credit score. And in time, that could improve your chances of being approved for better credit card deals in the future.
How can I improve my chances of being approved for a credit card?
The fact is, even when you apply for a ‘guaranteed credit card’, a poor credit history could mean your application is refused. It may take time, but it’s worth taking steps to improve your credit rating before you apply.
As well as proving that you can manage debt responsibly using a credit builder card, you can also help your credit rating by:
- Paying all your bills on time
- Getting on the electoral roll
- Not maxing your credit limit
- Checking your credit report is accurate and up to date.
Once you’ve built up your credit score, you’ll have more chance of being accepted for a wider range of credit cards. A higher credit rating will also give you access to better interest rates and higher credit limits.
Find out more ways to build your credit score.
How can I check my credit report?
You can get a credit report free of charge from one of the three main credit reference agencies: Experian, Equifax or TransUnion.
Your credit report contains basic information about you, like:
- credit accounts in your name
- if you’re on the electoral roll
- any current outstanding credit balances
- details about any late or missed payments.
Did you know?One of the quickest and easiest ways to improve your credit score is by registering to vote. If you’re on the electoral roll, it will show up on your credit report. Credit card providers will then use this information to confirm your identity and address. |
What are the alternatives to a credit card?
- Pre-paid cards allow you to load cash on to them, to spend however you want. Most pre-paid cards are provided by Visa or MasterCard, so can be used in all the same shops and restaurants as credit cards.
- A debit card is linked to your current account and can be used in the same way as a credit card. The difference is that payment comes directly from money available in your bank account, so you’ll pay for things straight away rather than later.
- An arranged overdraft on your current account could be a useful alternative if you need to borrow money in the short term. But unless you can find a bank that offers 0% interest, the charges for using an overdraft can be hefty. If you’re looking to borrow long term, a 0% credit card might work out cheaper.
- A personal loan could help you spread your payments at a fixed rate over a longer period. But again, there’s no guarantee you’ll be accepted and the advertised interest rates are usually reserved for those with the best credit scores.
Where can I compare credit cards?
If you have a poor credit history or no credit history at all, you can still use our site to compare credit builder credit cards.
Use our eligibility checker to see which credit cards you’re likely to be approved for, without leaving a mark on your credit report.
Frequently asked questions
What should I do if I’m rejected for a credit card?
Even if the card is advertised as ‘guaranteed acceptance’, there’s a chance your application will be rejected, especially if your credit score is low.
If this happens, don’t immediately apply for another card as this is likely to damage your credit score even more. Take time to build up your credit score, monitor your credit rating, then re-apply after a few months. Before you reapply, it’s a good idea to use a credit card eligibility checker like ours to see your chances of being accepted for a range of credit cards, without impacting your credit score.
What are instant decision credit cards?
If you apply for an instant decision or instant approval credit card, it means that you should find out if your application has been accepted or rejected within minutes.
You could get an instant decision on a credit card either if you have an excellent credit score, or if you’re applying for a card, such as a credit builder card, that has wider eligibility criteria.
However, much like guaranteed acceptance cards, there’s no actual guarantee you’ll be approved, no matter how long it takes to review your application.
Also remember that if you are approved quickly, it can still take a few days for your card to arrive.
Can I get an instant approval credit card with no credit check?
You can’t get any type of credit card without the provider carrying out a hard credit check on your credit file.
Even if a card is advertised as guaranteed acceptance or instant approval, the lender will ultimately base the decision of whether to approve you on your credit score and financial circumstances.
What does a guaranteed APR mean?
When you apply for a credit card, you’ll be offered an APR (Annual Percentage Rate). This is basically how much your credit card will cost you to use over the course of a year.
Most credit cards are advertised with a ‘representative’ APR – the best rate providers must offer to 51% of their customers; typically those with the highest credit ratings.
If a credit card is advertised with a ‘guaranteed’ APR, that will be the actual interest rate you’ll be charged if your application is accepted.
How does the credit card eligibility checker work?
Our credit card eligibility checker gives you an indication of which cards you’re likely to be accepted for based on a soft pull of your credit information, the details you provide and the lender’s acceptance criteria.
Lenders won’t be able to see that you’ve done a credit card eligibility check and it won’t impact your credit score.
It doesn’t guarantee your application will be approved.
Looking for a credit card?
Compare credit cards quickly and easily. Use our eligibility checker to find out which credit cards you’re likely to be accepted for without affecting your credit score.
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The Editorial Team - Compare the Market
Experts in personal finance, insurance and utilities
Compare the Market’s Editorial Team is made up of industry experts with decades of experience in personal finance, insurance and utilities. Each of our authors has an area of expertise, where they can share their extensive experience to help you get a better deal, by finding the right product and saving money.