Qualifying For A Credit Card

Credit card issuers often have a basic set of criteria that is used at the beginning of the application process:

• The card holder is over 18 (sometimes over 21 depending on credit)
• The card holder lives in the UK or Channel Islands
• A household income of at least £5000 per annum
• A reasonable credit history

However, once these basic criteria have been met, card issuers require a demonstration that you are a good investment. They perform a credit check on your name, which allows them to view a history of your previous credit from third parties and assesses your risk factor. This is often a figure between 1 and 5. Here, 1 is the lowest possible score and 5 is the highest, whilst 3 is an average credit score in the UK.

A credit history is compiled from high street banks and building societies, other card issuers, loan companies and various credit agencies. If you have no previous credit history, you may need to build one up. A credit card is often a good way of doing this - with a limit of only £100 you can prove yourself to be trustworthy with credit and gain a higher credit score.

If your application for a card has been declined, the card issuer must give a brief reason and the name, address and telephone number of the credit bureau that provided your credit history. For an administrative fee (usually £10-20) you can request a copy of the report.