Credit Card for People with no Credit HistoryIf you have no credit history, applying for a credit card can be daunting. You might be worried about being rejected by lenders or credit card providers who want to see an active credit history. However, there are options available for people who are new to borrowing.
Here’s our guide to finding a credit card for no credit history.
29.5% APR Representative (variable)
A thin credit file doesn’t have to stand in your way
If you’ve never borrowed before, or you’re new to credit in the United Kingdom, then your credit file may be a bit “thin”. This means you haven’t built up a track record and so there isn’t much to see for a lender on your credit file.
Lenders are more likely to reject an application if you have a limited credit score because it’s harder for them to predict how you’ll manage your repayments. A limited or “thin” credit history means that lenders cannot assess if you are a high-risk borrower, a low-risk borrower, or if you are or have been involved with fraud. In most cases lenders or providers won’t be able to assess the risk of borrowing to you and may not be willing to accept an application for credit.
It is possible to find a credit card service considering applications for consumers with no credit score. Some specialist credit card providers focus on your income and outgoings to decide whether you can afford to borrow. They won’t reject you for simply not having a track record. At thimbl. we welcome applicants with any type of credit history to check their eligibility for our credit card.
Finding a credit card if you have a limited credit score
If you’re searching for a UK-based credit card that is willing to consider applicants with no credit history, it’s worth looking for a credit builder card.
These cards are offered by specialist lenders who will accept applications from people with no credit history, or who have had credit problems in the past. They usually have a low initial credit limit and are intended to be used for small amounts of spending to help you improve your credit score and limit the risk of overspending.
There are also student credit cards aimed specifically at full-time college and university students aged 18 and over. These work in a similar way to other credit cards designed to help build credit history.
Building your credit score
You can use your thimbl. credit card just like any other credit card. And using it carefully and responsibly can be part of helping you build your credit score. If you use the card to make purchases and then make more than the minimum repayment each month, it shows you can manage your credit well. Over time this helps you build your credit score. You may start to see an improvement after a few months.
It’s important to remember that there are other things that can affect your credit score. Stay on top of all your other accounts and credit obligations, and ensure you always make payments on time.
Who can apply for a credit card with no credit score
If you want to make a UK credit card application for no credit history, the main eligibility criteria tend to be similar across UK providers. They will typically want you to be:
- Aged 18 or over
- A UK resident
- Employed or have an alternative regular income
- A holder of a UK bank account with a debit card
- Able to afford to make repayments
- Not bankrupt
Although the main eligibility criteria are similar, each lender will assess all of the information you provide, along with a check of your credit history, and make their own decision on whether to lend to you.
The perks of having thimbl.® in your wallet
Making an application for a credit card with no credit history
To make an application for a credit card for no credit history in the UK you would normally complete a form online. The credit card provider will ask for information about your personal circumstances, including your age, UK residency status, addresses for the last few years and your employment. They will also ask about your income and regular outgoings so that they can understand what repayments you can afford.
Once you have made your application the provider will usually follow these steps:
Check your eligibility before applying
If you apply for a credit card with no credit score in the UK you might get rejected. Too many rejections in a short period of time can harm your credit score.
Therefore, to reduce the risk of getting rejected, it’s a good idea to look for providers who offer an eligibility check before applying.
The eligibility checker usually is a free service offered by lenders to check whether you will be eligible for their credit card. These are often referred to as “soft credit searches”. What this means is that when one of these is conducted it is only visible to you and has no impact on any future credit applications unlike the “hard credit searches” which are conducted by credit reference agencies.
You can check your eligibility for a thimbl. credit card by using our online credit card eligibility checker.
If you are eligible, you can then continue to apply with confidence that you have a good chance of being accepted. However, there will be some additional checks, such as a “hard credit check” and fraud checks that will need to be conducted prior to being accepted, which will be visible to other lenders and could affect future credit applications.
- For all credit levels, from poor to excellent
- Checking won’t affect your credit rating
- 29.5% APR Representative (variable)
The perks of having thimbl.® in your wallet