Are you new to the UK and looking for a credit card?
If you are new to the UK you may be experiencing difficulties in obtaining a credit card as you have not yet had the chance to build up a substantial credit history, meaning that you have insufficient information on your credit record that enables lenders to see whether you have been responsible with credit in the past.
Your credit record is documented in a report that’s maintained by credit bureaus – there are three main bureaus that most Financial Services companies use: Experian, Equifax and Call Credit. The bureaus that maintain your credit history get information about your credit status from banks, finance companies, credit card suppliers, department stores, etc. When you ask to borrow money from a bank or apply for a mortgage, the loan or mortgage provider will use information contained on your credit report to decide whether it’s safe for them to give you money. If your credit report shows that you pay your bills on time and have managed credit accounts responsibly in the past, you may stand a much better chance of getting a loan, mortgage or credit card.
How to improve your chances of being accepted for a credit card now and in the future
As many financial services companies will look at how you manage your credit accounts, you may find it harder to get approved for a credit card, loan or mortgage if you have never taken credit in the UK previously. So you might want to consider paying for your gas and electricity bills by direct debit, or paying for your gym membership monthly – as regular payments on both should appear on your credit report. The same is true if you have a mobile phone contract. For some lenders, two years of positive detail on your reports will go a long way to improving your score and your credit risk – so make sure you pay bills regularly and on time.
Not everyone knows this but every time you make an application for credit, including a credit card, a credit search is conducted and this is recorded on your credit report. If you have applied for a number of cards recently and been rejected, your credit history may actually be getting worse not better. It may be best to stop applying for cards in the short term. You’re probably best leaving between 3 and 6 months between applications to give you time to repair your status (but we’re making no promises, it may take longer).
Your credit report also contains a record of where you live now and have lived previously. It’s important that you keep an accurate record of your previous addresses and the length of time you lived there – also try not to move home too regularly if possible. Always ensure that you update any companies you have credit with of your new address and ensure that for each property you get registered on the electoral roll.
Still confused? Take a read of our frequently asked questions which may help shed some light…
Frequently asked questions
Q: What can I do if I have problems getting credit?
A: You should initially find out from the lender why you have been refused credit. If a credit agency was used and the lender indicates there was a problem with your credit search or you have not scored high enough, you can contact the agency to find out the information held on file about you. You will need to provide the following: your full name, date of birth, your current address and your previous addresses over the past six years. If any of the items in the report are inaccurate, challenge them directly with the credit bureau. Also, check your report for any late payments. While you may have paid bills regularly, if you failed to pay by the due date, the lender will have informed the credit bureaus of this and it may be causing you problems now.
Q: How do I obtain my credit report?
A: You can contact the two main credit bureaus (Experian or Equifax) and ask them to send you your credit report. You will need to provide the following: your full name, date of birth, your current address, and your previous addresses over the past six years.If any of the items in the report are inaccurate, challenge them directly with the credit bureau.
Q: How do I register on the electoral roll?
A: To register on the electoral roll you will generally need to complete a voter registration form and return it to your local authority. Visit the local government website to find out more.
Are you new to the UK and need a credit card? We might be able to help. Apply online for the aqua Credit Card
Typical 35.9% APR variable
Credit is available subject to status to UK residents aged 18 and over
aqua is a trademark of SAV Credit Limited, which is used by Bank of Scotland plc under licence. aqua credit cards are issued by Bank of Scotland plc. Registered in Scotland No. SC327000. Registered office: The Mound, Edinburgh EH1 1YZ. Authorised and regulated by the Financial Services Authority.
