If you\u2019ve got bad credit, then frustratingly, the lowest rate and most premium cards are likely to be unattainable right now. However, almost all card issuers now offer quick and easy \u201csoft search\u201d checks so you can find out whether or not you\u2019d be approved before you apply. Crucially, these don\u2019t involve a \u201chard search\u201d of your credit file (which would have a very slight negative impact on your credit score).<\/p>
Even better, you can also use comparison sites or other brokers to run soft-search checks with multiple card issuers in one go. If they\u2019re doing a good job, they\u2019ll be checking cards for high credit scores and cards for low credit scores so that users can identify the best deals that they\u2019d be likely to get approved for.<\/p>
If you\u2019re not sure what your credit score looks like, it\u2019s easy to find out for free<\/a>.<\/p> Open Banking<\/a> is still a new concept and there are very few credit card providers that offer this in the UK. However, Open Banking can assess how creditworthy you are as an applicant by looking at your finances overall, including your spending habits and savings, not just your credit history like a \u201chard\u201d or \u201csoft\u201d search does. <\/p> Before applying for a credit card, it\u2019s important to distinguish between a \u201csoft\u201d<\/strong> and a \u201chard\u201d<\/strong> search on your credit report.<\/p> When you\u2019re considering a particular credit card, most banks and credit card providers offer an eligibility check<\/strong> on their website. This is a simple online form that can tell you your chances of success in obtaining a credit card. This is known as a \u201csoft\u201d search because it doesn\u2019t impact your credit report.<\/p> However, making a formal application involves the lender doing a \u201chard\u201d search on your credit history, which usually has a slight negative effect on your credit score. Regardless of whether your application is a success, if a potential lender sees a lot of hard searches on your report in a small space of time, this could suggest you are struggling to find credit and could put lenders off.<\/p><\/div><\/div><\/div> Some countries offer credit cards without a credit check (such as secured cards<\/a> in the US which require you to put down a deposit), but in the UK it\u2019s not possible to get a credit card without one.<\/p> But although having a poor credit history will reduce your choices, there are still plenty of cards that cater to people with bad credit. In fact, some card issuers focus exclusively on this section of the market. If you have a low credit score, a \u201ccredit builder credit card<\/a>\u201d can be easier to get approved for than more mainstream cards.<\/p> You can now almost always find out if you\u2019re eligible instantly and without affecting your credit score. If you give them permission, card issuers will run a \u201csoft<\/a>\u201d search of your credit file so that you can find out if it\u2019s worth your while applying, and then if you decide to go ahead and apply, they\u2019ll run a full credit search.<\/p><\/div><\/div><\/div> Your credit report is a detailed record of your financial history, which lenders use to decide whether to offer you credit. Your credit history is stored by credit reference agencies, the biggest in the UK being Equifax, Experian and TransUnion (formerly Callcredit).<\/p>What are hard and soft credit checks?<\/h3>
Can I get a credit card with no credit check?<\/h3>
What is bad credit?<\/h3>