Applying for credit cards in the UK can be a rather daunting experience. All sorts of factors can influence weather you are accepted or not and then what rate you'll get. We've put together our top ten tips to help guide you through the credit card application process.
- When you apply for a credit card, UK credit card issuers will do a credit check to determine if you meet their requirements.
- The Summary Box on the credit card application contains all the pertinent information you need to compare one credit card with another.
- The advertised interest rate may be a promotional rate that will expire in as little as three months. Always check the Summary Box to find out how long the advertised rate will apply and what the typical interest rate will be after it expires.
- You may be offered a credit card at a higher interest rate if you don't meet the requirements for the card's typical interest rate. By law, a credit card UK company must offer their typical interest rate to 2 of every 3 applicants that they accept. That means that as many as 1 in every 3 pays a higher interest rate.
- Credit card offers change frequently. Most money saving experts recommend that you keep your eye peeled for promotional offers that can save you money with lower APR, cash back promotions or no-cost balance transfers.
- Every time you apply for a credit card, the credit bureaus make a note of it. You can minimize the effect on your credit record by choosing carefully and only applying for those credit cards that will be to your benefit.
- Your credit score and record will determine the interest rate that you're offered on a new card. Before you apply, check your credit report to see if there are errors that should be rectified.
- It can take ten to fourteen days to process your credit card application and get your credit card activated. This is important to know if you are trying to time a credit balance transfer in time to avoid interest charges.
- The annual fee and other charges may add considerably to the cost of your credit card.
- The interest free period and allocation of payments information that you'll find listed in the summary box can be important in helping you decide on the best credit card for you.
