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.
Every time that you apply for a credit card, there's a note made on your credit record. Those notes can lower your credit rating or credit score, especially if your application is denied. It makes sense to keep your applications to a minimum - which means that when you apply for a credit card, you should apply for the best option you possibly can. Whether you're looking for your first card or the best for a balance transfer, there are tips that can help you apply for the right credit card for you.
- Know your credit score. On the one hand, knowing how good your credit is will save you from applying for credit cards for which you don't qualify. On the other, you may find that you qualify for cards that offer much better terms than you thought you could get. You can get your credit record for free once a year, and can make a pretty good guess at your credit standing based on what it contains.
- Consider your reason for wanting this credit card. Different credit cards have different strengths. When you make your applications, consider how you intend to use it, then choose a card with strengths that apply. If your intent is to transfer existing balances to a new card, choose one that offers 0% or low interest rates on transferred balances. If you need one for emergency use, then pick one that offers low interest on new purchases. Whatever the reason, pick a card that will support it.
- Compare credit cards against each other to choose the better deal. You'll find many online sites where you can compare credit cards side by side, feature by feature. Narrow the field to those that offer the best deal based on your most important criteria.
- When you compare credit cards, be sure to add up all the costs. Even if you're looking for a balance transfer option, or know that you want a card that gives you high reward points, be sure to look at the big picture. Look at any fees, penalties and costs that are associated with each credit card before you fill out your application.
