Credit Card for No Credit History

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 necessarily reject you for simply not having a track record.

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 a credit building 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.

Please note, to be eligible to apply for a thimbl credit card, you will need to have at least one year’s UK address history, as well as an open credit account that has been active for at least twelve months. This could include a mobile phone contract, or other loan or credit card account.

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, 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 choose whether to go on and make a full application. 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.