Why can’t I get a credit card?

Firstly, don’t rush to apply for new credit. Lots of applications in a short space of time can negatively affect your credit file.  

Use our credit rejection tool to learn about the reasons why you could have been turned down. It only takes a couple of minutes to finish, and it will create an action plan to help improve your chances of a successful application.

Your application for a credit card might be turned down if you already owe a lot on your existing credit cards, overdraft, loans or buy now pay later accounts. This is because it could be seen as unaffordable to add to your debt.    

Find free help with paying off what you owe if you’re struggling with debt repayments. 

However, owing a lot of money doesn’t always mean that you’ll be turned down. Lenders often look at what’s called your ‘credit utilisation rate’, which is how much of your available credit you’re currently using. 

For example, if your credit card limit was £1,000 and you had an outstanding balance of £200, that would make your credit utilisation rate 20%.  

So, if someone has a high balance, but it’s only 50% of their total credit limit, then they might be more likely to be approved than someone who owes less money but has almost maxed out their full credit limit. 

Having a lower credit utilisation rate can mean you’re more likely to be accepted for new credit. To improve your credit score, credit reference agencies recommend you keep your credit utilisation rate under 25%.  

If you’re young or you’ve never had a credit card before, this can also be a problem. Credit card companies look for people with a track record of paying off what they owe.  

Your credit history looks at more than just credit cards. If you’ve had a phone contract or an overdraft that will also count towards it.  

You can sign up for services that report your rent payments to credit reference agencies. If you always pay your rent on time, this can help you create a credit history without taking out credit.  

Find out more in our guide about how to improve your credit score so you’re more likely to get a yes when you next apply. 

Making lots of applications for credit will show up on your credit report. Lenders can view this as a negative factor when they’re deciding whether to accept your application. 

You don’t have to have applied for another credit card, as any so-called ‘hard’ credit searches can make an impact. These can happen when you open a new bank account, as well as when you apply for credit.  

It’s best to wait a while before you apply again and check your credit file to see when your last searches were.  

There are no strict rules about how many hard credit checks are too many, but it’s good not to have more than one or two every few months. 

Some types of credit cards will give you a better chance of being accepted.  

Although you might want the best card which has cashback or a 0% deal, you can be less likely to be accepted for these if you have poor credit.  

There is a specific type of credit card for people with a limited or poor credit history. These are known as credit builder or “bad credit” credit cards.  

Use a comparison site to find a card that will suit you.  

If you have late payments or even a default on your credit file, then it can be a red flag to credit card companies.  

The impact of missed payments decreases as time goes on. A missed payment that’s two years old won’t affect your credit as much as one from a couple of months ago. Late payments are completely wiped from your file after six years.  

Make sure you keep up with payments, so it won’t be a problem again when you apply in future.  

If you think there’s a late payment on your file that was added by mistake, you can get in touch with the lender and ask them to fix the error.

After you apply for credit, the company will try and match the details you gave with the ones on your credit file so they can check your history. When the credit card company can’t do that, they’ll probably reject your application.  

If you’ve moved home or changed your name, it’s important to update your existing accounts and register to voteOpens in a new window with your new name or address. Check your credit file to make sure all the details listed for you are correct.  

When a lender looks at your credit file, they can only see the searches that were made, not if you were accepted or rejected.  

Hard searches like the ones that happen when you apply for a credit card stay on your file for two years.  

If there are hard searches on your file and they were made when someone else used your details without your knowledge, you can report them as fraudulent with the credit reference agency to get them wiped.