Credit cards are a form of financial help with which you can make purchases virtually without paying actual cash. When taken care of, a credit card helps you manage your expenses and keeps a check on your inflows and outflows.
That said, a credit card can be a dangerous instrument, and land you in a lot of debt. It should be used carefully and requires an honest consideration of your credit needs. Thus, the credit card eligibility requirements should be kept in mind before you turn in your application.
Credit card eligibility requirements are elementary, but you will have to meet certain financial requirements to be approved for the best credit card deals. Learn what to keep in mind before applying for a credit card.
- 1 Requirements for a Credit Card Application
- 2 Should Be At Least 18:
- 3 Have A Positive Credit History:
- 4 Be A UK Citizen:
- 5 Documents Needed For A Credit Card Application
- 6 A Record Of Your Residence:
- 7 Other Financial Documents:
- 8 Factors That Can Harm Your Chances Of Eligibility
- 9 Poor Credit History
- 10 Bankruptcy
- 11 History Of Rejection
- 12 What If I’m Stuck In Debt?
- 13 Pay More Than You Have To Pay
- 14 Spend Less Money
- 15 Make A List Of Your Debts And Income
Requirements for a Credit Card Application
Should Be At Least 18:
First of all, you need to be at least 18 years old with either a parent’s permission or verification regarding your source of income. The banks aren’t going to give you money if you can’t pay back your debts! You need to provide the bank with basic documentation that proves that your income is about £100,000/year.
Have A Positive Credit History:
All people with credit card eligibility must have a minimum credit score of 700 to gain assurance. In general, credit cards with poor credit eligibility will charge higher fees and higher interest rates.
Be A UK Citizen:
To successfully apply for a credit card in the UK, you need to submit proof of identity and citizenship. Your driver’s licence, passport, blue disabled drivers pass, UK armed forces ID card and a biometric residence permit should be included in the necessary documentation.
Documents Needed For A Credit Card Application
A Record Of Your Residence:
When making an online credit card application, you will have to provide the authorities with your previous addresses, if any. This is for the simple reason that banks want to check if you are consistent with your payments, and frequently relocating or changing houses comes across as a red flag.
Your bank will also ask for your email id and phone number, along with annual income details including tax slips, account number and sort code of your main bank account.
Other Financial Documents:
These include any other major documents that could prove your income worthiness and an additional source of income. This also includes documents regarding your current outflows and other expenses.
Factors That Can Harm Your Chances Of Eligibility
Here are a few things to remember when filling in the application to see whether you are an eligible credit cardholder:
Poor Credit History
A good credit score is proof of your creditworthiness. It gives your lenders the assurance that you have the ability to pay back the money borrowed as a loan. But a bad credit history acts as a barrier and makes the application procedure difficult.
You accumulate a poor credit score by borrowing more money than you can afford to repay. This, in turn, will defame your image in the eyes of the banks. So before submitting your application, be sure to have perfect credit scores.
You should not be currently declared as bankrupt or should not be indulged in any sort of financial malpractices. Any mention of monetary problems will make your credit card application weaker. If you are stuck in any sort of debt, you should clear it off before applying for a credit card.
History Of Rejection
Do not apply for a credit card if you have been declined in the past 30 days, or have any pending applications on your record. Avoid making too many credit card applications in a short span.
Remember: banks keep track of all the necessary information on your application history and all your outstanding debts. They need to be fully assured that the credit holder pays back the borrowed amount on time with the due interest fees.
What If I’m Stuck In Debt?
Every person with a poor credit score wants to build a good financial profile and be able to apply for the best credit cards. Here are a few tips that you can follow to boost your credit rating and be eligible for a credit card:
Pay More Than You Have To Pay
Try paying more than the minimum credit card amount each month. The extra amount you put towards your bills will help you maintain your dues balance as well as your credit scores. Large payments will reduce your interest rates in the long run and certainly help you recover your debt by the earliest.
If you’re in need of financial help and struggling to make your monthly minimum payments, consider applying for a payday loan no credit check.
Spend Less Money
Trying to control your spending seems a bit difficult but is absolutely worth a try. Until you don’t fully pay off your debt, it is wise to lower your cash outflow.
Your goal should be to save more money than you spend so that you can comfortably pay off your dues on time. It’s worth noting that your credit card comes with a pre-set credit limit, which you must avoid crossing as much as possible.
Make A List Of Your Debts And Income
To keep everything organised, you should have a clear view of your spending habits and income. Gather all your data—bills, credit reports, credit score, etc. to get a clear picture of your financial status. Use this information to create a budget and debt pay-off plan.
Your credit card provides you with a lot of advantages, and you can make full use of its deals and offers. You should always visit the credit card eligibility checker to verify all your details and necessary requirements. Moreover, to choose the right credit availing institution, you should be well versed with all banks and their offers.
Applying for a credit card is a great opportunity for you to save, spend and enjoy. Don’t waste this opportunity and find the source that suits your needs and wants the most!
HussaiN is a full-time professional blogger from India. He is passionate about content writing, Tech enthusiast & computer technologies. Apart from content writing on the internet, he likes reading various tech magazines and several other blogs on the internet.