Are you looking for a credit card but have a poor credit history?

If you don’t have any credit history or you have suffered in the past with an adverse credit history or have never taken credit in the UK, it can be difficult and frustrating when trying to obtain a credit card. Establishing or repairing your credit history can be difficult. If you don’t have credit, many lenders are unwilling to give you credit, yet how can you establish a good credit record if nobody is willing to give you any?

How to improve your chances of being accepted for a credit card now and in the future

Not everyone knows this but every time you make an application for credit, including a credit card, a credit search is conducted and this is recorded on your credit report. If you have applied for a number of cards recently and been rejected, your credit history may be getting worse and worse. It may be best to stop applying for cards in the short term. You’re probably best leaving between 3 and 6 months between applications to give you time to repair your status (but we’re making no promises, it may take longer). By paying off bills, maintaining direct debits, and making membership payments promptly your history should start to build/recover and you may then be more likely to be accepted for a credit card.

Because each lender has different criteria, there are a number of reasons that you might have been refused credit in the past. You might have been turned down because you are unable to prove a regular or high enough salary which might mean you can’t afford the credit you’re applying for, but there are other reasons too.

If you have failed to manage credit responsibly in the past, for example you have been late in making payments or missed them altogether, the lender will report back to credit agencies (including Experian, Equifax and Call Credit) and this information will be stored on your record and accessed by other financial services companies when deciding whether or not to lend you money. You may be turned down by many lenders for having adverse information such as defaults, County Court Judgments and Bankruptcies on your credit record.

In this case the remedy is to start managing your existing credit more responsibly as some lenders are more concerned with your recent credit history than older adverse items on your record. For some lenders, two years of positive detail on your reports will go a long way to improving your score and your credit risk – so make sure you pay bills regularly and on time.
It might also not be as bad as you fear…

With CCJs you will have been given the option to pay the amount in full within 28 days of the claim being made – if you have done this then judgment will be cancelled and it shouldn't appear on your credit record.

If you didn’t do this but have since paid the debt in full, you can apply for a letter of confirmation from the organisation that filed the judgment and pass this back to the County Court. Then, once the Court is satisfied that the debt has been paid in full, you can apply to the Court for a certificate of satisfaction or cancellation but you will have to pay a court fee for this.. Then the debt is marked as satisfied on your record but will remain there for a period of 6 calendar years from the judgment order.

Something else to consider is whether or not you’ve moved home recently, or frequently in the past. If you have, the lender may not be able to verify the address details you’ve given them. Similarly if you have not registered to appear on the electoral roll, this could cause you problems. 
- It may be worth checking that you appear on the voters roll at your current address.

Still confused? Take a read of our frequently asked questions which may help shed some light…

Frequently asked questions

Q: I’ve always paid my bills, why am I finding it difficult to get accepted for a credit card?

A: It may be that you have a false claim on your credit report or a forgotten bill. You can contact the two main credit bureaus (Experian or Equifax) and ask them to send you your credit report. You will need to provide the following: your full name, date of birth, your current address and your previous addresses over the past six years. If any of the items in the report are inaccurate, challenge them directly with the credit bureau. Also, check your report for any late payments. While you may have paid bills regularly, if you failed to pay by the due date, the lender will have informed the credit bureaus of this and it may be causing you problems now.

Alternatively, as many financial services companies will look at how you manage your credit accounts, you may find it harder to get approved for a credit card, loan or mortgage if you have never had credit in the UK previously. So you might want to consider paying for your gas and electricity bills by direct debit, or paying for your gym membership monthly – as regular payments on both should appear on your credit report. The same is true if you have a mobile phone contract.

Q: Can I get a credit card with aqua with an adverse or non-existent credit history?

A: We have been able to help many people who have experienced problems with credit in the past or are only starting to develop a credit history in the UK, typical 35.9% APR variable. Many lenders are more concerned with your recent credit history than older, adverse history. If you have experienced recent problems with credit, such as late or missed payments, we may not be able to help you at this time.

Q: How do I register on the electoral roll?

A: To register on the electoral roll you will generally need to complete a voter registration form and return it to your local authority. Visit the local government website to find out more.

Do you have an adverse or developing credit history and need a credit card? We might be able to help. Apply online for the aqua Credit Card

Typical 35.9% APR variable

aqua is a trademark of SAV Credit Limited, which is used by Bank of Scotland plc under licence. aqua credit cards are issued by Bank of Scotland plc. Registered in Scotland No. SC327000. Registered office: The Mound, Edinburgh EH1 1YZ. Authorised and regulated by the Financial Services Authority.