Apply for a Credit Card

 

It can be difficult choosing a Credit card when you’re not sure what to look for.  

 

However, applying for a Credit card can be simple when you know exactly what you want and need from your provider. Read our Credit card application guide below to help you apply.

 

Why get a Credit card?

Before you choose a Credit card, make sure you understand what you want from it. There are many reasons you might need a card, like:

• Transferring a balance to another card — Account holders with particularly high interest rates may want to move their current balance over to banks with lower interest rates and charges. This can also help you consolidate debts so that they’re in one easy-to-manage payment.

• Making purchases — Unexpected financial expenses can be a problem for many. Credit cards can act as an extra reserve in case of emergencies – provided you pay your credit card bill on time.

• Accessing rewards and cashback — Many credit card companies and reputable banks offer you rewards and cashback when you spend on certain purchases and with certain businesses — meaning credit card owners can make money back when they spend. Provided you keep on top of your repayments, credit cards can be a great way to access savings on products and services you use every day.

• Guarding against fraud — Payments made from your credit card rather than your current account often have more safeguards in place for buyers. Potentially fraudulent activity can be flagged quickly — offering buyers better protection. This additional protection falls under what is known as Section 75. It's in place to protect credit card customers and the transactions they make.

• Spending money abroad — Some credit cards are designed for use overseas, dealing with tedious currency conversions for you and helping you avoid certain foreign transaction fees when you spend abroad.

• Demonstrating your credit management to prospective lenders — Your credit card transaction history and the fact that you pay regularly and on time, may be seen as an important indicator of how trustworthy you are to credit card companies. If you frequently spend on your credit card and promptly make and stay on top of your repayments, you may demonstrate that you are more reliable and could be seen as “less risky” to other credit providers. This often means you’re more likely to be granted credit in the future.

It can be challenging choosing a card if you have a poor credit score — or no credit score at all. Luckily, some reputable banks and credit card companies offer cards to specifically help you build your credit score. 

 

What do you need to apply for a credit card?

When you apply for a credit card, you are most likely to be asked for the following details: 

• Personal Information — Your name, your date of birth to confirm you are aged 18 or above and your contact details.

• Address — Credit card providers ask for your current address. They can ask for your previous address if you have moved in the last 3 years.

• Income & Outgoings — Your employment status, income and outgoings are required to let lenders know what payments you can afford. It will also help them determine the amount of credit and the interest rate (APR percentage) offered.

Things to consider before applying for a credit card

Once you know your needs, the next thing is to choose a credit card. When you are applying for a credit card, there are a few factors you should consider before making the leap. 

 

APR: APR (Annual Percentage Rate) refers to the total cost of your borrowing on a card for a year. This is the interest you would be charged for using a specific credit card. APR is a good way to compare different cards — the rate that providers advertise is the one that they offer to most of their customers. However, those with low credit scores, or even no credit score, may still qualify for a card but it might be offered at a higher rate — so always read the terms and conditions before going ahead. 

 

Minimum Payments: Every credit card will have a minimum payment that you must pay every month, unless your balance is zero. If you cannot afford the full balance amount in one payment, you must make at least your minimum payment. Therefore, you should always know how much it is and when it's due. We’ll make you aware of any changes to your minimum payment — so you’re always in the know. 

 

Credit Limit: The credit limit is the maximum amount available to you on a credit card. Credit card providers offer you a credit limit based on your credit profile, so that you don't end up borrowing more than you can afford. When applying for a card, always double check that the company is offering you the credit limit you seek. 

 

Other Charges: Credit card providers might charge you a fee if you are late with a payment, miss one altogether, or go over your credit limit. Therefore, you must know about the other fees or charges you might have to pay. At Vanquis, we’ll always give you a full breakdown of fees, so you’ll know exactly how much you’ll have to repay and when.

 

 

 

At Vanquis, we do the heavy lifting on eligibility checks. We perform a preliminary screening based on the information you’ve provided to give you an estimate of what APR rate and spending limit you can expect. Our eligibility checks don’t affect your credit rating. 

 

If you have an excellent credit rating, you’ll often be accepted with no further checks. If you need help boosting your credit rating, don’t worry – our team can help you get started with a card that could help build it over time. 

 

Some things to consider when checking eligibility: 

• Many lenders give you the option of an initial eligibility check. This helps you work out if you’re likely to be accepted without a credit search being left on your credit file. However, make sure it’s not a hard search — too many of these can hurt your credit score.

• An eligibility check gives you an idea of whether you’re likely to be accepted for credit — but it’s not guaranteed. 

• Additional fraud, identity and affordability checks may need to be carried out. This means cross-checking information in your application against your credit report. 

• If you decide to carry on with the full application, firms will perform a full credit check that will be noted on your credit file. Make sure you’re happy with the proposed APR rate and credit limits before progressing with the full application. This can help avoid any unwanted marks on your credit file. 

Improve your credit rating with

 

Using our credit cards responsibly can help people with no credit to build their credit rating. It can help those with bad credit to get it back on track. Better still, our cards often help people tackle their credit rating simply and safely — in ways that suit them. 

 

Don’t forget, to build your credit rating and be considered for credit limit increases, use your card sensibly. This means staying within your credit limit and paying at least your monthly minimum payment on time. If you don’t do these important things, it could harm your credit rating and make it more difficult to obtain credit in the future.

 

Why choose Vanquis?

Vanquis Bank — part of the Vanquis Banking Group — has been providing bespoke credit solutions to its customers and helping people handle their finances for over 140 years. 

 

Our thorough “soft” eligibility checks help to provide confidence that customers will only be accepted for a credit card if they can make the repayments and are suited to the APR issued — protecting you and others from mounting interest. 

 

We work hard to make sure that all our credit cards are easy to apply for and simple to manage. Don’t want to take our word for it? Check out our Trustpilot reviews to read what our customers say. 

 

We’ve helped over 5 million people on their journey to better credit. Why not join them and apply online today?