The world of credit can seem daunting, with so many options out there aimed at all different kinds of borrowers!
Before, the only way to find out whether you’d be accepted for a credit card would be to apply for it. But if you were turned away, this stayed on your credit history – which is still the case if you’re turned down. However, now you could find out whether you’ll be accepted before you apply.
Use a calculator to find out before you apply
When you apply for a credit card – or any form of credit for that matter –, it leaves a mark on your credit history. The more applications you make, the more marks you’ll have.
The thing is, lenders don’t look too fondly on lots of these marks if they’re made in a short space of time – especially if they say your application has been rejected.
It could signal to lenders that you’ve been turned down a few times and you’re now desperately applying to get any credit you can. This immediately turns lenders off and you may struggle to find any that are willing to lend to you for a period of time.
However, when you use an eligibility calculator, there is no mark on your credit history. It carries out something called a “soft search”. The only person that can see this mark is you.
As there’s no mark on your credit history, it means you can find out how likely you are to be accepted for that credit card before you apply.
If an eligibility calculator suggests it’s unlikely you’ll be accepted, you can save your credit history from being marked by not filling in an application form. Otherwise, if you’ve got a good chance of being accepted, you can then decide whether or not you’re happy to apply.
When you do apply, this will leave a mark on your credit history, but because you had an idea that you would be accepted, you should hopefully get the credit you need and won’t have to apply elsewhere. Plus, in terms of your credit history, an approved application is better than one that’s been turned down.
Looking after your credit history
To make sure you’re in the best position to apply for all types of credit, it’s wise to turn your attention to your credit history.
It plays a big part in a lender’s decision-making process, so keeping on top of things is really important.
There are loads of steps you can take to boost your credit history – including checking it regularly, signing up to vote and making sure you’re using credit responsibly.
Plus, you can check it as often as you like for free using ClearScore or Noddle.
*Intelligent Lending Ltd (Credit Broker). Capital One is the exclusive lender.
Disclaimer: All information and links are correct at the time of publishing.