Capital One Classic credit card Over 6 million people have already been accepted for a Classic card Check if you'll be accepted without affecting your credit score Can help you improve your credit score £200 - £1,500 credit limit Up to two optional credit limit increases a year, subject to eligibility
What is bad credit? Bad credit affects millions of people in the UK. So, if you have a bad credit rating, it’s important to know that you’re not alone. There are two main causes of bad credit: No credit history When you apply for credit, lenders need to know you can afford to pay them back. Having a healthy credit history shows that you've used credit responsibly in the past, and reassures lenders that you're a reliable customer. If you don't have a history of using credit, or if your credit history is quite limited, then it's harder for lenders to know how much of a risk you might be. So even if you've always managed your money well, if you’ve never had a credit card or borrowed money before, you're seen as having bad credit. People who are new to the UK are likely to have a limited credit history, which can make it difficult to get things like a mobile phone contract, home broadband, a credit card or to borrow money. Problems with credit If you've struggled with credit in the past and you ended up missing payments, you could find it hard to get accepted for credit in the future. The good news is you’re not stuck with bad credit. There are steps you can take to improve your credit rating, and show lenders that you can be responsible with credit.
Applying for a credit card if you have bad credit Poor credit doesn't always mean you can't get a credit card. Some lenders, like Capital One, offer credit-building cards that are specially designed to help people improve their credit ratings. Credit cards for bad credit usually have a smaller credit limit in the beginning, but can increase if you‘re managing your credit card well. It's really important to use your card responsibly by at least making your monthly minimum payment on time and staying below your credit limit. Not doing so could harm your credit score even more. Remember to check before you apply When you have bad credit it is more likely you’ll be turned down for a credit card, which in turn will leave a mark on your credit report. Some lenders now offer free eligibility checkers that let you know your chances of being accepted before you apply. Capital One's QuickCheck will give you a definite yes or no, so you can be 100% certain if you'll be accepted before you apply – without affecting your credit score.
6 tips to improve your credit rating It takes time to build your credit score, but it’s never too late to start Register to vote Lenders use the electoral register to check your identity against an application. If you’re not on it, or if your details are out of date, it’s harder for them to be sure it’s you that has applied. You can register for free at gov.uk/register-to-vote opens in a new tab Build credit history Lenders like to see that you have a history of using credit responsibly. Using a credit card and making payments on time is one way to do this. Just remember you'll need to pay off your balance in full for at least two consecutive months to avoid being charged interest. Don't apply for too many credit cards Each time you apply for a credit card a mark is left on your credit report. Too many marks in a short space of time can make you look risky to lenders, which could reduce your chances of being accepted. Always use an eligibility checker Eligibility checkers let you know your chances of being accepted for a card before you apply. Capital One's QuickCheck gives you a definite yes or no answer in 60 seconds. So you can be 100% certain if you'll be accepted, without affecting your credit score. Never miss a payment Paying your bills on time is a great way to build your credit score, as it shows lenders you are responsible with money. Late payments are often reported to credit reference agencies, and can stay on your credit report for up to 6 years. Close unused accounts Having a high number of unused credit accounts can affect your credit score. So if you’re not using the account, consider closing it.