Today there are more than 30 million credit card holders in the UK – but applying for a new credit card isn’t always a straightforward or stress-free process.
Or at least, it wasn’t.
If you’re thinking of applying for a credit card, undertaking a credit card eligibility check beforehand is a great way to take some of the risk and uncertainty out of the process – and now, thanks to the likes of Compare the Market, which recently launched its new Credit Card EligibilityCheck tool, the process takes mere minutes and is, quite frankly, simples.
Want to know more? Well, here’s the lowdown on credit card eligibility checks …
What exactly is credit card eligibility check?
As the name suggests, a credit card eligibility check evaluates how likely you are to be approved for a credit card, without you having to submit a formal application.
Furthermore, unlike a formal credit card application, using a tool such as Compare the Market’s Credit Card EligibilityCheck will allow you to check your eligibility for multiple cards from a selected panel of providers all at once, giving your a fuller understanding of your options.
What are the perks of using a credit card eligibility check before applying for a new card?
So, this is the really great bit. Undertaking an eligibility check before formally applying for a new credit card can significantly reduce your chances of having an application rejected. How? Because you’ll have a pretty good idea of whether or not your application will be successful before you even apply.
Why is that a good thing? Because having a credit card application declined is likely to have a negative impact on your credit score, which will subsequently make it more difficult for you to borrow money in the future. But, unlike a formal credit card application, a credit card eligibility check will have absolutely no impact on your credit score.
What information do you need to provide?
Yes, we know a credit card eligibility check sounds like it’s going to be a long, laborious process, but you’ll be happy to hear it’s actually not. All you’ll need to do is provide some basic information, such as your name, your address history, date of birth, and your annual pre-tax income. Then you’ll also get the chance to specify exactly what you’re looking for in your ideal credit card – whether that’s a hefty limit, air miles or some other rewards.
The main thing you have to be mindful of is that the information you put forward is as precise as possible; the more accurate the information you provide, the more accurate the results will be.
How exactly do eligibility checkers assess your suitability for a new credit card?
Using the personal information you provide, eligibility checker services find your credit file and then cross-reference that information against a panel of credit card providers’ lending criteria.
Different checkers use different vetting services to do this work.
Is an eligibility check the same as a ‘hard’ credit check?
No, and that is the joy of an eligibility – or “soft” – credit check. While a formal – “hard” – application for credit will be flagged to potential lenders and could potentially damage your credit score, a “soft” eligibility check simply leaves a footprint on your credit file that can be seen by you, but not the lender. The only real downside of a soft check over a hard check is that an eligibility check for a credit card is not a guarantee that you will definitely be accepted should you apply – rather it’s an indication based on the information you’ve provided.
How long are the results of a credit card eligibility check valid for?
Given that eligibility results are estimates based on information pulled from your credit profile on the day you undertake a check, the results are less accurate as time passes – especially if you do anything that may alter your credit score. So, if the results are more than a few weeks old, you’d be wise to undertake another eligibility check before actually applying for a new card. But, as Compare the Market’s Credit Card EligibilityCheck tool can be used as many times as you like without affecting your credit score, and takes mere minutes to complete, there’s really no reason not to check again.
Download the Meerkat app and use our Credit Card EligibilityCheck to find the right credit card to meet your needs. Customers of Compare the Market can also use the app to get two-for-one at restaurants and cinemas for a whole year. T&Cs apply
