What are 'pre-approved' credit cards?
Our guide explains how to apply for a credit card without fear of being turned down and seeing your credit rating damaged – even if you have bad credit
Key takeaways
A pre-approved credit card is one you’re almost certain to be approved for as long as you’ve provided correct information
Customers with bad credit may still be offered guaranteed credit cards although the choice is likely to be more limited
Even with pre-approval, further checks on income and financial history may still lead to a declined application
What does 'pre-approved' mean?
When comparing credit cards online, you'll be shown which cards you're pre-approved for after providing personal information about your income and outgoings.
If a card is marked as 'pre-approved' it means you're likely to be accepted when you apply with the provider.
If you're pre-approved, this doesn't mean you're guaranteed to get the card.
How to get a pre-approved credit card
Using an eligibility checker is the easiest way to find out which credit cards you're pre-approved for, or have a high chance of getting.
To ensure your pre-approval rates are accurate, you must:
Provide accurate financial information, like your annual income, financial dependents, and other household income.
Provider accurate address information.
If you provide inaccurate information, your credit card application may be declined and leave a mark on your credit file, making it more challenging to successfully apply for future cards.
How can I improve my chances of getting a pre-approved credit card?
Before you apply for a credit card, it's wise to check your credit report first. Once you're aware of your credit standing, you can take steps to protect and increase your credit score. Ways to enhance your creditworthiness include:
Reducing overdrafts and credit card balances to lower the credit utilisation ratio
Registering to vote to confirm identity and address
Paying bills on time with direct debits
Getting a credit builder card and paying it off monthly to boost credit scores
Can multiple credit card applications harm my credit score?
Yes, applying for numerous credit cards in a short period can be detrimental to your approval chances.
Every time you apply for a credit card, the lender will run a hard search on your credit report, and too many of these searches suggest you’re struggling to find credit and manage your finances. This can lead your credit score to fall, further complicating your ability to obtain new credit.
Can I get a guaranteed credit card with bad credit?
Credit builder credit cards are specifically designed to cater to individuals with lower credit ratings.
They may be advertised as ‘guaranteed’ and typically have lower credit limits and higher interest rates, which means you can’t borrow as much and it will be more expensive if you don’t clear your balance each month.
However, they also provide the usual benefits of a credit card, such as additional financial flexibility, and used responsibly can help improve your credit score.
If you have bad credit, using an eligibility checker can be a helpful first step in finding a guaranteed credit card best suited to you.
What information do banks check before deciding whether to approve a credit card application?
Banks, building societies, and card providers look at a range of factors, such as income and credit history, when deciding whether or not to lend.
These criteria help lenders assess the risk associated with extending credit to an individual. A solid income and a history of responsible credit usage can significantly enhance the likelihood of approval
Even when you come across offers that suggest guaranteed approval, it's important to proceed with caution. Further checks, such as income verification or a deeper dive into your financial history, may still result in a declined application.
These additional screenings serve as a reminder that while pre-approval can be indicative of a likely acceptance, it is not a certainty.
Does being an existing customer increase my chances of getting a guaranteed credit card?
It may help because the bank already knows about your financial habits, which can lead to a pre-approval of sorts. However, it's crucial to recognise that this does not equate to a blanket guarantee for all applicants.
Whether you’re an existing customer or not, if you have bad credit, you should look into the reasons and try to improve your situation before making a new credit card application.
Other useful guides
If you’re looking for more information on credit cards, then we have a number of guides that can help, including:
Compare credit cards with MoneySuperMarket
It’s quick and easy to compare credit cards with us. All you need to do is tell us about yourself, your financial status, and what you’d like to use your new credit card for, and we’ll show you a list of cards tailored to your needs.
You’ll be able to sort them by interest rates, any incentives and your likelihood of being approved. Our useful eligibility checker tool means you can reduce the risk of your application for credit being refused – including showing you guaranteed credit cards for bad credit.
Once you’ve found the card you want just click through to the provider to finalise your application.
MoneySuperMarket is a credit broker – this means we’ll show you products offered by lenders. We never take a fee from customers for this service. Instead we are usually paid a fee by the lenders, but the size of that payment doesn’t affect how we show products to customers.
Author
Tim Heming
Personal Finance Expert
Tim Heming is a journalist and editor who has written about personal finance for national newspapers and consumer websites for 15 years. Tim enjoys providing no-nonsense information to help consumers...
Reviewer
Jonathan Leggett
Former Senior Content Editor
With over 15 years of experience in online content and journalism, Jonathan is a former MoneySuperMarket’s editor at large and works across our Broadband, Mobiles, Energy and Money channels. Along...
