Credit cards for people with no credit history
Being turned down for credit doesn’t necessarily mean you have a poor credit history – it might just be that you don’t have much credit history at all.
Representative
37.9% APR (variable)
What is credit history?
Your credit history is a record of your financial background, including how you’ve managed any debts or borrowing in the past.
Paying off outstanding credit card bills on time, and over a long period, can demonstrate reliability to lenders. This can make them more likely to approve you for important borrowing, like loans and mortgages, in the future.
Any record of late payments, defaulting, withdrawing cash on your credit card and borrowing more than you can afford can negatively impact your credit history. This can lower your credit score and potentially make it less likely you’ll be accepted for other credit.
Why is credit important?
Even if you’ve never had problems with debt, you might still be refused credit. That’s often because, if you haven’t had credit before – like a loan or credit card – lenders have no way of knowing how well you manage it. This means a blank credit history can make lenders feel just as uneasy as a history filled with missed payments.
Credit reference agencies use your credit history and other factors to give you a credit score. This helps them understand how well you manage money and repay what you owe. A limited credit history means lenders may not be able to work out if you’re a high or low risk borrower.
Unfortunately, this does mean many lenders may turn down applications from customers with little to no credit history, or they may offer a credit card with a much higher APR to protect themselves against the risk. But if you’ve had credit troubles in the past – or you’ve got no credit history at all – there are other options out there besides traditional credit cards.
How to build up a credit history
It can take several months, or even years, to build a good credit score.
To help you do this, it may be a good idea to keep a record of your financial habits and make sure you’re keeping on top of your repayments. This can show potential lenders you’re capable of repaying what you borrow.
Read our full guide on improving your credit score for tips on building up your credit history.
Checking your credit history
There are three main credit referencing agencies in the UK – Experian, Equifax and TransUnion. These agencies collect info about how well you manage credit.
You can usually get a copy of your credit report through the credit agency’s website and these are usually free of charge.
Remember, different lenders use different credit agencies to check your credit history. So, it’s a good idea to find out which agency your chosen lender uses before you apply for credit. Then, you can ask the agency for a copy of your credit report to see your credit rating.
Alternatively, you could do an eligibility check with your lender before you apply or sign up to a free credit-checking service like Experian or Credit Karma. You can also see your credit score in Snoop, the money-saving app from Vanquis.
Snoop is designed to help you take control of your finances, improve your monthly budgeting, save for the future and make the most of your money. It’s also free to download and use.
Getting your first credit card with no credit history
Don’t worry, if you’ve got no credit history, you can still start to build a credit score.
When you apply for your first credit card, it’s worth considering a credit card for bad credit as a way to build your score. If you’re currently studying, you could look at specific credit cards for students. This could help you build your credit score before you start a paid job.
If you’ve never had to use credit before and you don’t know which card you might be eligible for, you can use our quick and easy eligibility checker.
Student credit cards
Full-time college and university students who are over 18 can apply for a student credit card. These products are specifically designed for students who don’t have the credit score and income to be approved for a standard credit card.
How student credit cards work
To stop debts building up, credit cards for students generally have a lower credit limit than standard credit cards. These limits are typically between £250 and £1,000.
As with standard credit cards, student credit cards have a pre-arranged credit limit. If you repay the balance you owe in full before the payment due date (your statement due date), you’ll avoid being charged a monthly rate of interest.
Just so you know, your balance will take longer to clear if you just pay the minimum amount each month. If you miss any monthly payments, this can damage your credit history and it often means additional charges.
How to get a student credit card
We don’t offer a specific student credit card. But you can still apply for one of our standard credit cards using our quick and simple eligibility checker.
Within 60 seconds, we can let you know if you’re likely to be accepted for a Vanquis Credit Card – helping you start building your credit right away. It’s a ‘soft credit check’ too, so it won’t appear on your credit file or affect your credit score.
Checking your eligibility for a credit card
An eligibility check is a free service offered by lenders to help you find out if one of their credit cards is suitable for you.
These checks are known as ‘soft credit searches’, meaning they don’t affect your credit score – unlike the ‘hard searches’ done by credit reference agencies.
A ‘soft credit search’ will give you an initial decision without leaving any trace of a search on your credit file.
Our eligibility checker is a free service that will give you an instant initial decision, without impacting your credit score. Learn more by checking out our credit card eligibility tool below.
Why choose Vanquis?
We're the bank that's got your back.
We lend to a much wider range of customers than the high street banks
Our eligibility checks give you confidence you’ll only be accepted for a credit card if you can afford the repayments and the APR is right for you
All our credit cards are easy to apply for and simple to manage through our app
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What are the alternatives for someone with no credit history?
It can be challenging to build your credit rating from the ground up if you’ve got no credit history. But there are many credit alternatives that can help improve your credit rating.
The Vanquis Credit Builder Credit Card could be a good option, as it’s helped many customers get started on their credit journey.
What is adverse credit history?
Adverse credit means a less-than-perfect record of repaying credit commitments. It’s another way of saying bad credit or poor credit.
If you have an adverse credit history, this will usually be because you’ve missed repayments on a credit card, loan or mortgage. This will make it harder for you to get approval for credit or finance.
If you default on repayments, the money might have to be recovered by a debt collection agency or County Court Judgement (CCJ). This information can stay on your credit file for up to six years from the date of account closure, and it can continue damaging your chances of getting credit.
Don’t worry, your chances can improve over time – as long as you keep up with your repayments. Also, the record of your payment default will be removed automatically after six years.
Is it better to have bad credit than no credit history?
Having no credit history or a bad credit history can both hold you back. But building a good credit history from scratch is often easier than improving your score after financial difficulties. Don’t forget, we offer Credit Builder Credit Cards that you can use to build and improve your credit rating.
A bad credit history may suggest a poor credit record and can make someone seem like a riskier person to lend to from a bank’s perspective.
Having no credit history can also hold you back. But it’s often much easier to show you’re a trustworthy borrower by building a record of good financial habits from the start than it is to repair a poor credit history. Either way, there will be steps you can take to improve your access to future credit.
What to do if you have a bad credit history
Once you have bad credit, it can take some time to repair it. If you’re looking for help with managing your financial problems, you can get free advice from the following organisations:
- StepChange Debt Charity – for debt advice throughout the UK, phone 0800 138 1111 or visit stepchange.org.
- MoneyHelper – for free, impartial advice and easy-to-use money tools, head to https://www.moneyhelper.org.uk/en or phone 0800 138 7777 to speak to a money adviser.
- National Debtline – if you live in England, Wales or Scotland, phone 0808 808 4000 or visit nationaldebtline.org for debt advice and helpful info.
Check your eligibility
In the meantime, why not ask us about our Credit Builder Credit Card and get started on your journey to a stronger credit score?
Representative 37.9% APR (variable)
Frequently Asked Questions
What APR can I get if I have no credit history?
The APR interest rate that banks charge is up to them. If you have no credit history at all, banks may charge higher rates.
Typically, most lenders and banks offer credit cards with a higher interest rate for people with no credit history. This is because the bank may not be able to confirm whether someone is a trustworthy borrower. To protect themselves from the risk of non-payment, they often charge higher interest rates.
But it also means those with poor or no credit history may still be able to access the benefits of a card, as long as they qualify and apply successfully.
Vanquis offer a representative 37.9% APR variable, meaning the APR and credit limits may vary based on your financial situation.
What credit limit can I get if I have no credit history?
Although a lack of credit history may not help your application, it’s not the be all and end all.
Your interest rates are often determined by how well you’ve made repayments in the past. But a credit limit is usually focused more on whether you can afford the repayments (also known as affordability).
What information do I need to provide to apply for a credit card with no credit history?
Even if you don’t have a credit history, the application process is very similar to a standard credit card.
You will need:
- Personal details (your full name and date of birth)
- Address details and residential status
- Contact details (your email and at least one telephone number)
- Employment status and income – this includes any wages, benefits and pensions you receive
Once we have your details, we’ll take care of the rest – running an eligibility check and usually giving you an answer the same day. Don’t worry, our eligibility checks don’t affect your credit score. So, you can see roughly what you’ll be offered before you commit to a card.
How long does it take to build a credit history?
Unfortunately, it can take a while to build a good credit history.
If you have no credit history and are looking to build a good track record of credit, it can take up to six months to generate a reasonable score and maybe longer to achieve a good or excellent score. This can all depend on how you manage your borrowing.
Good financial practice over time, like repaying loans when they’re due and not going over credit limits, can help speed up the improvement of your credit score. So, please be patient.
Can I apply for a credit card with no credit history?
Everyone aged 18 and over can apply for a credit card with no credit history. But there’s no guarantee you’ll be accepted.
People who are accepted for a credit card with little or no credit history are likely to get lower credit limits and higher interest rates than someone with a strong track record of managing credit and loan repayments.