If your credit history is not strong, applying for a credit card without a pre-application eligibility check can further reduce your credit score. Nearly all credit cards now offer eligibility checks. This feature is worth checking for before applying.

The Importance of a Credit Card Eligibility Check

Being declined for a credit card can have a negative impact on your credit score. A pre-application eligibility check can reduce this risk by indicating the likelihood of acceptance beforehand. Eligibility and acceptance are decided by each lender and depend on its own criteria and checks — checking your eligibility does not guarantee that you'll be accepted.

Here is a list of credit cards that currently offer an eligibility check. This is not a complete list of all credit cards in the market, but most credit cards now offer an eligibility check to potential applicants. Issuers are listed in alphabetical order.

Here is a list of some prominent UK credit card issuers that offer eligibility checkers online:

• American Express

• Aqua

• Barclaycard

• Capital One

• Halifax

• Lloyds

• Marbles

• MBNA

• NatWest

• Ocean

• Santander

• Tesco Bank

• TSB

• Vanquis

• Virgin Money

How Credit Card Applications Work

To decide upon any new credit card application, lenders perform a hard search in order to learn about an applicant's credit history - for instance, how good they are at paying back borrowed money. This is a "hard search" that leaves a "mark" on your credit record, whether you are accepted or declined.

This information gathered from this hard search is used to determine if credit should be extended and, if so, at what interest rate. The credit history is also used to determine the credit limit.

The Impact of a Hard Search

If you've been accepted for your credit card, that hard mark may not be a detriment, as you probably won't be making more credit applications in the near future.

The problem arises when you are declined - assuming you still have a need for a credit card and will make another application. When you try again for another card, future lenders will see this recent search. This may be interpreted as a sign of financial difficulty or an urgent need for credit, which lenders can view unfavourably. Either way, the hard search from one credit card application can mean you're more likely to be rejected or, if you are accepted, pay a higher interest rate on subsequent applications.

An eligibility check is useful to avoid applying for a card for which you'll be turned down. Not only do eligibility checks give you an indication of your odds of success before you apply, but they don't leave a mark for other lenders to see. Do keep in mind that eligibility checks are not 100% - during the full hard search, a lender may find additional information, or a lack of it, that leads them to a different decision.

FAQs

What is a hard credit search?

A hard credit search typically occurs when a lender checks your credit when you apply for a personal loan, mortgage, credit card, etc. The lender uses the information when deciding whether or not to extend you credit, and if so, the amount of credit to extend and the interest rate you'll pay.

Why does a hard search affect your credit score?

Multiple applications in a short period may affect the score shown by a credit reference agency and may influence some lenders’ decisions. Lenders use their own criteria and may not use the same score shown in a consumer credit report.

How long do hard searches stay on your credit report?

Hard credit searches, such as those from credit card applications, stay on your file for 1 year. Other negative information (such as defaults, missed payments, or CCJs) is recorded separately and stays on file for 6 years.

Can you remove a hard search from your credit report?

No, not if it's accurately recorded — you'll need to wait until it comes off naturally. If a search was made in error (for example, due to fraud or mistaken identity), you can dispute it with the credit reference agency.