Martin Lewis' MoneySavingExpert launches new credit card tool

Martin Lewis
-Credit: (Image: ITV)

People looking to get a credit card or loan can use a handy new tool on Martin Lewis' MoneySavingExpert to help them on their way. The website shares its new Credit Card Eligibility Rating tool in a newsletter to users.

It combines three features that will inform whether you are likely to be accepted for a new credit card, loan, or other form of credit. The tool lets users find out their credit score via data from TransUnion, one of the big three consumer credit reference agencies.

A credit score is a financial record which informs lenders your history on repaying any credit you have borrowed. Users of the new tool can also get their affordability score which factors in your income unlike a credit score.

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The feature factors in how much debt you have compared to your income, disposable income and the amount of credit you have available. These are things lenders will need to know before offering you credit, but don't show up on your credit score, The Sun reports.

You can also use the tool to see how your credit eligibility rating changes over time. A statement on the site reads: "A few years ago, the only way to know if you'd be accepted for a credit card was to apply, but that leaves a mark on your credit report that lenders could see, impacting your ability to get credit in future.

"Our Eligibility Calculator uses a 'soft search' (that lenders can't use) to calculate and show your percentage chance of getting top credit cards."