Promoted for
Bad credit
Promoted for
Limited credit history
Promoted for
Balance transfers
Credit builder credit cards cater to those with very limited or damaged credit records. They’re easier to get approved for, but they tend to have higher interest rates. Card issuers like Vanquis and Aqua specialise in credit cards for those looking to build credit, which means you may still be eligible for a card from their ranges even if you have bad credit. Meanwhile, big names like Barclaycard typically have one dedicated credit builder in its range.
But how do you know which credit builder is best for you? Well, in reality, the first thing to do is identify which of the cards you’re likely to get approved for. After all, there’s not much point in closely scrutinising the T&Cs of cards that are out of reach.
Each card has basic eligibility requirements that you’ll need to meet in order to apply, but the reality is that each application for a credit card is considered on its own merit. Card issuers will look at factors like your credit history, your income and your expenses to reach a decision. The good news is you can use an eligibility checker to get an idea of which cards you stand a strong chance of getting approved for.
Used correctly (not missing any payments and not going over limits), any credit card will have a positive impact on your credit score. However, dedicated credit builders can support you in your journey with features like customisable alerts, credit score monitoring and credit limits with regular, guaranteed reviews.
Ultimately, building credit is a relatively slow process, and credit reference agencies want evidence that you can consistently manage your debts and credit on a long-term basis.
Aqua Classic Credit Card
32.9%
Representative APR
£0
Account fee
Up to 48 days
Interest-free each billing period
£250
Minimum credit limit
| Availability | Available to new customers |
|---|---|
| Residency | UK resident |
| Foreign usage charge (EU) | 2.95% |
| Cash advance fee | 5% (min. £4) |
Credit builders tend not to come with annual or monthly account fees, but there are penalties for misuse, and if you don’t pay off your balance in full each month, the interest you pay can be costly. If you do pay off your balance in full each month, you could potentially avoid the card costing you anything at all (just bear in mind that withdrawing cash or using a card abroad can involve fees).
118 118 Money Guaranteed Rate Card
0%
Balance transfer fee
34%
Representative APR
0%
Foreign transaction charge
£0
Account fee
| Availability | Available to new customers |
|---|---|
| Min. income | 8400 |
| Foreign usage charge (EU) | 0% |
| Cash advance fee | 0% |
Credit builders tend not to offer a lot in the way of rewards and perks, but there are a few exceptions. Just be careful not to rack up debt chasing points – if you carry a balance from month-to-month, what you’ll pay in interest is likely to massively outweigh the value of any rewards you earn.
Tesco Bank Foundation Card
27.5%
Representative APR
£0
Account fee
Up to 56 days
Interest-free each billing period
£100
Minimum credit limit
| Availability | Available to new customers |
|---|---|
| Residency | UK residents |
| Min. income | 5000 |
| Foreign usage charge (EU) | 2.75% |
| Cash advance fee | 3.99% (min. £3) |
No – having multiple credit cards will not necessarily help you build your credit score more quickly and can even make it harder to get approved for credit in the future.
If you apply for multiple credit cards in a short period of time, this can actually damage your credit rating, as each application for credit involves a small (usually short-lived) negative impact on your score. It could also suggest to would-be lenders that you’re having issues managing your expenses and debts.
Ultimately, the best way to build your credit score is to use your card responsibly, keep your existing credit card balance low and make sure you always pay your credit card bill on time.
The benefit of credit builder credit cards is that they can help anyone build or improve their credit score, but this will only happen if you pay off your balance on time and in full each month. Credit builder credit cards generally also have higher interest rates than regular cards, which makes it doubly important that you completely pay off your balance each month so that you avoid expensive interest charges.
Boasting fee-free spending overseas and few fees, the Zable Credit Card (formerly known as the Level Credit Card) is refreshingly simple if you’re willing to set up a CPA.
thimbl. offers a straightforward credit builder card for those with good and bad credit.
Bip promises a “new kind of credit”, offering accessible credit without the need for a card.
Find out how much you need to earn each year to apply for a credit card and compare low income options here.
The opus card is a money transfer credit card for those looking to rebuild a positive credit history.
Secured credit cards can help rebuild a positive credit history. While they are extremely rare in the UK, good alternatives do exist.
Enjoy one rate on all your transactions with this credit builder issued by Capital One.
thinkmoney’s card for bad credit, issued by Capital One, has one interest rate for all transactions.
Newday’s card for “near prime” credit lets you transfer existing card debt to enjoy an introductory 0% rate.
