Credit cards like Vanquis

Vanquis Bank offers "credit builder" credit cards that specifically cater to people with limited or damaged credit histories. It's not alone in doing this however.

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A less than perfect credit history can make it harder to secure loans and credit cards. However, specialist card issuers like Vanquis aim to provide a way around this with tailored financial products that can help build or rebuild a positive credit history.

As you might expect, these cards tend to come with lower credit limits and higher APRs, but there’s good news too.

Like most cards on the UK market, provided you pay your balance in full each month, you usually won’t incur any interest at all – so a high APR might not mean anything to you in practice. Watch out for exceptions to this rule, such as non-sterling transactions or cash advances (withdrawing cash on the card).

The acceptance criteria for these cards tend to be more lenient, and it’s normally possible to find out before you apply (and without hurting your credit score) whether you’re likely to be approved, thanks to commonly used “soft search” facilities.

Annual/monthly account fees are rare in this space and your credit limit is typically reviewed sooner and more frequently.

Comparison of alternatives to a Vanquis card

Table: sorted by representative APR, promoted deals first
Name Product Annual/monthly fees Initial credit limits Minimum income Representative APR Incentive Link
Barclaycard Forward Credit Card
£0
Min. limit £50, max. limit £1,200.
£3000
33.9%
Rate discounts: 3% interest rate reduction if you make all your repayments on time for the first year, and a further drop of up to 2% more if you continue to do so in the second year.
Representative example: When you spend £1,200 at a purchase rate of 33.9% (variable) p.a., your representative rate is 33.9% APR (variable).
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Tymit Credit Card
£0
Min. limit £500, max. limit £15,000.
Not specified
22.9%
Representative Example: 22.9% (variable) based on a borrowing of £1200 over 12 months with no annual fee.
The Credit Thing card
£0
Min. limit £200, max. limit £1,500.
Not specified
27.9%
Representative example: When you spend £1,200 at a purchase rate of 27.9% (variable) p.a., your representative rate is 27.9% APR (variable).
TSB Classic Credit Card Mastercard
£0
Min. limit £500, max. limit not specified.
Not specified
28.9%
Representative example: When you spend £1,200 at a purchase rate of 28.95% (variable) p.a., your representative rate is 28.9% APR (variable).
Tesco Bank Foundation Card
£0
Min. limit £250, max. limit not specified.
£5000
29.9%
Collect 1 Tesco Clubcard point per £4 spent (£4 minimum) in Tesco and 1 Clubcard point per £8 spent (£8 minimum) outside Tesco in each purchase transaction.  Must have available credit to collect Clubcard points. Clubcard points are turned into Clubcard vouchers every 3 months or sooner using Faster Vouchers. Clubcard vouchers can be used in Tesco or with Clubcard Reward Partners to get even more value on dining out, hotel stays and travel.
Representative example: When you spend £1,200 at a purchase rate of 29.94% (variable) p.a., your representative rate is 29.9% APR (variable).
HSBC Classic Credit Card
£0
Min. limit £250, max. limit £1,000.
£6800
29.9%
Discounts and exclusive offers for dining experiences, leisure activities and shopping available through HSBC Home and Away.
Representative example: When you spend £1,200 at a purchase rate of 29.9% (variable) p.a., your representative rate is 29.9% APR (variable).
Bip Credit Card Mastercard
£0
Min. limit £250, max. limit not specified.
£5000
29.9%
Representative example: When you spend £1,200 at a purchase rate of 29.95% (variable) p.a., your representative rate is 29.9% APR (variable).
Keebo credit card
Finder Award
Keebo credit card
£0
Min. limit £100, max. limit £5,000.
Not specified
29.98%
Representative example: When you spend £1,200 at a purchase rate of 29.98% (variable) p.a., your representative rate is 29.98% APR (variable).
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Important considerations for credit cards like Vanquis

Credit builders can be a useful tool if you use them correctly. Aim to not carry a balance from month-to-month – if you do, you’ll stand to pay a hefty amount in interest. It can be tempting to make only the minimum required payment each month (and your card issuer might love this), but that will cost you much, much more in the long run.

Due to the higher rates that apply to cards such as these, it’s often smart to think of them as a “stepping stone” product to finance agreements with better terms. In other words, if you take out a credit builder, use it sensibly and then, when you’re able, switch to a card (or other financial product) with lower rates.

If you miss a repayment, you’ll most likely incur a flat fee, pay more in interest and damage your credit record further. Pretty much every card issuer now lets you set up a direct debit for repayments, and lets you choose to set this up for either the minimum required sum, a fixed amount or the full balance. It’s a smart idea to do this as you’ll safeguard your credit record.

Credit builder credit card providers

A list of credit card issuers known for helping consumers build or rebuild positive credit history.

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

More guides on Finder

  • Vanquis Bank Balance Transfer Credit Card review

    A rare 0% deal from bad credit specialist Vanquis.

  • Origin Credit Card review 2023

    Build or rebuild a positive credit history and benefit from a credit limit review in as little as five months with Vanquis Bank.

  • Aquis Credit Card review 2023

    This “credit builder” from Vanquis Bank (part of the Provident Financial Group) is specifically designed to help borrowers who want to improve their credit score.

  • Vanquis Bank Classic Credit Card review 2023

    Key information about this “credit building” card from Vanquis Bank – from rates and fees to eligibility, with a side-by-side comparison against similar cards from other lenders.

  • Chrome Credit Card review 2023

    All you need to know about this “credit builder” credit card from Vanquis Bank – from rates and fees to eligibility, plus a side-by-side comparison with similar cards from other lenders.

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