If you’ve got bad credit, then frustratingly, the lowest rate and most premium cards are likely to be unattainable right now. However, almost all card issuers now offer quick and easy “soft search” checks so you can find out whether or not you’d be approved before you apply. Crucially, these don’t involve a “hard search” of your credit file (which would have a very slight negative impact on your credit score).
Even better, you can also use comparison sites or other brokers to run soft-search checks with multiple card issuers in one go (ahem, try Finder’s card eligibility checker!). If they’re doing a good job, they’ll be checking cards for high credit scores and cards for low credit scores so that users can identify the best deals that they’d be likely to get approved for.
If you’re not sure what your credit score looks like, it’s easy to find out for free.
Before applying for a credit card, it’s important to distinguish between a “soft” and a “hard” search on your credit report.
When you’re considering a particular credit card, most banks and credit card providers offer an eligibility check on their website. This is a simple online form that can tell you your chances of success in obtaining a credit card. This is known as a “soft” search because it doesn’t impact your credit report.
However, making a formal application involves the lender doing a “hard” search on your credit history, which usually has a slight negative effect on your credit score. Regardless of whether your application is a success, if a potential lender sees a lot of hard searches on your report in a small space of time, this could suggest you are struggling to find credit and could put lenders off.
Some countries offer credit cards without a credit check (such as secured cards in the US which require you to put down a deposit), but in the UK it’s not possible to get a credit card without one.
But although having a poor credit history will reduce your choices, there are still plenty of cards that cater to people with bad credit. In fact, some card issuers focus exclusively on this section of the market. If you have a low credit score, a “credit builder credit card” can be easier to get approved for than more mainstream cards.
You can now almost always find out if you’re eligible instantly and without affecting your credit score. If you give them permission, card issuers will run a “soft” search of your credit file so that you can find out if it’s worth your while applying, and then if you decide to go ahead and apply, they’ll run a full credit search.
Your credit report is a detailed record of your financial history, which lenders use to decide whether to offer you credit. Your credit history is stored by credit reference agencies, the biggest in the UK being Equifax, Experian and TransUnion (formerly Callcredit).
You can get your credit score and report for free on numerous websites (including Finder). You’re also entitled to ask the credit reference agencies for the raw data held in your credit file (this is called a statutory credit report) and they must give this to you for free. Depending on your score, you’re said to have excellent, very good, good, fair, poor or very poor credit:
| Experian score | Experian rating |
|---|---|
| 0-560 | Very poor |
| 561-720 | Poor |
| 721-880 | Fair |
| 881-960 | Good |
| 961-999 | Excellent |
| Equifax score | Equifax rating |
|---|---|
| 0-438 | Poor |
| 439-530 | Fair |
| 531-670 | Good |
| 671-810 | Very good |
| 811-1,000 | Excellent |
| TransUnion score | TransUnion rating |
|---|---|
| 0-550 | Very poor |
| 561-565 | Poor |
| 566-603 | Fair |
| 604-627 | Good |
| 628-710 | Excellent |
If you have a bad credit score – or perhaps have no credit history at all – then a credit builder credit card could be a good place to start. While the interest rates are high and the credit limit is low, you can enjoy some of the benefits of credit card ownership while you build up your score with regular payments.
Unlike many mainstream credit cards that have introductory interest-free offers or reward bonuses, credit builder cards usually offer a standard interest rate from the get go. There are usually few benefits or rewards. These cards are designed to act as a stepping stone to better credit cards as your score improves over time.
Alternatively, if you’re struggling to find approval for a credit builder, then consider a prepaid card. This isn’t a credit product, but you can use it like a credit card to pay for purchases in-store and online. It’s easiest to think of it like a gift card which you load with funds before using. There are no interest charges, but many prepaid cards do include admin or load fees.
While each lender’s criteria on deciding whether to lend money is different, there are some general things you can do to increase your chances of approval.
It usually takes about 10-15 minutes to apply online and you usually know whether you’re approved in moments. Occasionally, some providers may require further information and your application could take up to two weeks to be processed.
Credit card providers have different reasons for accepting or rejecting your application.
Here are some important dos and don’ts to help you increase your chances of approval and how to manage your credit card once you have it.
Approval for any credit card will depend on your status. The representative APRs shown represent the interest rate offered to most successful applicants. Depending on your personal circumstances the APR you're offered may be higher, or you may not be offered credit at all. Fees and rates are subject to change without notice. It's always wise to check the terms of any deal before you borrow.
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.
All credit cards benefit your credit history when you use them correctly, but these picks aim to support you on your journey to better credit.
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.
