Best credit cards for building credit

All credit cards help your credit record when you use them correctly. The best credit builder is likely to be the card that does this while costing you the least and supporting you the most.

What is the best credit builder credit card?

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 eligiblity checker to get an idea of which cards you stand a strong chance of getting approved for.

Best card to build credit

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.

Tymit Credit Card

Tymit Credit Card

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29.9%

Representative APR

0%

Foreign transaction charge

£0

Account fee

£500

Minimum credit limit

The Tymit Classic credit card and the Tymit Booster are good options for those looking to build a positive credit history. Tymit is great if you really want to take control of your repayments, with the option to spread the cost of your purchases.
  • 0% on purchases spread over 3 months or less.
  • A competitive APR on purchases spread over more than 3 months.
  • Spread the cost of purchases according to what you can afford to pay that month.
  • No fees on non-sterling transactions.
  • No perks or rewards.
  • You'll need to be at least {{ ELIGIBILITY.MINIMUM_AGE }} to apply.
  • You really need to be quite actively-involved with the app – Tymit's not really suitable if you just want to forget about your spending.
Residency UK resident
Foreign usage charge (EU) 0%
Cash advance fee Free up to £200 per month
Representative Example: 29.9% (variable) based on a borrowing of £1200 over 12 months with no annual fee.

Best credit builder for low fees

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).

Best credit builder for perks

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.

Should I get more credit cards to build my credit fast?

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.

How to choose the best credit-builder credit card

  1. Understand what you want out of the card. Are you simply looking to build your credit history, or do you want the ability to earn rewards, transfer a balance or get 0% interest on purchases?
  2. Do your research.While there are many dedicated credit-builder cards, you can still build your credit using a regular credit card, so it’s also worth considering other cards.
  3. Compare cards. Look out for cards offering the features you want, and make sure to compare any rates and fees.
  4. Check your eligibility. Before you apply for a card, you want to make sure you’re likely to be approved. An eligibility checker lets you confirm your chances without having to go through the full application process.
  5. Apply for the card. Make sure you complete the application correctly and in full.

Compare credit-builder cards

Bottom line

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.

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. Most of the data in Finder's comparison tables is provided by Moneyfacts.

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