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Bad Credit Credit Cards

Credit cards for bad credit, sometimes known as credit builder cards or credit repair cards, are specifically designed for individuals with a less-than-perfect credit score or a limited credit history who may struggle to qualify for the most competitive cards. When managed correctly, these cards could help you to improve your credit score.

Moneyfactscompare.co.uk has been providing financial comparison charts to the public for over 25 years. See our chart below to compare the best credit cards for bad credit.

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Today's Best Credit Repair Cards

Today's Best Credit Repair Cards

<p>We found <strong>18 PRODUCTS </strong>in total, of which <strong>2 have links to providers</strong></p>

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  • Zable Credit Card Mastercard

    Zable Credit Card Mastercard

    Intro Rate for Purchases
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    No introductory rate for purchases
    APR
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    48.9%
    Additional Information
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    No foreign usage fees
    High interest rates
    Contactless payments up to £100
    Check Eligibility
    Representative Example: Based on a credit limit of £1200.00 charged at 48.9% variable per annum for purchases. Representative 48.9% APR variable.
  • 118 118 Money Guaranteed Rate Card Mastercard

    118 118 Money Guaranteed Rate Card Mastercard

    Intro Rate for Purchases
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    No introductory rate for purchases
    APR
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    49.0%
    Additional Information
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    No fees payable
    High interest rates
    Credit repair card
    Check Eligibility
    Representative Example: Based on a credit limit of £1200.00 charged at 49.0% variable per annum for purchases. Representative 49.0% APR variable.
  • Virgin Money 12 Month All Round Credit Card Mastercard
    Intro Rate for Purchases
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    0.0% for 12 months
    APR
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    29.9%
    Additional Information
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    0% on balance transfers for 12 months
    High rate for cash withdrawals
    Contactless payments up to £100
    Representative Example: Based on a credit limit of £1200.00 charged at 29.9% variable per annum for purchases. Representative 29.9% APR variable.
  • Barclaycard Forward Credit Card Visa
    Intro Rate for Purchases
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    0.0% for 6 months
    APR
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    33.9%
    Additional Information
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    0% on purchases for 6 months
    2.90% introductory balance transfer fee
    Start with a low credit limit that may later increase
    Representative Example: Based on a credit limit of £1200.00 charged at 33.9% variable per annum for purchases. Representative 33.9% APR variable.
  • Virgin Money 12 Month Balance Transfer Credit Card Mastercard
    Intro Rate for Purchases
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    0.0% for 3 months
    APR
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    29.9%
    Additional Information
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    0% on balance transfers for 12 months
    High rate for cash withdrawals
    Contactless payments up to £100
    Representative Example: Based on a credit limit of £1200.00 charged at 29.9% variable per annum for purchases. Representative 29.9% APR variable.
  • Virgin Money 21 Month Balance Transfer Credit Card Mastercard
    Intro Rate for Purchases
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    0.0% for 3 months
    APR
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    29.9%
    Additional Information
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    0% on balance transfers for 21 months
    High rate for cash withdrawals
    Contactless payments up to £100
    Representative Example: Based on a credit limit of £1200.00 charged at 29.9% variable per annum for purchases. Representative 29.9% APR variable.
  • Capital One Luma Purchase Mastercard
    Intro Rate for Purchases
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    0.0% for 3 months
    APR
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    35.9%
    Additional Information
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    Good for credit building
    Rates dependent on credit rating
    Credit limit up to £1,500
    Representative Example: Based on a credit limit of £1200.00 charged at 35.94% variable per annum for purchases. Representative 35.9% APR variable.
  • HSBC Classic Credit Card Visa
    Intro Rate for Purchases
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    No introductory rate for purchases
    APR
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    29.9%
    Additional Information
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    Contactless payments up to £100
    High APR of 29.9%
    Manage your card online
    Representative Example: Based on a credit limit of £1000.00 charged at 29.9% variable per annum for purchases. Representative 29.9% APR variable.
  • Tesco Bank Foundation Clubcard Credit Card Mastercard
    Intro Rate for Purchases
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    No introductory rate for purchases
    APR
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    29.9%
    Additional Information
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    Earn Tesco Clubcard points for spending on your card
    Rates dependent on credit rating
    Available to help rebuild your credit
    Representative Example: Based on a credit limit of £1200.00 charged at 29.947% variable per annum for purchases. Representative 29.9% APR variable.
  • ASDA Money Select Credit Card Visa
    Intro Rate for Purchases
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    No introductory rate for purchases
    APR
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    34.9%
    Additional Information
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    Earn 1% back in Asda Pounds when shopping at Asda
    ]Rates dependent on credit rating
    Contactless payments up to £100
    Representative Example: Based on a credit limit of £1200.00 charged at 34.9% variable per annum for purchases. Representative 34.9% APR variable.
Note

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Where N/A is shown for Balance and/or Money Transfers, the applicable feature is not available.

Disclaimer

All credit cards are subject to the applicant’s status. The APR quoted is representative of the interest rate offered to most successful applicants. Depending on your personal circumstances the APR you are offered may be higher, or you may not be offered credit. Fees and rates subject to change without notice. Please check all rates and terms before borrowing.

Provider Links

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Bad credit credit cards explained

Can I get a credit card with bad credit?

It’s possible to get a credit card if you have a bad credit history, but you are likely to find it more difficult to get the most competitive deals and have fewer options to choose from than someone with a better credit history.

Furthermore, while there are deals available for those with poor credit, there’s no guarantee that you will be accepted. All providers will check your credit history and your overall financial situation to decide if they will approve your credit card application.

What credit card can I get with bad credit?

The most competitive credit card offers are typically reserved for those with the best credit scores. However, there are many providers that offer specialist credit cards to those who have a poor credit score because of problems in the past, as well as those who haven’t yet built up a credit history as they’ve never borrowed before.

These cards may be known as credit builder cards or credit repair cards as they are designed to help people build up their credit history and improve their score. They are typically very basic credit cards without many (if any) interest-free offers or rewards.

Additonally, they are likely to come with higher interest rates and a lower credit limit than a more mainstream card.

Because of this, these cards should only be used to build up your credit history and prove that you’re a responsible borrower, to help you access more competitive forms of credit in the future.

Is a credit card right for you?

You should only apply for a credit card if you are confident that you can manage it effectively and can afford to make the repayments. Otherwise, you risk damaging your credit score and making your financial situation worse.

If you’re struggling with debt, see our guide on how to get out of debt in five steps. It's also a good idea to speak to your existing lenders for support and get free debt advice.

How does a bad credit credit card work?

Credit cards for bad credit work in the same way as other standard credit cards, as you borrow money from the provider when you use the card and repay it with interest (unless you clear your balance before charges apply).

The main differences are that interest rates on these credit cards are often significantly higher than on standard cards and the credit limit is usually lower. This is because those with a poor credit history are perceived to be a higher risk by providers, so they set stricter terms to compensate for this.

For example, standard credit cards may charge an APR of 24.9%, whereas credit cards for those with bad credit may charge 34.9% or higher.

Meanwhile, the credit limit on a credit builder card could be as little as £50, or up to £1,000, depending on the provider and your individual situation. By contrast, those with a good score could access a credit limit of several thousand pounds with a standard credit card.

Some providers may lower the interest rate or allow you to increase the credit limit on a credit builder card if you consistently make payments on time.

As with other credit cards, you can use credit builder cards for spending in-store and online. Because of their lower credit limit, they are likely to be most suitable for smaller purchases and less so for larger, more expensive purchases. These cards are unlikely to be the best option for debt consolidation because of their high interest rates.

Ideally, you would pay off the balance on your credit card in full each month before interest charges apply, as this can help to build and improve your credit history at no extra cost.

If you don’t clear your balance in full, it’s crucial to make the minimum payment at the very least. Missing a payment or going over your credit limit is likely to be recorded on your credit history and cause your score to drop, instead of improving.

Moneyfacts tip Image of Rhiannon Philps

Credit builder cards don’t offer a quick fix to your credit score. It could take several months of consistently making payments and managing your debt to start to see any improvements to your credit history.

Pros and cons of credit cards for bad credit

  • They can help you build up your credit history and improve your credit score over time, as long as you manage your card responsibly.
  • If you have no credit history, or a poor credit history, you may be more likely to be approved for one of these cards than a standard card.
  • Some cards may come with rewards or limited 0% interest offers.
  • If you use your card for purchases between £100 and £30,000, you have protection under Section 75 of the Consumer Credit Act should there be any issues.
  • Interest rates are usually higher than on other types of credit card, which could make them an expensive form of borrowing if you don’t clear your balance in full each month.
  • They are likely to offer a lower credit limit than standard credit cards.
  • You must spend on the card and make payments on time (ideally clearing your balance) to start to improve your credit score.
  • Not paying back the full balance each month will result in you building up debt, which could become expensive and negatively affect your credit history.
  • Late or missed repayments will have serious consequences, including a negative effect on your credit score and the possibility of having the card withdrawn.

How to manage your credit card

If you have a credit builder card or a credit card for bad credit, it’s crucial to manage it effectively to ensure it has a positive impact on your credit report.

As long as you prove that you can responsibly manage your card (alongside any other payments and credit commitments), you could start to build up a better credit history and improve your credit score.

In turn, this can then improve your chances of being approved for a wider choice of credit cards and other forms of credit, including those with more competitive interest rates.

Below are some tips to help you manage your card responsibly that could improve your credit history.

 

  • Pay off your credit card balance in full each month. This means you won’t be charged any interest and proves you can stay in control of your spending.
  • Don’t miss any payments. If, for some reason, you’re unable to clear your balance, it’s crucial that you make at least the minimum payment, ideally more. You can set up a Direct Debit to ensure you don’t forget.
  • Aim to use the card for your everyday, affordable expenses. These cards aren’t as suitable for borrowing money to spread the cost of large, expensive purchases because of their higher interest rates.
  • Stay well within your credit limit. Keep your spending small and don’t get tempted to overspend and max out your card.
  • Don’t use them as a way to borrow more and build up debt. This is likely to be expensive for you and could affect your credit score.
  • Never use these cards to withdraw cash. Using a credit card for cash withdrawals may come with a fee and interest is often charged daily, making it a potentially very expensive option. Furthermore, any credit card cash withdrawals are recorded on your credit file and could harm your score.

 

Bear in mind that, while managing a credit builder card responsibly can have a positive impact on your credit score, it’s important to manage the rest of your finances effectively and make any other payments in full and on-time.

Furthermore, try not to apply for any more forms of credit as you try to improve your score, as this could affect your progress.

What banks offer bad credit credit cards?

A range of providers offer credit cards for those with bad credit, but the choice of options is likely to be more limited than for someone with a better credit history.

Some major banks offer credit builder cards but, depending on how bad your credit history is and the reasons for it, you may find that many well-known banks and brands won’t be able to approve your application.

As a result, you may have to consider more specialist providers that focus on helping people with less-than-perfect credit scores.

See our chart above to compare the credit cards that may be available to those with a less-than-perfect credit history.

What is the easiest bank to get approved for?

No bank or provider is necessarily easier to get approved for than another as the outcome of your application will depend on your individual circumstances and the requirements of the provider.

However, if you have a bad or limited credit history, you’re likely to find it easier to get a credit card from providers that offer specialist credit cards for these borrowers, rather than standard cards that are targeted at those with good credit scores.

Try our credit card calculators

Calculate what you need to know before applying.

Balance transfer calculator – calculate how much you could save by switching to a 0% balance transfer credit card.

Minimum repayment calculator – calculate how long it will take to clear your balance when only making the minimum repayments.

Repayment calculator – calculate how quickly you could pay off your credit card.

What do we mean by a bad credit score?

A bad credit score means your credit score is at the lower end of the scale, indicating you may have previously had problems making payments and managing your debts.

However, it’s important to note that there isn’t one single number that signifies a bad credit score as credit reference agencies (CRAs) have different scoring systems. Each of the main CRAs class a bad or poor credit score as the following:

  • Experian: 0-720
  • Equifax: 0-438
  • TransUnion: 0-565

You can check your credit report for free as many times as you want, without affecting your score. This can help you check your current creditworthiness, identify any areas for improvement and spot any errors or mistakes that could be harming your score.

Why do I have bad credit?

There are several reasons why you may have a bad credit score, including:

  • too many applications for credit in a short space of time
  • late or missed payments
  • only paying the minimum payments on your credit card
  • going over your credit limit on your credit card
  • a high credit utilisation ratio (when you use too much of the credit available to you)
  • having an individual voluntary arrangement (IVA), county court judgement (CCJ), debt relief order (DRO), bankruptcy or similar on your credit file.

Sometimes, a low credit score can simply mean that you have never used credit before. You need to have a history of using and paying back credit to build up a credit history and a good score. If you have never applied for credit, then there will be no data to score you.

It’s also worth bearing in mind that fraudulent activity can cause your credit score to drop, which is why it’s so important to regularly check your credit file.

How to improve your credit score

Credit builder cards are just one way you could start to improve your credit score. Cutting any old financial ties, keeping your credit utilisation ratio low and even registering to vote can all have a positive impact on your credit history.

See our guide for more tips on how to improve your credit score.

What should I look for when choosing a credit builder card?

When comparing credit builder cards, or credit cards for bad credit, there are a number of features to consider.

The interest rate is one of the key factors to look at because, while you should aim to clear your balance each month to avoid paying any interest, you should know how much you could be charged if you don’t pay off your card.

You can look at the annual percentage rate (APR) to help you compare the total cost of different credit cards, taking into account the interest rate and any fees. However, it’s important to note that you’re not guaranteed to receive the advertised APR (known as the representative APR); the actual rate you receive will depend on your credit history and financial circumstances.

It’s also worth seeing if any cards come with any extra perks, such as an interest-free period or a reward scheme.

Crucially, you should also look at the eligibility criteria of a card to make sure you choose a card that you qualify for.

What if I’m refused a credit card?

If your application for a credit card is refused, don’t try to apply for another card straightaway. Because all applications for credit are recorded on your credit file, applying multiple times over a short period could harm your score and chances of approval.

Instead, check your credit history to see why the provider may have rejected your application. This will also help you identify any areas for improvement, which could help boost your chances of approval next time you apply for credit.

Ideally, you should only reapply for a credit card at least three to six months after your previous application. Before applying, check the requirements of the card to make sure you qualify and, if possible, check your eligibility to see your chances of approval without affecting your credit score.

Have you considered a bad credit loan?

Bad credit loans are another option for people with low credit scores, or who have little to no credit history. These loans typically have higher interest rates, but they can be useful if managed responsibly. Compare bad credit loan rates today.

Credit cards for bad credit FAQs

What is a credit builder card?

A credit builder card is a specialist credit card designed for people with a limited credit history or a poor credit history who may struggle to get approved for a standard card. These specialist cards aim to help individuals build up or improve their credit score, to help them access more forms of credit in the future.

Could a credit card make my credit score worse?

Potentially. When you apply for a credit card, the provider will run a hard credit check, and too many checks in a short period of time could harm your credit score. A credit card will also make your credit score worse if you fail to manage it responsibly by missing payments or building up too much debt, for example. Continually failing to make payments, or only making the minimum payments, could cause more serious, long-term damage to your credit score.

However, if you use your credit card responsibly and prove that you can be trusted to make payments on-time, this should have a positive impact on your credit score.

What credit score do I need for a credit card in the UK?

There isn’t a set number that your credit score needs to be to get approved for a credit card, particularly as different credit reference agencies have their own scoring systems. However, the better your credit score, the better your chances of approval.

How long will it take to improve my credit score?

This will depend on your current credit history and how well you manage your credit card (and other financial commitments). Some people may start to see an improvement in their credit history after a few months if they consistently make payments on time.

However, people with a worse credit score because of previous financial difficulties, such as defaults and CCJs, may need to wait longer before their score starts to improve significantly. You can check your credit history and see the progress you’re making with each individual credit reference agency without affecting your score.

Should I get a credit builder card if I already have a credit card?

This is up to you. However, if you already have a credit card, you could start to improve your credit score by managing it responsibly and making all your payments on time. As a result, it may not be necessary to apply for a specific credit builder card for this purpose.

Can you get a credit card with a CCJ?

It may be possible to get a credit card if you have a county court judgement (CCJ), but you will almost certainly have to consider specialist providers. Furthermore, if eligible for a credit card, you may be charged higher interest rates and receive a lower credit limit than individuals without a CCJ. If you have a CCJ or a bad credit history, always look at the eligibility criteria of a credit card and, if possible, see your chances of approval before formally applying.

Why was my credit card application denied?

There are many reasons why a provider may decline your application for a credit card. It generally means that you don’t meet the criteria for the particular card, whether it’s because of a less-than-perfect credit history, your income or your wider financial situation.

For example, late or missed payments, defaults, too many applications for credit or an irregular income stream could all be reasons why a provider declined an application for credit.

You may also struggle to get approved for some credit cards if you haven’t yet built up a credit history, as providers have nothing against which to assess your level of risk.

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Rhiannon Philps

Content Writer

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