The best credit builder credit cards

Credit builder cards help build your credit rating up

Updated: 

The best credit builder credit cards

You can still get a credit card, even if you have a damaged or non-existent credit history. Here are the top options right now.

If you have a poor credit rating that you want to rebuild, or you have no credit rating at all, you may still be able to get hold of a credit card.

Credit builder credit cards are designed to help you gradually build your credit rating up, although this will only work if you pay your balance off in full each month.

Credit builder cards generally have lower credit limits and much higher interest rates than ordinary credit cards, which are two reasons alone to use them sensibly.

To qualify for a card, you'll need to be over 18, be employed, not have a recent bankruptcy or County Court Judgment (CCJ) to your name and have lived at your current address for a few months.

If you have a poor recent credit history, have a read of Best credit cards if you have a bad credit history.

Now let's have a look at some of the leading credit builder cards.

Compare credit builder credit cards

Barclaycard Initial

The Barclaycard Initial card comes with a credit limit of up to £1,200. It also has an introductory interest-free period on purchases of three months, but if you're just starting out borrowing you might be advised to give this a miss.

If you make your repayments on time and in full each month, your card will be reviewed after a year and your credit limit might be increased and/or your interest rate reduced.

The representative APR (the annual combination of interest and other fees if you don't pay off your balance in full) is 34.9%.

Aqua Classic

The aqua Classic card also offers an initial credit limit of up to £1,200, with the possibility of an increase after four months. It also offers a free credit checker service. The representative APR is 29.71%.

Vanquis Aquis

Vanquis Bank has specialised in helping people build their credit history for more than a decade. The Aquis card offers an initial credit limit of up to £1,000. This could increase after your fourth statement. Its representative APR is 29.8%.

Capital One Classic

If you're on the electoral roll and you haven't been made bankrupt in the previous 12 months, then you could be eligible for the Capital One Classic card. You'll be offered an initial credit limit of up to £1,500. The representative APR on this card is 34.9%.

What to remember

Whatever credit card you go for, you should aim to pay your balance off in full each month, otherwise you'll be charged a hefty rate of interest.

Make sure at the very least you can make the minimum repayment or you'll have to pay a fee and you'll get a black mark on your credit score.

Check your credit report periodically to see if your credit rating is improved. Once it has, you should be able to apply successfully for the more competitive cards out there. You can get a free 30-day trial of your Experian credit report by signing up to CreditExpert.

Compare credit builder credit cards

How to dispute your credit record

How to dispute your credit record