Compare credit builder credit cards
Whatever type of credit card you're looking for our Smart Search can help:
- We'll show you cards likely to say YES
- Searching WON'T harm your credit score
- Fast and easy to use
Build up your credit rating with one of our selection of credit cards for people looking to improve their credit rating or take out their first card. Compare cards with the best deals on purchases, the lowest standard rates and the best cashback or rewards offers.
Credit builder credit card
If you have had problems with debt in the past, it is likely that your credit score will have been damaged. A low credit rating affects your ability to borrow and obtain competitive deals on credit cards, with lenders being wary of anyone with a less than perfect history.
However, there are other things that can affect your credit score too, such as having little or no history of borrowing. It might seem strange that you could never have had a problem with debt and still have difficulties getting credit, but if you’ve never borrowed providers have no indication of whether or not you are a responsible borrower and so steer clear of lending to you or giving you a credit facility.
Whatever your reason is for a having bad credit, it doesn’t need to be permanent. It is possible to repair your score, and one of the ways to do this is by getting a credit builder credit card.
What are credit builder credit cards and what advantages do they offer?
A credit builder credit card is a type of card available to those not likely to be accepted for more mainstream deals.
They are beneficial as they give you access to credit but, providing you make repayments on time every month, you can, over time, prove you can manage money responsibly.
The downside to these cards is that they have very high rates of interest which reflects the risk that providers are taking. However, as long as you ensure you clear your balance every month, you won’t have to pay a penny in interest.
The other downside is that they are also likely to have relatively low credit limits. But once you have re-built your score you should be able to qualify for better deals.
If you do have a low credit score, don’t be tempted to try to apply for one of the more competitive deals. Every time you get rejected, it further damages your score, meaning it will take even longer to get back on your financial feet.
If you are not sure what cards you are likely to qualify for, using MoneySupermarket’s Smart Search tool will give you an idea of the cards you may be accepted for. Alternatively, you might wish to apply for your credit report which will allow you to see in detail what your score is and monitor it on a regular basis.
But credit cards are not the only option for those looking to restore their credit score. Some prepaid cards, which require you to load up cash on them before you spend, also offer a bolt-on Creditbuilder facility. This is where the card provider effectively ‘lends’ you a year’s worth of monthly card fees upfront. The loan itself is interest-free but you will be expected to pay it back over the course of 12 months. Details of how reliable you are with your payments will be passed to credit reference agencies and, if it’s positive, could help boost your credit score. This means you can help yourself without risking getting into debt or paying any expensive interest.
Comparing credit builder cards
Using MoneySupermarket will allow you to compare credit builder cards and find the best deal for you.
Different cards will come with different rates of interest and some will even come with added benefits, such as the ability to earn rewards. MoneySupermarket’s credit builder card channel will allow you to browse and weigh up which one could be the best deal for you.
It’s imperative, though, that once you have chosen a card and been accepted, you use it to your advantage. Defaulting on payments will result in you paying hefty rates of interest and getting caught in a debt cycle again – not to mention further damaging your score.
The bottom line is that, if you want to be eligible for competitive deals in the future, having a good credit score is imperative.
Your personalised chance of approval
We've taken the details you gave, and used them to show you personalised scores to tell you the chance that your application for each card would be successful.
Why is this important?
Every time you apply for a credit card, a mark is left on your credit score. That means it's better get it right first time. Your scores help you understand which cards you have the strongest chance of getting.
The higher the score, the stronger chance you have of getting the card. If you see a very low score, you're probably better off choosing a different card.
- Consider a different card
- Not eligible
- Your chances are good
- You've been pre approved
If you see a high score, you can be fairly confident. The scores aren't a guarantee, as acceptance of your application is at the sole discretion of the card issuer, but they should help guide your choice.
If you see a pre-approved score it may be subject to you passing additional ID and fraud checks by the provider.
In some cases, we will not be able to display a score for a product because we do not have enough information about the card issuer’s acceptance criteria or we have not been able to match your details at the credit bureau.
We work closely with our partners to improve our eligibility scores for all products that are of interest to you.
Set up a direct debit
If you’ve got debt to pay off, the easiest way to manage it is by setting up a direct debit to make sure you pay it off before the end of the interest free period.
For example, if you transfer a balance of £2,400 to a card that charges zero interest on balance transfers for 24 months, you could set up a direct debit for £100 a month and you would be debt-free by the end of the 0% offer.
If you can’t pay off the debt before the 0% deal expires, you could try to switch to another balance transfer offer at the end of the term. If that fails, you will start to be charged interest at the card issuer’s standard rate.
Some people choose to clear the outstanding balance in a lump sum at the end of the 0% offer. That’s fine, as long as you remember to make the minimum payment on the card each month – if you don’t, you’ll incur penalty charges.
And remember to make a note of the date when the full amount is due.
Where to next?
What is a good credit score?
Will I be accepted for a credit card?
How long will it take to be accepted for a credit card?
Moneysupermarket is a credit broker – this means we’ll show you products offered by lenders. We never take a fee from customers for this broking service. Instead we are usually paid a fee by the lenders – though the size of that payment doesn’t affect how we show products to customers.