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Credit builder credit cards

Compare credit cards to build your credit score

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  • Representative 29.9% APR

MoneySuperMarket is a credit broker not a lender. You must be 18 or over and a UK resident. Representative 29.9% APR.

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Compare credit builder cards from a range of providers

We work with a range of leading lenders who can help you to build your credit score. Our specialist providers make managing your money simple

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What is a credit builder card?

A credit builder credit card is a type of credit card that's designed to allow you to improve your credit score, in the event that you have a poor credit history or no credit history.

According to MoneySuperMarket data, the average credit limit for those wanting to improve their credit rating is £500ii. Other key things to note about credit builder cards include:

  • You're likely to be given a lower credit limit than regular credit cards

  • Interest rates can be higher too

  • People with poor credit ratings are more likely to be accepted

  • As long as you pay the balance off each month, your credit rating should rise over a period of four to six months

How do they work?

Spend on the card: You can spend on the card just like you would any other credit card, but you’d probably have a lower credit limit in comparison to a standard card.

Make monthly repayments: Keep up with your credit card repayments, try to pay off as much as you can. Clearing your balance means you avoid having to pay any interest

See your credit score improve: If you make your credit card repayments on time, clear your balance in full every month and don’t use up too much of your credit limit then in time your credit score will improve

Step up your credit score

The good news about a low credit score is that it doesn’t have to stay that way. If you use a credit builder card wisely, over time, your credit rating will improve. A better credit score will unlock better terms when you apply for credit. Keep up with your credit score with our Credit Monitor tool, we’ll also send you helpful tips and tricks to improve your score

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What are the pros and cons of credit builder cards?

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    Advantages

    • Improve your credit score: You can do this by borrowing small amounts you know you can pay back on time each month. Set up a direct debit for the full balance and you will see your score rise

    • More likely to be accepted: Credit builder cards have lower application criteria so you're more likely to be approved, even with bad credit

    • Your purchases are protected: Card purchases between £100 and £30,000 are covered under the Consumer Credit Act 

  • Cross

    Disadvantages

    • Lower credit limit: You can borrow less than with standard credit cards, as you're building trust with lenders 

    • Higher APRs: Interest rates will be higher than standard credit cards

    • Risk of more debt: If you have trouble repaying what you owe, your credit score could fall further

How do I choose the best credit builder card?

Choosing a credit builder card is much like choosing a standard credit card. But with some key differences. Here’s what you need to take into account... 

  • balance transfer icon

    Consider if you have debts to pay off

    Some credit builder cards let you transfer existing debts (usually for a fee). You’ll then have a set period to clear the debt before you start paying interest  

  • purchase card icon

    Upcoming purchases

    Some credit builder cards also offer 0% on purchases for a designated period. So look out for those offers if you’ve got a big-ticket purchase to make.  

  • credit alert icon

    Pay attention to the APR

    After the introductory period ends, you could be paying anywhere between 20% or 35% interest on your outstanding debt. That’s a lot. So try and shop around for a low rate

  • gift box rewards icon

    Perks on offer

    Perks aren’t common with credit builder cards. But if you look hard enough you can find everything from a free subscription to Apple streaming services or reward points 

How long will it take before my credit score starts to rise?

So long as you make at least the minimum-permitted repayment on your credit builder card every month, you can generally expect to see your credit rating improve within four to six months.

Will base rate cuts make borrowing cheaper?

While credit card interest rates aren't directly tied to the base rate, they often track it to some extent. A lower base rate can encourage lenders to reduce the interest rates they charge on credit cards, making borrowing more affordable. Further cuts to the base rate in the coming months may therefore lead to lower interest rates on credit builder cards, which is handy as these usually come with higher APRs anyway.

How else can I build my credit score? 

If your credit score isn’t in the best shape, the good news is that it doesn’t have to stay that way. Here are some tips on how you can step up your score: 

  • icon stopwatch

    Keep up with your repayments

    The key to a strong credit score is proving that you’re a reliable borrower. You can do this by making your payments on time to show you can be trusted with credit

  • credit builder

    Low credit utilisation ratio

    Your credit utilisation ratio is the percentage of your total available credit you’re using. Keeping this rate low shows lenders you’re not too reliant on credit

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    Correct any errors

    You could have mistakes on your credit report dragging your credit score down. You can check your credit report with our Credit Monitor service and dispute any errors you find

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    Verify where you live

    Registering on the electoral roll is a small step you can take to build your credit score. Verifying where you live boosts your score because it proves you are who you say you are

Kara Gammell

Our expert says

Used responsibly, credit-building credit cards are an easy way of improving your credit score. The trick is to only borrow a small amount of money each month and pay the card off in full when you get your statement. This shows lenders you can handle credit sensibly. Credit-building credit cards are easier to get than standard credit cards but typically have higher interest rates, so be careful to only borrow what you can afford to repay.

- Kara Gammell, Personal Finance Expert

How much do credit-builder cards cost?

Along with offering comparatively low borrowing limits, credit-builder cards tend to charge higher rates of interest than standard credit cards.

According to Nimblefins, the average annual percentage rate (APR) on a credit-builder card is 35.5%. Conversely, the average APR on a low-rate credit card at the time of writing is 10.4%.

Not surprisingly, that means borrowing on a credit-builder card can be quite expensive. So you’ll need to make sure you keep on top of your repayments.

Type of credit card

Average APR

Low rate credit cards

10.9%

Airline rewards cards

23.8%

Student cards

18.9%

Balance transfer cards

24.9%

Credit-builder cards

35.4%

Average credit card APR

24.3%

Data from Nimblefins, showing average APR on credit card types as of March 2024.

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How to compare credit builder credit cards with MoneySuperMarket

If you feel that a credit builder card could be right for you, the next step is to use the MoneySuperMarket Eligibility Checker to see what cards are available and your chances of being approved.

  • Tell us what you want the card for

    Once you’ve clicked through, we’ll ask what you need the card for. Select ‘improving my credit rating’, so we can show you credit builder cards 

  • We browse the market

    We’ll sift through dozens of credit cards from across the market, and then show you the cards we think will help step up your credit score 

  • Pick the card you want

    You’ll be shown a range of credit building cards, which you’ll then be able to sort according to APR, features and your chances of being approved 

Learn more about building your credit score

There’s no way to improve your credit score quickly. If you have a low score, it’s usually because your financial history shows you as having struggled with debt in the past. The best way to improve your credit score is to demonstrate better patterns of borrowing behaviour over significant periods of time. You’ll be able to borrow more money and get better rates of interest as you improve.

When you’re applying for your first credit card, you’re likely to have a limited or non-existent credit report. This can make you appear as a high-risk borrower as there is little or no evidence that you’ve responsibly borrowed money in the past.

Fortunately, there are still options open to you, but you might have less choice about the type of credit card you apply for.

How much you’ll be able to spend on your card will depend on the credit limit your provider has set for you. Just remember that credit builder cards usually have lower credit limits than a standard credit card. 

A wide range of traditional high street banks and challenger banks offer credit builder cards to customers, giving you plenty of choice to compare available deals before making your application.

Most credit cards have fairly strict application criteria, but credit builder cards are designed for people who’ve had problems with debt in the past including falling behind on bills, defaulting on payments and receiving CCJs. 

This means that people with a lower credit score are more likely to be accepted for a credit-builder card.

You can check your credit score for free with our free Credit Monitor tool. This uses a soft search of your file, so it won’t show up on your record and your score won’t be penalised.

However when you apply for a credit card, the lender will perform a hard search on your credit file. Being rejected could negatively affect your credit score, especially if you make several applications at once.

If you're unemployed and on a limited income, it's still possible to get a credit builder card. Even if you've got an impaired credit rating.

However, the less good news is that you're unlikely to qualify for better interest rates and may be subject to a lower credit limit.



Some credit builder cards offer incentives. At the time of writing, for instance, you can get a free subscription to Apple streaming services, as well as points to spend in high-street stores. However, it's important that you consider the key selling points of the card, such as APR and balance transfers, before you let sweeteners influence your decision.

Some credit builder cards do charge a fixed monthly fee to maintain the card. But most generally waive these. However, depending on the card you choose, you may have to pay fees to cover services such as cash advances, money transfers and balance transfers.

As with a good credit score, each credit rating agency and product provider will have their own range of credit scores and they all differ slightly.  

Using MoneySuperMarket’s Credit Monitor can give you a good guide. Credit Monitor uses the TransUnion scoring system, which goes up to 710. A score of 550 or lower would be considered a low credit score

 



Whilst you may be eligible for some other types of cards such as balance transfer credit cards, interest free and rewards credit cards, if your sole aim is to build your score then a credit building card is most suitable for you.

APR stands for Annual Percentage Rate and it represents how much it’ll cost to borrow money on a particular credit card. It’s calculated by taking into account: 

  • Your interest rate 

  • Additional fees and charges. 

However, you might see the term ‘representative APR’ on adverts for credit cards – this means that the interest rate quoted only has to be offered to at least 51% of successful applicants, so it may not be the actual rate you get when you apply. 

Credit card providers can change interest rates at any time, so it’s always a good idea to stay on top of your credit balance. If you have a 0% offer on your credit card, this will only be for a set number of months so you should make sure you clear your balance before it ends, or transfer your remaining balance to another 0% card.

You can apply for credit cards online, either using MoneySuperMarket or going directly to the provider, or by calling them up or through the post. You can also stop by your bank or building society branch and apply in person.

First consider what you want to use the credit card for – cards come with different features that are useful for different purposes.

If you have a large purchase coming up, you might want to spread the cost with a 0% purchase card, if you fly a lot you might want an airmiles card, and if you want to transfer a balance to avoid interest payments, a balance transfer card could be ideal.

By comparing on MoneySuperMarket, you’ll be able to see a list of credit cards, so you can browse at will and choose which one suits you best.

You’ll get a cooling off period of two weeks from when you receive your card, and you’ll have 30 days to pay off your balance. You can cancel by contacting your bank or building society, either by post, phone, online, or in-branch.

However, if you want to cancel your card after the cooling off period, your account balance generally must be zero.

Your credit score is a number that represents your creditworthiness to credit lenders, based on an analysis of your credit history (your history of borrowing and paying back credit).

The higher your score, the more likely you are to be accepted for future credit applications. If your score is low, there are ways to improve it. MoneySuperMarket’s Credit Monitor lets you check your credit score for free and gives you tips on how to improve it.

A soft credit search is a way of finding out which credit cards you’re most likely to be accepted for without your credit score being affected. This is usually done via a website such as MoneySuperMarket.

A hard search on your credit report is a mark left by a lender who has assessed your credit rating after you have applied for a credit card. Too many hard searches (often through multiple applications) may make lenders think you are desperate for credit so it’s best to limit your applications for credit in a short space of time.

If you have a bad credit rating or you don’t have a credit history because you’ve never borrowed before, you might not qualify for the very best credit card deals. However, some credit cards are designed specifically for those who need to build up their credit score. Just be aware they often come with low credit limits and high interest rates.

However, if you use this type of card sensibly and always pay off your balance in full, you can improve your credit score so you’ll eventually be eligible for better credit cards.

If you miss a repayment on your credit card balance, you likely have to pay a penalty fee. What’s more, if you have any type of promotional offer with your card, such as an interest-free deal, this may be cancelled, and a missed payment may have a negative effect on your credit score.

If you get rejected for a credit card, this will leave a mark on your credit report and could lead to further rejections in the future. It’s a good idea to use MoneySuperMarket’s Eligibility Checker to see how likely you are to be accepted for a card before applying to get it.

You might be able to get more credit from your provider if you prove yourself to be a responsible borrower by repaying on time and never missing payments. Once you’ve established a good credit history, you might be successful when asking for a higher credit limit.

Unlike many loans and mortgages, you generally won’t be charged for making early repayments on your credit card – which means it’s a good way to get ahead of your balance.

You can’t get joint credit cards in the same way as bank accounts and mortgages, but you can add additional users to your own credit cards. However, you should remember that it’s still the primary cardholder’s responsibility to pay off the balance. 

The Consumer Credit Act was established in 1974, and under Section 75 the credit card lender is jointly responsible with the retailer or supplier for any goods or services you purchase with your credit card.

This means if those products are faulty, or if there was any contract breach or misrepresentation on the retailer’s part, you can claim from your credit card company as well as the retailer.

However, you can’t recover money from both sides, so it’s useful for when the retailer has gone bust or they won’t respond to your communication. You should be aware the purchase value must be more than £100 and not more than £30,000 for you to be able to claim.

You can cancel your credit card by contacting your lender, by phone, email, online, post, or in person if they have a local branch. 

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