Focus on: Exclusive! Repair your credit score with an interest-free credit card

Credit score not up to scratch?

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MoneySuperMarket and Capital One have joined forces to offer an exclusive dual purpose credit card for those with an average-to-good credit score who are looking to improve their credit rating further.

The basics

Capital One’s Classic Complete card charges 0% interest on both purchases and balance transfers for four months after you’ve been approved for the card (a balance transfer is where you move money owed on one credit card to another).

So if you make a balance transfer across to the card at any point during those four months, you’ll pay no interest for the remainder of those four months.

After these introductory periods finish, the card has a representative variable rate of 34.9% APR*.

Balance transfers are subject to a 3% transfer fee, so if you transferred £500, your fee would be £15.

You’ll be offered a credit limit ranging from £200 up to £1,500, depending on your individual circumstances and credit score.

The card is designed to help you build your credit rating, perhaps because you’ve missed debt repayments in the past.

You will need an average-to-good credit score to qualify, though, so if you’ve run into serious financial difficulties in the past, your application is unlikely to be accepted.

That means if you’ve had CCJs or defaults in the past 12 months, or if you’ve been made bankrupt in the past year, you’re unlikely to be accepted.

You must be aged 18 or over and be on the electoral roll to apply for this card.

Is this for you?

If you haven’t always managed to keep up with debt repayments in the past, or you’ve had County Court Judgements against you a while ago, this card could help you get your credit rating back on track.

You must be able to show some history of managing your credit even if you have defaulted on payments previously, so this card won’t be for you if you’ve never previously used a credit card.

What makes it special?

The majority of credit cards will refuse your application straight out if your credit history is less than perfect, or at least raise the interest rate charged, so this card offers a lifeline to those who might have previously had difficulties.

It can help you build your credit rating by giving you the opportunity to demonstrate that you can manage your finances efficiently. If you keep below your credit limit and always make monthly payments on time, your credit limit may be increased.

Another bonus this card offers is the 0% introductory rates on both purchases and balance transfers for the first four months, giving you a bit of breathing space to pay off what you owe without interest charges mounting up.

Watch out for…

If you don’t make the monthly payments on this card on time, you could damage your credit rating further, so you’ll need to resolve to manage your money carefully.

You’ll also pay a hefty 34.9% APR representative once the introductory periods finish, so it’s vital to clear your balance in full each month if you can.

If you don’t, then interest charges will soon add up, making it harder to pay off what you owe.

If you’re planning on transferring an existing credit card debt onto this card, remember to factor in the 3% balance transfer fee – calculated at £3 for every £100 you transfer.

*Representative Example: If you spend £1,200 at a purchase interest rate of 34.94% p.a. (variable) your representative rate will be 34.9% APR (variable).

All credit cards are subject to status and terms and conditions. Over 18s, UK residents only. Terms and conditions apply. See MoneySuperMarket.com for further information.

Please note: any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.

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