- Explore the UK credit card market
- Find the right credit builder credit card
- Learn how to use credit safely & efficiently
Jo Thornhill
Editor
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If you require any personal advice, please seek such advice from an independently qualified financial advisor. While we aim to feature some of the best products available, this does not include all available products from across the market. Although the information provided is believed to be accurate at the date of publication, you should always check with the product provider to ensure that information provided is the most up to date.
It can be difficult to get a credit card if you’ve struggled with debt in the past and have a low credit score – or if you’ve never had credit before. But, responsibly handled, a credit builder credit card could help you get back on track.
We’ve carried out some research (January 2023) and pulled together some attractive ‘credit builder credit card’ options to consider. You’ll find more details on how the cards are ranked in our Methodology, below.
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- Tesco Foundation
- Vanquis Bank Chrome Credit Card
- Barclays Forward Credit Card
- Capital One Classic Credit Card
- What methodology did we use?
- Credit builder cards explained
- Qualifying for a credit builder card
- Why your credit score matters
- How a credit-builder card can help
FEATURED PARTNER OFFER
Tesco Foundation
5.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Representative APR
29.9%
(variable)
Upfront perks
None
Credit limit
£200 – £1,500
Representative Example
The representative APR example gives you an estimate of how much it might cost if you borrowed a certain amount of money. This helps you compare products and provides a guide on how much carrying a balance could cost. Your personal offer may vary from the representative APR example.
At an assumed credit limit of £1,200, at a purchase rate of 29.9% p.a. (variable), the representative APR is 29.9% (variable). Credit available subject to status.
Representative APR
29.9%
(variable)
Upfront perks
None
Credit limit
£200 – £1,500
Representative Example
The representative APR example gives you an estimate of how much it might cost if you borrowed a certain amount of money. This helps you compare products and provides a guide on how much carrying a balance could cost. Your personal offer may vary from the representative APR example.
At an assumed credit limit of £1,200, at a purchase rate of 29.9% p.a. (variable), the representative APR is 29.9% (variable). Credit available subject to status.
Why We Picked It
The aptly-named Foundation credit card from Tesco is advertised to those who are either new to credit or have a bad credit rating. In either scenario, it comes with an APR that’s just under 30% (variable).
Using the Foundation card responsibly will help you build up your credit score. But you can also earn Clubcard points on everything you buy, at a rate of five points for every £4 spent in Tesco stores or fuel stations, and one point for every £8 spent elsewhere.
The Foundation card allows you to track your credit score with monthly credit updates in your CreditView (powered by TransUnion) while there’s optional credit limit increases if you manage your account well.
Pros & Cons
- Earn Clubcard points on spending
- Credit score tracking service
- Optional credit limit upgrades
- No upfront perks
- APR of 29.9% (variable)
FEATURED PARTNER OFFER
Vanquis Bank Credit Builder Credit Card
4.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Representative APR
29.50%
Upfront perks
None
Initial credit limit
£250 to £1,200
Representative Example
The representative APR example gives you an estimate of how much it might cost if you borrowed a certain amount of money. This helps you compare products and provides a guide on how much carrying a balance could cost. Your personal offer may vary from the representative APR example.
Assuming a credit limit of £1,200 and an interest rate on purchases of 29.5% p.a. variable, the representative APR will be 29.5% variable.
Representative APR
29.50%
Upfront perks
None
Initial credit limit
£250 to £1,200
Representative Example
The representative APR example gives you an estimate of how much it might cost if you borrowed a certain amount of money. This helps you compare products and provides a guide on how much carrying a balance could cost. Your personal offer may vary from the representative APR example.
Assuming a credit limit of £1,200 and an interest rate on purchases of 29.5% p.a. variable, the representative APR will be 29.5% variable.
Why We Picked It
With a starting credit limit of between £250 and £1,200 and a sub-30% representative APR, the Classic Credit Card from Vanquis Bank is a deal worth considering when it comes to choosing your first credit card.
While there are not many bells and whistles to this card, it comes with a mobile app which helps you keep tabs on your spending, which is handy for credit card first-timers.
Pros & Cons
- Starting credit limit of up to £1,200
- Credit limit reviewed every 5 months
- APRs up to 59.9% (variable)
- No promotional periods or perks
FEATURED PARTNER OFFER
Barclaycard Forward Credit Card
4.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Representative APR
33.9%
(variable)
Upfront perks
0% on purchases
for 3 months
Credit limit
£50 – £1,200
Representative Example
The representative APR example gives you an estimate of how much it might cost if you borrowed a certain amount of money. This helps you compare products and provides a guide on how much carrying a balance could cost. Your personal offer may vary from the representative APR example.
At an assumed credit limit of £1,200, at a purchase rate of 33.9% p.a. (variable), the representative APR is 33.9% (variable). Credit available subject to status.
Representative APR
33.9%
(variable)
Upfront perks
0% on purchases
for 3 months
Credit limit
£50 – £1,200
Representative Example
The representative APR example gives you an estimate of how much it might cost if you borrowed a certain amount of money. This helps you compare products and provides a guide on how much carrying a balance could cost. Your personal offer may vary from the representative APR example.
At an assumed credit limit of £1,200, at a purchase rate of 33.9% p.a. (variable), the representative APR is 33.9% (variable). Credit available subject to status.
Why We Picked It
If you’re new to credit cards and have little or no credit history, this card is a pretty good first option.
It offers a credit limit of between £50 and £1,200 depending on your circ*mstances, as well as a 3% reduction in the APR if you make all your payments on time for the first year. Keep it up in the second year and you’ll get a further 2% reduction.
Use the card to your best advantage and the APR will be irrelevant though, as you won’t have a balance on which it is payable.
That said, if you fall short of this ideal scenario, the card offers an initial ‘safety net’ of 0% interest on purchases for the first three months of opening your account.
You’ll also get text or email alerts when your payment is due, which is designed to help you keep on top of spending and build up your credit score.
Pros & Cons
- 0% on purchases for 3 months
- APR reduces for good card management
- Text/email alerts to stay on top of spending
- APR of 33.9% (variable)
- Minimum income of £3k a year
FEATURED PARTNER OFFER
Capital One Classic Credit Card
4.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Representative APR
34.9%
(variable)
Upfront perks
None
Credit limit
£200 – £1,500
Representative Example
The representative APR example gives you an estimate of how much it might cost if you borrowed a certain amount of money. This helps you compare products and provides a guide on how much carrying a balance could cost. Your personal offer may vary from the representative APR example.
At an assumed credit limit of £1,200, at a purchase rate of 34.9% p.a. (variable), the representative APR is 34.9% (variable). Credit available subject to status.
Representative APR
34.9%
(variable)
Upfront perks
None
Credit limit
£200 – £1,500
Representative Example
The representative APR example gives you an estimate of how much it might cost if you borrowed a certain amount of money. This helps you compare products and provides a guide on how much carrying a balance could cost. Your personal offer may vary from the representative APR example.
At an assumed credit limit of £1,200, at a purchase rate of 34.9% p.a. (variable), the representative APR is 34.9% (variable). Credit available subject to status.
Why We Picked It
Targeted at people with bad credit or ‘building credit’, this card is Capital One’s most popular card with more 4 million people accepted – so it’s got to be worth a shot.
There’s no interest free period or initial incentives on this card, but – so long as you make repayments on time and stay within your credit limit – you will be eligible for two optional credit limit increases.
While you won’t need a good or lengthy credit history to be accepted for this card, it will favour applicants who have at least some history of managing credit, even if that has resulted in defaults and CCJs.
On the proviso it’s managed wisely, this could card could be a good contender for a first foray into the credit card market.
Pros & Cons
- APR reduces for good card management
- Text/ email alerts to stay on top of spending
- Up to two optional credit increases a year
- APR of 34.9% (variable)
- Minimum income of £3k a year
What methodology did we use?
We ranked the top credit builder credit cards by the following factors:
- Interest rate: the representative APR you’ll be charged
- Credit limit: the amount you’ll be able to ‘borrow’ on the card to fund your spending, according to your circ*mstances
- Perks: any incentives or benefits attached to the card, whether upfront or ongoing
Note however, there is a good chance the APR you see advertised will not be the one you are offered. Advertised APRs are ‘representative’ which means they must only apply to 51% of successful applicants.
You may also need to demonstrate a certain level of income per annum to qualify.
Credit builder cards explained
Credit builder cards are designed to help kick off – or grow – a credit score. This is the measure lenders use when deciding whether or not to grant a loan or credit card, and at what interest rate. Generally the lower a borrower’s credit score, the better the card and loan deals they’’ll be offered.
With a credit builder card, the starting interest rates can be relatively high. Credit limits also start out low – just a few hundred pounds, for example – but can be increased in return for good card management.
If you manage the card responsibly – repaying the outstanding balance in full each month – and, over time your credit score should start to improve.
Qualifying for a credit builder card
To be accepted for any credit card, you’ll usually need to be aged 18 or over, although in some cases you may need to be older.
You will also typically need to live in the UK, be in employment (although there are cards designed for students – see below) and, for certain credit cards, you’ll need to earn over a certain amount each year.
Why your credit score matters
To qualify for the most competitive credit cards, you’ll usually need an excellent credit score. However, if you’ve never borrowed before, it’s unlikely you’ll have much of a credit history if you have one at all, and your credit score may be low as a result.
In this case especially, it’s worth checking your credit score with a credit reference agency such as Experian, Equifax or TransUnion. It’s free to access your credit file and score online.
Having access to your credit report and score will help you understand how likely you are to be accepted for a credit card. Many of these services will also offer tips on what you can do to improve your score. This could include:
- making sure you are registered on the electoral roll (this provides proof of address)
- getting your name on bills such as a mobile phone contract or energy bill (these are classed as a form of credit)
- paying bills on time
- correcting any mistakes on your report
- opening a bank account (this can show you are financially responsible).
If your credit score is low, it’s worth making a few of these changes and then waiting a few months to see if your credit score improves.
How a credit-builder card can help
Using a credit builder credit card responsibly can play a key part in helping improve your credit score over time. But credit limits are usually lower than standard credit cards, and interest rates are higher.
However, once you’ve started to build up a credit history and your credit score has increased, you may then be able to apply for more competitive credit cards with lower interest rates and a higher credit limit.
If you’re a student, a student credit card is your best bet. This type of card is designed for those in further education who have yet to build up a sizeable credit history and won’t qualify for mainstream credit cards.
Credit limits are typically lower than standard cards – usually around £500 to £1,500 – and interest rates are higher, so it’s important to make sure you clear your balance each month.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
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How do you apply for a credit card?
When making a credit card application, you’ll need to provide the following information:
- your name and address
- your date of birth
- your nationality
- your employment status
- your salary/income
Providers process card applications through an eligibility checker. These run a ‘soft’ search on your credit file to estimate the chances of being accepted and on what terms. Because it’s a soft search, it won’t leave a mark on your credit file for other lenders to see.
If there are numerous ‘hard’ searches recorded on your file in a short space of time, lenders may see this as a sign that you are struggling to persuade any card company to offer you a deal, which they would view negatively.
How long does it take to get a credit card?
Many card providers now offer instant approval when you apply online.
And once your application has been accepted, you should receive your credit card within 10 working days.
You’ll then need to activate your card (usually by phoning an automated number) and, once you’ve received your PIN (sent separately) your card will be ready to use. You can also add it to the digital wallet on your smartphone.
Should you change your mind after making the application, you’ll have a 14-day cooling-off period in which you can let the card provider know that you want to cancel the agreement. If you’ve already used the card, you’ll have 30 days to repay the outstanding balance.
What should you do if your application is rejected?
If your application for a credit card is turned down, resist the temptation to apply for another one straight away.
Each time you apply for a credit card, it leaves a visible ‘footprint’ on your credit report. If you make several applications in a short space of time, it can be unnerving to lenders and you’re more likely to be turned down.
Ideally, it’s best to space out applications by at least three months, or six months if you can.
However, an eligibility checker will minimise the chances of being rejected for a credit card in the first place as it reveals the likelihood of being accepted before you apply.
How should you use a credit builder card?
If your credit card application is accepted, it’s important to then use your new card responsibly.
Not only will this mean avoiding interest charges and fees, but it will also build up your credit score which will unlock better deals in the future. Here are some tips.
Only spend what you can afford to pay back. The alternative, of running up a balance on your credit card, will mean incurring interest which is charged at higher rates on credit builder cards compared to standard deals.
Avoid using your card for cash withdrawals… unless it’s an emergency. Not only will you pay a fee of around 3% of the amount withdrawn, you’ll pay interest from the day of the withdrawal – even if you pay off your balance in full that month.
Keep well within your credit limit. Do your best to stay within your credit limit as going over it can result in penalties such as a fee, a reduced credit limit, losing any 0% offer you’ve taken advantage of, and a mark on your credit score. If you regularly keep up with your repayments, your provider may increase your credit limit after a number of months.
Always pay on time. Setting up a monthly direct debit is an easy way to make sure you remember to pay on time each month.
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