Credit Building
Credit Cards

Improve your credit rating over time by taking out the best
credit building credit cards available

Compare the best
Credit building credit cards

4 results found, sorted by affiliated products first.
Tesco Bank
Representative APR
27.5%

Representative variable

Introductory Balance Transfer Duration
0 Months

0% Balance Transfer

Purchases
0 Months

0% interest on Purchases

Representative Example: If you spend £1,200 at a purchase interest rate of 27.54% p.a. (variable) with a £0.00 monthly fee your representative rate will be 27.5% APR (variable).
Marbles
Representative APR
29.7%

Representative variable

Introductory Balance Transfer Duration
0 Months

0% Balance Transfer

Purchases
0 Months

0% interest on Purchases

Representative Example: If you spend £1,200 at a purchase interest rate of 29.75% p.a. (variable) with a £0.00 monthly fee your representative rate will be 29.7% APR (variable).
Aquis
Representative APR
29.8%

Representative variable

Introductory Balance Transfer Duration
0 Months

0% Balance Transfer

Purchases
0 Months

0% interest on Purchases

Representative Example: If you spend £1,200 at a purchase interest rate of 29.84% p.a. (variable) with a £0.00 monthly fee your representative rate will be 29.8% APR (variable).
Capital One
Representative APR
29.8%

Representative variable

Introductory Balance Transfer Duration
0 Months

0% Balance Transfer

Purchases
0 Months

0% interest on Purchases

Representative Example: If you spend £1,200 at a purchase interest rate of 29.84% p.a. (variable) with a £0.00 monthly fee your representative rate will be 29.8% APR (variable).

Credit building credit cards

Interest rates

Although credit building cards are a good option for those who a poor credit history or with no history at all, they do come at a price. Because lenders are taking a risk by giving access to credit to an individual who may potentially not be able to repay the necessary repayments, they in turn charge a high interest rate to counter balance this. There are many different providers and each will offer a different interest rate for customers, so be sure to shop around for the best possible interest rate that you think you will be able be accepted for, given your credit score.

Getting accepted for a credit card

Although credit building cards are designed with those who have a poor credit rating in mind, not all applicants will be accepted. There are many factors that dictate whether or not you will be able to get a credit building credit card, like your income and the current state of your finances. If you are turned down however, be aware that there are many providers and they may be one who will be willing to give you accept your application; but at the same time also be aware that getting turned down from some providers can have a negative effect on your credit rating, making it more difficult for you to borrow in the future.

Advantages of credit building cards

Gives you the opportunity to build your credit score, which is ideal for those who have either had problems repaying debt in the past who those who have not yet had the chance to demonstrate that they are reliable and fully capable of paying back their debts

Some cards will come with the opportunity to achieve rewards if you are able to keep up with your repayments as an added incentive.

Disadvantages of credit building cards

Because they are designed for those who may be less reliable with their spending, credit building credit cards will have a lower spending limit, meaning that they cannot be used to purchase very expensive items.

There is a high interest rate that is in line with the level of risk that lenders are taking by giving credit to individuals in a high risk category. However after consistently paying off the credit you owe, you will likely be able to move onto better deals.

Make sure that you are on the electoral register, as lenders often use this is a way of verifying your home address and any past addresses you may have had. You can do this by contacting your local council.

Another useful tip is to order your credit report, since it is what lenders will be using to assess your eligibility you can check to make sure that everything about is up to date and correct. In the event that you do notice there has been a mistake regarding your credit history, all you need to do is contact the credit reference agency and explain the mistake to them and the situation will get cleared up. You can also add a statement to your record in order to explain to potential lenders why it is that your credit rating is not as good as it could be in order to give them a better understanding of your situation.

If you have any remaining outstanding debts, then it's a good idea to pay them as soon as possible. Any credit cards or county court judgements which you pay off will show up on your credit history and has a positive influence on potential lenders decisions.

Find the Best Credit Builder Credit Cards

Compare Cashback
Credit Cards

Compare credit cards that offer cash back with Money Expert
and see how much you could earn as you spend.

Compare the best
Cashback Credit Cards

4 results found, sorted by affiliated products first.
Tesco Bank
Representative APR
27.5%

Representative variable

Introductory Balance Transfer Duration
0 Months

0% Balance Transfer

Purchases
0 Months

0% interest on Purchases

Representative Example: If you spend £1,200 at a purchase interest rate of 27.54% p.a. (variable) with a £0.00 monthly fee your representative rate will be 27.5% APR (variable).
Marbles
Representative APR
29.7%

Representative variable

Introductory Balance Transfer Duration
0 Months

0% Balance Transfer

Purchases
0 Months

0% interest on Purchases

Representative Example: If you spend £1,200 at a purchase interest rate of 29.75% p.a. (variable) with a £0.00 monthly fee your representative rate will be 29.7% APR (variable).
Aquis
Representative APR
29.8%

Representative variable

Introductory Balance Transfer Duration
0 Months

0% Balance Transfer

Purchases
0 Months

0% interest on Purchases

Representative Example: If you spend £1,200 at a purchase interest rate of 29.84% p.a. (variable) with a £0.00 monthly fee your representative rate will be 29.8% APR (variable).
Capital One
Representative APR
29.8%

Representative variable

Introductory Balance Transfer Duration
0 Months

0% Balance Transfer

Purchases
0 Months

0% interest on Purchases

Representative Example: If you spend £1,200 at a purchase interest rate of 29.84% p.a. (variable) with a £0.00 monthly fee your representative rate will be 29.8% APR (variable).

Cashback Credit Cards

Avoid Incurring Charges

Avoid Incurring Charges There is a risk of incurring charges if you run over your limit or are unable to cover the balance of your card at the end of the month. Such charges will likely be greater than any saving than you will make by using the card, and therefore it is advisable that you only use a cash back card if you are very confident that you will be able to afford your monthly payments.

Watch out for high interest rates

Some cash back credit cards can have high interest payments which can outweigh the benefit of having a cash reward. For example if you're getting 5% cash back on your purchases but at the same time are paying 20% in interest payments then you're getting a good deal. As long as you avoid allowing your credit to roll over each month though, you'll avoid interest charges altogether.

What to be careful of

Keep in mind that the 0% interest rate may not be synchronised with your normal repayment date and therefore you may end up making an interest payment on the final month of the 0% interest deal. The interest rates on purchase cards can be as high as 18% after the introductory period has ended, so it is important to avoid letting the introductory period expire while you still have debt on your purchase card.

Also it is recommended that you set up a direct debit to make managing the repayment of your credit card debt easier and to make sure that you do not miss the minimum payments and incur a penalty for doing so. You may receive penalty charges for missing payments, being late on payments or by going over your spending limit, so this is something to be careful of.

Always be disciplined

Cash rewards can also make the idea of spending money to earn the cash back attractive, when in reality you would be saving more money if you simply reduced your spending. This is especially true when different cards have different rates and with some cards the more you spend the greater the percentage of cash back per purchase you will be rewarded with.

There may be an Annual Fee

Some cash back credit cards also have an annual fee associated with them that can cost anywhere from £25 to £100. The annual fee will shave off a certain about of the money you get as a cash back, but depending the cash back rate you're getting, the card might still be saving you significant amount of money each year. For this reason you shouldn't avoid using a card altogether just because they have an annual fee.

Benefits of a Cashback credit card

You are looking to make big purchases on items such as cars, furniture and holidays. This will enable you to make big savings in the way of high percentage cash backs.

You are very confident that you will not have a problem in clearly your monthly accrued credit, and therefore avoid having to pay high interest rates.

You are disciplined and will be able to resist any urge to overspend in order to attain cash back rewards.

Risks of a Cashback credit card

You are not looking to spend any more money but currently possess some debt that you want cleared. In this case you could looks at using a 0% interest transfer credit card.

You are hoping to be able to borrow money for some purchases and want to be able to pay back the debt over an extended period while paying low interest rates. In this case you are better off with a low interest rate credit card.

You find it difficult to avoid spending when there are benefits attached to making purchases.

If you feel unsure of whether or not a cash back credit card would be right for you, or you are unsure of which other credit would be best suited for you current situation then contact us for free specialist advice on what the best options are for you. We understand that looking for the best deal can be daunting with the number of different credit cards there are on offer, and that's why we're here to give a helping hand