About Credit Builder cards
If you're looking for a credit card to rebuild your credit rating, uSwitch can help.
We compare the best credit cards for bad credit on the market - cards that can help repair your credit rating or strengthen it if you have no credit history at all.
The cards below are ordered by interest rate (APR).
What are credit builder or credit cards for bad credit?
These types of credit card are designed for people struggling with either a poor or limited credit rating.
They can help to create a positive loan repayment history, as the fact that you are successfully paying off a manageable credit card debt every month is noted on your credit file.
Reasons for bad credit
A bad credit rating can often be the result of one or more of the following:
- Not paying utility bills, credit card bills, loan repayments or rent on time
- County Court Judgments (CCJs)
- Not being on the electoral register
Improving your credit rating
A good start is to understand what you can and can’t afford to borrow.
You should make sure that your credit limit is something you’re able to manage consistently over a period of time until you repay the amount in full - you’ll then start to establish a better credit history and increase your chances of eligibility with future providers.
Your credit card billing address should also match the address you're registered to vote at, as any differences could affect your credit file.
The disadvantages of credit builder cards
By offering credit cards for bad credit, providers understand that many applicants will have a history of not meeting their repayments.
To help insure against this, they usually charge higher standard interest rates – often 30% and above - than most credit card providers.
Credit cards for bad credit - bills and rates
If you’re able to meet your monthly repayments, it’s likely that you’ll be offered a card with a better rate in the future. However, if you default at any time your credit rating is likely to worsen.
As with most credit cards, if you pay off your bills at the end of every month you won’t pay any interest - regardless of the rate. Despite this, it’s still worth looking for the lowest rate possible just in case.
Compare bad credit credit cards with uSwitch
Our credit card comparison table allows you to filter the best cards specifically designed to help strengthen your credit rating - compare credit cards for bad credit today.