Improve your credit rating with a credit building credit card — designed for those looking for their first credit card or wishing to improve a poor credit history.
uSwitch Limited is a credit broker, not a lender, for consumer credit products.
uSwitch services are provided at no cost to you, but we may receive a commission from the companies we refer you to.
uSwitch compares credit building credit cards, which are designed for people who are new to credit and therefore have a low credit score, or those looking to improve a previously poor credit history.
Credit building credit cards, sometimes known as bad credit credit cards, are just like any other credit card, but these credit cards are more likely to approve your application even if you have a low credit score or have a missed payment or two in your credit history.
By using a credit building credit card, someone with a limited or poor credit history, can rebuild his or her credit score.
In creating a positive history of financial repayments on your new credit building credit card, your credit score is likely to improve and give you a better chance of being approved for other credit products in the future.
A low or bad credit score can be the result of a number of factors, some of which can be quite surprising, and others, which are not a surprise at all:
A credit building credit card can help obtain credit when it would normally seem less likely. But before you even compare credit building credit cards, it’s important to look at what you can do to begin improving your credit score.
It’s worth looking at your finances and assessing how much you need to borrow to get by, and more importantly, how much you can afford to pay back each month.
The more you can pay back each month, the better. Ideally, if you can pay back the full amount each month on your credit card then you can avoid paying the interest on your lending. This will also help improve your credit score.
If you are unable to meet your repayments a credit card can be a risky proposition, but if you need to borrow you may be better off with a low APR credit card.
If you are on the electoral register then the address you’re registered to vote at will match up with your credit card billing address, and this will help your chances of being approved for a credit card application.
If you haven’t got any history of repayments, then it might be worth putting your name on some utility bills at home and paying them in your name. This will show up on your credit report and demonstrate to lenders that you have a history of repayments.
Credit card providers who offer credit building credit cards are aware that their target audience is people who have no or limited history of credit or even a poor credit history.
This means that the credit card provider will charge a higher rate of interest to mitigate the perceived risk of lending to someone with a limited or poor credit history.
Credit building credit cards will have interest rates of around 30% to 50%, sometimes higher, which in comparison with many other credit cards can be much higher.
Credit limits on credit building credit cards are also usually much lower than on most other credit cards.
This can be a positive as it means you have to control your spending much more to avoid going over your limit, and thus, should make it more manageable to pay off your balance each month.
Once you have a credit building credit card, your priority should be to maintain repayments – ideally by setting up a Direct Debit – and to ensure you stick to your limit.
If you can keep it up, you’ll be in a position to negotiate a better deal for your self with your credit card provider.
Many credit building credit cards already have features that allow you to increase your credit limit or reduce your APR on the condition that you make repayments on time.
The incentive of improving your credit score should also be enough, as in the future you will have more chance of getting a better mobile phone contract, energy deal, credit card, loan, current account or mortgage.
Your credit report and score affects many consumers choices, so if you do get a credit building credit card, it’s important to use it effectively.
You can compare credit cards for people with bad credit and credit building credit cards with uSwitch’s comparison tables.
Cards on this table are initially ranked by popularity, however you can alter the filters to rank by APR or minimum or maximum credit limit. Popularity on this table is based on how many people via uSwitch take out the cards from the lenders listed.
We compare credit over 100 credit cards from all of the major banks and credit card providers.
However, we do not compare all the credit cards that are available in the UK.
This is because some credit card providers have offers that are only available exclusively through their own website or branch, or through other comparison websites - in the same way some credit cards are exclusively available through uSwitch.
There are also many credit cards that are only available to people in member organisations and clubs.
Android Pay is a phone app that allows you to use your Android OS phone as a contactless credit card Following in the footsteps of Apple, Google launched their much anticipated ‘digital wallet’ app Android Pay in the UK on 18 May 2016. You can link the app to your credit and debit cards and […]
There are several fees and charges related to credit cards that you should be aware of and try to avoid If you use a credit card sensibly and know how to avoid all the potential credit charges and fees, they can be a versatile financial asset giving you everything from the best foreign exchange rates to […]
If you make the minimum repayment on your credit card every month, eventually you will find yourself paying back less and less each month until you finally clear all of the debt. But bear in mind that sticking to the credit card’s minimum payment option can be one of the most expensive ways to manage […]
Balance transfer cards are one of the most popular types of credit card. Our short video can help you get to grips with how they work: Read the full article to find the best balance transfer card for your needs or, if you know what you’re after, choose a market leader from the following categories: Longest […]
Whether it’s getting better exchange rates or ensuring you can get your money back if anything goes wrong with your hotel booking, if you’re heading overseas a little bit of preparation can help your money go much further. How to get the best exchange rates After the Brexit vote on 23 June 2016 the exchange […]
Paperless billing is the norm for most credit card users, with just over half relying on digital updates to manage their account. However, research from uSwitch has revealed this online-only approach is not always giving customers a clear view of their finances, putting them in danger of making costly slip-ups and falling further into debt. Hard […]
Getting into unsustainable debt is frighteningly easy – a few months of irresponsible spending can land you with a debt of tens of thousands that could take years to pay back. Most people experience problem debts at some point in their lives, and it can be difficult to get the situation back under control. Many people borrow money […]
Use this guide to find essential information about how to get out of debt, including ways to reduce debt and how to get help if you’re having debt problems. If you’re starting to feel overwhelmed by your debts, you’re unable to pay them off, or there’s an increasing risk of being taken to court by the people that you […]
Debt consolidation loans are one way of dealing with overwhelming debts – read our guide to learn more What is loan consolidation? – Loan consolidation is borrowing one large loan to pay off all your other loans Is a debt consolidation loan right for me? – If you are struggling to meet your current monthly […]