What is a credit builder card?
If you’ve got poor credit or no credit, it can be difficult to borrow money cheaply. But specially designed credit cards for bad credit, or no credit, are designed for people just like you.
There’s a whole market dedicated to credit cards for bad credit - and by using them regularly, and paying them off on time, you can quickly improve your credit score to help you get the best deals when you apply for other products.
Sometimes people call them ‘bad credit cards’ or ‘poor credit cards’. They are also more commonly known as credit building credit cards.
Who are credit builder credit cards meant for?
Credit building credit cards are for those trying to improve their credit score, They can also be useful for those who are unable to qualify for the best deals in the market.
Some reasons for that could be:
You've declared bankruptcy in the past
You've had a county court judgement (CCJ) against your name
You have no history of borrowing or have never had a credit card
You have a record of missed payments
You're not registered on the electoral roll
Some credit cards for very bad credit even accept people who’ve been bankrupt or had a County Court Judgment against them.
Credit building credit cards can be a good way to rebuild your credit record if you have poor credit history. But you'll have to make your repayments on time and not miss any payments. They are also just as useful in building your credit score if you have no credit history and are applying for your first credit card.
If you find yourself frequently missing payments, or are struggling to cover bills, it's wise to get speak to your existing lenders or one of the UK's free, independent debt advice charities¹.
