Yes, if you use a credit card carefully over several months you could improve your credit record.

Paying back what you borrow on time looks good to financial companies even if you have had problems with debt in the past. They could then give you a better credit score when they look into your finances.

This will make it easier for you to get accepted for financial products like credit cards, mortgages and loans, and make sure you are able to get the best ones on the market.

What are credit building cards?

They are credit cards that might accept your application even if you have bad credit or no credit history.

They usually come with lower credit limits and higher interest rates than other types of credit card, meaning you will need to use the card sensibly to rebuild your credit record.

How to use your card

You are more likely to rebuild your credit record if you show you are a reliable customer by:

Avoid making things worse

You can harm your credit record if you:

Here is how to use your credit card so you can avoid fees and increasing what you owe.

Unable to repay in full?

You will have to pay interest if you do not repay your bill in full every month, so choose a card with a lower APR to keep your costs down.

Never had a card before?

You will have no credit history if you have never taken out any form of credit before, like a mortgage, loan or credit card. This can make it harder to get most credit cards.

Using a credit card can help to build your credit history as long as you use it carefully. Here is how to get your first credit card.