Compare low income credit cards

APR stands for “Annual Percentage Rate” and is the total cost of borrowing over 12 months. If you pay your balance in full and on time, you will not pay interest.

The total figure outstanding on your account at any given time. It combines your borrowing — used for purchases or transfers — with any account fees or interest charges. If this amount is not paid off in full, it is carried over as debt.

Your credit limit is the amount you can borrow on your credit card at any one time. If you exceed this amount, you can be charged a fee — typically £12 — and it can leave a mark on your credit report. You won’t usually find out your credit limit until the end of an application process, although you can ask your provider to increase — or decrease — your credit limit at any time.

Credit limits are set based on your credit history and your earnings. Once you've reached your credit limit, you need to make a payment to bring down your balance before you can use the card again. Find out more in our guide to credit limits.

Your credit report is your history of borrowing and paying bills over the past six years. Lenders send this information to one or more of the three credit reference agencies, which compile reports on UK residents.

Before deciding whether to let someone borrow, lenders check your report from one or more of the agencies. You can request a copy of your credit reports to ensure there are no mistakes on your file, request changes if you spot one and add notes explaining any missed payments.

Your credit score is calculated based on your credit history. Each credit reference agency has its own method of calculating this. Your credit score will go up for things like making payments on time and down for things like being late or defaulting on a loan. Typically, the higher your score, the more likely you are to be offered a lower rate of interest or higher credit limit.

There is no absolute pass or fail mark attached to a credit score, with each lender making its own decision on what it considers acceptable.

This occurs when the relationship between you and the lender has broken down due to unpaid debt. It typically happens after 3-6 months of missed payments. You will receive a warning letter 14 days prior; if you do not pay, the account is defaulted. This blocks you from using the card and significantly damages your credit rating for six years.

An automated payment method where you authorise a company to collect money from your bank account. It is the most common way to pay credit card bills because it ensures you never miss a due date. You can set it up to collect the minimum payment, a fixed amount, or the full balance every month.

The minimum standards you need to satisfy before a provider will consider your application. This typically involves your age, employment status, and salary. You should check these carefully before applying to avoid unnecessary rejections, though meeting them does not automatically guarantee you will get the card.

If you’ve made an application for credit, such as a credit card, loan or mortgage, lenders will carry out an in-depth check of your credit report, known as a hard credit check.

This is a detailed look into your financial history, especially your borrowing history, so a lender can see your track record of repaying money you've previously borrowed.

A hard check will show any negative marks on your credit report, like overdue payments, missed payments, previous credit applications and even bankruptcies.

Every time a hard check is carried out, it leaves a mark on your credit report, which can hurt your credit score.

Interest-free credit cards allow you to either transfer a balance, make purchases or transfer cash to a current account without paying any interest on your balance for a set period. However, you must keep making at least the minimum monthly repayment during this time.

Once the 0% deal is over, you will be charged interest on any remaining debt at your standard APR. With balance transfers and money transfers, you will usually have to pay a transfer fee. 

Credit card introductory offers include bonus reward points, extra cashback, 0% on balance transfers or 0% on purchases.

Introductory offers are used to attract new customers, but once they expire, they revert to the standard offer or rate. When this happens, you should check if you’re still getting the best deal or whether you need to switch to a different credit card.

This is the smallest sum accepted by your provider to keep your account active without penalties. It is calculated based on a small percentage of your total balance (or a fixed sum like £5 if the balance is low). While paying the minimum stops you from defaulting, it does not clear your debt efficiently. We recommend paying as much as you can afford to minimise interest costs.

A soft credit check is a top-level view of your financial history. It lets lenders assess you for their offers and can show you what you could be eligible for.

Although a soft credit check is recorded, it doesn’t leave a mark on your credit file. This means that while you can see soft checks when you look at your own report, lenders can't. A soft credit check won’t impact your credit score, but you’ll be able to see if anyone has checked your credit history.

In certain industries, some employers will perform a soft credit check if you’ve recently applied for a job with them.

Yes, it’s possible to get a credit card if you’re not employed, but the choice of deals available to you will be more limited. That means you’re more likely to pay a higher rate of interest and be offered a lower credit limit. Your chances of success will be higher if you have another form of income, such as disability living allowance or child maintenance, and if you have low levels of existing debt and a good credit history. However, taking on debt when you’re not working can be risky and you’ll need to be sure you can keep up with your credit card repayments.

There is no standard minimum salary you need to meet to be able to get a credit card. Different credit card providers will have different requirements. Some might specify you must have an income of more than £10,500, for example. Others, particularly credit cards that offer a range of rewards, might ask for a much higher salary.

Getting a credit card without any proof of income at all can be difficult. However, remember that income doesn’t have to refer to a salary. It can also include any benefits you receive, pension income or income from a partner. If you can prove you get these, you might still be able to get accepted for a credit card. Remember that different lenders have different requirements, so it pays to shop around and use an eligibility checker before you apply.

If you’re applying for your first card, you’ll need to be at least 18 years old and ideally be in good financial shape. Here is how to find a card that is more likely to accept you even if you have never used one before and what you need to know about using credit cards.

Low income credit cards come with the same charges as other credit cards but sometimes have higher APRs, which determine how much interest you pay.

Yes, your credit record helps lenders decide whether they are happy to let you borrow and what APR and credit limit they will offer you.

If you have bad credit, you might be able to get a bad credit credit card. Just be aware that interest rates can be higher and credit limits lower. Here is how they work. 

Yes, you can, but while having different cards for different purposes can be useful, too many credit cards can hurt your credit record. Work out how many is too many here.

Yes, many credit card providers will accept you as long as your retirement income and credit record meet their minimum requirements.

No, credit cards are held and paid off by one person, but adding a supplementary cardholder gives them a card in their name that is linked to your account.