Build Credit Cards – Top 10 Credit Cards to Build your Credit Score UK

Build Credit Cards – Top 10 Credit Cards to Build your Credit Score UK

Almost 27 million people in the UK are in debt, with nearly 5 million owing more than £10,000 in credit and loan. Bad credit history harms your credit rating. First off, bad credit history makes it hard to access loans, mortgages and credit cards. Second, it can affect your bank accounts, especially if you have an overdraft.

It comes as no surprise that lenders are wary of borrowers with a poor credit rating. While some lenders may choose to give out loans to people with poor credit rating, they usually impose special restrictions. This can include high-interest rates.

There is some good news for people with a bad credit rating. Thanks to credit builder cards, you could improve your credit history. Want to know how?

In this post, we list 10 credit cards to build your credit history.

What Is a Credit Builder Card?

A credit builder card is a card specially designed for people who’ve got poor credit or no credit history. Also called subprime cards or credit building credit cards, they are a suitable solution for people who want to build their credit rating.

These are also helpful for people who cannot qualify for the best credit card deals in the market. Here are reasons why you need a credit builder card.

  • Have no credit history
  • Never had a credit card
  • Declared bankruptcy in the past 12 months
  • Not registered on the electoral roll
  • Have a record of missed or late payments

While Credit Cards for Bad Credit are the ideal solution for improving your credit history, you’ll have to make your repayments on time. If you miss any payments, the lender will charge a fee and reflect the missed payment in your credit record.

Best 10 Credit Builder Cards

The following are the best 10 credit builder cards.

Capital One Platinum Card

With a maximum credit limit of £1,500, the Capital One Platinum Card can help you build your credit. Assuming Capital One gives you a credit limit of £1,000 and an interest rate on purchases of 29.84% per annum. You will receive a 29.8% APR representative variable.

Capital One offers up two optional credit limit increases per year. To be eligible, you must repay more than the minimum amount. Not doing so will not only make you not eligible for the increase. But it will harm your credit rating.

Before applying for a Capital One Platinum Card, check income information. If COVID-19 affected your income, include the changes in the application. The application process takes less than 3 minutes to complete, and you’ll receive a quote within 60 seconds.

Get your Capital One Platinum Card.

Barclaycard Forward Credit Card

The Barclaycard Forward Credit Card has a personalized credit limit of between £50 – £1,200. This is usually based on what you can afford. In the first two years, the Barclaycard Forward Credit Card will reduce your rate by 3% in the first year and 2% in the second. However, to qualify for their rate reduction, you need to make your minimum payments on time.

If you fail to qualify for the first year, but you do for the second year, you’ll get a rate reduction of 3%. Before you apply for the Barclaycard Forward Credit Card, use the free eligibility checker. This will allow you to know if your application will be accepted. It takes a few minutes and will not affect your credit rating.

Marbles Classic Credit Card

If you’re going through a rough patch, the Marbles Classic Credit Card can help you. It comes with a credit limit from £250 up to £1,200. No annual fee, and you’ll receive a credit limit review after 3 months. If you repay on time, Marbles could increase your credit limit on your 4th statement.

To help you build your credit history, Marbles has an online account management portal. You can view transactions, track your balance, manage your payments and check your statements. In addition, the portal allows you to change your payment date up to twice a year and receive spending alerts. Before submitting your application, check eligibility to find out if you qualify for the Marbles Classic Credit Card.

Capital One Classic Complete Card

The Capital One Classic Complete Card is a simple and functional credit card with a maximum credit limit of £1,500. Designed for people with a poor credit rating, it works similar to the Capital One Platinum Card, albeit with an APR of 34.9%. If Capital One gives you a credit limit of £1,100 and an interest rate on purchases of 34.94% per annum, your APR is 34.9%.

However, the rate for the first 4 months on balance transfers and purchases is 0%. After that, the balance transfer fee is 3%. No monthly or annual fee, and if you’re accepted, this card will help you build your credit rating. Provided you pay your monthly payments on time. If you fail to repay your balance in full, Capital One will allocate a high-interest rate.

Aqua Classic Credit Card

The Aqua Classic Credit Card is a credit builder card with no annual fees and an initial credit limit between £250 and £1,200. As a Mastercard, the Aqua Classic Credit Card is currently accepted at over 35 million locations globally. It has a fantastic feature called Boosted payments which helps you clear your balance faster. This builds your credit rating.

Aqua provides helpful tools such as a mobile app that keep you in control 24/7 and text alerts to help you stay on track. Using these tools, you can manage your account and finances well. As such, an Aqua card could increase your credit limit.

Capital One Classic Card

Capital One is a financial corporation based in America. Back in the 1990s, they were among the first to pioneer mass-market credit cards. Today, they provide the Capital One Classic Card, one of its popular credit builder cards.

The card has a credit limit of between £200 to £1,500 with up to two optional credit limit increases per year. The representative APR is 34.9%, and there are no interest-free purchases. This is unlike the Capital One Classic Platinum, with 56 days of interest-free purchases. To build your credit rating, use your card sensibly by repaying on time and staying below your credit limit.

Tesco Bank Foundation Clubcard Credit Card

The Tesco Bank Foundation Clubcard Credit Card has starting credit limits between £200 – £1,500. Like the majority of other credit builder cards, Tesco Bank provides regular credit limit increases. However, you need to manage your account well.

Monthly payments start from £25 but with a representative APR of 27.5%, repay more than the minimum amount. Using this credit card to shop at any Tesco store will allow you to collect points. For every £4 spent, you collect 5 Clubcard points. When you spend £8 outside Tesco, you earn 1 Clubcard point.

When you open a Tesco Bank Foundation Clubcard Credit Card, you’ll get 3 years unlimited access to your credit score and report from TransUnion.

HSBC Classic Credit Card

The HSBC Classic Credit Card is a VISA card with up to £1,000 credit available. It has a representative APR of 29.9%. Based on an assumed credit limit of £1,000, your purchase rate is 29.9% per annum. Since the card is contactless, you can add it to Samsung Pay, Google Pay and Apple Pay. In addition, get instant discounts when you purchase from well-known brands globally.

You can use the HSBC Classic Credit Card at any retailer abroad or cash machine displaying the VISA logo. However, fees apply when you use cash machines, even non-HSBC cash machines. You can add a family member or partner to your account, but you need to manage your payments if you want to build credit. Thankfully, HSBC offers online banking. It lets you make payments, check your credit card balance and stay in control.

Ocean Finance Ocean Credit Card

Ocean Finance is a credit card, loans and mortgage company. Founded in 1991, it offers a credit-builder card with a credit limit of up to £1,500. As a contactless Mastercard, it’s accepted at tens of millions of locations globally.

Before getting your Ocean Finance Ocean Credit Card, use QuickCheck to determine your eligibility. The best part of this service is that you’re the only one who sees this on your credit report. As such, it does affect your credit rating. Now, you can apply for the credit builder card with confidence.

The representative APR is 39.9%, and the minimum payment per month is £45. Ocean Finance has a mobile app where you can make payments and check your balance. It also sends free alerts to keep track of your spending.

Capital One Balance Credit Card

The Capital One Balance Credit Card has a credit limit of £200 to £1,500 and a representative APR of 34.9%. The APR is usually based on an interest rate of purchases of 34.94% and a credit limit of £1,200.

Best for people rebuilding their credit history, it comes with 0% for 6 months on balance transfers. As such, you might save money by transferring balances.

However, after 6 months, Capital One charges a 3% balance transfer rate. If you applied for a Capital One card in the last six months, they would decline your application. Also, if you’re not a UK resident, they will reject your application.

How Can You Improve Your Credit Rating With Credit Building Cards?

The best way to improve your credit score with credit-builder cards is to make repayments on time. Lenders usually send free alerts – emails and text. Keep checking these alerts to keep up with your payments.

Staying within your credit limit will also improve your credit rating. This is because it will lower your credit utilization ratio. As long as your credit limit remains constant or goes down, your credit score will improve. Not only that. The lender could increase your credit limit.

Having a credit builder card is an excellent way to prove you can pay back what you borrowed. It also makes it easier to get accepted for a mortgage, loans and standard credit cards. Basically, credit card builders give you a better chance of getting a better credit score.

How Do I Apply For a Credit Builder Card?

The process of applying for a credit-builder is simple.

  • Visit the credit builder card website, for example, Capital One, Tesco Bank or Marbles.
  • Compare the representative APR variable and credit limits
  • Sort the results
  • Use the eligibility checker to check if you fit the criteria
  • Apply for a credit card with bad credit

Using the eligibility checker will not affect your credit rating.

How to Use a Credit Builder Card

Using your credit builder card is similar to using a regular credit card. You can use it for day to day expenses and emergencies. To build your credit rating and show you are a reliable borrower, do this:

  • Stay in your credit limit
  • Keep track of your spending through mobile app and online banking
  • Avoid cash withdrawals on your credit builder card
  • Always pay back in full each month
  • Avoid accumulating a balance of more than 50% of your credit limit

Building your credit takes time. Therefore, you need to be patient. To avoid harming your credit record, avoid these mistakes:

  • Getting into too much debt
  • Going over the credit limit
  • Missing payments on your credit builder card

If you fail to repay your bill in full every month, you’ll have to pay interest. To keep your costs down, go for a credit builder card with a low APR, such as the Tesco Bank Foundation Clubcard Credit Card (27.5% APR).

Final Thoughts

When applying for credit builder cards, do not make multiple applications and don’t apply for cards you’re not likely to get. Before you apply, use the eligibility checker. Also, check the APR and choose a lower one. Next, use your credit builder card wisely. Each month, pay off the balance in full and on time. Finally, be patient, as a good credit score takes time to rebuild.