Credit-building credit cards

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What is a credit builder card?

A credit builder card is a type of credit card designed to help if you have a low credit score or have never had a credit card before.

It gives you the chance to show you can look after your debts responsibly and, by doing so, start to build up your credit score.

Also known as ‘bad-credit’ credit cards, they could be a good fit for you if your financial circumstances make it tough to get approved for a standard card.

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How does a credit builder card work?

A credit builder card works in just the same way as a regular credit card. You can use it in stores and online to pay for your everyday shopping up to a set credit limit. And if you don’t pay off what you owe in full each month, you’ll be charged interest.

The big difference is that credit-building credit cards are likely to come with stricter conditions. That’s because they’re targeted at borrowers seen as a higher risk by lenders.

  • Your credit limit (the maximum you can borrow at any one time) tends to be much lower, typically between £100 and £3,000. Compare the Market customers apply for an average credit limit of £1,373 with this type of credit card2.

  • The interest charged on the amount you borrow is also usually much higher than a standard credit card – the average credit builder card APR is31.9%– so it's best to pay the balance off in full each month2.

Some credit builder cards come with added perks (for example, a temporary 0% interest rate or rewards points), but the main point is to prove to lenders you’re a responsible borrower. So only ever spend what you can afford to pay back, and always pay your credit card bill on time every month.

If you pay off your card in full each time you get your bill, you can avoid interest and show you can handle your debts. Win win.

Quick tip

If you’re worried about missing a payment, setting up a direct debit can help you stay on track.

A man with a frown looking at his credit card

Our best credit-builder credit cards

Here are some standout credit builder credit cards from our panel of providers. The right card for you will depend on your situation – always check your eligibility and the T&Cs before applying.

Last updated 1 September 2026

Credit builder

  • Virgin Money credit card: 12 months balance transfer & 3 months purchase at 0%

    0% purchase period

    3 months

    0% balance transfer period

    12 months

    Transfer fee

    2%

    Check eligibility
    What you should know

    • Transfers must be made in first 60 days to qualify for 0%

    • New customers only, credit subject to status, T&Cs apply

    Representative example – assumed borrowing of £1,200 for 1 year at a purchase rate of 29.9% (variable), representative 29.9% APR (variable)

  • Capital One Classic Complete credit card: 7 months purchase & balance transfer at 0%

    0% purchase period

    Up to 7 months

    0% balance transfer period

    Up to 7 months

    Transfer fee

    3%

    Check eligibility
    What you should know

    • Balance transfers must be made within a set period to qualify for the 0% offer – this will be specified when you apply

    • New customers only, credit subject to status, T&Cs apply

    Representative example – assumed borrowing of £1,200 for 1 year at a purchase rate of 34.9% (variable), representative 34.9% APR (variable)

  • Barclaycard Forward credit card: 6 months purchase & balance transfer at 0%

    0% purchase period

    6 months

    0% balance transfer period

    6 months

    Transfer fee

    2.9%

    Check eligibility
    What you should know

    • Transfers must be made in first 60 days to qualify for 0%

    • Credit limit between £50 and £1,200

    • 3% interest rate reduction if all payments made on time in year 1, 2% reduction in year 2 onwards (no interest if card paid in full)

    • New customers only, credit subject to status, T&Cs apply

    Representative example – assumed borrowing of £1,200 for 1 year at a purchase rate of 33.9% (variable), representative 33.9% APR (variable)

Compare the Market Limited acts as a credit broker, not a lender. To apply you must be a UK resident and aged 18 or over. Any 0% interest applies as long as you make at least minimum monthly repayments. Credit is subject to status and eligibility.

**Representative APR: the estimated cost of borrowing – calculated as an annual percentage rate – after the 0% period ends.

How we choose which credit builder cards to feature

We offer lots of different credit cards via our panel of lenders, so when deciding which ones to feature on this page we prioritise:

  1. Whether the card offers a 0% period on balance transfers or purchases (and if so, longest offers listed first)

  2. Cards where you get the full 0% length if accepted, not 'up to' a certain number of months (if applicable)

  3. Lowest balance transfer fee (if applicable)

  4. Perks, such as cashback or vouchers

  5. Time you have in which to make a transfer or purchase to get 0% (longer periods ranked higher), if applicable

  6. Lowest representative APR

We only list cards that are labelled as credit builder cards, but some providers may offer their standard cards to credit builders too – use an eligibility checker to see what you qualify for.

Who is a credit builder card for?

Credit building credit cards are aimed at anyone who wants to improve their credit score, or who doesn’t qualify for other cards. This could be because:

  • Your income isn’t high enough for you to qualify for standard credit cards. Those who compare credit building credit cards through us tend to have an average income of £39,0552

  • You’ve struggled with debt problems in the past

  • You’ve previously been declared bankrupt

  • You have a track record of missed payments in your name

  • You have a county court judgement (CCJ) against you

  • You’re not on the electoral register

  • You’ve no credit history and have never borrowed before

  • You’re unemployed.

Quick tip

Never had a credit card before? Discover how to choose the right one for you, improve your eligibility, and apply for your first credit card in our handy guide.

How can a credit builder card improve my credit score?

Use a credit builder card sensibly and it can help show lenders you can be trusted with debt. It could work in your favour by...

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Boosting your credit rating

You can improve your credit rating by making your repayments on time and stay within your credit limit

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Increasing your credit limit

If you use the card responsibly for several months, your lender might offer to increase your credit limit. If you accept this but don't use the extra credit, you'll be using a lower proportion of the overall credit available to you, which can be good for your credit score.

Tick with circle icon

Raising your reputation with financial providers

Even if you’ve struggled with debt before, paying on time shows you can be reliable.

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Unlocking more borrowing options

A stronger credit score can make it easier to get better credit card deals and be approved for a mortgage or a personal loan.

Lenders do look at more than just your credit history, but using a credit builder card wisely could give you a leg up.

How do I use a credit builder card?

You can use a credit builder card to pay for your daily essentials in the same way you would with any other credit card. But here are three key reminders to help you get the most out of the card:

Always try to pay back what you spend each month in full

This is so you won’t get hit with high interest charges. If you really can’t pay the full amount, be sure to make at least the minimum repayment on time.

Keep well within your credit limit

Make sure you don’t overspend, tempting as it may be.

Never make cash withdrawals

Don't take out cash using your credit card as you'll usually pay a fee AND be charged interest from the day you take the cash out – even if you pay it back in full at the end of the month.

Try to think of your credit builder card as a tool to boost your credit score, rather than a green light to spend money you don’t have.

Quick tip

Download your lender's app or sign up for online banking to track your spending and help you stay within your credit limit.

What are the benefits and downsides of credit builder cards?

Pros

  • Eligibility is usually less strict than for a regular card, though there’s no guarantee you’ll be accepted so it's still best to use an eligibility checker

  • If you use it carefully and make all your payments on time, you can gradually boost your credit score

  • Some of the best cards offer rewards and incentives, such as cashback and credit limit increases, after a certain period.

  • Some credit-building credit cards let you track your credit score so you can see it improve (assuming you stay on top of your payments)

  • Nearly everything you buy using the card that costs between £100 and £30,000 is protected by Section 75 of the Consumer Credit Act.

Cons

  • If you don’t repay your balance in full each month, you'll generally pay a high rate of interest

  • You won’t be able to borrow a large sum of money – though on the plus side, having a lower credit limit should mean you can’t build up too much debt

  • If you don't pay back what you borrow, you could harm your credit score

  • You’ll have to be patient as improving your credit score won’t happen overnight.

Quick tip

Show you can keep up your debt repayments over time.

It can set you up for successful applications in the future for credit cards with higher spending limits, lower interest rates and better rewards. 

How to choose the best credit builder card

To find a credit builder card to suit you, check for:

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Interest rates and fees

Compare the APR and any fees. Some credit builder cards can have rates as high as 85.8% if you don’t fully clear your balance each month2.

Moneybag with coins icon

Available credit limits

Check the card’s maximum credit limit, which might range from £100 to £3,000. But bear in mind that the limit offered to you will be based on your personal circumstances and credit history.

Star icon

Rewards

See what extra perks you could get and whether these match your spending habits. But remember this is a bonus; your main focus should be using the card to build your credit score – then you could qualify for much better rewards in the future.

If you compare credit cards with us and don’t qualify, our partner Creditec3 may offer you an alternative such as a line of credit or subscription credit.

Charlie Evans

What our expert says...

“Ideally, try to stay under 25% of your credit limit. For example, if you’re allowed to borrow £1,000 on your card, try not to use more than £250 at any one time. Focus on spending small amounts to keep the card active and paying off the balance in full each month. All of this helps prove to lenders that you can manage debt responsibly and steadily build up your credit score.”

Charlie Evans, Personal finance expert

Credit builder card guides

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Credit card eligibility checker

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FAQs

Am I eligible for a credit building credit card?

Our online eligibility checker will give you an idea of whether you’re likely to be accepted for the cards you have in mind.

You can do this before you make a full application and as it’s a soft credit check, it won’t affect your credit rating.

How much do credit builder cards cost?

Credit builder cards don’t tend to come with hefty annual fees. The real expense can come from the interest that builds if you don’t pay off your balance each month.

But if you keep up with your monthly payments in full, you’ll avoid those steep interest charges.

How do I apply for a credit builder card?

Depending on the lender, you may be able to apply for a credit builder card online through Compare the Market, or by going directly to the provider. Alternatively, you could apply by phone, post or in branch if the lender offers these options. Lenders will usually need the following information from you:

  • Proof of ID  

  • Proof of your current UK address  

  • Your annual income  

  • Your employer details 

  • Recent bank statements. 

To apply for a credit card, you must be a UK resident and at least 18 years old.

Can I get a credit builder card without a credit check?

No, you can’t get a credit builder card without a credit check. As with any application for credit, your lender will want to take a deep dive into your financial history.

But the bar tends to be set lower for credit builder cards, so you’ll have a better chance of being accepted if you have a poor credit score.

Can I get accepted if I’ve had bad credit?

Yes, you could potentially get accepted, even if your credit history isn’t in the best shape. Credit building cards are specifically aimed at those with bad credit or no credit history.

But you’ll still have to pass a credit check and meet your lender’s eligibility criteria to be approved.

What happens if I’m rejected for a credit builder card?

If you’re refused a credit builder card, it might feel like you should try for another one right away and hope for a different outcome.

But applying for too many cards too quickly can damage your credit score. Instead, take steps to improve your credit score before applying again.

How can I check my credit score?

You can get your credit report for free from a credit reference agency. There are three main credit scoring agencies in the UK – Equifax, Experian and TransUnion.

They all hold information on how you manage your money, and lenders use this to assess your creditworthiness. It’s worth checking each one as they don’t all hold the same information, and even small errors can cause problems getting credit.

How do I repay my credit card?

The best way to pay off your credit card is by setting up a direct debit to automatically repay the full amount each month. This means you’ll never miss a payment or have to pay interest on the money you’ve borrowed. It’s vital to keep up with your repayments because even a single missed payment could seriously affect future credit applications.

Looking for something else?

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Charlie Evans
Reviewed 01 Sept 2026 by Charlie Evans Personal finance expert

Charlie is a senior commercial leader with close to a decade of experience across the UK’s leading personal-finance and comparison platforms. Before joining Compare the Market as Head of Commercial in 2024, he held senior commercial roles at TotallyMoney and MoneySuperMarket Group.

Methodology

1Based on Trustpilot ratings (July 2026).

2Correct as of June 2026.

3Creditec is a UK credit broker that helps customers explore a range of alternative borrowing options through a single application journey. Working with a panel of lending and credit providers, Creditec aims to match customers with products that may be suitable for their circumstances. As part of our partnership, customers who are unsuccessful in obtaining a loan through Compare the Market may be given the option to continue their journey with Creditec, where they can explore other products that may be available to them. Any products shown and any lending decisions are determined by Creditec and its panel of providers.