Credit cards for bad credit
Compare credit cards for bad credit
- Help rebuild your credit score with a credit card designed for people with poor credit
- Find out which bad-credit credit cards you might be offered before applying
- Our eligibility check won't impact your credit score
What are credit cards for bad credit?
Credit cards for bad credit are aimed at people with a poor borrowing history who want to improve their credit score.
Sometimes known as credit builder cards, credit cards for bad credit:
- Often have low borrowing limits and high interest rates – this reduces the risk to the lender.
- Could help you prove to lenders that you can manage money in a responsible way – that’s if you meet the monthly repayments.
- Could help you build your credit score over time.
Using a credit builder card responsibly means you could then qualify for better deals in the future.
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Bear in mind... Credit builder cards shouldn’t be seen as a silver bullet. Rebuilding your credit score can take months or even years depending on your credit history and how serious the issues affecting it are. It’s important to be patient when repairing your credit. |
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Why do I have bad credit?
There are two main reasons why you might have a low credit rating:
Problems with debt
If you’ve struggled to pay back debts on products such as credit cards, loans or mortgages in the past, this might be reflected in your credit score.
Other reasons for a low credit score might include:
- Having a record of unpaid bills
- Filing for bankruptcy in the past six years
- Having a recent County Court Judgment (CCJ) against you
- Entering into an Individual Voluntary Arrangement (IVA)
- Going over your credit limit
- Breaking your credit agreement
- Making too many credit applications in a short time.
Having no credit history
Even if you’re good at managing your money, not having a credit card or a history of borrowing can count against you. (Note that having no credit history is different from having a ‘bad’ credit history.)
If you’ve never borrowed before, a lender won’t know what kind of risk you pose, or if you can pay back what you owe.
A poor credit score could make getting lending approval more difficult, but it’s not impossible. There are steps you can take to improve your credit rating – and one of the quickest and simplest is to get on the electoral register, if you’re not already on it.
How can I get a credit card with bad credit?
If you’re thinking of applying for a low-credit credit card, following these tips could give you a better chance of being accepted:
1. Use an eligibility calculator before you apply
Eligibility checkers can show you credit cards you’re likely to be accepted for, without affecting your credit score.
2. Only apply for credit cards you’re likely to be accepted for
Making an application and having it rejected can damage your credit score further. Make sure to carefully check the lender’s eligibility criteria before you apply.
3. If you’re rejected for a credit card, don’t immediately apply for another
A formal application for a credit card leaves a mark on your credit report, which could impact your score. If you’re repeatedly rejected for credit over a short period, this will lower your score further.
Instead, wait a few months then use our eligibility checker to look for an alternative.
Check my eligibilityWhat credit cards can I get with bad credit?
The easiest low credit score credit cards to get are credit builder credit cards – although not everyone will be accepted.
These are designed to help you improve your credit score and could help you get your finances back on track.
Another option to think about is a credit-building prepaid card. This type of card:
- Works by letting you top it up with cash which you can then use for spending, similar to a debit card
- Doesn’t normally put you through a hard credit check when you apply, though you may need to prove your identity and UK residency
- Only lets you spend what’s loaded onto the card, helping you avoid getting into debt
- Can help you learn how to budget more effectively.
If you have bad credit, you’re unlikely to get a credit card with a high borrowing limit or low interest rate. You may struggle to get cards with 0% APR or rewards.
Lenders tend to save their best deals for people with higher credit scores. You could increase your chances of being approved by applying for credit cards for low credit scores.
Credit cards for unemployed people
Getting a credit card if you’re unemployed and have bad credit isn’t impossible, but it can be difficult. Most credit cards, even credit cards for those with bad credit, demand a minimum income.
Your best bet is to compare credit cards and review each lender’s individual application criteria.
Unfortunately, your unemployed status means you’re likely to pay higher fees, as providers seek to offset the risk.
In some cases, it may be possible to apply for a credit card without a credit check, although options are limited.
What are the pros and cons of credit cards for bad credit?
As with any financial product, credit cards for bad credit have pros and cons:
Advantages
- Improve your credit score – if you stay within your credit limit and make your payments on time, a bad-credit credit card could help repair your poor credit history.
- Limit your borrowing – the low credit limit means you won’t be able to rack up thousands of pounds’ worth of debt.
- Better chance of approval – providers of poor-credit credit cards are more likely to accept your application (though it’s still not guaranteed).
- Protect the things you buy – when you spend with a credit card, items costing between £100 and £30,000 are protected by Section 75 of the Consumer Credit Act.
Disadvantages
- High interest rates – credit cards for bad credit tend to have higher interest rates than most cards. This means they’re expensive if you don’t pay off your balance in full each month, plus it could also take longer to clear your debt.
- Low credit limits – you won’t be able to spend as much as you might on other cards. This is because the lender sees you as a high-risk borrower.
- Fewer incentives – bad-credit credit cards are less likely to offer 0% interest periods or other benefits.
- Further harm to your credit score if misused – if you don’t use the card responsibly, for example if you miss a payment or go over your agreed credit limit, this could worsen your credit score.
Will a credit card for bad credit help me if I’m in debt?
While bad-credit credit cards can help you spread the cost of purchases, never see them as a solution to debt. If you can’t pay off your balance, you risk getting into more financial difficulty as interest stacks up.
If you’re worried about debt, contact your lender. They may be able to change your payment plan or give you a payment holiday. You can also get free support from debt advice charities including StepChange and National Debtline.
There's more information on our Customer Support Hub.
What should I look for when choosing a bad-credit credit card?
When comparing credit cards for bad credit, ask yourself:
- Can I manage my credit card account online or through an app?
Some providers notify you when you need to make a payment or have a new statement. Most lenders also offer banking apps, all of which can help you to keep on top of your finances. It’s good sense to get yourself registered for online banking and download any available app to help you track and manage your credit card. - What fees and charges might I have to pay?
When taking out a credit card, check the fees for late payments, going over your credit limit and using your card abroad. You should also check for any annual fees, though not all providers charge one. - What’s the APR of the card?
A credit card’s APR (annual percentage rate) shows you the total cost of borrowing over a year. It can help you compare the cost of credit between providers. But the actual interest you pay depends on when and how you clear your debt. That’s why should be used as more of a rough guide. - What are the eligibility requirements?
Some credit cards for bad credit rule out borrowers on specific grounds – for example, if you’ve missed more than three payments on another credit product in the past six months. - Does the card offer any benefits?
Some cards promise a lower interest rate if you make your payments on time and stay within your credit limit in the first year. But these cards may have a higher interest rate to start with. Other cards may give you points to spend in stores.
What our expert says...
“Cards for people with bad credit histories often have higher rates than standard cards. However, they're not bad cards, if used well – far from it, in fact. You can actually improve your credit history, giving you a better chance of getting a card for better credit scorers in future. This means they can be a good option for people with a poor or limited credit history – for example, people who are new to the country or who’ve recently turned 18.
“If you only spend what you can afford and pay the balance in full each month, you’ll likely avoid interest. It should also positively impact your credit report, which could see your credit score improve, subject to how you conduct your other credit commitments.”
- Guy Anker, Personal finance and insurance expert
Where can I compare credit cards for bad credit?
We’ve teamed up with Experian Limited to show the key features of each bad-credit credit cards you can compare with us. This will help you choose the card that’s right for you.
Don’t forget you can see which cards you’re likely to be accepted for, without affecting your credit record, using our eligibility checker.
To apply, you’ll usually need:
- ID
- Proof of address for the past three years
- Recent bank statements
- Your salary
- Your employer details.
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. Credit is subject to status and eligibility.
See if there's a deal that could suit your needs.
Compare credit cardsFrequently asked questions
What is considered a bad credit score?
Different credit reference agencies (CRAs) use different scales for scoring, which can be confusing. But it’s always the case that the lower your number, the worse your credit score.
Here’s how the three main CRAs in the UK rate different credit scores*:
Experian:
- Very poor – 0 to 560 (out of 999)
- Poor – 561 to 720
- Fair – 721 to 880
Equifax:
- Poor – 0 to 438 (out of 1,000)
- Fair – 439 to 530
TransUnion:
- Very poor – 0 to 550 (out of 710)
- Poor – 561 to 565
- Fair – 566 to 603
Discover how to check your credit report for free.
*Last checked January 2025
What’s the difference between bad credit and no credit?
‘No credit’ means you don’t have a credit history. This could be because you’re too young, have only just arrived in the country, or you simply haven’t borrowed before.
‘Bad credit’ refers to someone who has a credit history but may have had issues with debt, made late repayments, or broken the terms of their credit agreement.
Could using a credit card make my credit score worse?
Using a credit card could hurt your credit score if you don’t manage it properly. Things that could damage your score include:
- Missing payments
- Making late payments
- Going over your credit limit.
It’s also not a great idea to spend your full credit limit. Credit ‘utilisation’ – in other words, how much of your available credit you’ve used – is one of the factors that affects your credit score.
If your credit utilisation rate is high, providers may worry that you’re facing financial difficulties. See more about credit utilisation rates and why keeping yours low is important.
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