Which Credit Cards are Good for Bad Credit?

We've analyzed UK credit-builder cards for poor credit to find the best ones to help you improve your credit rating. Check out our recommendations, which we tailored to specific categories and consumer needs (e.g., no job, no credit history, etc.). In each, we identify a few cards based on the best features. If you're not sure where to start check out our How to Improve Your Credit Score Guide.

The guidance on this site is based on our own analysis and is meant to help you identify options and narrow down your choices. We do not advise or tell you which product to buy; undertake your own due diligence before entering into any agreement. Read our full disclosure here.

  • Learning
    How Does a Credit Card for Poor Credit Work?
  • Comparing
    Summary of the Best Credit Builder Cards for Bad Credit
  • Choosing
    How To Pick a Credit Card for Bad Credit for You

Best Credit Cards for Bad Credit

Whether you have a bad credit score or just a very limited credit history, there are specialist credit cards which may accept your application for a new card when other credit cards won't. These are known as "credit builder" cards.

Credit cards for no credit or bad credit charge higher-than-average interest rates to offset the risk of lending to either an unknown or poor credit situation.

All of the cards listed below are "free," meaning they don't charge an annual fee. While there is no one "best" card for everyone, use this list as a starting point to understand the market and find the best card for your individual situation.

Vanquis Classic Visa Card

Consider this if you have bad credit.
  • Purchase Rate (variable)
    • 29.5%
    • 0% on Purchases for up to
      • n/a
      • 0% on Balance Transfers for up to
        • n/a
        • Initial Balance Transfer Fee
          • n/a
          • FX Fee
            • 2.99%
            • Cash Fee
              • 3% (min £3)

              The Vanquis Credit Builder card can be a good option for those who are worried about getting a credit card due to a poor credit history and might not be able to get one elsewhere. Vanquis will consider applicants with no credit history, for a first credit card, or those with bad credit—interest rates are higher as a result: 29.5% variable APR on purchases and 29.5% variable APR on cash withdrawals.

              The initial credit limit will be between £150 and £1,000. Stay within your credit limit and pay your monthly minimum payment on time and you may be eligible for credit limit increases every 5th month—an increasing credit limit can help your credit score, especially when it reaches £1,000. Good account management may also help to improve your credit rating, as it shows responsible card management.

              Use Vanquis's Express Check eligibility checker to see your odds of being accepted before you apply.

              Pros
              • Possible first credit card (no credit history needed)
              • Express Check eligibility checker (instant, 60 second answer)
              • Online & SMS account management
              • Mobile app
              • No annual fee
              • Initial credit limit between £150 and £1,000
              • Possible credit limit increases every 5 months, up to £4,000 subject to good account management
              Cons
              • Higher-than-average interest rate

              Chrome Credit Card by Vanquis

              Consider this if you have a weak credit rating.
              • Purchase Rate (variable)
                • 29.5%
                • 0% on Purchases for up to
                  • n/a
                  • 0% on Balance Transfers for up to
                    • n/a
                    • Initial Balance Transfer Fee
                      • n/a
                      • FX Fee
                        • 2.99%
                        • Cash Fee
                          • 3% (min £3)

                          The Chrome Credit Card by Vanquis can be a good option for those who may only be eligible for a "credit builder" card but want to lock in a lower interest rate than might be found on, say, the Vanquis Classic. The Chrome is the lowest APR card on offer by Vanquis, charging a representative variable APR of 29.5%. However, as a credit builder card the interest is still high enough to rack up significant interest charges should you carry a balance from month to month. The initial credit limit will be between £250 and £1,000. Stay within your credit limit and pay your monthly minimum payment on time, and good account management may help to improve your credit rating.

                          Pros
                          • Online & SMS account management
                          • Mobile app
                          • No annual fee
                          • Initial credit limit between £250 and £1,000
                          • Possible credit limit increases every 5 months, up to £4,000 subject to good account management
                          Cons
                          • Higher-than-average interest rate (but lower than some credit builder cards)

                          Aquis Credit Card by Vanquis

                          Consider this if you have a weak credit rating.
                          • Purchase Rate (variable)
                            • 29.8%
                            • 0% on Purchases for up to
                              • n/a
                              • 0% on Balance Transfers for up to
                                • n/a
                                • Initial Balance Transfer Fee
                                  • n/a
                                  • FX Fee
                                    • 2.99%
                                    • Cash Fee
                                      • 3% (min £3)

                                      The Aquis Credit Card by Vanquis is another option for those in the market for a "credit builder" card. The representative variable APR of 29.8% is just a touch higher than the Chrome card (above), with a cash APR that should be equal to the purchase APR. While this makes the cash APR attractive relative to the Vanquis cards, we still don't recommend withdrawing cash with the Aquis because using credit cards is an expensive way to get cash. As always, stay within your credit limit and pay your monthly minimum payment on time to help improve your credit rating.

                                      Pros
                                      • Online & SMS account management
                                      • Mobile app
                                      • No annual fee
                                      • Initial credit limit between £250 and £1,000
                                      • Possible credit limit increases every 5 months, up to £4,000 subject to good account management
                                      Cons
                                      • Higher-than-average interest rate (but lower than some credit builder cards)

                                      Best Credit Cards for Bad Credit: Aqua Classic Credit Card

                                      Consider this if you have poor credit and/or a low income, and want free text alerts.
                                      • Purchase Rate (variable)
                                        • 34.9%
                                        • 0% on Purchases for up to
                                          • n/a
                                          • 0% on Balance Transfers for up to
                                            • n/a
                                            • Initial Balance Transfer Fee
                                              • 3%
                                              • FX Fee
                                                • 2.95%
                                                • Cash Fee
                                                  • 3% (min £3)

                                                  The Aqua Classic Credit Card is another solid credit-builder card. The Classic will consider those with poor credit, including the self-employed, individuals who've had trouble with late payments in the past and those with low income. Initial credit limits fall between £250 and £1,200. We particularly like that good financial management can lead to a rise in your credit limit (which might improve your credit score, especially once it breaks £1,000) AND the free text alerts can let you know when you're nearing your credit limit.

                                                  Pros
                                                  • Free text alerts
                                                  • Eligibility checker
                                                  • Interest rate may reduce by 5% a year for "good behavior"
                                                  • No annual fee
                                                  Cons
                                                  • Higher-than-average interest rate of 34.9% variable APR on purchases (but lower-than-average for a card for weak credit)

                                                  Best 0 Credit Card for New Credit: Barclaycard Forward

                                                  Consider this if you don't have any credit history.
                                                  • Purchase Rate (variable)
                                                    • 34.9%
                                                    • 0% on Purchases for up to
                                                      • up to 3 months
                                                      • 0% on Balance Transfers for up to
                                                        • n/a
                                                        • Initial Balance Transfer Fee
                                                          • n/a
                                                          • FX Fee
                                                            • 2.99%
                                                            • Cash Fee
                                                              • 2.99% (min £2.99)

                                                              The Barclaycard Forward Credit Card offers an unusual perk for a credit-builder card—a 0% purchases period in which you won't pay interest on purchases for 3 months provided you stay within your credit limit and making your minimum payments on time. Showing good financial management can result in your interest rate (which starts at 34.9% variable) dropping 3% in the first year and another 2% in the second year.

                                                              Designed for those with limited or no credit history, applicants must prove they can pay their debts by showing an income of £3,000 per year. Customer service told us that proof of your first month's paycheck from a part-time job may be enough to be accepted. Besides being employed, you should have lived at your current address for at least three months.

                                                              Barclaycard offers a pre-application soft eligibility check that won't adversely affect your credit rating. Once enabled, free alerts can include your weekly account balance, statement availability, payment received, payment due reminder, balance limit alert and your pre-set monthly limit alert—we highly recommend setting up the free alerts as they can help you stay on top of your account and improve your credit by avoiding missed payments or exceeding the credit limit.

                                                              Note: We've recently heard from a reader who said they tried to take out a Barclaycard Forward but was unable to do so, because they didn't have a Barclays account. While we can find no mention of the Barclays account requirement on their website or card documents, be advised that if you don't have a Barclays bank account you may also no be able to take out a Forward card. If anyone else has a similar experience, please let us know in the comments section below.

                                                              Pros
                                                              • Free text/email alerts
                                                              • Eligibility checker
                                                              • No annual fee
                                                              • 0% on purchases first three months
                                                              • Chance to reduce interest rate by 5% over two years
                                                              • Possible first credit card
                                                              • £150 to £1,200 initial credit limit
                                                              Cons
                                                              • Need income from part-time employment (£3,000 per year minimum)
                                                              • Higher-than-average interest rate (but average for a card for bad credit)

                                                              Best Credit Cards for Bad Credit or Building Credit: Capital One Classic Credit Card

                                                              Consider this if you have a bit of credit history and would like a user-friendly mobile app.
                                                              • Purchase Rate (variable)
                                                                • 34.9%
                                                                • 0% on Purchases for up to
                                                                  • n/a
                                                                  • 0% on Balance Transfers for up to
                                                                    • n/a
                                                                    • Initial Balance Transfer Fee
                                                                      • 3%
                                                                      • FX Fee
                                                                        • 2.75%
                                                                        • Cash Fee
                                                                          • 3% (min £3)

                                                                          The Capital One Classic might work for you if you're currently between jobs or self employed, as there is no strict income requirement. Potential applicants do need some credit history in the UK, however, such as a current account with direct debits to pay for a mobile phone, gas or electric bill. The card is targeted at those with bad credit or building credit, and proper use can help you establish a good payment history.

                                                                          Capital One could reward you for paying (at least) your monthly minimum payments on time and staying within your credit limit. By doing so you may be eligible to receive two optional credit limit increases a year, which may improve your credit rating. As a credit-builder card, the APR is higher than average, so try to pay as much of the balance as you can every month to help you limit interest charges. Before applying, you can check your odds of being accepted using Capital One's eligibility checker, QuickCheck, which won't harm your credit score.

                                                                          Pros
                                                                          • Free alerts
                                                                          • QuickCheck Eligibility checker
                                                                          • Mobile app
                                                                          • No annual fee
                                                                          • Two possible credit limit increases per year
                                                                          • Credit limit between £200 and £1,500
                                                                          • No strict income requirement
                                                                          • Need some credit history in UK
                                                                          Cons
                                                                          • Higher-than-average interest rate (but average for a card for bad credit)

                                                                          Best Credit Cards for Bad or Poor Credit: Marbles Credit Card

                                                                          Consider this if you want a solid credit-building card.
                                                                          • Purchase Rate (variable)
                                                                            • 34.9%
                                                                            • 0% on Purchases for up to
                                                                              • n/a
                                                                              • 0% on Balance Transfers for up to
                                                                                • n/a
                                                                                • Initial Balance Transfer Fee
                                                                                  • 3%
                                                                                  • FX Fee
                                                                                    • 2.95%
                                                                                    • Cash Fee
                                                                                      • 3% (min £3)

                                                                                      The Marbles Card is another solid credit card for poor credit. Marbles may start you off with a low initial credit limit of £100 to £250, which can be a good thing to prevent debt from building up. Once you demonstrate responsible financial management (i.e., paying at least the monthly minimum payment on time each month and staying within your credit limit) your credit limit may increase after 3 months, resulting in a potential credit limit increase on your 4th statement.

                                                                                      Marbles charges a higher-than-average interest rate (like all credit-builder cards). You can avoid high interest charges by paying down the full balance every month. Marbles offers a "soft" eligibility checker which has no impact on your credit rating: FastCheck shows your chances of being accepted before you apply. Another card feature we like is the ability to choose a monthly repayment date that suits you, perhaps just after pay day or to coincide with other bills to help you remember to pay on time.

                                                                                      Pros
                                                                                      • Possible first credit card (no credit history needed)
                                                                                      • Free SMS alerts
                                                                                      • Eligibility checker
                                                                                      • Mobile app
                                                                                      • No annual fee
                                                                                      • Chance to increase credit limit after three months
                                                                                      Cons
                                                                                      • Higher-than-average interest rate (but average for a card for bad credit)

                                                                                      Best Store Cards for Bad Credit

                                                                                      A store card can let you earn rewards when you spend. There aren't many store cards for poor credit, but the Tesco Foundation card lets you earn Clubcard points while your work to improve your credit score.

                                                                                      Tesco Foundation Credit Card

                                                                                      Consider this if you want a store card for bad credit.
                                                                                      • Purchase Rate (variable)
                                                                                        • 29.9%
                                                                                        • 0% on Purchases for up to
                                                                                          • n/a
                                                                                          • 0% on Balance Transfers for up to
                                                                                            • n/a
                                                                                            • Initial Balance Transfer Fee
                                                                                              • n/a
                                                                                              • FX Fee
                                                                                                • 2.75%
                                                                                                • Cash Fee
                                                                                                  • 3% (min £3)

                                                                                                  The Tesco Foundation Credit Card can be a great option for those with a weak credit history who also want to earn some rewards on Tesco shops. You can collect 1 Clubcard point for every £4 spent (£4 minimum) in Tesco and 1 point for every £8 spent (£8 minimum) outside Tesco, although some products at Tesco don't earn points. While we don't recommend carrying a balance from month to month on any credit-builder card, especially, due to higher interest rates, we like that the Tesco Foundation card has a higher minimum payment floor of £25—for anyone paying the minimum amount each month, this small detail can potentially save hundreds of pounds in interest charges over time, versus a minimum payment floor of £5 which is more common. A small touch that feels like Tesco Bank is looking out for the cardholder's best interests.

                                                                                                  Pros
                                                                                                  • Free email/SMS alerts
                                                                                                  • Eligibility checker
                                                                                                  • Mobile app
                                                                                                  • No annual fee
                                                                                                  • Minimum monthly payments at least £25 (important for paying off debt quicker and reducing interest charges!)
                                                                                                  • Lower-than-average interest rates for a credit-builder card
                                                                                                  Cons

                                                                                                  Best Credit-Builder Cards for Travel

                                                                                                  There are two credit cards on the market for those working to improve their credit who also like to travel. If you tick these boxes, we'd recommend you look at the Aqua Advance and the Aqua Rewards cards. Neither one charges a fee on non-sterling transactions made abroad when you're out of the UK (but avoid withdrawing cash from ATMS abroad or in the UK).

                                                                                                  Best Credit Card for Poor Credit Rewards and Travel: Aqua Advance

                                                                                                  Consider this if you want a credit-builder card that doesn't charge FX fees when you travel.
                                                                                                  • Purchase Rate (variable)
                                                                                                    • 34.9%
                                                                                                    • 0% on Purchases for up to
                                                                                                      • n/a
                                                                                                      • 0% on Balance Transfers for up to
                                                                                                        • n/a
                                                                                                        • Initial Balance Transfer Fee
                                                                                                          • 3%
                                                                                                          • FX Fee
                                                                                                            • none
                                                                                                            • Cash Fee
                                                                                                              • 5% (min £4)

                                                                                                              The Aqua Advance Credit Card is a good card for credit builders who travel abroad, because it doesn't charge non-sterling transaction fees. That means you can use the card for purchases abroad without finding unwelcome FX transaction charges on your statement when you return home. (Most credit cards charge a fee around 3% of any transaction in another currency.) We don't recommend using the card for cash withdrawals, however, as you'll incur a 3% (£3 minimum) cash fee, plus higher cash interest charges that start accruing right away.

                                                                                                              While the Aqua Advance interest rate on purchases is higher than average (34.9% variable), by staying within the credit limit and paying the minimum payment (or more) on time each month, your interest rate should drop by 5% a year for three years. After three years of good account management your interest rate may be as low as 19.9%. Not only will you benefit from a lower interest rate, but a drop in interest rate is communicated to the credit agencies and should help your credit rating. If possible, pay more than the minimum each month to limit interest charges and avoid debt from building up.

                                                                                                              Pros
                                                                                                              • Free email/SMS alerts
                                                                                                              • Eligibility checker
                                                                                                              • Mobile app
                                                                                                              • No annual fee
                                                                                                              • No foreign transaction fees
                                                                                                              Cons
                                                                                                              • There's still a fee on foreign cash withdrawals (and higher interest charges)
                                                                                                              • Higher-than-average interest rate (but average for a card for bad credit)

                                                                                                              E-money Credit Building

                                                                                                              If your primary goal of getting a credit builder card is to improve your credit rating, you might want to learn about alternatives to credit cards, such as a new tool by Monese. Even e-money institutes that aren't banks can be useful for helping to build a credit rating as well.

                                                                                                              Best E-money Tool for Credit Building: Monese

                                                                                                              Consider this if you want to lock money away for the future whilst building your credit rating.

                                                                                                              Normally you can't build your credit rating with an e-money institution that only issues debit cards, but Monese has recently offered a new product called Credit Builder. It's not a credit card. Essentially, it's like taking out a loan that you repay each month—only you can't access the money until the end of 12 months when you've repaid the total amount. For example, you might pay £30 a month for a £360 loan (£30 x 12 = £360). How much can you borrow? Between £360 and £1,200 (with monthly payments between £30 to £100).

                                                                                                              However, there's a monthly fee to get this product of £7.95 per month—this is equivalent to an APR of 28.2% on a loan amount of £600. (The APR would be higher on smaller loan amounts and lower on larger loan amounts.) Is this a good deal? It depends. Compared to the APR on many credit builder cards, 28.2% seems reasonable. However, on a traditional credit builder card you can pay back your full balance each month and then not pay ANY interest fees while working to improve your credit score. However, if you can't or don't want to get one of the credit builder cards then the Monese Credit Builder tool could be one option for demonstrating that you can pay back borrowing, which should improve your credit rating.

                                                                                                              The customer has to be a UK resident and have a Monese GBP. The minimum monthly savings amount is £30 (plus you pay the £7.95 fee).

                                                                                                              How Can You Improve Your Credit Rating with a Credit Card?

                                                                                                              Whether you have no UK credit history (e.g., you are young and/or new to the UK) or your credit score is low (e.g., due to CCJs, late payments, etc.) applying for a credit card can be a challenge.

                                                                                                              Applicants with a bad credit score or no credit will have the most luck applying for a credit-builder card. These cards are open to weaker applicants but charge higher-than-average interest rates and tend to offer lower credit limits. We'd recommend carrying out a card's eligibility check as part of your application process, to see if you're likely to be accepted or not.

                                                                                                              Once you have your card, you can use it to take steps to build up your credit rating. Perhaps the important steps for improving your credit score are to always:

                                                                                                              • Stay within your credit limit
                                                                                                              • Pay at least the minimum amount due each month
                                                                                                              • Pay on time

                                                                                                              Many of the cards on this page will also lower your interest rate or increase your credit limit if you demonstrate this responsible credit card management, which may act to further improve your credit rating over time.

                                                                                                              There are other ways to start building up a credit history, beyond your credit card. The Money Advice Service suggests:

                                                                                                              Ways to Improve Your Credit History
                                                                                                              Open and Manage a Bank AccountKeep enough money in your current account to cover any payments; An interest-free overdraft is an alternative to a credit card
                                                                                                              Set Up Direct DebitsSet up regular direct debits to pay gas, electricity, or mobile phone bills
                                                                                                              Pay All Bills On TimeMissed or late payments will negatively affect your credit score

                                                                                                              We mentioned that paying at least the minimum amount each month is crucial to improving your credit limit. While this is true, credit builder cards typically charge higher interest rates so we'd advise paying the entire balance each month (not just the minimum) to avoid interest charges and prevent debt from building up—or at least paying as much as possible. To learn about why the low minimum payment floor of some cards can lead to drastically high interest charges over time, please read our article How the Minimum Payment Floor on Your Credit Card Could Cost You Hundreds of Pounds.

                                                                                                              How to use a credit builder card

                                                                                                              To improve your credit score and get access to cards with lower interest rates, demonstrate responsible financial management with a credit builder card. How do you do that? By paying on time each and every month and always staying under your credit limit.

                                                                                                              To avoid building up debt and paying high interest charges, try to pay off your full balance each and every month.

                                                                                                              Am I eligible?

                                                                                                              While these cards for bad credit may offer 100% "Guaranteed Approval" if you use their eligibility checkers, you may still be turned down—for instance, if they identify certain information on fraud prevention databases or if they're not able to verify your identity.

                                                                                                              Summary of Credit Cards for Bad Credit

                                                                                                              Below is a summary of student card across different categories.

                                                                                                              Best For...CardQuick Overview
                                                                                                              Bad Credit, Previous Bankruptcy/CCJs, New to creditVanquis ClassicPotential first credit card or card for those with bad credit, can be an option if you can't get a card elsewhere; initial credit limit £150 to £1,000; possible credit limit increases; 29.5% variable APR on purchases; Express Check pre-application check; can change payment date to suit
                                                                                                              Poor CreditChrome Credit Card by VanquisVanquis Bank's lowest APR credit card; initial credit limit £250 to £1,200; possible credit limit increases up to £4,000; 29.5% variable APR on purchases; Express Check eligibility checker
                                                                                                              Poor CreditAquis Credit Card by VanquisPotential first credit card or card for those with bad credit, can be an option if you can't get a card elsewhere; initial credit limit £250 to £1,000; possible credit limit increases up to £4,000; 29.8% variable APR on purchases; Express Check eligibility checker
                                                                                                              Poor CreditAqua ClassicEligibility checker; purchase APR 35.95% variable (up to 59.95%); credit limit may increase ; initial credit limit between £250 and £1,200; free text alerts when near credit limit/approaching payment date; can change payment date
                                                                                                              Poor Credit, New to creditBarclaycard ForwardNeed income from part-time employment (£3,000 per year minimum); 0% on purchases first three months; chance to reduce interest rate within the first 12 months; purchase APR 34.9% variable; pre-application eligibility check; £150 to £1,200 initial credit limit
                                                                                                              Poor Credit, Low IncomeCapital One ClassicNo income requirement; need some credit history in UK; two possible credit limit increases per year; purchases APR 34.9% variable; credit limit between £200 and £1,500; QuickCheck eligibility checker
                                                                                                              Poor Credit, First CardMarblesPossible first credit card (no credit history needed); eligibility check; chance to increase credit limit after three months; free SMS text alerts; purchases APR 34.9% variable
                                                                                                              Poor credit and travelAqua Advance; eligibility check; chance to decrease interest 5% each year for 5 years; free SMS text alerts; purchases APR 34.9% variable; no foreign transaction fees

                                                                                                              How to Choose a Credit Builder Card for You

                                                                                                              There are credit builder cards for all kinds of situations: new to credit, building credit, poor credit, part-time income, no income, etc. Finding the right credit card for you can be easy if you consider a few defining features of your financial situation:

                                                                                                              If you're prone to paying only the minimum monthly payment each month, finding a card with the lowest APR and the highest minimum monthly payment may help you to pay back your debt sooner with fewer total interest charges. You might be better off with a low APR card like the AA Low Rate Credit Card, with its 6.5% representative APR—use their eligibility checker to see your odds of being accepted before you apply, especially if your credit history is spotty.

                                                                                                              You'll notice that a common feature of cards suitable for those with a poor credit history is a relatively low credit limit. A key component of your future credit rating is staying within this credit limit so be sure you're aware of it.

                                                                                                              Only those with a bit of responsible payment history and a solid credit score are likely to be accepted for credit cards with perks, like cashback rewards and no foreign transaction fees (e.g., Aqua Advance). If you're applying for your first credit card, you may be limited to a simple, no frills card that will enable you to build up a history of staying within your credit limit and paying on time. Once you've established a healthy credit history, you can think about upgrading for a card with perks.

                                                                                                              Most cards offer a "soft" eligibility checker that will tell you if you're likely to be accepted or not. Where possible, use an eligibility check to tell you your odds of being accepted before you apply. If you're unsure if you satisfy the credit history requirements (which can be a bit vague), this is a useful step in the application process.

                                                                                                              Credit builder cards can be extremely costly if you carry a balance from month to month. If you find yourself struggling to pay back your outstanding debt, you may want to get free debt advice from organizations including:

                                                                                                              Erin Yurday

                                                                                                              Erin Yurday is the Founder and Editor of NimbleFins. Prior to NimbleFins, she worked as an investment professional and as the finance expert in Stanford University's Graduate School of Business case writing team. Read more on LinkedIn.

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                                                                                                              The guidance on this site is based on our own analysis and is meant to help you identify options and narrow down your choices. We do not advise or tell you which product to buy; undertake your own due diligence before entering into any agreement. Read our full disclosure here.