There are many credit cards for building credit on the market. It can be difficult to know which one to choose.
In our last article, we explored the various card types and how they should be used. Here we look at specific cards, their eligibility criteria and what they offer.
Remember that whatever card you go for, the balance on it should be repaid in full every month to avoid paying interest. And you should never miss any payments.
Credit rebuilder cards
These cards are useful if you have no credit history and need to build some, or if you have a poor credit score that you need to rebuild.
Below is a selection of credit cards available right now (December 2016). When it comes to selecting your own card, do your research and use online comparison sites. Use them to check out the full range and current offers available.
The key features that you should look out for are:
- The annual percentage rate (APR) for this type of card is typically 30 – 50% and in some cases higher. Ideally, you will repay the balance in full every month so you will not have to pay any interest but it should be taken into consideration.
- Eligibility information. If you have defaults or bankruptcy on your file then you may not be accepted. Check the eligibility criteria on each card carefully.
- Credit limit. Typically the initial amount on this type of card is low but it will increase with regular repayments.
Tesco Bank Foundation Clubcard Credit Card (27.5% APR Representative
(variable)
Requirements:
- Must not have applied for a Tesco Bank Credit Card in the last 6 months
- Must be 18 and over
- Should not have had any bankruptcies in the past 18 months
- Has not had any county court judgements in the past 18 months
- Min Credit Limit £250
- Max Credit NA
Features: Application response in 60 seconds. Designed to help you build your credit rating. Credit limit subject to status
Vanquis Bank Aquis Visa Credit Card (29.8 % APR Representative (variable)
Requirements:
- Must be a permanent UK resident
- Must be 18 or older
- Should not have had bankruptcies in the last 12 months
- Not available to applicants who already hold a credit card provided by Vanquis Bank
- Min Credit Limit £250
- Max Credit £1,000
Features: Possibility to increase your credit limit after your fifth statement. Up to 56 days interest-free on purchases. Designed to help build your credit rating.
Capital One Balance Transfer Card (34.9% APR Representative (variable)
Requirements:
- Must be 18 or older
- Should not have been declared bankrupt in the last 12 months
- Must not have had any CCJs or defaults in the last 12 months
- No transfers from Capital One
- Min credit limit £200
- Max credit limit £1,500
Features: 0% interest on balance transfers for 6 months, with a balance transfer fee of 3%. An online response in 60 seconds. Mobile App and Email Alerts available.
Thinkmoney Credit Card (35.9% APR Representative (variable)
Requirements:
- Must be 18 or older
- Should be a UK resident
- Must be able to show some history of managing credit
- Min Credit limit £200
- Max credit limit £1,500
Features: Manage your account online and with a smartphone. 60-second eligibility QuickCheck that will not affect your credit score. Suitable for people looking to rebuild their credit profile.
Aqua Start Credit Card (49.9% APR Representative (variable)
Requirements:
- Should be 18 or older
- Must have a permanent UK address
- Must have a UK current bank or building society account
- Should not have been registered bankrupt in past 18 months or have proceedings
- Have no Country Court Judgements (past 12 months)
- Min credit limit £100
- Max credit limit £300
Features: Start with limited credit and increase your credit limit after four months. Designed to help build your credit rating. Unlimited access to your credit report.
Marbles classic 24.8% credit card (24.84% APR Representative (variable)
Representative (variable)Requirements:
- Should be 18 or older
- Must have a permanent UK address
- Must have a UK current bank or building society account
- Should not have been registered bankrupt in past 18 months or have proceedings
- Have no Country Court Judgements (past 12 months)
- Min Credit Limit £250
- Max credit limit £1,200
Features: FastCheck your eligibility with instant response. Credit limit review after three months. UK-based customer helpline.
Ocean Credit Card MasterCard (34.9% APR Representative (variable)
Requirements:
- Must be 18 or older
- Should be a UK resident
- Must be able to show some history of managing credit
- Min credit limit £200
- Mac credit limit £1,500
Features: Manage your account online and with a smartphone. 60-second eligibility QuickCheck that will not affect your credit score. Suitable for people looking to rebuild their credit profile.
Prepaid Credit Rebuilder Cards
If you are turned down for a credit building credit card then prepayment credit rebuilder cards are another option.
They don’t usually involve a credit check and so it is likely that you will be accepted, however, there is a monthly fee for using this type of card.
CashPlus Credit Rebuilder
Requirements:
- Guaranteed Approval
- No credit check to open
- O% interest
- £5.95 monthly fee
Features: With the ‘credit builder’ feature you can borrow £71. After one year, following regular repayment of the initial loan, a full loan repayment is added to your credit file.
<H3> Credit Improver <H3>
Requirements:
- Guaranteed approval
- 0% interest
- No credit check
- £4.99 or £14.99 followed by monthly payments of £9.99
Features: Guarantee to improve your credit score or your money back, with the more expensive plan. Check the eligibility details carefully.
Best credit cards for building your credit : Summary
If you are looking to rebuild your credit, financial products like these can be a big help if used correctly. The APR’s on these types of credit cards are usually higher than mainstream cards. So you should not look to borrow any money you cannot pay back at the end of each month.
Consistent, disciplined money management is a key factor when rebuilding your credit score. Lenders want to see a history of financial management and living within your means.
