Credit cards for bad credit
Choosing a credit card for bad credit
If you've a poor credit history, using a credit card to show you can repay on time each month can help rebuild your creditworthiness. Our guide has full info on how to best manage a credit card, plus our Credit Card Eligibility Calculator will show your chances of acceptance before applying, reducing the risk of a failed application.
These credit cards are more likely to accept those with a poor credit history, such as those with a record of paying late or missing payments (or even past bankruptcies, defaults and CCJs). Use one for everyday spending and, provided you repay IN FULL each month, your credit score could improve within six(ish) months.
Don't just apply - go via an eligibility calc. Our Credit Cards for Bad Credit Eligibility Checker speedily shows acceptance odds for a wide variety of cards (some are 'pre-approved'), without affecting your creditworthiness.
Credit cards for bad credit usually have a low credit limit. This means means you'll be able to spend less on them, compared to a standard credit card.
Credit cards for bad credit have much higher interest rates (APRs). This means you'll be charged more interest if you don't repay your balance IN FULL each month.
Tesco Bank | - Clubcard points on spending |
Asda Money | - 0.75% cashback at Asda |
Post Office | - 29.9% rep APR |
Virgin Money | - 29.9% rep APR |
If you do get a card, ALWAYS follow the Golden Rules for credit cards:
a) Repay your balance IN FULL every month, preferably by Direct Debit.
b) If you can't fully repay, never miss the minimum monthly repayment.
c) To avoid hefty fees and interest, don't withdraw cash.
What causes someone to have a bad credit record?
Every adult has a credit history, which is a record of how well you've managed credit (such as loans, store cards or credit cards) in the past. Other lenders then use this record when you apply to see if you're a good risk to lend to.
Yet if you've made a few mistakes in the past, such as paying late or missing payments (or even past bankruptcies, defaults and CCJs) then you could appear too high a risk, meaning lenders may not accept you.
However, all is not lost as there are special credit cards that are more likely to accept you, even if you've had past problems. If you've a poor credit history, getting one of these cards could be a financial lifeline as – used correctly – it can help improve your creditworthiness by showing you (now) have the ability to repay reliably and on time. Sometimes known as credit builder cards, credit cards for bad credit often have low borrowing limits and high interest rates .
For more info on all the types of credit cards available, see our Credit Cards section, including Balance Transfer Credit Cards if you've existing debt you currently pay interest on.
How to repair your credit report using a credit card
There are pros and cons to credit cards, but follow these rules and it should lead to an improvement in your credit record. You can track changes through free tools, though you'll need patience as it can take several months to see a positive change – it's worth the perseverance.
1. Use your credit card for a small amount of everyday spending each month and NEVER withdraw cash
Instead of using cash or a debit card for spending you'd already planned to make, start using the credit card. Ideally you should limit this to less than 30% of your credit limit (the maximum amount you can spend on the card at one time) as this shows you're not reliant on the borrowing.
The balance in your current account will appear to be higher, though remember you'll need this to repay the credit card at the end of the month. As you spend on the card, try moving that amount from your bank account to an instant access savings account, which you can then transfer back before your credit card bill is due.
If this sounds too much, then try doing smaller spending, say £50, on the card each month, and then paying that back at the end of the month.
Don't be tempted to use a credit card at an ATM for cash. It's not only expensive (often a fee for each withdrawal plus expensive ongoing interest) but repeated cash withdrawals are a red flag to lenders – they can make you look desperate for credit – so can harm your credit file and your creditworthiness.
2. Repay IN FULL each month
Most cards don't charge interest on spending if you pay the money back in full and on time by the statement due date, so this is the absolute best way if you're able to. Though note this doesn't apply to cash withdrawals, which usually attract interest from day one – part of the reason to avoid taking cash on a credit card.
3. If you can't repay in full, always repay AT LEAST the minimum repayment on time
If you can't repay in full, you won't be able to avoid interest, and it'll be calculated based on your entire balance, even the part you've paid off.
Crucially, the minimum repayment is the lowest amount you must repay each month, on or before your statement due date. This is vital, or you'll likely get both a £10ish late fee and a negative missed payment marker on your credit report (this will damage your chances of getting credit in future).
To ensure you don't miss a payment, set up a monthly direct debit to automatically pay off the minimum amount (or a higher/the full amount if you can). If you know you won't be able to pay, contact your provider immediately and work with it to agree a different repayment plan.
How to apply for a credit card for bad credit
There is no one single top-pick card that can help you rebuild credit as, used correctly, any credit card can boost your rating and for free, if it's repaid in full each month.
If you already have a credit card, use that instead of getting another
Prevent another credit check and follow the steps above to manage your existing credit card, which should have the same impact as a new card.
If you've reached the limit and can't use it for further spending, always ensure you're paying at least the minimum repayment and try to pay off as much as you can, whenever you're able.
See our Persistent Debt Help guide for full help including how to shift existing debt to 0% to clear it quicker and where to find free one-on-one debt help.
If you need to apply for a new card, use our Credit Club to compare cards in your personal best-buy table
Which card to go for will be determined by which will accept you – we've steps below to find your top card, plus help if you can't get any.
Before you start, always check your credit reports for any errors as this could be incorrectly damaging your rating (and may impact which cards you can get).
Sign up to MSE's Credit Club to boost your credit power – access our free tools to see how the financial world views you, including:
An Eligibility Rating that combines your credit score, affordability, and market trends.
View your full credit report – your financial CV.
Get personalised acceptance odds for credit cards and loans.
You'll see your eligibility chances for most of our top-pick cards
Our eligibility calculator shows your acceptance odds for many cards, including most of our top picks below. We've ordered these by perks, then by representative APR. Some of these cards sometimes have a 0% spending period, but unless you NEED to borrow (and if so, make sure you use the cards the right way – full details are in ), it's best to use these cards to spend a small amount and pay your card off in full each month to help build a good credit history.
However, any credit card used correctly will have the same impact on rebuilding your creditworthiness, so take this list with a pinch of salt.
Tesco Bank Foundation | - Clubcard points on spending | |
Asda Money Select | - 0.75% cashback at Asda | Apply |
Post Office | - 29.9% rep APR | |
Virgin Money | - 29.9% rep APR |
(i) These providers have asked us to only link to our eligibility calculator. For more on APRs, see Official APR examples.
What can I do if my credit card application has been declined?
If no credit card is likely to accept you, or you've been declined, it's likely your credit rating won't permit you to get any card. Yet if you apply for too many cards and receive multiple rejections in a short period, you could shoot your credit rating in the foot for years. So for safety, you've now got two options:
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Wait until your bad credit history is less recent. Then try again (see below for how to track changes to your credit rating) and/or...
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Try the 'credit-builder' product below. It's hard to quantify how much of a positive effect using this will have in comparison to waiting a year before applying for credit. However, this option is fee-free (if you open a free account at the end, if not it's £30) and essentially gets you into a good savings habit, so could be worth a try.
Loqbox* | Build your savings pot and your credit history – if you can commit to saving between £20-£200/mth for one year. 1. You choose a fixed amount (£20-£200) you can save each month for a year, which is then charged to your debit card each month. 2. Loqbox gives you a 0% loan for the total (so £240-£2,400) – you won't be able to access this loan money, but it appears on your credit report as a loan (don't worry, there's no credit check). 3. Your monthly 'savings' are then used to 'repay' the loan over the year, with payments reported to all three credit reference agencies. 4. At the end of the 12 months, you have a fully repaid loan on your credit report (and hopefully an improved score) plus you'll get all your money back. There's a £30 fee to have it paid into your existing bank account, or it's free if you open a new account with one of the banks Loqbox partners with, such as TSB, Monese or Kroo. When coming to withdraw your funds, you'll see next to each provider whether it'll require a hard or soft credit search – Loqbox says most won't require a hard search (of its three partner banks, only TSB does), though be wary if you choose one that does. Important: Never miss a monthly payment, or pay late. Doing this would leave you in a worse position than not getting Loqbox and doing nothing. If you can't afford to continue saving, you can cancel your agreement at any time and get your money back – typically in five working days. |
How do I check my credit score?
The best way to keep track of changes to your credit history is to regularly check your credit reports.
There are three credit reference agencies which hold your credit reports – Equifax, Experian and TransUnion (formerly Callcredit). It's best to check all three reports, because lenders may check one, two or all three when you apply for credit.
All three give you free access to your credit report and score.
TransUnion – use MSE Credit Club, which gives you free access to your TransUnion report (amongst a lot of other things).
Experian – use Experian's CreditExpert* free 30-day trial, but you'll have to cancel before the end of the trial to avoid the ongoing £14.99/month fee. If you've already had the free trial, you can get Experian's free statutory credit report.
Equifax – use Clearscore*, which provides free access to your Equifax report.
While your credit score is a good general indicator of how well you're doing, it's not the be all and end all, as it doesn't take in to account other things lenders will know about you when you apply for credit, such as your application data. Your credit score will go up for things like making payments on time and down for things like being late or defaulting on a loan
So, by all means monitor your credit score as it's a decent way to easily keep track, but don't assume that once your credit score's "excellent" that you'll get accepted for any and all credit - that's just not how it works.
See our How to check your credit report for free guide for full help and our Credit Score guide for more tips on how to improve your overall creditworthiness. Looking to build credit history as a young person? Read our guide.
Bad credit credit cards FAQs
Each credit card provider has its own criteria to determine who it will and won't accept, typically looking at factors such as your income, your credit history (how well you've managed credit in the past, such as loans or mobile phone contracts) and whether you're looking to use the card to withdraw cash.
Therefore there's no set 'easiest cards to get' as it varies from person to person. However, the cards in this guide are designed for poorer credit scorers, so will often accept those with CCJs, defaults or past bankruptcies where other cards wouldn't.
We've full help on how to find your top credit card to rebuild credit above, including our credit card eligibility calculator which shows you your changes of acceptance for many cards before applying.
The answer to this will depend on the acceptance criteria of each credit card, though the cards in this guide are designed for poorer credit scorers, so will often accept those with CCJs, defaults or past bankruptcies where other cards wouldn't.
We've full help on how to find your top credit card to rebuild credit above, including our credit card eligibility calculator which shows you your changes of acceptance for many cards before applying.
As we say above, every adult has a credit history – which is a record of how well you've managed credit (such as loans, store cards or credit cards) in the past.
Other lenders then use this record when you apply to see if you're a good risk to lend to. Yet if you've made a few mistakes in the past, such as paying late, or missing payments (or even past bankruptcies, defaults and CCJs) then you could appear too high a risk, meaning lenders may not accept you for further credit.
It's also always worth checking your credit reports for any errors as this could be incorrectly damaging your rating (and may impact which cards you can get). See 28 tips to improve your credit score for full help.
Sadly this is a catch to watch out for. Card firms can give you a higher interest rate than the one used to advertise the card, as only 51% of people accepted need to get this advertised APR.
So just because a card says it has a 34.9% representative APR, it doesn't mean that's the interest rate you'll get. However, use these cards right and you shouldn't be paying interest, which would mean the rate you get shouldn't matter.
What are the easiest cards to get?
Can you get a card with very poor credit?
What causes bad credit?
I've been accepted but the interest rate is higher than the one advertised. Why is this?
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