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Credit builder cards
Build your credit history
Accessing credit can be tricky for those with limited credit history. If you're saving for a house deposit or considering a large purchase, using a credit builder card can make your mortgage or loan application look more appealing to lenders. This guide runs through who's eligible for a credit builder card, and how you can use them to boost your credit score.
What are credit builder cards?

Credit builder cards are a type of credit card that can be used to improve your credit score. When you use a credit builder card you'll do exactly that: build (or rebuild) your reputation with lenders and credit reference agencies – increasing your chances of successfully applying for loans, better credit cards (and eventually, large credit products like mortgages).
If used properly, a credit builder credit card can improve your credit score within four to six months.
How do credit builder cards work?
When you use a credit builder card, you'll be showing your card provider and credit reference agencies how well you handle credit. Used correctly, these cards can improve your credit score by demonstrating how reliable you are.
When you use a credit builder card, it'll feel just the same as using any other credit card:
- Each time you spend on your card, you borrow money from your credit provider, which you then should pay back each month.
- You have a credit limit which is the maximum you can borrow.
- Anything you don't pay back within a month you'll be charged interest on.
However, there are some key differences. Credit builder cards usually have a much lower credit limit (meaning you can spend less on them) than standard credit cards, and you'll have to pay much higher interest rates if you don't repay on time.
Who are credit builder cards for?

Credit builder cards are a great option for those starting from scratch with their credit score. If you're thinking about getting a mortgage or taking out a loan in the not-too-distant future using a credit builder card first can make your life much easier.
Credit builder credit cards can also be useful for people who've made mistakes with credit in the past and are looking for a way to get back on track. Though if this is you, it's better to see our credit cards for bad credit guide.
Lenders use your credit history to determine whether they think you're a reliable person to lend to or not. If you don't have a credit history (or it's very limited) credit providers have no idea what kind of customer you might be, so they'll be more hesitant to lend to you.
This is why credit builder cards can be a good option for first time borrowers. Using the card properly can demonstrate your reliability to lenders improving your chances of being successful in application to other types of credit cards, personal loans or mortgages.
Am I eligible for a credit builder card?
Unfortunately, there's no guarantee you'll be accepted for a credit builder card: you'll still have to go through an application process and credit check.
Lenders have varied and often secret ways of choosing which customers they want to lend to, though you're likely to be eligible if you...
- have a decent income and are in full-time employment.
- pay for other financial products such as a phone bill or rent.
- are over 18.
You'll also need some form of ID, a bank account and bank statement, plus proof of income. We go into more detail about how to apply, below.
Check whether you'll be eligible BEFORE you apply...
Using our eligibility calculator tool before you apply will show you which cards you have the best chance of getting. It only does a 'soft search', so it won't impact your credit report.
Once you know which cards you might be eligible for, you can also apply through the tool. Simply, choose the card which gives you the highest chance of acceptance, hit apply and it will take you to the provider's site.
What if I already have a credit card?
How to apply for a credit builder card
Only apply for ONE card at a time
Top credit builder cards
If you've never had a credit card before, it can be tricky to decide which one to go for. The best credit builder card for you will depend on your personal circumstances but, as a general rule, you should be looking for something with a low interest rate and reasonable credit limit.
Our eligibility checker will show you your acceptance chances for many cards, including most of our top picks below. We've ordered these by perks, then by representative APR. Some of these cards also 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 0% spending), 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.
Sainsbury's Bank |
- Earn Nectar points on spending - 29.4% rep APR |
Check eligibility |
Apply* | ||
Tesco Bank Foundation | - Clubcard points on spending - 29.9% rep APR |
Check eligibility |
Apply* | ||
Asda Money Select | - Asda pounds on spending - 34.9% rep APR |
Apply (not in our eligibility calc) |
Capital One |
- 29.8% rep APR |
Check eligibility |
Apply* | ||
Post Office |
- 29.9% rep APR | Check eligibility |
Apply* | ||
Virgin Money |
- 29.9% rep APR | Check eligibility |
Apply* |
For more on APRs, see Official APR examples.
Got a card? Make sure you use it right... follow the credit builder card golden rules...
Been rejected? Don't panic - and don't apply again (yet)

Rejection can be disheartening, particularly when you're making your first credit applications. However, what you do now is just as important for you credit score as securing your first credit builder card.
Important. If you've been declined for a card, don't keep on applying for more.
You might think that applying for as many credit cards as possible would boost your chances of being accepted, but if you're rejected more than once in a short space of time, you can do real damage your credit score.
So, if you've been rejected recently, you've now got two options:
- Wait, then try again. It may be that you need time to heal your credit report, especially if you've made a lot of applications recently. So give it some time, then try the eligibility checker again, to see if you're likely now to get any cards.
- Try the 'credit builder' product below. This option is fee-free if you open a free account at the end (if not, it's £30), plus it gets you into the habit of making 'repayments' each month, so could be worth a try.
If you can't get any credit card, try Loqbox
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Increase your savings and improve your credit history – if you're able to save £20-£200/mth for one year. |
1. Choose a fixed amount to save every month for a year between £20 and £200. This is then charged each month to your debit card. 2. You then get a 0% loan from Loqbox for the yearly total (£240-£2,400), which you cannot access. There's no credit check, though this will appear on your credit report as a loan. 3. The fixed amount you've chosen to 'save' each month is then used to 'repay' the Loqbox loan over the course of the year. These payments will be reported to all three credit reference agencies. 4. By the year's end, you'll then have a fully repaid loan to show on your credit report, which should help increase your score. It won't cost you a thing, as you pay the same amount Loqbox loans you. Only catch is that to transfer the money into your existing bank account, it'll be £30. Though it's free if you open an account with a Loqbox partner bank such as TSB and NatWest. Loqbox claims most won't require a hard credit search, but be careful of choosing one that does.
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