Compare credit cards for poor credit
Compare credit cards for poor credit
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About credit cards for poor credit
Borrow money and rebuild your credit score
A stepping stone to better financial products
No interest if you pay in full each month
FCA regulated
Credit cards for poor credit are designed for people who might have damaged credit files, or have been turned down previously. They give you a chance to show lenders you can manage credit responsibly, helping you to rebuild your credit file step by step.
How do credit cards for poor credit work?
They often come with higher interest rates, lower limits, no interest-free periods.
However, if you pay off your bill in full each month, you won’t pay any interest. As you rebuild your score, you should be able to borrow more money, at lower rates, and unlock other perks along the way.
How to apply for a credit card for poor credit
Compare cards
Find the best credit building cards available to you. Some might come with TotallySure, which means pre-approval and guarantees.
Check your eligibility
We’ll run a quick check to show you your chances of being accepted without affecting your credit score.
Get accepted
Once approved, you’ll receive your credit card in the post within 7-10 days to start, and then you can start rebuilding your credit file.
Use it responsibly
Make small purchases and pay off your balance in full each month to start improving your credit score, and showing lenders you’re a good borrower.
Types of credit card
There are a number of different types of credit card on the market, such as:
Balance transfer
If you want to cut the interest on your existing debts, a balance transfer credit card is for you. With a balance transfer credit card you can move balances you've accumulated on other credit cards and enjoy 0% interest for a set period of time.
Purchase
This is the simplest type of credit card. With a purchase card you'll get a 0% interest period for a set amount of time, allowing you to spend without accruing any interest, even if you don't pay your balance back in full each month.
Cashback
If you clear your credit card balance every month, and have no plans to build up any debt, a cashback credit card is a good option. These cards reward your spending habits by giving you a percentage of your spending back in the form of cash.
Rewards
An alternative option for people who clear their balance each month is a rewards credit card. Rather than paying you back with cash, these cards offer various forms of points in return from using them. These can range from airmiles to supermarket points.
Travel
An alternative option for people who clear their balance each month is a rewards credit card. Rather than paying you back with cash, these cards offer various forms of points in return from using them. These can range from airmiles to supermarket points.
Credit builder
If you have poor credit, a poor credit card can help you build your credit rating over time. While they have high interest rates, if you pay your balance in full each month, they can be an effective way of showing lenders you can be trusted.
What are the pros and cons of credit cards?
There are advantages and disadvantages to having credit cards, such as:
Pros
Helps rebuild your credit score - Use a credit card for bad credit responsibly, and you could see improvements within 6-12 months.
Easier to get accepted - Specialist lenders have designed these cards especially for people with defaults, CCJs, imperfect credit files, or previous rejections.
Payment protection - Credit cards come with Section 75 protection which offers protection on certain purchases over £100.
You won’t pay interest if paid in full - Pay off your balance in full each month, and you’ll never pay a penny in interest on your purchases, no matter what the APR is.
Helps you to build better financial habits - Using a credit card for bad credit responsibly can help you budget and manage repayments, creating better money management skills for the future.
Helps rebuild your credit score - Use a credit card for bad credit responsibly, and you could see improvements within 6-12 months.
Easier to get accepted - Specialist lenders have designed these cards especially for people with defaults, CCJs, imperfect credit files, or previous rejections.
Payment protection - Credit cards come with Section 75 protection which offers protection on certain purchases over £100.
You won’t pay interest if paid in full - Pay off your balance in full each month, and you’ll never pay a penny in interest on your purchases, no matter what the APR is.
Helps you to build better financial habits - Using a credit card for bad credit responsibly can help you budget and manage repayments, creating better money management skills for the future.
Cons
Higher interest rates - These cards can come with higher APRs which might range from 20% to 60%, making it an expensive way to borrow if you don’t pay off the balance in full.
Low credit limits - Limits might typically start at £200-£1,500, which might not cover larger purchases.
Annual fees - Some cards for bad credit might charge yearly fees, adding to the cost even if you don’t use the card much.
Temptation to overspend - Having credit available to you might encourage poor spending habits if you don’t keep to the plan.
Limited perks - These cards are no-frills, and are unlikely to come with cashback, rewards, or 0% offers.
Higher interest rates - These cards can come with higher APRs which might range from 20% to 60%, making it an expensive way to borrow if you don’t pay off the balance in full.
Low credit limits - Limits might typically start at £200-£1,500, which might not cover larger purchases.
Annual fees - Some cards for bad credit might charge yearly fees, adding to the cost even if you don’t use the card much.
Temptation to overspend - Having credit available to you might encourage poor spending habits if you don’t keep to the plan.
Limited perks - These cards are no-frills, and are unlikely to come with cashback, rewards, or 0% offers.
Our expert says
Credit cards for poor credit can be a real help for those who might otherwise find themselves locked out of mainstream borrowing. The rates are often higher, but if you use these cards properly, making small purchases and paying off the balance in full each month, you’ll never pay any interest.
It’s important to remember that these cards give you the chance to build your credit score so you can access better products in the future, including loans and mortgages, and even Direct Debit energy and phone bills.
Alastair Douglas, CEO of TotallyMoney
How to find the right credit card
The best credit card for you will depend on what you want to use it for. For example, whether you want to pay down debt, improve your credit rating, spread the cost of a large purchase, spend overseas, or earn cashback.
Credit building cards are designed for people with damaged or thin credit files. They usually have lower limits, higher rates, and no perks, but are easier to get accepted for, and can help you to prove you can manage credit responsibly.
0% purchase cards let you buy things up front and pay it off each month without incurring any interest. Even with a poor credit history, some cards offer short interest-free periods on purchases, helping you manage cash flow and spread the cost.
Balance transfers let you move debt from one or more cards to another, so you can interest payments for a set amount of time. The number of months you can avoid paying interest for will depend on how good or band your credit history is.
Money transfer cards are like balance transfers, but they allow you to move cash directly to your bank account. You can use the cash to clear an expensive overdraft or make purchases.
Reward cards will often give you cashback on your purchases, or they’ll let you earn points when you spend. With various offers around, it’s important you pick the right rewards card for your own circumstances.
Why use TotallyMoney
With TotallyMoney, you can compare credit cards from across the UK market and check your eligibility before making an application. This will help protect your credit score as you can then only apply for cards you’re likely to be accepted for. Too many rejections can have a negative impact on your credit score.
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Credit card FAQs
Yes, you can still get a credit card if you have a poor bad credit history. There are several specialist lenders who help people rebuild their credit scores, and this includes those with defaults, previous rejections, thin credit files, and CCJs.
What’s important is that you find the right card for your own personal situation. Always check your eligibility before you apply, as this will give you an idea of how likely you are to be accepted, without impacting your credit file.
Before applying, use an eligibility checker, as this will tell you your chances of being accepted without leaving a mark on your credit file.
At TotallyMoney, we go one step further, and show offers which come with pre-approval, and a guaranteed APR, credit limit, and length of offer. That you, you’ll know if you’ll be accepted, and that what you apply for is exactly what you’ll get. We call these offers ‘TotallySure’. Just look out for the badge when searching for an offer.
Credit building cards are also known as credit cards for poor credit, or bad credit credit cards. They’re designed to help people with poor credit scores, or damaged files rebuild their profile, so they can access better offers, and even loans and mortgages.
Usually, they come with a lower credit limit of between £200-£1,500, a higher interest rate, shorter terms, and fewer perks. But they are easier to get accepted, and if you use them properly, you can start building your score – and once you’ve done that, you can apply for cards with lower rates, longer terms, and bigger limits.
If used properly, it can. A good practice is to make smaller, day-to-day purchases (like your shopping or commute), and to pay off the balance in full each month. You should also aim to use less than 30% of your credit limit, and set up a Direct Debit so you never miss a payment.
If you stick to the plan, you should see an improvement in your score within 6-12 months.
It’s important to use the card responsibly. That means keeping the amount of available credit you’re using low, never missing payments, avoiding cash withdrawals, and avoiding multiple applications.
All these things can leave a negative mark on your credit file, and lower your score.
This depends on how poor your credit score is, and what you’re eligible for.
Rates can vary between 20% and 60%, but it’s worth remembering that if you pay off your card every month, in full, you’ll never pay any interest. So treat it as a tool, rather than a way of borrowing money.
Credit cards for poor credit scores come with lower limits as you’ll need to rebuild trust with lenders before they’ll let you borrow more. Usually, limits will range from £200 and up to £1,500, but this depends on your circumstances and the lender.
When deciding what limit to set, they’ll look at your income, debts, and previous history. As you start showing good financial behaviour, you’ll find that the lender might offer to extend the limit, or offer you a more competitive product.
This depends on your credit history, and how you use the new card. For people with a thin file, this could take as little as 3-6 months, but those with poor credit might take up to two years.
You’ll just need to keep consistent, and show the lender that you’re good at managing your credit – always repay on time, keep the balance low, and avoid applying for other credit cards.
If you’ve been rejected, it’s important that you avoid applying for another card straight away. That’s because multiple rejections in a short space of time can damage your credit score further.
Check your credit report for errors, and raise a dispute if you see something that isn’t right. Then it might be a good idea to wait for a few months before making another application.
Download the TotallyMoney app to see where you stand. We’ll give you a personalised plan to show you what’s holding you back, and how to move forward.
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