Credit Building Cards

Compare Credit Building Credit Cards With Proper Finance

Which credit building card providers do we work with?

We compare dozens of the biggest credit card providers in the country, including:

What Is a Credit Builder Card?

A credit builder card is designed to help people build up their credit rating. It is commonly used by people with bad credit scores or no credit at all, but getting in the swing of making regular payments each month through a credit building card looks good to finance companies and you will credit score will improve as a result.

Everyone gets a credit score when they turn 18 but are often turned down for mainstream loans and credit cards due to a lack of financial history. A credit building credit card is a great starting point, allowing you to make some initial purchases and get used to repay on time each month – and this will help build up your score.

For those individuals who has missed a few credit card or loan payments in the past, they may be looking to get their finances back on track. A credit building card allows them to demonstrate their creditworthiness and noticeably improve their credit score.

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How Do Credit Builder Cards Work?

The majority of credit builder cards have low credit limits and a high APR, this is done in order to reduce the risk of lending to those with poor credit or no credit score at all. For instance, the average APR on a credit building car is around 29% to 35%, compared to interest free credit cards and the average credit card of around 18%.

To make sure that you use a credit builder credit card successfully, you must:

 

How Does Your Credit Score Improve With a Credit Building Card? 

Your credit history is stored by the three main credit agencies in the UK: Experian, Equifax and Callcredit. The nature of credit histories means that they can always go up or down, so if you can show that you are consistently paying your credit card debts on time, your credit score goes up. Simple.

When applying for future credit cards, loans or mortgages, the lender will request information from one of the three main credit reference agencies. Seeing that you have been making repayments will not only improve your chances of approval but also allow you to access lower and more favourable rates.

Why Apply for a Credit Building Credit Card With Proper Finance?

Approachable

We aim to be as approachable as possible for our customers, and will always do our very best to assist you with any and all queries you may have concerning any part of our application process and more.

Fast decisions

Our online application only takes minutes to complete, with decisions being made very quickly after this. A member of staff will contact you to help you proceed with the final steps.

Reputable and trustworthy

Each and every one of the providers we work with are fully checked to ensure their reputability, their trustworthiness, and furthermore their competency in helping to provide you with the financial services you require.

Free online application

The Proper Finance comparison site is free to use and there are no upfront fees for filling in our online application.

Does my credit record matter?

Yes, lenders look at your credit record in order to determine both your credit limit and APR, as well as your overall application.

Will I be declined if I have bad credit or no credit?

Not necessarily, these kinds of cards are aimed to help those with bad credit. However, if you have several credit card debts outstanding, this may not be the best solution for you.

What if I have late or missed repayments when using the card?

This may affect your credit score and ability to obtain credit in the future.

How do I make repayments?

It is highly recommended to pay off your balance in full each month by direct debit, to avoid you incurring interest or forgetting to make a payment.

 

Are there additional fees for using a credit builder card?

Depending on the credit card provider, you may pay additional fees for money transfers, withdrawing cash from the account or spending abroad.

Who are credit builder cards useful for?

People who have had difficulty getting approved for a credit card, such as those on a low income, have a low credit score or if they have not had enough time to build up a score yet.

How do I use a credit builder card?

You should make sure you always pay back the full balance each month, avoid withdrawing cash on your credit card and keep within your credit limit.

How do they build up your credit?

Providing that you make full payments promptly and stay within the credit limit, your credit score will improve over time, and your credit limit may increase too.