Credit Builder Card

It depends how you go on to use your card. If you’ve struggled accessing credit in the past due to less-than-perfect or thin credit, then getting a credit builder card can help to improve your financial situation.

Opting for a credit card to build credit – then managing it responsibly – can help you improve your credit score, putting you in a better position to apply for other products with lower interest rates.

Although you may find it difficult to get accepted for a credit card if you’ve little-to-no credit history, it’s not impossible.

There are specialist companies, like Ocean Finance, who offer credit rebuilding credit cards designed to help you access the funds you need so you can start borrowing sensibly. If used responsibly, this should help you build up your credit history over time.

It can take time for your credit score to improve, so if you’ve started to make positive changes, give your score some time to catch up. Often it can depend on how regularly the credit reference agencies update your records, and which lenders report to which agencies.

If you are consistently managing your finances well, and taking the necessary steps to improve your credit score, you should see that it starts to improve within a few months.

You can see your eligibility for a credit builder card without a credit check – so you can know if it’s a yes with no impact on your score.

However, as with any type of credit, a hard check is carried out when you apply for a credit card. You can easily recover this with responsible use of your new card – this means paying on time, every month and staying well within your credit limit.

There are a number of alternatives to a credit builder card, but the right one for you will depend on what you’re looking to achieve. A credit builder card can be a good option if you need to access funds but have been turned down for credit in the past and want to improve your credit score. You may also consider a poor credit loan, which may be more suitable if the amount you need to borrow is greater. It’s important to note that, as with all credit, when taking out a loan, your credit score will take a knock at first. However, by making your repayments on time and in full each month, your credit score should start to improve over time.

If you’re simply looking to improve your credit score or build up a healthy credit history, but you don’t necessarily want to borrow money, then you can start making changes now by following our seven steps to a healthier credit score. 

Although there are lenders who specialise in offering cards to those with lower incomes, all credit cards require you to have a minimum income amount in order to be accepted. The minimum income amount will vary between lenders, and there is no legal minimum income for a credit card. This is to ensure that you can afford to make at least the minimum monthly repayments.