Credit cards for bad credit
Choosing a credit card for bad credit
If you’ve a poor credit history, a credit card for bad credit can help rebuild your creditworthiness – if you spend small amounts and repay IN FULL each month. This guide explains how these cards work, how to choose the best one for you, and how to use them safely to improve your credit record.
MoneySavingExpert quick tip: Always check your chances of acceptance before applying with our Credit Card Eligibility Calculator, reducing the risk of a failed application.
One-minute summary: Credit cards for bad credit...
Who they’re for: People with poor or limited credit history, including CCJs, defaults, or past bankruptcies.
How they help: Use for small everyday spending and repay IN FULL each month to rebuild your credit score in six to 12 months.
What to watch: Higher interest rates (often 29.9%-34.9% APR) and lower credit limits than standard cards.
Golden rules: Never withdraw cash. If you can't fully repay, never miss the minimum monthly repayment.
Next step: Always check your chances before applying to avoid damaging your credit record – use MoneySavingExpert's free Credit Cards for Bad Credit Eligibility Checker.
Links in the table below go via our eligibility calc, unless stated.
Card | Key perks | Rep APR |
|---|---|---|
- Clubcard points on spending | - 29.9% rep APR | |
Asda Money (1) | - 0.75% cashback at Asda, 0.2% cashback elsewhere | - 39.8% rep APR |
- Simple, no-frills credit builder | - 29.9% rep APR | |
- Simple, no-frills credit builder | - 29.9% rep APR |
(1) Link goes to Asda as this card isn't in our eligibility calc.
What is a credit card for bad credit?
A credit card for bad credit, often called a credit builder card, is designed specifically for people with a poor or limited credit history.
These cards typically have:
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Lower credit limits
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Higher interest rates, known as Annual Percentage Rate (APR)
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Fewer perks or rewards
Used responsibly – for small amounts of everyday spending and repaying IN FULL each month – these credit builder cards can help rebuild your credit score within a few months.
For more info on all the types of credit cards available, see our main Credit Cards section, including Balance Transfer Credit Cards if you've existing debt you currently pay interest on.
What causes someone to have a bad credit record?
A bad credit record means you've made a few mistakes in the past, such as missed or late payments, defaults, CCJs or bankruptcy, so you're seen as a higher risk and some lenders may not accept you.
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 determine how risky you are to lend to.
If you've had problems before, however, all is not lost. Specialist bad credit or credit builder cards are more likely to accept you with 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.
How to rebuild your credit score with a credit card for bad credit
Credit cards for bad credit can help rebuild your score in six to 12 months if used correctly. You'll need to:
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Choose a credit builder card with a low limit.
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Avoid multiple applications - use MoneySavingExpert's eligibility calculator to see your chances before applying.
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Pay on time and IN FULL every month.
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Keep your balance low (ideally under 30% of your limit).
Why it works
Credit scoring models reward consistent, responsible behaviour. Using a credit card for bad credit helps you demonstrate:
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Payment reliability: On-time payments build trust.
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Low utilisation: Keeping your balance low shows control.
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Credit history: Regular use builds your credit footprint.
Example: If your card has a £500 limit, spending £150 and repaying it IN FULL each month keeps your utilisation at 30% - a positive signal to lenders.
You can track changes to your score through free tools.
Golden rules for using a credit card for bad credit
Follow these three golden rules to rebuild your credit history safely and avoid costly mistakes:
1. Use your card for small, planned spending only
Instead of using cash or a debit card for spending you'd already planned to make, start using the credit card.
Aim to use less than 30% of your credit limit (for example, spend £50 if your limit is £200).
Never withdraw cash. ATM use is expensive (fees plus interest) and signals risk to lenders.
Handy trick: move each card spend amount into an easy-access savings account then transfer it back when the card bill is due.
2. Repay IN FULL each month
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Paying in full and on time means you avoid all interest on purchases.
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Set up a Direct Debit so you never miss a payment.
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This doesn’t apply to cash withdrawals, where you're charged interest immediately.
3. If you can't repay in full, pay AT LEAST the minimum
If you can't repay in full, interest will be calculated based on your entire balance, even the part you've paid off.
The minimum repayment is the lowest amount you must repay each month.
Missing it usually triggers a £10+ fee and a negative mark on your credit report.
Protect yourself by setting up a monthly Direct Debit for at least the monthly minimum (or a higher/the full amount if you can).
If you’ll struggle to repay, contact your provider immediately to agree a repayment plan.
How to apply for a credit card with bad credit
Applying for a credit card with bad credit is possible, but you should take steps to improve your chances and avoid harming your credit record further. Always check your eligibility before applying as rejected applications can lower your score.
Steps to apply for a credit card with bad credit:
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Check your credit reports for errors. 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).
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Use an eligibility calculator before applying. Our MoneySavingExpert Credit Card Eligibility Checker shows your acceptance odds for each card without impacting your credit score, then lets you apply.
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Compare cards designed for bad credit. Look for the lowest APRs and any useful perks, such as cashback or supermarket rewards.
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Apply for one card only. Multiple applications in a short time can harm your credit record and reduce your chances of approval.
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Set up a Direct Debit from day one. Repay IN FULL each month to avoid interest and start rebuilding your creditworthiness.
💡 Quick tip: If you already have a credit card, you may not need a new one. Using your existing card responsibly (small spending and paying IN FULL) can improve your credit record just the same. If you’ve reached your limit, always pay at least the minimum repayment and as much extra as possible.
If you're struggling to keep up with debt repayments, or are building up more debt just to pay for day-to-day expenses, see our Persistent Debt Help guide for support, including how to move existing debt to 0% and where to get free one-on-one debt help.
Try our free Credit Club
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.
Best credit cards for bad credit
The best cards accept those with poor credit histories while keeping APRs as low as possible. Some may offer extras such as cashback or rewards (though be wary of getting a card based just on its spending perks).
Some cards offer a 0% spending period, but unless you NEED to borrow, the safest way to use them is to spend a small amount and repay IN FULL each month to help build your credit history. If you do need to borrow, see how to do it the right way in .
We've ordered the table by perks, then by representative APR, but any credit card used correctly will have the same impact on rebuilding your creditworthiness, so take this list with a pinch of salt.
All links go via our MoneySavingExpert eligibility calculator, at providers' request (unless stated).
Card | Perks | Rep APR | |
|---|---|---|---|
- Clubcard points on spending | - 29.9% rep APR | ||
- 0.75% cashback at Asda, 0.2% elsewhere | - 39.8% rep APR | Apply (1) | |
- Simple, no-frills credit builder | - 29.9% rep APR | ||
- Simple, no-frills credit builder | - 29.9% rep APR |
(1) Link goes to Asda as this card isn't in our eligibility calc.
For more on APRs, see Official APR examples.
What to do if you're declined for a credit card
If no credit card is likely to accept you, or you’ve been declined, it usually means your credit rating isn’t strong enough right now. Don’t keep applying as multiple rejections in a short period can damage your credit record further.
You have two main options:
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Wait and rebuild your credit history
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Give your past issues time to become less recent.
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Keep making all existing repayments on time.
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Track your progress with free tools. See our How to check your credit report guide.
2. Try a credit-builder product.
These products give you something that acts like credit, where you make regular payments that get reported to credit reference agencies. Yet if you miss a payment, that'll be reported too, so only do this if you're absolutely sure you'll be able to make all the payments, otherwise you'd end up in a worse position than just having waited for time to heal your credit report.
Note: In November 2025, the Financial Conduct Authority said it found little evidence that “credit-builder” savings-style products significantly improve most people’s credit scores.
Still, if you understand the risks and want to try one, Loqbox is one of the better-known examples and there’s a free way to use it.
| Build your savings pot and get savings payments reported to your credit file – if you can commit to saving between £20-£200/mth for one year. This savings feature isn't Loqbox's main product (it offers various other credit score boosting features), but can be used without paying the £2.99/wk membership fee if you sign up to a one-week free trial then 'downgrade' your account to the free version. Once you've downgraded and activated the savings tool, here's how it works: Cost: Free (or £30) 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. Important - there's a few things you need to know about Loqbox: |
How do I check my credit score for free?
There are three credit reference agencies which hold your credit reports and give you free access to your credit report and score: 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.
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 beginner's guide to building a credit history.
✅ Next step: Use our Credit Card Eligibility Checker to see which cards you’re likely to get without harming your credit score.
Bad credit credit card FAQs
Still have questions? Here are some of the most common questions MoneySavingExpert.com receives about credit cards for bad credit.
There’s no single 'easiest' card to get as each credit card provider has its own criteria to determine who it will and won't accept, based on income, your credit history (eg, loans, mobile phone contracts, other cards) and how you'll use the card.
Cards in this guide are designed for poorer credit scorers, and many will often accept those with CCJs, defaults or past bankruptcies where standard cards wouldn't.
Use the MoneySavingExpert Credit Card Eligibility Calculator to see your personal acceptance odds before applying.
Yes. Some specialist bad credit cards accept people with very poor credit, including those with CCJs, defaults or past bankruptcies.
Which card you’re eligible for depends on the lender’s criteria, so always check your odds first using the MSE eligibility checker.
Credit card APRs are “representative”, which means only 51% of successful applicants must get the advertised rate. Others may be offered a higher one. 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, if you use the card correctly and repay IN FULL each month, the APR won’t matter because you won’t pay interest.
Yes, if used correctly. Spending small amounts and repaying on time (ideally IN FULL each month) shows lenders you can manage credit responsibly. This positive history is reported to credit reference agencies and can improve your score within six to 12 months.
This varies, but usually people see improvements within about six months, assuming they have made consistent, on-time repayments. Serious issues such as defaults or bankruptcy can take a lot longer to fully drop off your file.
Yes. If you can’t get accepted for a credit card, or you’d rather avoid one, there are other ways to build or rebuild your credit record:
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Prepaid cards with credit reporting: Some prepaid cards offer optional add-ons that report monthly payments to credit agencies.
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Regular bills & contracts: Paying mobile phone contracts, utilities or broadband on time also helps build your credit history.
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Becoming an authorised user: In some cases, being added to a family member’s or partner’s card (if they’ve good credit) can help strengthen your record.
These options won’t give you a traditional credit limit or spending power like a credit card, but they can be useful stepping stones to rebuild your score before applying for mainstream credit.
No, all credit cards you apply for require a credit check. However, you can see your chances before you apply by using our eligibility checker, which won’t affect your credit score.
Most of these cards don’t have annual fees, but they usually have higher APRs. Avoid paying hefty interest by repaying IN FULL each month and never withdraw cash from ATMs on them as you'll face fees and interest right away.
A feature of bad credit cards is they usually start with low credit limits, say £200 to £500. However, if you do manage the card responsibly and show you can repay on time, you may be able to get the limit increased over time.
What are the easiest cards to get with bad credit?
Can you get a card with very poor credit?
Why is my interest rate higher than advertised?
Do bad credit credit cards really improve your score?
How long does it take to rebuild credit with a credit card?
Are there alternatives to bad credit credit cards?
Can I get a bad credit card with no credit check?
Will a bad credit card have fees?
What’s the credit limit on a bad credit card?
Why can you trust MoneySavingExpert?
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