Best credit cards for bad credit 2024

You can fix bad credit and improve your credit score with a credit-builder credit card. We reveal the best deals on the market
Grace WitherdenSenior writer
Sam WilsonMarket analyst
Person worried about bad credit history

What are credit cards for bad credit?

Credit cards for 'bad credit' are designed for those who aren't eligible for mainstream credit cards because they have a poor credit score, or no credit history. If you don't know what your credit score is, find out in our guide how to check your credit score for free.

These 'credit-builder cards' have lower limits, higher interest rates, and fewer benefits than other credit cards, but they will allow you to build - or rebuild - your credit rating if used sensibly.

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Best credit-builder credit card deals

Here are our picks of the cheapest credit-builder credit cards available on the market right now. 

Please note that the information in this article is for information purposes only and does not constitute advice. Please refer to the particular terms & conditions of a credit card provider before committing to any financial products.

Sainsbury's Bank Everyday Credit Card
75%Starting credit limit between £1,000- £2000; no annual fee.29.4%. Representative example: assumed borrowing of £1,200 for one year, at a purchase rate of 29.4% (variable), representative 29.4% APR (variable). Credit available subject to status. Terms apply.
RECOMMENDED PROVIDER
Tesco Bank Foundation Credit Card
80%Starting credit limit between £250 - £1,500; collect Tesco Clubcard points; no annual fee.29.9%. Representative example: assumed borrowing of £1,200 for one year, at a purchase rate of 29.9% (variable), representative 29.9% APR (variable). Credit available subject to status. Terms apply.
RECOMMENDED PROVIDER
Virgin Money All Round Credit Card Mastercard
75%No annual fee.29.9%. Representative example: assumed borrowing of £1,200 for one year, at a purchase rate of 29.9% (variable), representative 29.9% APR (variable). Credit available subject to status. Terms apply.

Table notes: table correct as of 29 February 2024.  The average provider customer score is 69%. For more about our research and the terms we use in this table skip to how we analyse credit card providers and deals.

Credit-builder credit card provider reviews

You'll never know what you're going to get with a provider until you've signed up.

Luckily, Which? has reviewed 31 of the biggest credit providers to help you find out what they are like for customer service, mobile banking and more.

So you can check out reviews of the biggest names in the credit-builder market like Aqua , Barclaycard , Capital One , Tesco Bank and more in our guide to the best credit card providers before you commit.

Can I fix bad credit with a credit-builder card?

If you've never borrowed money before or made borrowing mistakes that have impacted your credit score, you'll find it difficult to get access to credit cards and loans - especially those with the cheapest rates.

Showing that you can repay on time and stay within the credit limit you've been given will help show lenders you are a responsible borrower and give your credit score a boost.

In time using a credit card for bad credit will boost your chances of being accepted for better credit cards as well as loans and mortgages with better rates in the future.

How to use a credit card for bad credit

1. Avoid borrowing

Because credit builder cards are aimed at higher-risk customers, APRs tend to be very high, so you should never use them to borrow over the long term.

2. Stick to your limit

Credit-builder cards tend to have a low credit limit, and you should avoid exceeding this.

Keep on top of your spending by regularly checking your account online and don't spend more than you can comfortably afford to repay each month.

Failure to stay within your credit limit will result in additional charges applying to your account and could make obtaining credit more expensive or difficult in the future.

3. Pay in full - or at least the minimum - on time

Pay your balance off in full and on time every month to avoid interest, and to build up a record of successfully managing credit.

If you don't pay on time, you will lose any promotional offer, be hit with a fee and your provider will report your missed payment to the credit reference agencies, reversing any good work you might have done.

Set up a direct debit to ensure that your minimum payments are met in advance of the credit card payment date.

4. Never withdraw cash

Don't use your credit-builder card for withdrawals from cash machines as it will hit your pocket and your credit rating.

Cash withdrawals on a credit card are expensive - you'll pay a fee plus interest from the moment you take the cash out until it's paid off, often at a higher rate than on spending.

The move is also noted on your credit record and is a clear warning sign to lenders that you may not be great with managing your money.

5. Check your progress

After a few months of using your credit-builder card, it's worth checking your credit report to see if your score has improved and where you stand in the eyes of lenders.

Credit cards for bad credit FAQs

How we analyse credit cards

Sam Wilson, credit card expert

Sam Wilson, credit card market analyst, says: 'At Which? we put credit card products and providers under the microscope to help you save time when shopping around for a new deal.

'We run a survey each year to gather the experiences of customers to help us find the best providers and we keep a close eye on the credit card market to determine which deals are the best in their category.'

Here's some more information about our research and the terms we use in this guide.

Customer score

Our customer scores for credit card companies are based on an online survey of 3,775 members of the public, conducted in October 2023. 

The score is calculated using a combination of overall satisfaction and the likelihood of recommending the provider to a friend.

Which? Recommended Providers

 To be a Which? Recommended Provider for credit cards a credit card company must:

  • have a provider customer score of at least 75% 
  • have at least one top-10 card in one of the seven main categories available on the market
  • have a product score that's average or above
  • not have a representative APR of more than 33% on any of its mainstream cards at the time of the analysis.

We only award Which? Recommended Providers to the lenders that meet our benchmarks on customer service and product offering.

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Why should you trust Which? research?

We’re not influenced by third parties. We work entirely on behalf of you, the consumer – nobody else. See our statement of editorial independence for more.