Can You Get a Credit Card with Bad Credit in the UK?
Quick Answer:
**Yes, you can get a credit card with bad credit in the UK.** Specialist "credit builder" cards are designed for people with poor credit scores, CCJs, or defaults. These cards typically have lower credit limits (£50-£500), higher APRs (30-40%), but can help rebuild your credit score if used responsibly.
📋 In This Guide
What Counts as Bad Credit?
In the UK, "bad credit" typically means a credit score below 560 (Experian) or 561 (Equifax). This can result from several factors on your credit file.
Common Causes of Bad Credit
- ✗**County Court Judgments (CCJs)** - Unpaid debts taken to court
- ✗**Defaults** - Missed payments for 3-6 months
- ✗**Bankruptcy or IVAs** - Formal insolvency arrangements
- ✗**Missed payments** - Late or skipped bill payments
- ✗**Thin credit file** - No credit history (students, young people)
- ✗**High credit utilization** - Using too much of your available credit
UK Credit Score Ranges
Credit Builder Cards Explained
Credit builder cards (also called "bad credit cards") are specifically designed for people with poor credit histories. Here's what makes them different:
✓ How They Help
- • Higher acceptance rates for bad credit
- • Report to credit agencies (builds credit)
- • Small limits reduce risk
- • Opportunity to prove creditworthiness
- • Can lead to better cards later
✗ The Trade-Offs
- • Very high APR (typically 30-40%)
- • Low credit limits (£50-£1,200)
- • Annual fees (£0-£70)
- • Fewer rewards or perks
- • Not ideal for large purchases
Popular Credit Builder Cards UK (2024)
Aqua Classic
APR
34.9%
Credit Limit
£300-£1,200
✓ Automatic credit limit reviews every 5 months
Capital One Classic
APR
34.9%
Credit Limit
£50-£1,500
✓ Eligibility checker doesn't affect credit score
Vanquis Classic
APR
39.9%
Credit Limit
£500-£1,000
✓ Instant decision, card sent in 3-5 days
How to Apply Successfully
⚠️ Critical: Use Eligibility Checkers First
**Never apply directly without checking eligibility first.** Each rejected application damages your credit score further. Most lenders offer "soft search" eligibility checkers that don't affect your score.
Step-by-Step Application Process
- 1.
Check Your Credit Report (Free)
Use ClearScore, Experian, or Equifax. Look for errors you can dispute.
- 2.
Register on Electoral Roll
This significantly improves approval chances. Register at gov.uk/register-to-vote
- 3.
Use Eligibility Checkers (Soft Search)
Try Aqua, Capital One, Vanquis. These show your likelihood without affecting credit score.
- 4.
Apply for ONE Card Only
Multiple applications in short time = red flag. Wait 3-6 months between applications.
- 5.
Provide Accurate Information
Be honest about income, address, employment. Inconsistencies = automatic rejection.
How to Rebuild Your Credit Score
Getting the card is step one. Here's how to use it to rebuild your credit score over 6-12 months:
The Credit Building Strategy
✓ DO: Use It Regularly (Small Amounts)
Put one small, recurring purchase on the card each month (Netflix, Spotify, etc.)
Example Strategy:
£10/month subscription → Pay off in full → Builds positive payment history
✓ DO: Pay in Full Every Month
**This is the most important rule.** Set up a direct debit for the full balance.
Why This Matters:
At 35%+ APR, carrying a balance is extremely expensive. You're building credit, not going into debt.
✓ DO: Keep Utilization Under 30%
If your limit is £500, never use more than £150 at once.
✓ Good
£150 / £500 = 30%
✗ Bad
£450 / £500 = 90%
✗ DON'T: Max Out the Card
Even if you pay it off, high utilization signals financial stress to credit agencies.
✗ DON'T: Miss Payments
One missed payment undoes months of progress. Set up automatic payments.
📈 Expected Timeline
• **3 months:** First positive payment history appears on credit file
• **6 months:** Noticeable credit score improvement (20-50 points)
• **12 months:** Eligible for better credit cards with lower APRs
• **24 months:** Return to "fair" or "good" credit rating (if no new negatives)
What If You're Still Rejected?
If you can't get approved for a credit builder card, try these alternatives:
1. Prepaid Cards
Not technically credit cards, but some prepaid cards (like Monzo or Revolut) report to credit agencies.
How it works: You load money onto the card first, then spend it. No credit check required.
2. Secured Credit Cards
Put down a cash deposit (£200-£500) as collateral. This becomes your credit limit.
Popular option: Vanquis offers secured cards for very poor credit.
3. Credit Building Loans
Small loans (£100-£500) specifically designed to build credit. You borrow, then repay monthly.
Providers: Loqbox, Creditspring, Wollit
4. Wait and Improve
If you've recently had a CCJ, bankruptcy, or multiple rejections, it may be better to wait 6-12 months while:
- •Paying all current bills on time
- •Registering on electoral roll
- •Correcting any errors on your credit report
- •Reducing debt on existing accounts
Once You Have a Card, Maximize Your Benefits
Use ZIGO to analyze your spending and discover which card will give you the best rewards as your credit improves.
ANALYZE MY SPENDING →Free tool • 100% private • Works with any credit score
Frequently Asked Questions
Can I get a credit card with a CCJ?
Yes, but it's harder. Wait at least 6 months after the CCJ is registered, then try credit builder cards like Aqua or Vanquis. Your credit limit will likely be very low (£200-£500).
Will applying for a bad credit card hurt my score?
The application itself creates a "hard search" that slightly lowers your score temporarily. Use eligibility checkers first (soft search) to avoid unnecessary applications.
How long does it take to rebuild credit with a credit builder card?
With responsible use (paying in full each month), you should see improvement within 3-6 months. Significant improvement takes 12-24 months. Negative marks (CCJs, defaults) stay on your file for 6 years but have less impact over time.
What's the minimum credit score for a credit card UK?
There's no absolute minimum. Credit builder cards accept scores as low as 200-300 (Experian scale). However, the worse your score, the lower your credit limit and higher your APR.
Should I close my credit builder card once my score improves?
No! Keep it open (even if you don't use it much). Closing it reduces your available credit and shortens your credit history. Just make one small purchase every few months to keep it active.
🎯 Key Takeaways
Yes, You Can Get a Card
Credit builder cards are designed specifically for bad credit. Use eligibility checkers first.
Expect High APR, Low Limits
30-40% APR and £50-£1,200 limits are normal. Pay in full to avoid interest.
Rebuild Takes 6-12 Months
Consistent on-time payments will improve your score. Be patient and disciplined.
Use It Strategically
Small purchases, pay in full, keep utilization under 30%. This is a credit building tool, not spending money.