Internet Guide Logo

What is a Creditbuilder credit card?

Last Edit: 12/06/18

Creditbuilder credit cards are credit cards that will pass successful loan repayments to a credit file/profile at reference agencies. Creditbuilder credit cards are designed to help people with a poor credit score rebuild it, and for people with no credit history to build one. Once lenders see that a borrower has a history of successful repaying their balance, then they will view that borrower as less of a credit risk and will accept the borrower when he/she applies for a 'superior' credit card.

The drawback to Creditbuilder credit cards is that they have a high rate of interest: so, if a borrower does not repay their balance in full each month, they will be paying interest of up to 50% on the balance they have not paid off. Another downside to Creditbuilder credit cards is their credit limit: which is typically in the region of £1000-£1200; whereas standard credit cards will have a credit limit of up to £5000-£10,000.

If you do suffer from a low credit score, it is generally recommended that you apply for the least competitive Creditbuilder credit card -- in terms of the interest rate and credit limit it offers -- because you may be rejected for a more competitive card, and this will lower your credit score even further. If you are unsure about your credit score and what type of Creditbuilder credit card you should apply for, you can apply to see your credit report, and once you have that data you can use an 'eligibility checker' tool -- available on a range of financial websites.

At present (2018) the following Creditbuilder credit cards are available:

  1. Tesco Foundation Credit Card: Representative rate 27.5%APR, Assumed maximum credit limit £1,200
  2. Ocean Finance Credit Card: Representative rate 39.9 %APR, Assumed maximum credit limit £1,500
  3. Capital One Classic: Representative rate 34.9%APR, Assumed maximum credit limit £1,200
  4. Aqua Reward Credit Card: Representative rate 34.95%APR, Assumed maximum credit limit £1,200
  5. Barclaycard Initial Credit Card: Representative rate 34.9 %APR, Assumed maximum credit limit £1,200
  6. Origin Credit Card: Representative rate 59.9 %APR, Assumed maximum credit limit £1,000
  7. Thinkmoney Credit Card: Representative rate 39.9 %APR, Assumed maximum credit limit £1,500
  8. Chrome Credit Card: Representative rate 24.7 %APR, Assumed maximum credit limit £1,000
  9. Vanquis Credit Card: Representative rate 39.9 %APR, Assumed maximum credit limit £1,000

Can you receive a Creditbuilder feature with a prepaid credit card? yes, but it will probably cost you a monthly fee. The application for a prepaid credit card may have a box asking if you wish to signup for Creditbuilder. The advantage to prepaid credit cards is that anyone can get one -- even someone with a very bad credit history -- and rebuild their credit if it is poor. Not all prepaid credit cards will have a Creditbuilder feature, but, you can find a Creditbuilder feature on a range of credit cards designed for people with a poor credit rating.