Top 10 Best Credit Building Credit Cards in the UK? - Apply for It- Online Business Blog

What is Credit Building Credit Cards UK?

Credit building credit cards, also known as starter credit cards or bad credit credit cards, are designed to help people with little or no credit history establish or improve their credit scores. These cards typically have lower credit limits than traditional credit cards and may have higher interest rates. However, they can be a valuable tool for building credit if used responsibly.

How Credit Building Credit Cards Work?

Credit building credit cards work by reporting your credit activity to the major credit bureaus. When you make purchases with your card and then pay off your balance in full each month, you are demonstrating to lenders that you are a responsible borrower. This positive credit history can help you qualify for more favourable credit terms in the future, such as lower interest rates on loans or a higher credit limit on a traditional credit card.

The Benefits of Using a Credit Building Credit Card:

Can help you establish or improve your credit score
Typically easier to qualify for than traditional credit cards
Can help you learn how to manage credit responsibly

The Drawbacks of Using a Credit Building Credit Card:

Typically have higher interest rates than traditional credit cards
May have lower credit limits than traditional credit cards
May have annual fees

Tips for Using a Credit Building Credit Card Responsibly:

Only use your card for purchases you can afford to pay off in full each month.
Set up a direct debit to ensure you make your payments on time each month.
Avoid using your card for cash advances, which can have high fees and credit card interest rates.
Keep your credit utilization ratio low, which is the amount of credit you’re using compared to your total credit limit.

What Credit Card Builds Credit the Fastest?

The fastest way to build credit with a credit card is to use it responsibly and make your payments on time in full each month. This will show lenders that you are a reliable borrower and help you improve your credit score.

It is important to note that there is no single “fastest” credit card to build credit with. The best card for you will depend on your individual needs and circumstances. However, some of the best credit cards for building credit in the UK include:

Chrome by Vanquis Bank: This card has a representative APR of 29.5% and a credit limit of up to £1,500. It also has no annual fee and offers 3% cashback works on fuel purchases.
Post Office Classic Credit Card: This card has a representative APR of 24.9% and a credit limit of up to £2,500. It also has no annual fee.
Aqua Classic Credit Card: This card has a representative APR of 34.9% and a credit limit of up to £1,200. It also has no annual fee.

What is the Best Thing to Use a Credit Card for to Build Credit?

The best thing to use a credit card for to build credit is to use it for small everyday purchases that you can afford to pay off in full each month. This will help you build a positive credit history by showing lenders that you are a responsible borrower.

Here are some examples of small everyday purchases that you can use your credit card for to build credit:

Gas
Groceries
Streaming services
Phone bill
Electricity bill

It is important to avoid using your credit card for large purchases that you cannot afford to pay off in full each month. This is because large purchases can increase your credit utilization ratio, which is the amount of credit you are using compared to your total credit limit. A high credit utilization ratio can negatively impact credit scores.

What Credit Card Do I Get to Build My Credit?

The best credit card for you to build credit will depend on your individual needs and circumstances. However, some of the best credit cards for building credit in the UK include the Chrome by Vanquis Bank, the Post Office Classic Credit Card, and the Aqua Classic Credit Card.

These cards all have no annual fee and low credit limits, which makes them a good option for people with little or no credit history. They also have responsible borrowing features, such as email alerts to help you stay on top of your spending.

Does Owning a Credit Card Build Credit?

Owning a credit card will not automatically build your credit. In fact, if you do not use your credit card responsibly, it can actually damage your credit score.

The best way to build credit with a credit card is to use it responsibly and make your payments on time in full each month. This will show lenders that you are a reliable borrower and help you improve your credit score.