If you're looking for your first credit card, then these cards are accessible and have a number of perks.
When it comes to credit cards, your first card is unlikely to be the best.
That's because the cards with the lowest interest rates, longest interest-free periods or juiciest rewards are generally reserved for the most 'trustworthy' customers. That means customers who've had credit cards before and have a good credit history.
Nevertheless, it's still possible to get a good first credit card, and if you regularly pay off the balance in full your credit rating will improve enough to qualify for the top credit cards, personal loans and mortgages.
For all these cards you will need to be over 18, be in employment and not have a recent bankruptcy or County Court Judgment (CCJ) to your name and have lived at your current address for a few months.
This article is for first-timers: if you have a poor recent credit history, have a read of Best credit cards if you have a bad credit history.
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Don't just apply!
It's tempting to apply for a credit card in the hope that you will get it.
This will do more damage than good, however, as your credit rating is affected by every application you make, even if you get approved.
You can use a 'soft search' to see if you'd be eligible for a card without actually applying for it, and without damaging your credit rating.
You can run a free soft search on loveMONEY's comparison site.
Always pay off the balance
It's tempting to look at the interest rate on a credit card.
Yet you need not pay any interest at all: simply pay off your credit card every month, by setting up a direct debit to repay the balance in full. This looks great to lenders and will help your credit rating improve.
If you don't pay in full, then the high interest rates on these cards will quickly get very expensive. Miss the minimum repayment, and it will damage your credit score and incur fees.
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Best credit builder cards
Tandem Journey Mastercard
This is one of our top picks, on account of having a relatively low APR (24.9%, although you may get offered more) and no fees on foreign spending and cash withdrawal. In fact, it's one of the top travel cards in the market.
Having no fees makes this ideal if you travel often, as fees can really mount up, even if you're using your debit card.
Tesco Bank Foundation Clubcard Mastercard
A great option for Tesco shoppers, the Tesco Bank Foundation Clubcard Credit Card comes with a credit limit starting at £250 going up to a possible £1,500, with a representative APR of 27.5%.
You also earn Clubcard points when you use the card – one point for every £4 spent at Tesco and one point for every £8 spent elsewhere.
Vanquis Chrome 24.7% Visa
With the Vanquis Chrome card you will start with a manageable credit limit of £250 which can climb up to £1,000. And as its name hints at, it has a relatively low 24.7% APR.
Aqua Reward Mastercard
This card pays 0.5% cashback on your spending, up to £100 a year.
However, it's vital you pay off your balance every month, otherwise, the hefty interest rate of 34.95% will quickly wipe out your cashback gains.
Aquis Visa
The Aquis card offers a potential credit limit increase every five months up to £4,000. Its representative APR is 29.8%.
Card comparison
These are top credit builder cards, ranked by advertised APR. Bear in mind that almost half of applicants will be offered a higher rate, so we've also noted the maximum APRs on these cards.
|
Card |
Minimum credit limit |
Maximum credit limit |
Advertised APR |
Maximum APR |
|
£250 |
£4,000 |
24.7% |
63.9% | |
| Tandem Journey | £150 | Subject to status | 24.9% | 39.9% |
|
£250 |
Subject to status |
27.5% |
39.9% | |
|
£250 |
£4,000 |
29.8% |
79.9% | |
| Aqua Reward | £250 | £1,200 | 34.95% | 59.9% |
Improve your credit score
Holding a credit card and regularly paying it off is a great way to improve your credit score, but there are others.
Some are free, such as registering to vote: we've put together a full guide here.
Check your credit report periodically to see if your credit rating is improved. Once it has, you should be able to apply successfully for the more competitive cards out there.
Some credit builder cards offer free access to credit score services, including Barclaycard Initial and Tesco Bank's Foundation Card.
Alternately, Clear Score is a free service which gives you your Experian credit rating, provides personalised product offers and coaches you on how to improve your credit rating.
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This article is regularly updated