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Credit cards to build credit

  • Perfect for credit building
  • Guaranteed credit limit
  • Check your eligibility with no impact to your credit score
Check my eligibility This won't affect your credit score

Representative example: Amount of credit £1,200. Interest rate: 49.0% pa (variable) Representative 49.0% APR (variable)

Credit building credit cards

Credit building credit cards are as described, credit cards which are designed to help you build or improve your credit rating. This type of credit card can be useful to those who may have a poor credit history, or for those who don’t have a credit history at all.

Improving your credit can be beneficial as your credit scoring can determine what type of access you have to credit in the future.

Apply for a credit builder credit card from 118 118 Money!
Use our Eligibility check to find out what credit limit we'll offer you before you apply, without affecting your credit rating!
Check my eligibility This won't affect your credit score
How can I improve my credit score?

Your credit score is an extremely important part of your credit profile as this is one of many considerations lenders take into account when you apply for credit. You can use Credit Reference Agencies such as Experian, Equifax or TransUnion to get a better understanding of what your credit score is. If you have poor or no credit history, there are several options you can use to improve your credit.





Electoral Register

Register to vote. Lenders use the electoral register to check and verify your identity. If you aren’t registered, lenders may find it difficult to verify your name and address. If lenders cannot verify you, this can also cause potential delays to any applications as they may require other methods to verify you.

Avoid multiple applications

Every time you complete an application for credit this leaves a ‘footprint’ on your credit report. Having multiple applications over a short space can indicate to lenders that you may be struggling to access credit or demonstrate that you have bad credit.

When applying for credit, many lenders now offer the facility to check your eligibility before completing a full application. This doesn’t leave a mark on your credit report – unless you complete a full application which does require a full credit check.

Consider applying for a credit builder credit card

By design, these cards typically come with lower spending limits and, in some cases, higher interest rates. If used responsibly, over time this type of credit card can help improve your credit score as lenders can see that you’re managing your line of credit effectively and responsibly.

If, however, you make late repayments or are unable to keep up with your monthly repayment commitments, this may damage your credit score. This can impact any future credit applications such as loans, mortgages, or additional types of credit. 

Make your payments on time

To manage your credit profile better, ensure you make at least the minimum payment on time. This demonstrates you can handle credit responsibly. Do not miss your payments. Failed or late payments can have a detrimental impact on your credit score and your ability to borrow in the future.

Use your credit limit responsibly

Using a credit builder card responsibly can demonstrate that you can better manage your finances which can make your credit profile more attractive. Do not exceed your agreed credit limit, this can have a negative impact on your credit score. Ensure you pay off the balance each month when trying to build credit.


Guaranteed Rate and Credit Limit

  • Check your eligibility with no impact to your credit score

How can a credit card to build credit help?

If you have low or minimal credit history this can also count against you as lenders are unable to determine your credit behavior. Using a credit builder card demonstrates an individual’s creditworthiness. A credit building card such as the 118 118 Money Credit Card can help in these instances.

A credit card designed to build credit works broadly in the same way a normal credit card does. You make purchases on the card and then pay it off. You could choose to pay the balance off in its entirety, therefore avoiding any interest charges. If not, you are then charged interest on any balances which you don’t repay.

Providing you manage your card and stay within the credit limit whilst making minimum monthly payments, this can positively impact your score. Credit builder credit cards generally come with lower spending limits and a higher rate of interest.

When building your credit profile, it’s generally good practice to stay within your credit limit and try to pay off the balance each month. In addition, if you keep your balances low this is a better reflection on your credit utilisation ratio. Put simply, this is a measure of your credit card balance compared to the total credit available. For example, if you have a £1,000 credit limit on your card and a balance of £500, your credit utilisation is 50%. Generally, the lower your credit utilisation, the better. Especially in circumstances where you are attempting to rebuild credit.

Can I be accepted for a credit card with bad credit?

Bad credit or not having any credit history can limit the type of credit you have access to. Missed or late repayments are recorded on your credit file held with agencies such as Experian, Equifax or TransUnion. Your credit history is taken into account when applying for any form of credit. Therefore, having a less than perfect credit history can impact what type of credit a lender may be willing to offer you.

A credit building credit card may be a solution if you’re aware that you have a less than perfect credit rating. The 118 118 Credit Card is a card designed to cater for those looking to improve their credit rating providing you stay within your credit limit and repay your monthly payments each month.


Apply for a 118 118 credit building credit card!

Want to apply for a 118 118 Credit Card which can help you build credit?
You can try our eligibility check first to see if you’ll be accepted before you apply without affecting your credit rating.

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Credit Builder cards FAQs

Before you apply for our credit building credit card, use our eligibility check tool to see how likely you are to be accepted. It won’t impact your credit score, and it’ll give you an answer in just a few minutes so you can apply with confidence.

These types of cards generally have low credit limits, but a higher APR (Annual Percentage Rate). However, this can vary between lenders. Meeting your repayments in full and on time and staying within your agreed credit limit can improve your creditworthiness. This, over time, can help in building a positive credit history. As a result, you can over time improve your credit score by using a credit building credit card responsibly. 

These are generally aimed at those who have no credit history whatsoever or those who have a less than perfect credit history. As these cards generally come with lower credit limits, they can be useful for those who want to improve their credit scoring over time or get their rating back on track. 

Unfortunately, as with all things related to finance, there isn’t a ‘one-size-fits-all’ approach to getting the best card. Comparison websites are a good place to start to get an understanding of what is available to you. Most lenders also offer an eligibility checker, you can use this to see if you’re likely to be accepted for a card which best suits your circumstances. With a 118 118 Money Credit Card, you can use the eligibility check without impacting your credit score. 

No, unfortunately not. No responsible regulated lender will offer you a credit card without a credit check. Several lenders offer a pre-application checker which can show the likelihood of being accepted without a credit check. Full applications do require a credit check, however. 

Yes. As with all credit cards, a credit building card is also protected under section 75. As part of the Consumer Credit Act 1974, your goods must have cost more than £100 and not more than £30,000.


Ready to apply for a card with 118 118 Money?

See if you’ll be accepted before you apply and find out what credit limit we'll offer you without affecting your credit rating!