Asda Money has extended its credit card offering, launching a credit builder credit card in partnership with Jaja finance. The ASDA Money Select credit card is aimed at shoppers who may have experienced difficulty in being accepted for other types of credit in the past. It can even help boost the credit rating for those that use it, so long as it is used responsibly. In this article, we take a look at the ASDA Money Select credit card, how it compares to other types of credit builder credit cards and who it may be good for.
How do credit builder credit cards work?
Credit builder credit cards are specifically designed to help those who aren't eligible for traditional mainstream credit cards. They are a good option for those that have a poor credit history and can be a sensible choice for those with little or no credit history. Lenders will often deem those with a poor credit rating as higher risk and so credit builder cards often come with higher interest rates and a lower credit limit to account for this. If used responsibly, credit builder credit cards can help to build and repair a thin or poor credit file with the ultimate aim of improving the number of providers that are willing to lend to them in the future.
ASDA Money Select credit card key features
- Good for: Those who frequently shop at ASDA and who wish to improve their credit score
- Representative APR: 34.9% to 43.4% variable (Depending on individual circumstances)
- Credit limits: £500-£5,000 (Depending on individual circumstances)
- Perks: Offers 1% cashback when you buy ASDA groceries and fuel. Earn 0.3% cashback on non ASDA spending
- Small print: Cashback paid as 'ASDA pounds' which can be redeemed via the ASDA rewards app
- Annual fee: £0
How does the ASDA Money Select credit card compare?
Below we compare the ASDA Money Select credit card with some of the best credit builder credit cards on the market.
|Asda Money Select credit card||Tesco Foundation credit card||Capital One Classic credit card||Barclaycard Forward credit card|
|Credit Limit||£500 - £5,000||£200 - £1,500||£200 - £1,500||£50 - £1,200|
|Perks||1% cashback on all ASDA grocery and fuel spending. 0.3% cashback on non ASDA spending.||5 Tesco Clubcard points for every £4 spent in Tesco. 1 Clubcard point for every £8 spent elsewhere||3 months interest-free period on new purchases.||Interest rate reduced if the card is used responsibly (3% after the first year and a further 2% after the second year)|
Which is the best credit builder credit card?
Below, we provide a round-up of the best credit builder credit cards on the market.
Best credit builder credit card that offers cashback
The ASDA Money Select credit card comes with a representative APR of 34.90%, although applicants could be offered an interest rate of up to 43.40%. The credit card offers 1% cashback on all ASDA grocery and fuel spending and 0.3% on all other spending. Cashback can be redeemed via the ASDA Rewards app.
Best credit builder credit card with low APR
The Tesco Foundation credit card offers a low APR of 27.50% and is good for those who are looking to boost their credit score when purchasing groceries. It rewards its customers with 5 Tesco Clubcard points for every £4 spent in Tesco and 1 Clubcard point with every £8 spent elsewhere.
Best credit builder credit card with 0% purchase deal
The Capital One Classic credit card comes with a representative APR of 34.94% as well as an initial 3 month interest-free period for new purchases. Those who demonstrate good card management may also be offered an optional credit limit increase.
Best credit builder credit card with interest rate reduction
The Barclaycard Forward credit card comes with a representative APR of 33.90%. It offers a 3% reduction interest rate reduction if you make all payments on time for the first year and a further 2% reduction after the second year.
Should you get the ASDA Money Select credit card?
The ASDA Money Select credit card is a credit builder credit card primarily aimed at those who are not eligible for mainstream credit cards. If you have a good credit rating then you may want to consider applying for a mainstream credit card as there are cards that offer a lower representative APR plus you may be able to get better perks including better cashback rewards and a longer interest-free period for new purchases. If you are specifically drawn to this card for its ASDA rewards then it may be worth checking to see if you are eligible for the ASDA Money cashback credit card as it offers the same rewards but with a much lower representative APR of 22.9%.
If a credit builder credit card is your best option, then the ASDA Money Select credit card is a good choice for those that regularly shop at ASDA. Even those that only occasionally shop at ASDA would benefit, so long as they maintain good card management and pay the balance in full each month. The ASDA Money Select card comes with a relatively high APR of between 34.9% and 43.4% so if you find yourself unable to pay the balance in full each month, it would be better to go with a card that offers a lower representative APR, such as the Tesco Foundation card (27.50%).
Other ways to improve your credit score
A credit builder credit card is just one way that you can help improve or repair your credit rating. There are a number of tools and services that are designed to specifically help build credit and we provide links to some of our articles below.
- Experian Boost - Connect your current account to receive a boost to your Experian credit score
- LOQBOX - Build your credit score through savings
- Monese credit builder - Improve your credit score through regular savings
- How to improve your credit score quickly
- What is a good credit score - and how to improve yours
- Compare the best credit cards to build credit and improve bad credit