What is a credit card for bad credit?
Credit cards for bad credit are aimed at people with a low credit score and poor credit history who would struggle to qualify for other credit cards. An application for a mainstream credit card could be declined if you have:
- Not meet a lender’s income requirements or eligibility criteria
- A limited credit history
- Late or missed payments, defaults, or county court judgments (CCJs)
- An IVA (Individual Voluntary Agreement) or Debt Management Plan
- Made several credit applications in a short space of time
- Been financially linked to someone who has a bad credit history, such as your spouse
If you have been declined for a standard credit card recently or you are not eligible for one, then a bad credit credit card may be the right option for you.
Which credit card for bad credit is best for you?
Comparing different credit cards is a key part of getting the best deal for you. Money to the Masses has helped to simplify this process by partnering with Creditec*, an online comparison service. You do not need to trawl through countless different provider websites hunting for the best cashback or lowest fees, as Creditec’s personalised search results will show you the key details you need to know in one place. Your tailored list will also feature the cards that you are more likely to be accepted for, cutting down the chance of any applications you make being rejected. Your search results are built using a soft credit search, so there will be no damage to your credit score. You can start your search by clicking this link*.
The best credit cards for bad credit – November 2024
| Card name | Representative APR (variable) | Annual fee | Credit limit |
| BIP Credit Card - Check eligibility | 29.90% | £0 | £250 - £1,200 |
| HSBC Classic Credit Card - Check eligibility | 29.90% | £0 | £250 - £1,000 |
| Vanquis Bank Credit Builder Credit Card - Check eligibility | 30.90% | £0 | £500 - £1,200 |
| Aqua Classic Credit Card - Check eligibility | 34.90% | £0 | £250 - £1,500 |
| Marbles Credit Card - Check eligibility | 34.90% | £0 | £250 - £1,500 |
| Capital One Classic Credit Card - Check eligibility | 34.90% | £0 | £200 - £1,500 |
| Zopa Credit Card - Check eligibility | 34.90% | £0 | £250 - £1,200 |
| 118 118 Money Credit Card - Check eligibility | 49.00% | £0 | Decided at pre-approval |
- Representative APR: 29.90% variable
- Representative example: When you spend £1,200 at a purchase rate of 29.90% (variable) p.a. with a fee of £0, your representative rate is 29.90% APR (variable)
- Annual fee: £0
- Credit limit: £250 - £1,200
You can read more on the BIP website.
- Representative APR: 29.90% variable
- Representative example: When you spend £1,200 at a purchase rate of 29.90% (variable) p.a. with a fee of £0, your representative rate is 29.90% APR (variable)
- Annual fee: £0
- Credit limit: £250 - £1,000
You can read more on the HSBC website.
- Representative APR: 30.90% variable
- Representative example: When you spend £1,200 at a purchase rate of 34.50% (variable) p.a. with a fee of £0, your representative rate is 34.50% APR (variable)
- Annual fee: £0
- Credit limit: £500 - £1,200
You can read more on the Vanquis website.
- Representative APR: 34.90% variable
- Representative example: When you spend £1,200 at a purchase rate of 34.90% (variable) p.a. with a fee of £0, your representative rate is 34.90% APR (variable)
- Annual fee: £0
- Credit limit: £250 - £1,500
You can read more on the Aqua website.
- Representative APR: 34.90% variable
- Representative example: When you spend £1,200 at a purchase rate of 34.90% (variable) p.a. with a fee of £0, your representative rate is 34.90% APR (variable)
- Annual fee: £0
- Credit limit: £250 - £1,500
You can read more on the Marbles website.
- Representative APR: 34.90% variable
- Representative example: When you spend £1,200 at a purchase rate of 34.90% (variable) p.a. with a fee of £0, your representative rate is 34.90% APR (variable)
- Annual fee: £0
- Credit limit: £200 - £1,500
You can read more on the Capital One website.
- Representative APR: 34.90% variable
- Representative example: When you spend £1,200 at a purchase rate of 34.90% (variable) p.a. with a fee of £0, your representative rate is 34.90% APR (variable)
- Annual fee: £0
- Credit limit: £250 - £1,200
You can read more on the Zopa website.
- Representative APR: 49.90% variable
- Representative example: When you spend £1,200 at a purchase rate of 49.90% (variable) p.a. with a fee of £0, your representative rate is 49.90% APR (variable)
- Annual fee: £0
- Credit limit: Decided at pre-approval
You can read more on the 118 118 Money website.
How to make the most of bad credit credit cards
Credit cards for bad credit often have a higher annual percentage rate (APR) and lower credit limit than standard cards, but you can avoid any interest charges by paying off the balance on your card within the billing period, usually 56 days. This has a secondary positive effect as it will appear on your credit file and suggest to future prospective lenders that you can manage your finances. You can read more about building your credit rating using a credit card in our article 'How to build your credit score with a credit card'.
While most credit cards for bad credit do not offer rewards or cashback, you should make sure to maximise anything that is on offer. For example, this may mean only shopping at the supermarket linked to the card, or making sure to spend the rewards points you earn in the most efficient way possible. However, avoid spending more money just to earn extra rewards points, as the points rarely outweigh the cost of the additional spending.
What to consider before getting a credit card for bad credit
Getting a credit card for bad credit can be a stepping stone to better borrowing options, but it could also make your situation worse. If you have never borrowed money before or you have a poor borrowing history, you may be able to build up a good record of borrowing and repaying with a bad credit credit card. However, missing payments will send you in the opposite direction. This means keeping to your credit limit and repaying the balance in full every month is key. If you think that it will be too challenging to make the payments on time, you should consider an alternative spending option.
The pros and cons of a credit card for bad credit
Here are the key pros and cons to think about before you apply for a bad credit credit card:
Pros of a credit card for bad credit
- Access credit that is not available elsewhere
- Repair a poor credit rating
Cons of a credit card for bad credit
- Higher interest rate than standard credit cards or low interest credit cards
- Lower credit limits compared to standard credit cards
- Limited choice of cards available
Alternatives to a bad credit credit card
A bad credit credit card tends to be one of the last resorts when it comes to getting credit, so the next alternative step could be choosing not to borrow any money at all. Spending on a debit card will be cheaper than having to pay interest on a credit card balance and there are many benefits to using a debit card for everyday spending. These can include cashback, rewards and sign-up incentives. You also limit the possibility of getting yourself into problematic debt, being charged for cash withdrawals and paying interest. Read our article ‘Best bank account switching offers, cashback & incentives’ to see what options are available.
Alternatively, your credit may not be as bad as you think. You can check your eligibility without affecting your credit score to see what range of credit cards are available to you. This could show you that one of the best credit cards is unexpectedly an option for you.
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