Credit building credit cards

Credit building credit cards are a way of rebuilding your poor credit rating and having access to credit if it is needed. Here are the details you need to know when considering applying for credit cards to build credit.

Credit Cards for Rebuilding Credit

Credit building credit cardsThere are different types of credit cards for rebuilding credit; these include:

  • Credit builder prepaid card
  • Secured credit card

Any of the above choices may be applied for with a better chance of the lender giving approval, in comparison to “normal cards”; if your credit score is low or you have no credit rating.

We work with numerous lenders who offer credit cards for rebuilding credit specifically to people who might otherwise struggle to get approval for credit. We can help you to find the most suitable credit card based on your needs and you can then apply for it through us. In short, we can connect you with the most suitable lender and most suitable credit card. Whatever the reason for having a poor credit rating, it is still possible to be approved.

Types of Credit Cards to Build Credit

There are different types of credit cards to build credit and these have been briefly mentioned above. Depending on your circumstances, and how poor your credit rating is, may depend on the most suitable type of credit card.

Also, bear in mind that you will only be able to rebuild your crating rating if you are able to maintain the repayments on any credit card you get approval for. The FCA, who regulates credit in the UK, said that around 2.1 million credit card holders have levels of credit that are high and some people are struggling to repay.

The Credit Builder Prepaid Card

The credit builder prepaid card may be the most suitable type of a credit card if your credit rating is very poor or you have not built up a credit rating. These types of credit card may come in handy if you have been declined for a credit card before due to:

  • Having no credit history because of your age;
  • Having a low income or your employment status is not strong enough;
  • Your credit score is low;
  • You have defaulted on repaying credit in the past;
  • You have county court judgments on your credit file.

This type of credit card is the easiest to be approved for with a bad credit rating but there are some points to bear in mind. The first, and perhaps most important point, is that you load money onto the card through your bank so in fact, you are not getting credit. You are spending your own money. The good news is that this type of card is accepted by retailers who take Visa or MasterCard.

While this type of credit card does not give you access to credit, it may help you in building up your credit rating. Once your credit rating has improved you then stand a much better chance of getting approval for a regular credit card.

The Secured Credit Building Credit Card

The secured credit building card is another way of rebuilding a poor credit history while at the same time getting access to credit. Lenders are typically more willing to give approval for this type of card because borrowers have to pay a deposit on the card.

The deposit is security in the event that you fail to make the repayments on the card and used by the lender to recoup the money. This type of card might come with an annual fee along with application fees and the APR tends to be higher than with regular credit cards.

By now, you should have gained a better understanding of how credit building credit cards work, and the choices on the market. Let us help you to find the most suitable card for your needs with our lenders.