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Best credit cards for bad credit 2026
You can fix bad credit and improve your credit score with a credit-builder
credit card. We reveal the best deals on the market
Holly covers personal finance topics from credit cards to wills. She enjoys turning complex money matters into clear, practical advice.
Anna covers personal finance, helping readers make sense of savings, credit cards and insurance. Her insights are informed by experience in the financial services industry.
What are credit cards for bad credit?
Credit cards for 'bad credit' are designed for those who aren't eligible for mainstream credit cards because they have a low credit score or no credit history. If you don't know what your credit score is, find out in our guide on how to check your credit score for free.
These 'credit-builder cards' have lower limits, higher interest rates and fewer benefits than other credit cards, but they will allow you to build, or rebuild, your credit rating if used sensibly.
Best credit-builder credit card deals
Here are our picks of the cheapest credit-builder credit cards available on the market right now.
Please note that the information in this article is for information purposes only and does not constitute advice. Please refer to the particular terms and conditions of a credit card provider before committing to any financial products.
RECOMMENDED PROVIDER Tesco Bank Foundation Clubcard Credit Card Mastercard | 79% | 29.9%. Representative example: assumed borrowing of £1,200 for one year, at a purchase rate of 29.9% (variable), representative 29.9% APR (variable). Credit available subject to status. Terms apply. |
HSBC Classic Credit Card Visa | 74% | 29.9%. Representative example: assumed borrowing of £1,200 for one year, at a purchase rate of 29.9% (variable), representative 29.9% APR (variable). Credit available subject to status. Terms apply. |
Virgin Money 12 Month Purchase and Balance Transfer Credit Card Mastercard | 74% | 29.9%. Representative example: assumed borrowing of £1,200 for one year, at a purchase rate of 29.9% (variable), representative 29.9% APR (variable). Credit available subject to status. Terms apply. |
Virgin Money 21 Month Balance Transfer Credit Card Mastercard | 74% | 29.9%. Representative example: assumed borrowing of £1,200 for one year, at a purchase rate of 29.9% (variable), representative 29.9% APR (variable). Credit available subject to status. Terms apply. |
Virgin Money 12 Month Balance Transfer Credit Card Mastercard | 74% | 29.9%. Representative example: assumed borrowing of £1,200 for one year, at a purchase rate of 29.9% (variable), representative 29.9% APR (variable). Credit available subject to status. Terms apply. |
Bip Credit Card Mastercard | n/a | 34.9%. Representative example: assumed borrowing of £1,200 for one year, at a purchase rate of 34.9% (variable), representative 34.9% APR (variable). Credit available subject to status. Terms apply. |
NewDay Ltd Marbles Mastercard | n/a | 34.9%. Representative example: assumed borrowing of £1,200 for one year, at a purchase rate of 34.9% (variable), representative 34.9% APR (variable). Credit available subject to status. Terms apply. |
Table notes: table correct as of 15 January 2026. The average provider customer score is 75%. For more about our research and the terms we use in this table skip to how we analyse credit card providers and deals.
Credit-builder credit card provider reviews
You'll never know what you're going to get with a provider until you've signed up. Luckily, Which? has reviewed 30 of the biggest credit providers to help you find out what they're like for customer service, mobile banking and more.
You can check out reviews of the biggest names in the credit-builder market – such as Tesco Bank, Virgin Money, HSBC and more – in our guide to the best credit card providers before you commit.
Can I fix bad credit with a credit-builder card?
If you've never borrowed money before or made borrowing mistakes that have impacted your credit score, you'll find it difficult to get access to credit cards and loans, especially those with the cheapest rates.
Showing that you can repay on time and stay within the credit limit you've been given will help prove to lenders that you're a responsible borrower and give your credit score a boost.
In time, using a credit card for bad credit can boost your chances of being accepted for better credit cards as well as loans and mortgages with better rates in the future.
Search for deals to cut your bills
Use our advice, ratings and customer scores to help you choose with confidence
Compare and chooseHow to use a credit card for bad credit
1. Avoid long-term borrowing
APRs tend to be very high, so you should never credit builder cards to borrow over the long term.
2. Stick to your limit
Credit-builder cards tend to have a low credit limit and you should avoid exceeding this.
Keep on top of your spending by regularly checking your account online and don't spend more than you can comfortably afford to repay each month.
Failure to stay within your credit limit will result in additional charges applying to your account and could make obtaining credit more expensive or difficult in the future.
3. Pay on time
Pay your balance off in full and on time every month to avoid interest, and to build up a record of successfully managing credit.
If you don't pay on time, you'll lose any promotional offer, be hit with a fee and your provider will report your missed payment to the credit reference agencies, which will affect your credit score.
Set up a direct debit to ensure that your minimum payments are met in advance of the credit card payment date.
4. Never withdraw cash
Don't use your credit-builder card for withdrawals from cash machines as it will hit your pocket as well as your credit rating.
Cash withdrawals on a credit card are expensive: you'll pay a fee plus interest from the moment you take the cash out until it's paid off, often at a higher rate than on spending.
The move is also noted on your credit record and is viewed negatively by lenders.
5. Check your progress
After a few months of using your credit-builder card, it's worth checking your credit report to see if your score has improved and where you stand in the eyes of lenders.
Credit cards for bad credit FAQs
How we analyse credit cards
Anna McClean, Which? credit card market analyst, says: 'At Which?, we put credit card products and providers under the microscope to help you save time when shopping around for a new deal.
'We run a survey each year to gather the experiences of customers to help us find the best providers and we keep a close eye on the credit card market to determine which deals are the best in their category.'
Here's some more information about our research and the terms we use in this guide.
Customer score
Our provider customer scores for credit card companies are based on an online survey of 4,995 members of the public, conducted in November 2025.
Provider customer scores are worked out using a combination of overall satisfaction and the likelihood of recommending the provider to a friend.
We also ask these credit card customers to rate brands on six categories including customer service, mobile banking and more — so you can get an idea of the quality of service you might receive before you sign up.
Sample sizes for customer score: Barclays/Barclaycard (801), American Express (379), Lloyds (364), Tesco Bank (350), NatWest (302), Halifax (292), Capital One (288), HSBC (281), Santander (229), Nationwide (205), M&S Bank (147), MBNA (135), Monzo (110), Amazon (by Barclaycard) (89), Virgin Money (including Clydesdale Bank and Yorkshire Bank) (83), Aqua (83), Royal Bank of Scotland (76), Vanquis Bank (73), John Lewis/Waitrose (71), Virgin Atlantic by Virgin Money (59), First Direct (58), Chase (56), Zopa (56), British Airways American Express (53), Bank of Scotland (53), TSB (51), Co-operative Bank (Co-op) (49), Asda Money (47), 118 118 Money (44), Klarna credit card (43).
Which? Recommended Providers
To be a Which? Recommended Provider for credit cards a credit card company must:
- have a provider customer score of at least 71% and achieve at least four stars in all categories in our latest customer satisfaction survey
- have at least one top-10 card in one of the seven main categories available on the market
- have an above average product score
- accept applications from everyone - not just existing customers
- not have a representative APR of more than 35.7% on any of its mainstream cards at the time of the analysis.
We only award Which? Recommended Providers to the lenders that meet our benchmarks on customer service and product offering.
Which? Best Buys
A Best Buy credit card must have been one of the top five cards in its category for the past three months. They also need to satisfy specific criteria for the type of card, such as the size of balance transfer fee, or length of 0% period.
A provider must have also achieved a provider customer score of over 71% in our latest credit card satisfaction survey. Each year, we ask thousands of customers to rate their providers and calculate a provider customer score based on their responses to find the best credit card providers.
We also review our analysis regularly, which means we will withdraw Best Buys if providers make adverse changes to APRs, 0% periods or fees.
- Find out more: Which? symbols, logos and ratings explained.
Why should you trust Which? research?
We’re not influenced by third parties. We work entirely on behalf of you, the consumer – nobody else. See our statement of editorial independence for more.