Credit Cards for Good Credit

If you’re thinking about searching for a credit card, you might be wondering which credit card is best for good credit?

When it comes to applying for a credit card, those with good credit scores could find that they have a broader choice of borrowing options as well as access to more desirable interest rates.

Best credit cards in the UK

There is no one set answer to the question ‘what are the best credit cards?’ because everybody’s financial situation is unique to them.

What could be considered the best credit card for one person might not be a suitable match for another, so it’s important to do your research and explore all the options that may be available to you, before you make the decision to apply.

thimbl has put together a guide to the Best Credit Cards in the UK, which you can view here. Our guide shares information on some of the most common types of credit cards in the UK and explains a little about their individual features.

What are the benefits of having a good credit score?

Generally, when applying for credit, the better your credit score, the better your chance of approval. However, the provider will base their decision on several factors, including an affordability check. You will also need to meet the lender’s specific eligibility criteria.

Having a good credit score could mean that you’re presented with more borrowing options, and you may also be offered preferable interest rates.

Best credit cards to build credit

If you’re hoping to improve your credit score, you might wish to do some research into a credit builder credit card.

These credit cards could be a suitable option for those with poor credit history, or no credit history at all, to establish and build their score.

Use a credit builder credit card to pay for manageable purchases and then make at least the minimum repayment amount each month. Where possible, try to make more than the minimum repayment amount. If you pay the balance in full and on time each month, you won’t be charged any interest at all.

Credit builder credit cards may work more effectively when used alongside other credit building methods, which we’ll talk about further down the page.

Your credit builder credit card repayment habits will be reported to the credit reference agencies, and, over time, you could see an improvement in your credit score.

Other ways to work towards a good credit score

Achieving a good credit score can take time and patience, but the good news is that there are things you can do today to start your journey towards a healthier position.

• Register to vote.
• Check your credit report for errors and share any incorrect or outdated information to your credit reference agency (CRA) as soon as you can.
• Pay your bills and any other current credit commitments on time.
• Limit the number of hard searches on your credit file. If you decide to apply for credit, using a credit broker could help to reduce the number of hard searches on your file. Some credit providers offer an eligibility check, which can give you an idea of how likely you are to be approved for a credit product before you make a full application.
• Be aware of the ways that using a credit card could affect your credit score. For example, did you know that using your credit card to withdraw money from a cash machine, known as a cash advance, could cause your credit score to decline? If you’re hoping to improve your credit score, you should stay well within your credit limit and keep your credit card utilisation as low as possible.

Jargon buster: what is credit card utilisation?

Credit card utilisation is the amount of credit that you have used, shown as a percentage of your credit limit.

For example, if you have a credit limit of £2,000, and your outstanding balance is £750, your credit card utilisation will be 37.5%.

Using a credit card comparison site to find credit cards for good credit

Using a credit card comparison service could show any options that may be available to you.

You’ll need to complete a form and share some basic information about yourself, your financial situation, and what you want to get out of a credit card. The information provided will then be used to scan a range of providers for one or more credit cards that could be suitable for you. Your result will then be presented to you, so you can review features and key information, such as interest rates, before deciding whether you’d like to make a full application directly with the credit card provider.

Things to look out for when searching for a good credit credit card

When comparing credit cards for good credit, knowing the unique selling points and basic information of each product is key.

• Annual Percentage Rate (APR)
  

  A credit card APR reflects the annual cost of borrowing, including any standard fees, such as an account fee. If you don’t clear the balance of your credit card on time and in full each month, your balance will accrue interest.

  The APR does not include any additional fees, such as a late payment charge.

  Generally speaking, the lower the APR, the less you will be charged in interest, although this depends on how you manage your account.

• Additional fees and charges
  

  Are there any fees associated with the credit card? For example, some credit card providers may apply an annual fee to your account or charge you for making a transaction abroad.

• Rewards
  

  Some credit cards, particularly those for people with good credit, could come with additional perks and rewards, such as cashback or points that can be spent with selected companies and retailers.

I’m worried about money; where can I find advice?

If you’re experiencing financial difficulties, please know that you can access free, confidential advice through sites such as StepChange, MoneyHelper, Citizens Advice, and National Debtline.

If you’re struggling to make your credit card repayments, you should contact your provider. There may be things they can do to help ease the pressure.