Credit Cards for Bad Credit
Find out why a credit line might be better
What is a credit card for bad credit?
Credit cards for bad credit are aimed at people with poor credit who want to improve their credit score. These cards, commonly known as credit builder cards, often have lower borrowing limits and higher interest rates, which helps reduce risk for the lender.
If you have a bad credit history, using this type of credit card can help demonstrate to lenders that you can responsibly manage your finances and make monthly repayments on time. Over time, if your creditworthiness improves, you may become eligible for traditional credit cards with better terms and lower interest rates.
If you are looking to borrow a bad credit credit card, check your finances first to ensure you can make the repayments on time. If you are unable to, it may be best to avoid taking this type of credit, as interest rates can be higher than typical credit cards.
Representative 96.2% APR (variable)
Subject to status. T&Cs apply.^
Are you looking for a bad credit credit card? Try Drafty
If you've faced difficulty obtaining credit in the past or are considering alternatives to bad credit credit cards, Drafty could help. We might be able to offer you a line of credit even if you have bad credit (subject to approval based on creditworthiness assessments and affordability checks).
Here’s what a Drafty line of credit offers:
- Speed - You’ll get a fast decision with Drafty. And if approved, we’ll send the cash to your bank in under 90 seconds
- Borrow what you need - Apply for up to £3,000 and withdraw what you need up to your approved credit limit when you need it
- Reuse - Once you’ve used Drafty, you can withdraw up to your agreed limit again. No need to reapply
- No fees - The best bit? There are no fees. What’s more, you only pay interest on what you use. If you don’t use any of your credit, it doesn’t cost you a thing
We’re an FCA authorised and regulated direct lender, with authorisation number 689378. We only offer our credit line to those we think can afford it.
At Drafty, we’re proud of our customer service, so see why we’re rated great on Trustpilot.
Representative 96.2% APR (variable)
Subject to status. T&Cs apply.^
How is Drafty an alternative to a credit card for bad credit?
Drafty offers a line of credit, which is a bit like a credit card but without the plastic. With credit cards, you get a physical card with a credit limit, which you can swipe and use. A line of credit means your cash will be sent directly to your bank, and you can use it whenever you want.
Just like credit builder credit cards, your Drafty account has a daily interest rate and minimum monthly repayments. If you use Drafty, it will be recorded on your credit file as well. If you’re approved for a Drafty line of credit, you’ll be given a credit limit. You can then use your agreed credit limit whenever you need to. Once approved, the cash will be sent to your bank in 90 seconds.
Advantages of using Drafty over credit cards for bad credit
A Drafty line of credit can offer advantages over traditional credit cards for bad credit.
1. Flexible repayments
As long as the minimum monthly payments are met, you can repay the remaining borrowed amount at your convenience. This flexibility can be helpful for those facing unexpected financial challenges.
2. No annual fees (or any fees at all)
While some bad credit credit credit cards may come with annual fees, Drafty doesn't. In fact, there are no hidden fees at all. That’s right – no late fees, no early repayment fees, nada.
3. No need to wait
If approved for a Drafty credit line, you don't have to wait for a physical card to start using your credit. The money will be sent to your bank within 90 seconds. You can do a direct debit from your bank or make payments online through your bank account.
4. You can apply even if you have bad credit
We'll make sure if you can afford your repayments before accepting you. Plus, we consider more than just your credit score, so there's a chance you could still be approved for our credit line, even with less-than-perfect credit.
Representative 96.2% APR (variable)
Subject to status. T&Cs apply.^
How to apply for Drafty, a credit card for bad credit alternative?
At Drafty, we offer you an alternative to a credit card for bad credit. The alternative we offer is a credit line.
Here's how you can apply for Drafty:
- Apply – We just need a few personal details to help us understand who you are
- Set a credit limit – If approved, you’ll be given a credit limit of up to £3,000. You can use it as per your requirements, paying interest only on what you use
- Flexible payment – You repay a minimum amount every month. Want to repay early? That’s fine with us! We don’t charge anything extra. Also, it’s easy to make payments through our app
- Fast Cash transfer – Use Drafty whenever you want and we’ll send the money to your bank in under 90 seconds
Representative 96.2% APR (variable)
Subject to status. T&Cs apply.^
Who can apply for a Drafty line of credit?
You can apply online for a Drafty line of credit if you are:
- Aged 18 or over and employed
- Earning at least 1,250 a month
- A UK resident with an active bank account and debit card
After you’ve provided the required details, we’ll do some checks to make sure you can afford the repayments. If approved, we'll agree on a credit limit and send cash to your bank within 90 seconds.
Representative 96.2% APR (variable)
Subject to status. T&Cs apply.^
Can I use Drafty to make purchases?
Unlike credit cards, you can’t make purchases directly from your Drafty account. Instead, you use your Drafty account to send money to your bank, which only takes 90 seconds, and then you can make purchases using your debit card.
How do I make the repayments?
You'll need to make at least a minimum monthly payment of your borrowed amount. If you've set up a continuous payment authority (CPA), we’ll collect the payment automatically each month. If you haven’t set up a CPA or want to pay more than the monthly minimum, you can pay via your online account. You can access it either on the Drafty app or the website.
What credit limit can I get with a bad credit score?
Drafty offers credit lines up to £3,000 (subject to approval). If approved, your credit limit will be based on what you can afford to repay. This will be determined by our affordability and credit checks using the information you provided in your application.
Why do I have bad credit?
There are several reasons you might have bad credit, including:
- Little or no credit history
- Missed or late payments
- Past financial difficulties
- Making too many credit applications in a short time
- Being the subject of a County Court Judgement (CCJ)
- Even moving home regularly
Credit reference agencies collect information from public records, lenders, and service providers to generate a credit score. Although the measurement scales used by the main credit reference agencies may differ, the general rule is that the higher the score, the stronger your chances of being accepted when you make a credit application.
That said, a low credit score doesn't necessarily result in automatic rejection. Lenders and other service providers may also consider factors such as affordability and past account history.
Representative 96.2% APR (variable)
Subject to status. T&Cs apply.^
How do I improve my credit score?
A poor credit score could make lending approval difficult, but it’s not impossible. Here are steps you can take to improve your credit rating.
1. Pay your bills on time
Timely payment of bills, including credit cards, loans, and utility bills, is crucial for a positive credit history. Late payments can have a significant negative impact on your credit score.
2. Keep your credit utilisation low
Manage this ratio actively. Keep your credit usage lower than your available credit. Aim to use only a part of your available credit limit. High usage can hurt your credit rating.
3. Keep old accounts open
The length of your credit history is a factor in your credit score. Keep older accounts open, even if you no longer use them, to maintain a longer credit history.
4. Review your credit report
Get your credit report from credit reference agencies. These include Experian, Equifax, and TransUnion. You have the right to get one free report a year from a credit reference agency. Review this report to ensure all information is accurate.
Contact Drafty today
- Live chat - Log in or create a new Drafty account to speak to our team through our live chat function
- Drop us a message - If you'd like to send us an email, checkout our contact us page and drop us a line. A member of our friendly team will answer your questions as soon as possible
- Give us a call - We're here to answer your calls on 0203 695 8072 from 9am to 6pm Monday to Friday, and 9am to 1pm every Saturday#
FAQs - credit cards for bad credit
Does drafty offers credit cards too?
No, Drafty only offers a line of credit. If approved, you’ll get a line of credit (up to £3,000). You can use as much or as little as you want. You only pay interest on what you use.
Can I get a credit card with very bad credit?
You might struggle to get a typical credit card if you have a poor or limited credit history. However, this doesn't mean you can't get a credit card - you may be eligible for a bad credit credit card.
Can I get guaranteed approval credit cards for bad credit in the UK?
While there is no such thing as a guaranteed approval credit card, there are credit cards in the UK that are specifically designed for individuals with bad credit. These cards may have more lenient approval criteria compared to traditional credit cards, making them accessible to those with lower credit scores.
Can I get a credit card with no credit check?
It's unlikely. Credit cards involve a credit check as part of the application process. However, prepaid credit cards are not reported to credit bureaus, so they don't affect your credit score.
Will a credit card for bad credit help me if I’m in debt?
While a credit card for bad credit can help manage small expenses over a brief period, it's not a solution to debt. If you're unable to pay off the balance in full each month, relying on a credit card could potentially worsen your financial situation.
Can I use a credit card to build my credit score?
Using a credit card responsibly is an effective way to build and improve your credit score. You can do this by paying the balance off each time, not exceeding your credit limits, and monitoring your credit file regularly.
Drafty is an FCA-authorised provider of a Revolving Line of Credit with a credit limit of up to £3000, available to borrow as and when you need it (subject to affordability checks). You only pay interest on what you draw/use.
Representative Example: Assumed credit limit: £1200. Representative 96.2% APR (variable). Annual interest rate 69.4% (variable).
There is no set minimum or maximum repayment term, so long as the minimum monthly repayment sum is met, however, you may repay back early without any fees and save on interest.