What are credit-building credit cards? A Zable guide

If you're trying to build your credit score, a credit-building credit card can actually be an excellent tool to get you started. These cards are specifically designed to help people with limited or poor credit history build or rebuild their credit profiles. But how exactly do they work? And why might you need one? In this article, we’ll break it down and show you how credit-building cards can help you take control of your financial future. 

You might be looking for a credit-building credit card if you don’t have much of a credit history, or have faced challenges in managing credit in the past. Credit building cards are designed to help customers demonstrate and establish a track record of controlled borrowing, helping you gradually improve your credit score over time by using credit wisely and consistently. Consequently, you might also gain access to other financial products, such as loans and mortgages. 

Why is building credit important? 

A strong credit score opens the door to a world of financial opportunities. Planning to apply for a mortgage, take out a personal loan, or even sign up for a mobile phone contract? Your credit score plays a critical role in determining the types of financial products and rates you may be eligible for. A good score makes it easier to get approved for loans, access better interest rates, and secure higher credit limits. 

For those with little or no credit history – or those looking to repair past financial mistakes, credit-building cards provide a way to prove their financial responsibility. 

Zable’s approach to credit-building 

At Zable, we believe that building or rebuilding credit should be simple, transparent, and accessible. That’s why our credit card is designed with you in mind. 

Here’s how Zable can help you take control of your credit: 

No hidden fees 

With Zable, you won’t face any sneaky charges. We offer zero annual fees and no foreign transaction fees, so you can focus on managing your finances without any unexpected costs. The fees that we do charge, such as a late fee or a cash withdrawal fee, are always listed on our website and you’re informed of them in advance. 

Smart credit management 

The Zable app makes managing your credit card a breeze. With real-time notifications, spending categorisation tools, and easy payment options, you can keep track of your spending and stay on top of your balance—an essential habit for credit building if you ask me! 

Credit-friendly application process 

Not sure if you’ll be accepted? Zable uses a soft credit check during the initial application, so you can see if you qualify without any impact on your credit score at all. If you are approved and you decide to proceed, Zable then conduct a hard credit check as part of the final step, but rest assured, responsible use of your card can help you build your credit profile over time and this effect will just be temporary. 

Tips for using a credit-building card effectively 

To get the most out of your credit-building card and see an improvement in your score, have a go at these simple tips: 

Make payments on time 

Your payment history is one of the most significant factors influencing your credit score. Setting up automatic payments or reminders in-app can ensure you’ll never miss a due date. 

Keep an eye on your balance 

Always stay within your credit limit. This shows lenders that you’re using credit responsibly and not over-relying on borrowed funds. 

Use your card regularly 

Consistent, responsible use of your credit card helps build a positive credit history. Even small, regular purchases, like groceries or travel fares, can contribute to a stronger credit profile. 

Monitor your progress 

Regularly check your credit score through your credit card provider’s app or website to track your progress and ensure everything is on track. 

Credit-building credit cards, like Zable’s, are designed to help you take control of your financial future. Whether you’re starting with a thin credit file, or recovering from past credit challenges, using a credit-building card responsibly can set you on the path to stronger credit and greater financial opportunities. 

Thanks to Zable for taking the time to explain credit-building cards. There are many credit-building providers out there – so make sure you do your research first to find the right provider for you. Credit-building cards can help improve your credit score – if used responsibly. Make sure you can afford to pay on time and clear the full balance each month to stay debt-free.

Zable is a trading name of Lendable Ltd. Representative Example: Based on assumed borrowing of £1200 at an interest rate of 48.9% (variable) p.a. Your representative APR will be 48.9% (variable).