Credit cardsBarclaycard has reintroduced the three-month interest-free period on purchases on its Initial credit card.

Ordinarily 0% deals are reserved for borrowers with good credit ratings. However, the Initial card is designed for borrowers with no credit history at all, making the deal very attractive.


The Initial credit card
The 0% period is a great boost for borrowers, but just as important is what happens once than interest-free period comes to an end. The Initial card boasts a representative APR of 29.9%, significantly higher than most mainstream cards, but very competitive for credit builder cards.

The table below covers the five top cards designed for borrowers with either no credit history or a poor one and the interest rates they offer.

Credit card

Representative APR

Aqua Classic MasterCard

29.7%

Vanquis Bank Aquis Visa

29.8%

Barclaycard Initial Visa

29.9%

Capital One Classic

34.9%

Aqua Advance MasterCard

34.9%


Who can get the Barclaycard Initial?
You may be accepted for the Barclaycard Initial if you meet the following conditions:

  • You're 18 or older
  • You have no credit history
  • Your financial situation has improved in the last 12 months
  • You have not been declared bankrupt in the last 12 months
  • You've had no County Court Judgments or Individual Voluntary Arrangements in the last 12 months
  • You don't already have a Barclaycard
  • You've lived at your address for at least three months

Cards that offer a little extra
The Barclaycard Initial is the only credit builder card that offers a 0% period, but it's not alone in being a little innovative in the way it works.

For example, the Aqua Advance MasterCard initially comes with an interest rate of 34.9%, but you can cut that down to 19.9% if you manage the card well. So long as you meet your payments on time each month you can cut the interest rate by 5% a year, until the rate reaches 19.9%.

With Aqua cards you also benefit from a free credit checker.

There's also the Capital One Classic Extra, which pays cashback! You can get 0.5% cashback on all of your spending, and should you pay on time each month you'll be rewarded with a £10 annual bonus.

Head over to our credit builder comparison centre to see all of the cards in the market and how they compare.


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