1.Tesco Bank Foundation Credit Card
Tesco Bank
- 5%Points per £4 spent at Tesco
- 1%Points per £8 spent elsewhere
N/A
Earn 5 points per £4 at Tesco, points on Tesco fuel, and 1 point per £8 elsewhere.
29.9% Variable APR
The Tesco Bank Foundation Credit Card stands out as the top choice because it offers a straightforward way to build credit while earning Clubcard points on everyday spending, making it ideal for those looking to improve their credit score.
Pros:
- No annual fee
- Helps build credit
Cons:
- High APR
- Limited rewards outside Tesco
2.Asda Money Select Credit Card
Asda Money
- 5%Cashback on ASDA purchases for the first 60 days
- 0.75%Cashback on all other purchases
Get £20 in Asda Pounds for spending £50 at Asda and setting up a Direct Debit within 60 days.
Earn 5% back when you spend at ASDA for your first 60 days, then 0.75% cashback on all other purchases.
39.8% Variable APR
What sets the Asda Money Select Credit Card apart is its generous initial cashback offer, allowing new customers to earn 5% back on ASDA purchases for the first 60 days, making it a strong contender for those who frequently shop at ASDA.
Pros:
- No annual fee
- High initial cashback at ASDA
Cons:
- High APR
- Limited to ASDA for maximum rewards
3.Capital One Classic Credit Card
Capital One
- No rewards breakdown available
N/A
N/A
34.9%-37.9% Variable APR
The standout feature here is that the Capital One Classic Credit Card is specifically designed for individuals looking to build their credit history, offering manageable credit limits and potential increases, making it a reliable choice for credit building.
Pros:
- No annual fee
- Helps build credit
Cons:
- High APR
- Limited rewards
4.Barclaycard Forward Credit Card
Barclaycard
- No rewards breakdown available
N/A
N/A
33.9% Variable APR
A key differentiator is that the Barclaycard Forward Credit Card focuses on credit building, offering a potential interest rate reduction for responsible use, making it a strategic choice for those looking to improve their credit score.
Pros:
- No annual fee
- Potential interest rate reductions
Cons:
- High APR
- Limited rewards
Final Words
As you explore the best starter credit cards with no credit history this January, remember that comparing your options is crucial for finding the right fit for your financial needs. Take time to assess features, fees, and benefits to make an informed decision that will help you build your credit effectively.
Frequently Asked Questions
The Tesco Bank Foundation Credit Card has no annual fee and offers a reward structure where you can earn 5 points per £4 at Tesco, points on Tesco fuel, and 1 point per £8 elsewhere. This card is ideal for those looking to build their credit history while enjoying rewards.
With the Asda Money Select Credit Card, you can earn £20 in Asda Pounds for spending £50 at Asda and setting up a Direct Debit within 60 days. Additionally, you’ll earn 5% back on ASDA purchases for the first 60 days, followed by 0.75% cashback on all other purchases.
The Capital One Classic Credit Card has no annual fee and is designed for those with limited credit history. While it doesn't offer any rewards or welcome bonuses, it can help you establish a credit history responsibly.
To apply for a starter credit card in the UK, you’ll typically need to provide personal information such as your name, address, and income. It's also beneficial to check your credit score beforehand to increase your chances of approval.
Many starter credit cards, like the Tesco Bank Foundation Credit Card and the Capital One Classic Credit Card, come with no annual fees. However, some cards may charge fees, so it’s essential to review the terms before applying.
When selecting a starter credit card, consider factors such as annual fees, interest rates, and rewards programs. Assess your spending habits to find a card that offers the best benefits for your lifestyle.
Starter credit cards often come with lower credit limits, typically ranging from £200 to £1,500, to help manage risk for both the issuer and the cardholder. As you build your credit history, you may qualify for higher limits in the future.
