A damaged track record of borrowing, such as failing to make repayments, can drastically affect the chances of being approved for a mortgage and other forms of credit in the future.
However, there are special options that give people a chance to restore their rating – as long as repayments are met.
Credit repair cards can help low income borrowers, the self-employed, as well as those without a credit history and with CCJs, according to Moneyfacts.co.uk.
The rates on the cards are far higher than mainstream cards, but if spending is paid off each month it won’t attract interest.
Customers will then build up their credit score and qualify for more competitive deals in the future.
The lowest rate card is from Metro Bank, its Personal Credit Card with a 13 per cent APR.
Another option is the reducing rate option is offered by NewDay Ltd through its aqua advance Mastercard with an APR of 34.9 per cent – which falls to 19.9 per cent APR if repayments are made on time.
Tesco gives spenders points with its Foundation Clubcard with an APR of 27.5 per cent.
And Barclaycard’s Platinum 18-month Balance Transfer card is available for people with allow credit score, but with an APR of 24.9 per cent borrowers should be looking to pay off money as fast as possible.
Rachel Springall, finance expert at Moneyfacts.co.uk, said: “Credit repair cards might look frightening from the outset, since many charge higher interest rates than standard credit cards, but if used appropriately they really can make a difference to those hoping to borrow and build their credit score, and who are otherwise running out of options.
“The simplicity of credit repair cards could save consumers from overspending and help them focus on repaying what they borrow more quickly.
“These cards typically offer a low credit limit to start with, which can be increased if a borrower uses the card wisely.”