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  • FIRST POST
    • K789
    • By K789 14th Nov 17, 3:19 PM
    • 18Posts
    • 1Thanks
    K789
    How do I build up my credit rating fast?
    • #1
    • 14th Nov 17, 3:19 PM
    How do I build up my credit rating fast? 14th Nov 17 at 3:19 PM
    Hi

    So I want to get a mortgage but my credit score is causing a slight problem.

    I have never damaged my credit history, however I think the problem is that I haven't ever taken out much credit in the past so it's hard for potential lenders to to lend to me.

    I had just attempted to apply for what I thought would be an easy to get loan (so I could put footprints on my credit file) and I was turned down.

    Can anyone recommend a loan company who would accept someone with a lack of credit history so that I can create footprints, so show that I am responsible with money?
Page 1
    • zx81
    • By zx81 14th Nov 17, 3:20 PM
    • 14,058 Posts
    • 14,753 Thanks
    zx81
    • #2
    • 14th Nov 17, 3:20 PM
    • #2
    • 14th Nov 17, 3:20 PM
    Ignore your score and forget about getting loans.

    Get a card with a sub prime provider. Use regularly and clear in full each month.

    That is the easiest and free way to build a credit history (not a score). Make sure you're on the ER.

    When you come to apply for a mortgage, use a broker who can place your application correctly.
    • K789
    • By K789 14th Nov 17, 3:54 PM
    • 18 Posts
    • 1 Thanks
    K789
    • #3
    • 14th Nov 17, 3:54 PM
    • #3
    • 14th Nov 17, 3:54 PM
    Do you know how long that may take before I have a good credit score?
    • Candyapple
    • By Candyapple 14th Nov 17, 4:04 PM
    • 2,472 Posts
    • 1,848 Thanks
    Candyapple
    • #4
    • 14th Nov 17, 4:04 PM
    • #4
    • 14th Nov 17, 4:04 PM
    Do you know how long that may take before I have a good credit score?
    Originally posted by K789


    Ignore your score and forget about getting loans.

    Get a card with a sub prime provider. Use regularly and clear in full each month.

    That is the easiest and free way to build a credit history (not a score). Make sure you're on the ER.

    When you come to apply for a mortgage, use a broker who can place your application correctly.
    Originally posted by zx81
    Did you even read the post?
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • zx81
    • By zx81 14th Nov 17, 4:04 PM
    • 14,058 Posts
    • 14,753 Thanks
    zx81
    • #5
    • 14th Nov 17, 4:04 PM
    • #5
    • 14th Nov 17, 4:04 PM
    Ignore your score.

    The longer you demonstrate good behaviour, the better. It varies by lender, but a mortgage is going to require more than a few months of using a card.

    It all depends on your complete circumstances.
    • K789
    • By K789 14th Nov 17, 5:35 PM
    • 18 Posts
    • 1 Thanks
    K789
    • #6
    • 14th Nov 17, 5:35 PM
    • #6
    • 14th Nov 17, 5:35 PM
    That's why I was hoping to take out a few personal loans and pay them all back in full early. But I was hoping someone could put me onto companies how would definitely give me a loan
    • K789
    • By K789 14th Nov 17, 5:36 PM
    • 18 Posts
    • 1 Thanks
    K789
    • #7
    • 14th Nov 17, 5:36 PM
    • #7
    • 14th Nov 17, 5:36 PM
    If I used a guarantor to get a loan would that still show up on my credit file as if I were the one taking out the loan?
    • Superscrooge
    • By Superscrooge 14th Nov 17, 7:21 PM
    • 906 Posts
    • 627 Thanks
    Superscrooge
    • #8
    • 14th Nov 17, 7:21 PM
    • #8
    • 14th Nov 17, 7:21 PM
    Why are you obsessed with taking out a loan which will mean unnecessary interest payments when you can simply follow ZX81's advice and take out a sub prime credit card. Pay the balance in full each month and build a credit history for free?

    If you have little credit history, any loan applications will either be refused or will be at a very high rate of interest
    • cjmillsnun
    • By cjmillsnun 14th Nov 17, 7:25 PM
    • 296 Posts
    • 201 Thanks
    cjmillsnun
    • #9
    • 14th Nov 17, 7:25 PM
    • #9
    • 14th Nov 17, 7:25 PM
    If I used a guarantor to get a loan would that still show up on my credit file as if I were the one taking out the loan?
    Originally posted by K789
    Please do not use a guarantor to get a loan. Amigo loans are IMO worse than loan sharks. They have criminally high interest rates, and if you get into financial trouble, the poor guarantor is lumbered with a debt they never wanted. Also mortgage companies may view it poorly as getting into unnecessary debt which could impact affordability.

    ZX81 is right to suggest getting a card. Use it to no more than half the credit limit and pay off in FULL every month.

    If you're on a PAYG mobile get a sim only contract as well. Other than that, it takes time. There is no quick fix.
    Last edited by cjmillsnun; 14-11-2017 at 7:31 PM.
    • zx81
    • By zx81 14th Nov 17, 7:39 PM
    • 14,058 Posts
    • 14,753 Thanks
    zx81
    That's why I was hoping to take out a few personal loans and pay them all back in full early. But I was hoping someone could put me onto companies how would definitely give me a loan
    Originally posted by K789
    Taking out 'a few personal loans' will tell lenders you are desperate for cash, with no contingency funds.

    Surprisingly, that's not a good look when you're applying for a mortgage.
    • DCFC79
    • By DCFC79 14th Nov 17, 8:03 PM
    • 30,273 Posts
    • 19,151 Thanks
    DCFC79
    If I used a guarantor to get a loan would that still show up on my credit file as if I were the one taking out the loan?
    Originally posted by K789
    A guarantor isnt the answer.

    Just dont go there.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • MEM62
    • By MEM62 15th Nov 17, 2:10 PM
    • 1,373 Posts
    • 988 Thanks
    MEM62
    That's why I was hoping to take out a few personal loans and pay them all back in full early. But I was hoping someone could put me onto companies how would definitely give me a loan
    Originally posted by K789
    There is no shortcut. Just take out a sub-prime card and use regularly to build up a history of sing credit responsibly. Using lots of credit over a short space of time does not have the effect of 'speeding up' your credit standing.

    Patience is required.
    • Tarambor
    • By Tarambor 15th Nov 17, 5:25 PM
    • 1,562 Posts
    • 1,066 Thanks
    Tarambor
    If I used a guarantor to get a loan would that still show up on my credit file as if I were the one taking out the loan?
    Originally posted by K789
    Yes and it would monumentally screw you because a loan requiring a guarantor typically involves a sub-prime lender like Amigo. Companies like that and pay day loan companies are viewed as negatives on a credit file by proper lenders because they're a lender of last resort so you have to be in a pretty bad financial shape to go there.

    Only time is going to help you so do as you have been advised. Spending money on interest on a loan you don't need just to raise a score no lender uses is insanity.
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