Building credit with no credit.

Hi,

I'm brand new to the forum.

I am 18 years old, and I would like to build credit, however I am finding this difficult with my lack of credit history.

I have added myself to the electoral roll, and I have received a letter to say this will be updated in December. I have also taken out a sim only contract in order to help me build credit. I bank with HSBC and I would like to get a credit card with the intention to pay off in full when statement is due.

The only issue is, every eligibility checker I try states it is unlikely that I will be accepted for a credit card. Any advice would be great!

Comments

  • Try HSBC, or one of the sub prime providers.

    However, you're only 18, so you don't need to worry too much if you're declined. Give it a few months before trying again.
  • amfan
    amfan Posts: 108
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    Wait until you're on the electoral roll, which will give you a few months building some payment history on your phone contract. Then try a subprime lender, Capital One will give a decision without a hard search I believe. And then you just need to develop a good history of using that wisely and paying off in full when it is due.
  • Car1980
    Car1980 Posts: 296
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    HSBC will give you a credit card. It's exactly how I started: HSBC student bank account followed by cc.

    But wait until you're definitely on the electoral roll
  • Thrugelmir
    Thrugelmir Posts: 89,546
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    How long have you been in full time employment?
  • HSBC and most other banks have a different way of looking at lending you money when you bank with them. They build a separate internal customer score for you based on how well you manage your account, this will only start once you turn 18 however so depending how long ago that was it may take a while for your score to build up.
    This score often allows them to give an overdraft or a credit card and even in some cases a personal loan based on their own information they hold about you rather than your credit score on your credit file. In some cases they do not even credit check you at all. So you may be more likely to obtain credit with your own bank as long as you have regular credits going in via bacs transfer, you don't go overdrawn without an approved limit and you do not miss payments on direct debits or standing orders by having them bounce. All of those things will affect your score and value with your bank.
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