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  • FIRST POST
    • jaystuo
    • By jaystuo 7th Sep 17, 6:29 PM
    • 1Posts
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    jaystuo
    How to start credit rating from scratch
    • #1
    • 7th Sep 17, 6:29 PM
    How to start credit rating from scratch 7th Sep 17 at 6:29 PM
    Hello all!

    I'm 26 years old and have just returned from living in Australia for 7 years. I have been back for 3 weeks and have gotten a pretty great paying full time job and have already got a new flat that I'm moving into in 3 weeks.

    My question is, I don't have a credit rating at all because I haven't been here in 7 years. What can I do to start building it? I have opened my bank account and my wages will be going into that, but I'm looking to settle down now and I want to buy a house in a couple of years time.
Page 1
    • zx81
    • By zx81 7th Sep 17, 6:38 PM
    • 14,156 Posts
    • 14,858 Thanks
    zx81
    • #2
    • 7th Sep 17, 6:38 PM
    • #2
    • 7th Sep 17, 6:38 PM
    Don't worry about ratings. Do you appear on the three CRAs - ie do you have credit files, with Experian, Equifax and Call Credit?

    Once you've established you're on there (raise a query if you're not), try to get a credit card. You're probably looking at a sub prime card, or perhaps one from your bank.

    Use it regularly, clear it in full each month. This will start to build history.

    Also make sure you're on the ER.
    • Tarambor
    • By Tarambor 7th Sep 17, 6:38 PM
    • 1,610 Posts
    • 1,101 Thanks
    Tarambor
    • #3
    • 7th Sep 17, 6:38 PM
    • #3
    • 7th Sep 17, 6:38 PM
    Credit scores aren't used by lenders in the UK. You need to build credit history so this can be things like getting a mobile phone on contract and applying for a credit building credit card - don't worry about the APR on it as you should be paying it off in full every month so would pay no interest.
    • sheff6107
    • By sheff6107 8th Sep 17, 5:33 PM
    • 442 Posts
    • 293 Thanks
    sheff6107
    • #4
    • 8th Sep 17, 5:33 PM
    • #4
    • 8th Sep 17, 5:33 PM
    I have opened my bank account
    Originally posted by jaystuo
    This is the point at which most people's report gets created - often as a student opening their first student bank account.

    I'd apply for a credit card with the same bank, use it and pay it back every month.
    • Narkynewt
    • By Narkynewt 8th Sep 17, 7:22 PM
    • 118 Posts
    • 23 Thanks
    Narkynewt
    • #5
    • 8th Sep 17, 7:22 PM
    • #5
    • 8th Sep 17, 7:22 PM
    Get a credit card and just use it each month for something small, say a magazine subscription & always pay it back on time & in full.

    Make sure you're on the electoral register.

    Get a few things on finance and pay them back on time.

    You should be ok to apply for a mortgage after 3 years of doing this
    • Fireflyaway
    • By Fireflyaway 9th Sep 17, 5:29 PM
    • 1,300 Posts
    • 1,323 Thanks
    Fireflyaway
    • #6
    • 9th Sep 17, 5:29 PM
    • #6
    • 9th Sep 17, 5:29 PM
    My husband was in this situation but things soon improved. Register on the electoral register, don't go overdrawn or allow and direct debits to be returned unpaid. Do this for a few months, then apply for a credit card -
    probably with your bank as they will see your good track record. Once you have that, pay it in full every month, don't use more than 30-40% of the available credit on it and never withdraw cash on it. Don't take out any payday loans or scorecards either.
    We bought our first house 3 years after my husband came to the UK.
    • Dobbibill
    • By Dobbibill 9th Sep 17, 11:14 PM
    • 2,471 Posts
    • 3,568 Thanks
    Dobbibill
    • #7
    • 9th Sep 17, 11:14 PM
    • #7
    • 9th Sep 17, 11:14 PM
    don't get finance - you probably won't be eligible for anything decent anyway - but you don't need to pay unnecessarily.

    Get a few things on finance and pay them back on time.
    Originally posted by Narkynewt
    - Your bank account should report to the CRAs, so as others have said - don't use an overdraft, make sure any direct debits are paid on time.
    - Consider a second bank account - this helps with budgeting as well (bills/spending).
    - Make sure you are on the ER.
    - a SIM only contract (unless you save money by having a PAYG)
    - after a few months, try for a credit card - there's an eligibility checker here (use for groceries/fuel etc and pay off in full and on time every month)
    - a year later, consider a second credit card (use as above, paying off in full)
    - make sure your address has consistent formatting across all applications/accounts
    - some utilities will report to the CRAs.

    Check all 3 CRAs FREE.
    Clearscore (provided by Equifax)
    Noddle (provided by Call Credit)
    MSE Credit Club (provided by Experian)

    Ignore the scores they generate though - lenders don't use it
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