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  • FIRST POST
    • Yaloke
    • By Yaloke 12th Oct 17, 4:46 PM
    • 1Posts
    • 0Thanks
    Yaloke
    Wanted tips on building credit with no credit
    • #1
    • 12th Oct 17, 4:46 PM
    Wanted tips on building credit with no credit 12th Oct 17 at 4:46 PM
    Hi all, i recently opened my first bank account in august and i was looking for solid tips on building credit, i did some googling and nothing really seemed solid and to the point it was just sentences fabricated to seem helpful.

    I am 18 and this is my only bank account i also opened a savings account because i read regular income to an savings account helps credit.

    I am looking for simple tips on maybe what you did to build credit, all help is appreciated

    Edit: Forgot to mention i am in the UK, not sure if credit circumstances are different in other countries
    Last edited by Yaloke; 12-10-2017 at 4:56 PM.
Page 1
    • zx81
    • By zx81 12th Oct 17, 5:15 PM
    • 14,380 Posts
    • 15,170 Thanks
    zx81
    • #2
    • 12th Oct 17, 5:15 PM
    • #2
    • 12th Oct 17, 5:15 PM
    Make sure you're on the ER.

    There is no rush, but if you think you can handle it, a credit card allows you to build up a solid history.

    You need to be disciplined in using it regularly (for things you would buy anyway) and then clearing in full each month once you get the statement.

    No mad spending, no going over limit, no missing payments.

    And never ever worry about the credit scores that the CRAs give you. Just manage your credit sensibly.
    Last edited by zx81; 12-10-2017 at 5:19 PM.
    • pcman1985
    • By pcman1985 12th Oct 17, 5:18 PM
    • 133 Posts
    • 71 Thanks
    pcman1985
    • #3
    • 12th Oct 17, 5:18 PM
    • #3
    • 12th Oct 17, 5:18 PM
    Get a credit building credit card. These have low limits (around £250 starting limit) and high interest rates. However the interest rate won't matter as you will pay off the statement balance in FULL every month.

    In order of preference from best to worst I would go

    Capital One
    Aqua
    Vanquis.

    After a year of responsible running of the card you should be able you apply for a more mainstream credit card.

    Finally make sure you are on the electoral register.
    • binaryuniverse
    • By binaryuniverse 12th Oct 17, 7:28 PM
    • 475 Posts
    • 261 Thanks
    binaryuniverse
    • #4
    • 12th Oct 17, 7:28 PM
    • #4
    • 12th Oct 17, 7:28 PM
    In addition to all the above, your bank may also be in a position to give you a credit card, as they have information on your banking history.

    Savings accounts have absolutely no bearing on your ability to get credit, as they do not show up on your credit reports. So lenders can't see them. Although a caveat to this may be if you apply for a card with your bank you have savings with, as they could look at that as a factor.

    However, regularly paying in to a savings account IS a good thing. I'd suggest that you ensure that you always have more in savings than you owe on the card. That way, if things go wrong, you can instantly pay the card off. If you don't have more, then you can't afford whatever it is you want.
    • chappers
    • By chappers 12th Oct 17, 8:10 PM
    • 2,948 Posts
    • 1,701 Thanks
    chappers
    • #5
    • 12th Oct 17, 8:10 PM
    • #5
    • 12th Oct 17, 8:10 PM
    Finally make sure you are on the electoral register.
    Originally posted by pcman1985
    should be first of all make sure you are on the electoral roll, you won't get credit without it.
    • nic_c
    • By nic_c 12th Oct 17, 8:18 PM
    • 1,123 Posts
    • 640 Thanks
    nic_c
    • #6
    • 12th Oct 17, 8:18 PM
    • #6
    • 12th Oct 17, 8:18 PM
    As has been said a credit card can be useful, use an eligibility checker to see who will accept you, that way you don't affect your history with to many applications. The card you do apply for will affect it in the short term (applications leave hard searches and have a negative impact), don't worry about APR as you need to pay in full each month - effectively use it to pay for stuff you would normally pay on debit card for and use the money to pay the card off. If you are disciplined to leave the money in your bank account so can pay in full by DD, then do that, if not then transfer whatever you spend on a weekly basis across so not tempted to run up bills. People say a "builder" card, its just a normal credit card but some companies are willing to accept people with less credit history or a higher risk and charge a higher APR accordingly.

    Time is the big factor for improving your "score", showing you can use credit sensibly over a period of time is what you want. The other factor of ensuring you are on the electoral roll is a biggie, and not moving around a lot.

    Don't get credit for the sake of improving your score (people have been known to get loans out or store credit) if it is going to cost you
    Don't pay interest to try and improve your score. Some people say showing a balance helps, but paying in full once the statement has been done (e.g. pay in full by DD) does that
    Don't pay for credit building plans - the Credit Reference Agencies offer monthly plans, but there are free alternatives of all 3 to view your report, no need to pay to monitor or receive tips.
    • DCFC79
    • By DCFC79 12th Oct 17, 10:43 PM
    • 30,400 Posts
    • 19,220 Thanks
    DCFC79
    • #7
    • 12th Oct 17, 10:43 PM
    • #7
    • 12th Oct 17, 10:43 PM
    Why the rush, just run your current account well, dont go overdrawn.
    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.
    • pcman1985
    • By pcman1985 13th Oct 17, 11:23 AM
    • 133 Posts
    • 71 Thanks
    pcman1985
    • #8
    • 13th Oct 17, 11:23 AM
    • #8
    • 13th Oct 17, 11:23 AM
    should be first of all make sure you are on the electoral roll, you won't get credit without it.
    Originally posted by chappers
    Not true. When I got my Capital One card I was not on the electoral roll.
    Obviously for more "better" types of credit you will have to be on the electoral roll.
    • StopIt
    • By StopIt 13th Oct 17, 11:29 AM
    • 1,449 Posts
    • 1,239 Thanks
    StopIt
    • #9
    • 13th Oct 17, 11:29 AM
    • #9
    • 13th Oct 17, 11:29 AM
    should be first of all make sure you are on the electoral roll, you won't get credit without it.
    Originally posted by chappers

    It'll be harder to get credit without doing so, but not impossible.


    Still, get on it, as it's a simple way to avoid refusals for reasons other than credit risk.


    Apply for a "starter" credit card, or, a credit card with your bank as they sometimes are more likely to help. Only put small amounts of spending on the card, pay it off in full, and do so every month.


    Regular repayments are the best way to get a credit history going, but do not pay interest to boost it, it's a waste of money.
    • Car1980
    • By Car1980 13th Oct 17, 1:09 PM
    • 234 Posts
    • 113 Thanks
    Car1980
    Student bank account and a student credit card from the same bank - a common way a lot of people start.
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