nO CREDIT RECORD

walshy.walsh

hi guys, well i've just got my experian (creditexpert) report, and there is no previous repayment history on it, this is because i got into quite a large amount of debt in the mid nineties, and vowed NEVER to get in that situation again! So i went with my dads advice of "if you cant afford it, you dont have it". there isnt even anything referring to my bank account, which is just a basic Nationwide cashcard account! the thing is, that in the next 12-18 months, me and my partner will be looking to get a mortgage, and from reading on here, i understand that having NO credit history is almost as bad as having BAD credit history! can somebody please advise what i should do! i can get provident loans at cost as my partner works for them, but how many credit accounts is good, and how many is bad?? thanks guys! p.s, i have 6 searches on my report, ALL of which apertain to car insurance quotes!

~Beanie~

Don't get a Provident Loan, it will cost you money as you will be paying interest on it.

Get a credit card and use it for groceries and/or petrol and make sure that you pay the balance off in full each month. That way it will cost you nothing and will build your credit rating.

4littleone

Capital One have a card for people with no credit history. It's a high interest rate but as long as you are using it for your normal spends and paying off in full every month then it's fine.

walshy.walsh

i dont have to pay interest on provy loans, as my partner works for them, which credit card could i get? with no history?

Ryan_Taylor

Hi Walsh,

You're on the right track... FICO revised their credit scoring system recently (FICO 08), which puts more weight on how you handle all types of credit. So, you'll want to get a credit card and some sort of loan that you have to payback.

You don't have to spend a lot on your credit card - in fact you want to keep that to a minimum - but you want to create activity so it build a history of use. Maybe buy your groceries or somethign small every month, and pay in full when you get the bill. Don't use it for anything else.

For a revolving loan, you could try to get a personal loan at the bank, put the funds you receive in a Money Market account, and make a payment every month. This will cost you a little bit because the loan rate will most likely be higher than the rate you'll earn on the Money Market account, but it shouldn't be that much of a difference.

Do you not have a cell phone or utility bill? Those items generally are recorded on your credit file and do affect your score. If not, you might want to get those in your name as well.

Hope this helps.

Ryan

walshy.walsh

thanks for the advice, all utility bills, i.e gas/elec, council tax, water, phone bill, are in my name, but dont show up! is this correct???? im on payg mobile!

moneysavingallday

Ryan_Taylor wrote: »

Hi Walsh,

You're on the right track... FICO revised their credit scoring system recently (FICO 08), which puts more weight on how you handle all types of credit. So, you'll want to get a credit card and some sort of loan that you have to payback.

You don't have to spend a lot on your credit card - in fact you want to keep that to a minimum - but you want to create activity so it build a history of use. Maybe buy your groceries or somethign small every month, and pay in full when you get the bill. Don't use it for anything else.

For a revolving loan, you could try to get a personal loan at the bank, put the funds you receive in a Money Market account, and make a payment every month. This will cost you a little bit because the loan rate will most likely be higher than the rate you'll earn on the Money Market account, but it shouldn't be that much of a difference.

Do you not have a cell phone or utility bill? Those items generally are recorded on your credit file and do affect your score. If not, you might want to get those in your name as well.

Hope this helps.

Ryan

you're obviously American. We don't have Money Market accounts and cellphones or FICO here in Britain.