Credit History Lazarus

Welsh_Al

Firstly, many apologies if this duplicates threads. I tried searching, but wasn't sure how to define the search, and haven't found any duplicates so far.

Secondly, I want to know how to rebuild my credit history into something useful.

I have a credit history problem, and at the risk of boring you, seek advice.
I hope i don't bore you, but feel that background might help later on.
I went to uni, and did all the things you shouldn't. Drink, sleep, eat, drink some more, interspersed with enough work to keep me there full-term and borrow more and more every year. Thank god i thought that credit cards were the devil's work, otherwise i'd have been right up the creek.
Failed degree, no important employment, low earnings, living with parents, and this 6 years later.
Problems with defaulted repayments;
1)Student bank account overdraft (Lloyds) couldn't be changed into a Graduate loan, because i didn't graduate, and not being able to find work, couldn't meet the repayment demands, even after talking to the bank. Wales can be very conservative when we try... Sent to a debt recovery company.
2)The Student Loans Company took two payments when they should have taken one, and an Orange direct debit failed twice. £60 was all, but i think that was enough.
3)Computer on credit (stupid i know, but an attempt to get in on the website-building boom of the late nineties, and i was amazed that without lying i could get it). Late in the repayment cycle, one default, passed on to a debt recovery company.

I work for my parents, who don't charge me rent and don't pay me much. Works fine for me, but not for the records.

I banked with TSB as well, but after the merger, I think the Lloyds records were assimilated. The bank won't give me current account, and won't say why other than my credit score isn't good enough.

Isn't this just a doozy of a conundrum?. I can't get any credit, so can't prove my ability to borrow and repay.
I can't move as i dont have enough money. I can't buy a house as i can't get credit. I can't even shop online as i can't get a debit card.
Anyone know how and where to start?.
Are Rate At Risk credit cards worth it to build browny points?.
Is it worth getting a second card on a friend/relative's account?.

deemy2004

I was going to suggest a 30 day trail with experian, then you would have your full credit history to ponder over, but you need a credit or debit card to sign up.

You can get a basic bank account, ask the halifax.

Robert_Sterling_3

You work for your parents and they don't pay you much.
Perhaps , if they are not doing so all ready, they could pay you what you are worth.

MarkyMarkD

I read it that the pay is OK given that free board and lodging is provided.

If the SLC thing was their error, get them to correct your credit record. Every little helps.

Getting an "additional cardholder" card won't help your record at all.

I should get one of the "adverse credit" cards you mention, and then clear your balance in full so you don't incur interest. After a period of healthy behaviour on such a card you should find it easier to get a proper bank account.

Meanwhile any of the banks will give you a basic bank account if you ask hard enough. They aren't very keen to promote them because they don't make any money out of them! They are also unlikely to help your credit record - as they don't allow credit, there's no point them reporting your account status to the credit referencing companies.

Robert_Sterling_3

I can see some advantages in having a regular wage and the higher the better.  You can then hand back an appropriate amount to contibute to the family expenses.

Welsh_Al

Many thanks for all the replies. As the man said, every little helps ;D

Right, so additional cardholder cards are useless then for a credit history. Would my circumstances stop me from getting one?.
Although it seems unlikely, is there any way to clear a credit history?. Do negative marks disappear after time, or do they stay there for ever?. I did read that you can negotiate their removal, which is something to change. The SLC don't want to help though. They didn't want to do anything, especially not give me back the money they had taken in error...

I had thought about earning more and paying rent, but that then impacts on tax etc. Plus, the SLC income threshold is 14K pa, so it would have to be less than that, which isn't much tbh.

Thanks for your thoughts, and any others you may have.

MarkyMarkD

Should be nothing to stop you getting an additional card - the debt is the responsibility of the main cardholder so there's no reason to reject a second cardholder or even to credit check them.

It will help if you have some recent history which is favourable, and the attention given to older bad credit history will reduce over time. But still worth persevering with SLC regarding getting the !!!!!!-up removed from your history if at all possible.

I understand the tax point re your income - but in your circumstances, if I was completing an application form with details of income, I would gross up what cash you actually receive with a notional value for the free board and lodging. Incomes are not checked against any public records (because this information isn't public) and you would be able to substantiate it (as £x + £y of board and lodging) if you were asked to prove it although that is very unlikely for credit cards/personal loans.

If you were receiving free board and lodging and weren't a family member, I think it should be declared as a taxable benefit in any case - but I expect that this is a point the Revenue can't pursue when it's your family as any family could choose not to charge board and lodging to their adult children or other relatives. I'm not an expert on this area, though.

Welsh_Al

Thanks.
I should say that i don't want an associate card so that i can run up huge debts :P
You can't shop online without one, so it makes things easier and cheaper. I wish i could get a debit card, but we'll have to wait and see.

Thanks MarkyMarkD and all.