Question of the Week: I have no credit history. How can I get a credit card?

Former_MSE_Andrea

Q. I've been refused a credit card because I have no credit history. It's a vicious circle. What can I do?

A. Credit scoring works by predicting behaviour, so those with no credit history are more difficult to predict and thus more likely to get rejected. Therefore the aim is to build a good credit history.

The first aim is to get a credit or store card, usually all you'll get is a high interest rate one, 30%ish plus, such as Barclaycard Initial, Capital One Classic, Monument, Aquacard and Vanquis. Yet provided you can repay it IN FULL each month and not be charged interest, the rate's irrelevant.

So then use one of these for six to twelve months, spending a little every month, repaying in full, and it should help you build a credit history allowing you to move into the mainstream. If you can't get one of those cards, there's a prepay card with a yearly fee that does the same job.

For much more on this see the Boost your credit rating guide.


If you'd like to discuss this click reply below.

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Oakie

My daughter is 19 and a student nurse.Recently Nat West offered her a Credit Card.
They said it would help her get loans in the future.
She declined,she has a large overdraught already,really doesn't need the temptation
Their reply was apply,then put the card in a drawer !!
I can't see how by having a card BUT not useing it helps her credit rating !
I really feel Nat West are acting irresponsilble.
I wonder if the customer advisor is working on commission ?

debrag

your bank goes on your credit report so why get a credit card?

joed_3

I had a similar instance a few years ago. The 1st thing I did was get on to the electoral registar and took out one of the high interest rate credit cards. I made sure to only use them for small purchases so that I could repay them in full. Also, it seems that if you have a BT line it helps your scoring as well.

lil-mis-confused

Your credit rating is improved by how contactable you are too! Get onto the electoral role, provide multiple phone numbers, a second address in case you move (usually like a relative or something), email addresses - the more contactable you are the better your rating!

barnaby-bear

Oakie wrote: »

My daughter is 19 and a student nurse.Recently Nat West offered her a Credit Card.
They said it would help her get loans in the future.
She declined,she has a large overdraught already,really doesn't need the temptation
Their reply was apply,then put the card in a drawer !!
I can't see how by having a card BUT not useing it helps her credit rating !
I really feel Nat West are acting irresponsilble.
I wonder if the customer advisor is working on commission ?

Has access to credit but is capable of not abusing it? Demonstrates in responsible catagory rather than the only way not to use credit is to not have the temptation......

Oakie

Barnaby Bear; {sorry don't know how to cut and paste}

My point is she is already in debt,with her overdraught.I don't think its morally correct of the bank to offer her more ways to increase that debt.They have no idea if she is capable or not in resisting useing a credit card.In my mind they are serving their own interests first.

RAS

Oakie wrote: »

{sorry don't know how to cut and paste}

To cut and paste, hit the quote button and then edit the previous post.

With respect to the card, my guess is that they know she has an income and they are hoping she uses it and cannot pay it back immediately.