How to build credit history faster?

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QQQ
QQQ Posts: 384 Forumite
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I have arrived here to the UK nearly two years ago so my credit history here is quite short and credit rating is low. I do not need any credit except mortgage but it could be reasonable to 'build' a credit history. As far as I understand the only way is getting a credit card spending money with it and paying it off every months with a direct debit. Please correct me if I am wrong or if there are other ways.

Please let me know which strategy makes it possible to a credit score faster:
1. By making more payments and no matter what amounts are (e.g. by paying for food trolly in a supermarket in several parts, not once for the whole trolly)
2. By spending as much money as I can with a credit card (e.g. by paying property rent etc.). The thing is that my credit limit is less than monthly rent.
3. By having not one but several credit cards and spending and repaying from all of them.
3. There is no any difference, the only thing is needed just to spend and repay at least a quid every months and... wait for several years.
4. Any other strategy?

Thanks in advance.

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  • anniecave
    anniecave Posts: 2,443 Forumite
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    (1) will make no difference
    (2) most landlords wont allow this as credit card payment receiving fees are higher than cost of other methods of receiving payment (eg bacs)
    (3) having another card will probably help yes. Having lots (eg more than 4) will not help much more I don't believe and may start having a detrimental effect.

    do you have an overdraft with your current account? If not try to get one. But don't use it, just let them report every month that your account is up to date

    Are you on the electoral roll? Make sure you are

    living at the same address for longer helps (people who move from place to place quickly may be likely to be avoiding debts)

    being with the same current account provider for years and years also helps

    Just keep paying your cards off in full each month and over time it will get better.
    Indecision is the key to flexibility :)
  • anniecave
    anniecave Posts: 2,443 Forumite
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    Oh and don't make too many applications for credit over a short space of time. That doesnt help. One application every 2 or 3 months is fine.
    Indecision is the key to flexibility :)
  • Moggles_2
    Moggles_2 Posts: 6,097 Forumite
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    For tips to improve your chances of credit card acceptance, have a look at the *Credit Rating: how it works and how to improve it guide* especially Martin's *Manage and Improve your credit score* article ;)

    http://www.moneysavingexpert.com/banking/credit-rating-credit-score#improve
    People who don't know their rights, don't actually have those rights.
  • QQQ
    QQQ Posts: 384 Forumite
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    anniecave wrote: »
    (2) most landlords wont allow this as credit card payment receiving fees are higher than cost of other methods of receiving payment (eg bacs)

    I can use credit cheques, they are just like credit cards and acceptable by landlords.
  • exel1966
    exel1966 Posts: 4,978 Forumite
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    QQQ wrote: »
    I can use credit cheques, they are just like credit cards and acceptable by landlords.

    But they are are an expensive way of paying as most will start charging you interest as soon as they are cashed as they are classed as cash transactions rather than purchases. You would need to look very closely at the specifics of your credit card cheques to asscertain exactly how much you're being charged to use them.
  • QQQ
    QQQ Posts: 384 Forumite
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    exel1966 wrote: »
    But they are are an expensive way of paying as most will start charging you interest as soon as they are cashed as they are classed as cash transactions rather than purchases. You would need to look very closely at the specifics of your credit card cheques to asscertain exactly how much you're being charged to use them.

    That's probably true. Thank you for this warning.
  • QQQ
    QQQ Posts: 384 Forumite
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    anniecave wrote: »
    (1) will make no difference

    So, if I have three cards and pay for a newspapers (I know it has to be more than £5 or so) just once a month with every of them (and pay it off at the end of month) this will be maximum I can do to build my credit history?
    Shall I use my debit card to pay everything else or would I still benefit from using a credit card more than just once a month?
  • exel1966
    exel1966 Posts: 4,978 Forumite
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    Credit history is the key here. You cannot buy one or speed up the process, it takes time to prove your worthiness, though each company will have it's own limit of risk it's willing to take against a potential customer. You could be high risk to one company, but not to another.
    As long as you demonstrate over say 6-12 months and beyond that you have made all payments on time your credit 'rating' will improve. One card transaction and payment per month is fine, too many cards even if fully paid on time could have a negative effect. Ensure you're on the electoral role and that all information held by the CRA's is factually correct.
  • QQQ
    QQQ Posts: 384 Forumite
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    exel1966 wrote: »
    Ensure you're on the electoral role
    I am not from EU, so I cannot vote here. Is there any 'electoral role' replacement for newcomers?
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