Question about credit cards and credit rating.

Random_Shadow

Hello there,

As the title suggests I've got a (hopefully) quick question about credit cards and credit rating.

Basically my OH doesn't have much of a credit rating, as he's never had a credit card, we rent privately which includes the rates (we're in Northern Ireland), and everything else is in my name, as I'm the one that looks after our finances.

We would like to start building him a credit rating, as the next house move we make we'll probably be looking at buying (although not for the next year or so), and he's the main earner. I convinced him to apply for a credit card, so we tried Halifax for their cashback card, but he's just been turned down for that.

My question is two-fold really:
1 - Am I right that he should be looking at building up a credit history (he really doesn't want a credit card), and that mortgage companies do place some importance on this?
2 - Is a credit card the best way to go about this, and if so would our best bet be to apply with HSBC (the bank he's been with since he was a kid), or with a company that considers people with poor credit ratings?

I'm really asking as I don't want to waste time and effort (and get more searches on his report) applying for cards that he's more than likely to be turned down for. I'd prefer some kind of reward card (although I realize that may not be possible), and the interest rate isn't too important as we'll be paying it off in full each month.

Sorry that this is quite a long post, but I wanted to try to make sure that I covered all the relevant points!

Many thanks for persevering.

RS

lisyloo

1) Yes, it's very important. Lenders want to see some history of managing debt. Have you checked your partners credit report(s). There might be accounts there from mobile phone, overdraft, catalogue etc.

2) The easiest ways are probably credit card with your own bank, catalogue account, mobile phone contract. Credit reports record "credit accounts" and not just credit cards. I believe I even had a utility company on my credit record at one point (talk talk) because my own phone bill have a "credit" facility. Best to check their reports (all 3) to check the situation as it might not be as bad as you think.