How to rapidly build credit rating..

pierre1

Dear all,

I would be grateful for some advice on how to improve my credit rating in order to apply for a mortgage so i can buy a house at some stage.

As a student 5 years ago I had some unpaid bills which I eventually settled (via a debt collector!). Subsequent to this i have had no bad debts or credit at all. (Current phone PAYG).
For my job I have moved around frequently and it is only in the last 2 years I have been on the electoral roll in one place. I am now in my late 20's on over 50K per year, have no debt and significant savings in the bank.

I have never had a credit card and recently applied for one from my bank and was turned down. I then tried a 'bad credit' type card from Vanquis again with no luck. I am currently waiting for experian to send my credit file (they couldnt identify me without me sending lots of documents).

I have read that a mortgage requires a credit check which it seems I would undoubtedly fail if i can't even get a card from Vanquis! Obviously this is worrying.

What are the best ways to improve credit if I can't actually get a credit card!? Seems like a catch22 situation.

Many thanks in Advance,

P1

olly300

Did your bank tell you why you were turned down for a credit card?

If there is absolutely nothing on your credit file you need to see if National Hunter have anything on you.

In addition I would try and stay where you are for another year so you have 3 years of addresses at one place. Most forms for credit ask you if you have lived at an address for 3 years.

Moggles_2

I am currently waiting for Experian to send my credit file (they couldn't identify me without me sending lots of documents).

Are you on the electoral roll at your current address?

pierre1

Well 2 years ago i contacted the council to be added to the electoral roll. I have voted several times by post subsequently. Presumably that will show up in the experian file.

P1

Moggles_2

pierre1 wrote: »

Well 2 years ago, i contacted the council to be added to the electoral roll. I have voted several times by post subsequently. Presumably that will show up in the experian file.

Has your postcode changed recently or does the format of your address vary?

When completing cc applications, I would make sure your name and current address matches your details as they appear on the electoral register. Pay particular attention to the way first name(s) as well as surname is recorded. Also a line of your address may be inserted/omitted or the order reversed, where new build, a house name or a block of apartments is involved or where a a landlord has converted a house to flats. You'd be surprised how often this happens. Very often it comes down to a difference of opinion as to how an address should be formatted rather than an actual mistake.

Getting this right obviates the need to produce ID every time you apply for credit/savings accounts or to the credit reference agencies. More importantly, because of the sheer volume of applications received, some lenders routinely reject applicants whose identity cannot be verified electronically via the credit reference agencies, which in turn collate data from public records such as the electoral roll. An extra line inserted in your address (eg. previously unused house name) can immediately kibosh an application.

pierre1

It is a new build block of flats. How can i exactly check the 'electoral roll' version of the address I am currently residing at. Presumably it is the address on my council stuff i.e election guff sent through post?

Moggles_2

pierre1 wrote: »

It is a new build block of flats. How can i exactly check the electoral roll version of the address I am currently residing at. Presumably it is the address on my council stuff i.e election guff sent through post?

Yes, it'll be on your poll card or you can inspect the electoral roll at your nearest public library.

With luck, the format will match Postal Address Finder (the system all companies use online when you enter a house number and postcode then press *find address*) and it will be purely a question of sticking with that version. Provided that you're consistent when completing all your paperwork, you should be okay.

P.S. Don't worry if your address is formatted differently on council tax bills and the like. That's of no consequence, but the electoral roll version counts when applying for credit