The Sub Prime Credit Thread - Part V

lisaloo1977

Hi,

I hope i am in the right place, if not would someone be kind enough to push me where i need to be.:o

I have no credit, no recent history and need to start building one. How do i start?

The reason i have no history is because i had a little disagreement with a bank about 10 years ago, where i felt they charged me unfairly :mad:
Anyway to cut a long story short i told them to stick it, that i wasnt paying the £600 worth of charges (by the time i'd finished arguing with them) and i have since lived with no bank account, credit etc. I have now got a clean credit file, but a very poor scoring one due to the lack of anything for all these years!!! Ironically if i had paid those charges years later i would have been able to claim them back :rotfl: but being a stupid/stubborn person i resolved to pay them nothing and stuck to it.:p

I am on the electoral role and have been since October 2008 at my current home, which i live in with my husband. (he owns it) I have a bank account with Halifax which is just literally a cash card account, i have had this for coming upto a year, but it is only in the last few months i have started to use it much. (its amazing how you can become a cash person so easily when you have to)

I have in the last month started working again as our son is starting school and now have my wages paid into it, approx £500 a week every friday. I use this money to buy shopping and leave the rest in the account.

I did apply for a capital one card (i believe) a few month ago, before restarting work and whilst approved online i was rejected by post!

I am really not bothered about the credit part, as in im not after money i just want to take the right steps to building up a good credit history instead of no history.

I do have a Mastercard in my name on my husbands account, im not sure if that counts?? Apart from that and the cash card account, nothing.

I have just updated my creditfile so should have latest figures in the morning for that.

Any advice, help or push in the right direction appreciated.:T

callum9999

PARIS_5000 wrote: »

So you apply for the credit card when you behaviour score was 70+ and they still said no this is very strange maybe try another bank.

How do you find out the behaviour score? Can you just send a message by internet banking?

And is there a list of the scores required (i.e. 70 for loan, 60 for credit card) somewhere? They won't increase my overdraft so having the details of what score I need before they will would be quite handy.

izools

lisaloo1977-

I presume it's the "Easycash" account you have with Halifax?

This, unfortunately, doesn't appear on your credit file either so from the sounds of things your file will be literally blank.

You would be wise to take out a sub prime card, namely the Vanquis card (all of the others expect to see atleast something on your credit file).

I would expect them to give this to you no problem from what you've said but you will get a small starting limit (£250 normally) and a massive APR between 39.9% and 59.9%.

The best way to use a card like this is put normal expenses on it, like travel and groceries, and pay the bill in full (to the penny) each month. As long as you pay the bills in full and on time you won't every pay interest. Remember no to take out cash or accept cash advances on a credit card as these are very costly.

Once you've had the Vanquis card for 12+ months you'll be in a very good position to get a full current account elsewhere, I'd advise HSBC be a starting ground. They are a very good bank.

A further 6 to 12 months down the line, assuming you've run the HSBC (or whoever you go with) account properly they should give you one of their cards, so you can then ditch Vanquis (or leave it to one side for emergencies) in favour of a mainstream card.

As long as you follow that you could be mainstream within 18~24 months with a decent current account and credit card.

Do you have a mobile phone contract? If not it might be worth taking one of those out, too, as this build credit. Not greatly, but every little helps.

Try to avoid applying for credit more than twice in any six month period and also try avoiding taking out more than once new account every six months as this can look like credit desperation or over commitment leaving you worse off than you are now.

And lastly, it might be worth getting a copy of your credit file before starting any of this plan to make sure you don't have any nasties lingering that might need sorting out or taking into consideration when applying.

Good luck! :beer:

marilyna

callum9999 wrote: »

How do you find out the behaviour score? Can you just send a message by internet banking?

And is there a list of the scores required (i.e. 70 for loan, 60 for credit card) somewhere? They won't increase my overdraft so having the details of what score I need before they will would be quite handy.

I called up internet banking and asked for my score. The first person I spoke to kept me on hold so long I hung up. I rang back a few hours later, and was told by the next person. I have been told what my score is when I go into the branch and apply for products.

This is a list of scores from an old thread

you need a score of 70+ to be pre-approved (i.e. soft search with CC and behaviour score)

40+ to get an account
50+ to get overdraft/cgc (or wait 6mths)
60+ to get credit card (or wait 6-9 months)
70+ to get loan (or wait 12 months

As you can see the score is higher for a loan, than a credit card. I can get a loan, but not a credit card.

fawinds

lisaloo1977 wrote: »

Hi,

I hope i am in the right place, if not would someone be kind enough to push me where i need to be.:o

I have no credit, no recent history and need to start building one. How do i start?

The reason i have no history is because i had a little disagreement with a bank about 10 years ago, where i felt they charged me unfairly :mad:
Anyway to cut a long story short i told them to stick it, that i wasnt paying the £600 worth of charges (by the time i'd finished arguing with them) and i have since lived with no bank account, credit etc. I have now got a clean credit file, but a very poor scoring one due to the lack of anything for all these years!!! Ironically if i had paid those charges years later i would have been able to claim them back :rotfl: but being a stupid/stubborn person i resolved to pay them nothing and stuck to it.:p

I am on the electoral role and have been since October 2008 at my current home, which i live in with my husband. (he owns it) I have a bank account with Halifax which is just literally a cash card account, i have had this for coming upto a year, but it is only in the last few months i have started to use it much. (its amazing how you can become a cash person so easily when you have to)

I have in the last month started working again as our son is starting school and now have my wages paid into it, approx £500 a week every friday. I use this money to buy shopping and leave the rest in the account.

I did apply for a capital one card (i believe) a few month ago, before restarting work and whilst approved online i was rejected by post!

I am really not bothered about the credit part, as in im not after money i just want to take the right steps to building up a good credit history instead of no history.

I do have a Mastercard in my name on my husbands account, im not sure if that counts?? Apart from that and the cash card account, nothing.

I have just updated my creditfile so should have latest figures in the morning for that.

Any advice, help or push in the right direction appreciated.:T

I was in a similar situation to yours two years ago. Also had the Halifax easycash account which doesn't report to credit agencies.

What I did was, first, open a Natwest Step account. It is a basic account just like the easycash, but they do report it to CRAs. They also have good internet banking and give you a visa debit card.

Then I also opened a couple catalogue accounts (JDWilliams and Next Directory) and got a mobile phone contract.

Within a few months I was able to get the Aqua credit card and later Capital One Classic. And recently, with a bit more than a year's credit history, I was approved for an HSBC full current account and a Citibank full current account.

Shortly will try to get some mainstream credit cards too.

fawinds

Zack1 wrote: »

3 look to be cancelling their SIM Zero deal Just checked my account, I've got 13 months history on it, but if they close it to existing customers too then I won't have a choice but to close that one! It was fun while it lasted :P

It is very unlikely that they will close it to existing customers. I have pay as you go SIMs with rates no longer available and they have allowed me to keep them. It is new customers who won't be able to get one of those.

chexum

fawinds wrote: »

It is very unlikely that they will close it to existing customers. I have pay as you go SIMs with rates no longer available and they have allowed me to keep them. It is new customers who won't be able to get one of those.

I don't think it's ending actually - the times I've been looking for it (and then decided to not go for it) was often the end of the month, and it always worked funny when the current "deadline" passed. They may not advertise it too prominently, but it was like that at least back in April...

I still have the same link in my bookmarks:

http://threestore.three.co.uk/dealsummary.aspx?offercode=1SO0D001

PARIS_5000

marilyna wrote: »

I called up internet banking and asked for my score. The first person I spoke to kept me on hold so long I hung up. I rang back a few hours later, and was told by the next person. I have been told what my score is when I go into the branch and apply for products.

This is a list of scores from an old thread

you need a score of 70+ to be pre-approved (i.e. soft search with CC and behaviour score)

40+ to get an account
50+ to get overdraft/cgc (or wait 6mths)
60+ to get credit card (or wait 6-9 months)
70+ to get loan (or wait 12 months

As you can see the score is higher for a loan, than a credit card. I can get a loan, but not a credit card.

Its the adverse information on your credit file that is affecting you. I have the HSBC credit card and when I applied for it I had no adverse on my credit file and a good behaviour score.

My advise is to wait until your defaults drop and then apply for the credit card.

Zack1

fawinds wrote: »

It is very unlikely that they will close it to existing customers. I have pay as you go SIMs with rates no longer available and they have allowed me to keep them. It is new customers who won't be able to get one of those.

Ah goood Hope that's the case, it'll be my longest account soon!

chexum wrote: »

I don't think it's ending actually - the times I've been looking for it (and then decided to not go for it) was often the end of the month, and it always worked funny when the current "deadline" passed. They may not advertise it too prominently, but it was like that at least back in April...

I still have the same link in my bookmarks:

http://threestore.three.co.uk/dealsummary.aspx?offercode=1SO0D001

Ah, I guess it's a bit like DFS and their never ending sale They say it to make you interested.... A shop back home (that I can't actually remember the name of) has been closing down for about 12 years.... went back the other day and it actually has, I was amazed :rotfl:

lisaloo1977, if you have nothing on your credit report then with izools advice I'd try to take a 3 SIM Zero deal out with the link chexum provided http://threestore.three.co.uk/dealsummary.aspx?offercode=1SO0D001 - mobile contracts may require a deposit (my o2 one did, but that came with a £400 phone) but you'll get it back and it'll build history... This one I've literally opened, setup the DD and spent 10p sending a text to my actual phone. Made sure the first bill processed properly (the last thing I need is it to mess up and but me 20 steps back!) and after that I've put the SIM somewhere (can't actually find it now!) but haven't used it. I've got 13 months of history on it now (I've got the 3 login details saved on my PC, and it shows all my statements and paid ). I'd say it's probably the easiest way to build a history, especially because Vanquis and co may require some kind've history....

I was basically in a similar position to you 16 months ago (no adverse, and I guess you don't either now it's wiped) but nothing at all on my file because I'd only just turned 18, and being a student my income I put down doesn't seem to be treated seriously! I had 2 accounts with Natwest (kids) that got automatically upgraded so reported to CRAs, which I guess helped. But I got a mobile contract a few days after I was 18, then a Natwest student credit card a few days later. Paid those in full etc, got accepted for Capital One in November 2009. Used that to get history (with £100 limit there was little other use for it!). Got accepted for Aqua at the end of April 2010, they've just put my limit up to £500 without me even asking... and now I was accepted for Sygma about 3 weeks ago, which if the stories are true means I could be well on the way to getting lots

It's just a rather slow process, but you do start to see results after about a year - even ones that were instant declining me have referred me. Also got Halifax reward current account at the 3rd attempt (they wouldn't give me a student account before!). I probably wouldn't bother with Capital One, but if you went for say Aqua and then made sure you waited a full 6 months and went for Aqua again in about March time that could work, and they're a decent company in terms of limit increases by the look of it!!

lisaloo1977

Thank you so much for the responses :T

Wow so much to take in and so many ways to do things.:o

Firstly can i say i have been on checkmyfile this morning and have my uptodate reports.

I figure that the important things are yes im on the Electoral register, no court things or anything fraud like etc.
I have no accounts though
I do have 1 credit search on Equifax(capital one) but none on either of the others.
I have several audit searchs????? Footprints and i have one enquiry that is debt recovery related from feb 2009. It says that it is not viewable to anyone looking at my file for the purpose of lending, credit etc. Is this true, or should i be worried about it?
I have various Audits on file, again should i be worried about these? Next to search type on them it says not recorded and alot of them seem to be from credit reference agency although 2 are from debt collectors????:mad:

I do know that the debt i had has fallen off as i spoke with someone at checkyourfile a few years ago to make sure, so not really sure what the above are??? Thats when i decided to go back on the electoral role.

So given the above, what are my best options?

My bank account is the Halifax EasyCash one, so thats useless.

I do not want to apply for too much as do not want to do damage to already pants score.:o

What are my best options from the above ones metioned to me? I will maybe speak to 02 myself and see about putting my phone in my name now as im due to renew my contract right now. Are they likely to do that or am i best off just going for the 3 one and sticking with my current one and getting my upgrade?

Sorry for all the questions My head has been firmly in the sand for a long time on all of the above, its quite tempting to stick it back there.:eek:

Once again, a massive thanks to everyone who takes their time to help people with these things. Your all amazing people and i for one am totally grateful.:T:T:T