New to the UK How long does it take to build good credit history

pred02

I moved to the UK in February and started work in April. I was fortunate enough to be able to open a current account, a basic savings accounts, and get a basic credit card (with £650 limit) all through Natwest. This is partially due to luck, partially that I was a student 5 years ago in the UK and kept my UK accounts open.

I work for professional services and travel a lot for work. Work has given me a Corporate Amex card which I use for my travel expenses.

However, I found difficulty performing basic tasks, like opening another Current account at Natwest (I was denied 3 times even though I have a current account) that I wanted to use for my expenses (to keep separate from my income) and getting a new mobile phone and mobile contract.

I did request my Experian credit report, which is clean.

I would like to build good credit, and believe I can do so fast by using my own credit card for corporate expenses as my employer reimburses me directly (I spent about £3000/month on travel expenses). I would also do that so I can collect some points, airline, hotel, or whatever.

I come from the US, where I have 12 years of perfect credit, get credit card offers for tens of thousands of dollars and here I am limited by £650 credit card limit.

I don't want to haphazardly keep applying for credit cards and bank accounts as I understand each inquiry can adversary affect my credit.

One thing that I did hear from someone is that voter registration is the basis of your credit record in the UK, however the problem is that I am non-EU citizen therefore I cannot register to what.

What can I do to built good credit in the UK rapidly?

Kind regads

Experian_company_representative

From what you say you should have some credit history in the UK on account of your personal credit card. If your current account has an overdraft facility this might also be shown.

You say your credit report is clean, but does it include some information that shows you're a responsible borrower? This is what new lenders are looking for. I'm afraid to say that we can't import your US credit history but maybe you might still be able to order a copy and make it available to lenders while you are establishing your credit history here.

Lenders also need to confirm your name and address and use the electoral roll for this. If you aren't eligible you could add a note to your credit report explaining this. If you do get hold of a copy of your US credit report, you could mention this too.

James

izools

The most important factor in building credit score is two simple rules - maintain the status quo (demonstrate stability), and maintain accounts well (demonstrate responsibility).

I've found that taking out three credit cards in one year has in fact lowered my credit worthiness for the time being as they are all "new" accounts (under 1 year old) which can cause other lenders to be weary as I'm yet to prove I can handle the accounts I took out over the last 12 months.

Your current account and credit card will show on your credit file and once these have been open 18+ months, as long as you have maintained the accounts within the terms and conditions you'll have built a very solid foundation for your credit score.

If however you keep applying regularly and ending up with new accounts you'll be seen as somewhat unstable and not maintaining the status quo.

Leave all as is and once you've held both bank account and credit card for a year and a half, and not made any applications for credit in the last three months, you stand a good chance of getting a better credit limit from a more "prime" lender like Egg.

Unfortunately credit limit wise you aren't likely to see the sort of limits you had in the US. UK credit card companies almost never hand out five figure limits any more, so once you've build a good credit history, depending on your income, you might get a limit between £1,000 and £5,000 or so.

Lenders in the UK won't allow you to have more than 50% of your annual income available in terms of total credit limits across all of your accounts (typically).

pred02

Lenders also need to confirm your name and address and use the electoral roll for this. If you aren't eligible you could add a note to your credit report explaining this. If you do get hold of a copy of your US credit report, you could mention this too.

Thank you. What is the process for doing this? Contact Equifax?

Leave all as is and once you've held both bank account and credit card for a year and a half, and not made any applications for credit in the last three months, you stand a good chance of getting a better credit limit from a more "prime" lender like Egg.

One thing that would make my life simpler is getting a contract phone as the tariffs are much lower than PAYG. Is a year and a half the amount of time it would also take to get the eligibility for that?

It's a shame, because I had a credit card and a bank account open as a student 2004-2005 and maintained good standing per your recommendation above, however, this was enough years back not to show up on my recent credit report as of yet.

I appreciate your help!

Skillz2

pred02 wrote: »

Thank you. What is the process for doing this? Contact Equifax?



One thing that would make my life simpler is getting a contract phone as the tariffs are much lower than PAYG. Is a year and a half the amount of time it would also take to get the eligibility for that?

It's a shame, because I had a credit card and a bank account open as a student 2004-2005 and maintained good standing per your recommendation above, however, this was enough years back not to show up on my recent credit report as of yet.

I appreciate your help!

With regrads to getting a contract phone you should be able take one out subject to paying a £150 deposit which the network (o2) would hold for three months. I know o2 offer this if you apply at the Carphone Warehouse not sure if this is available at an o2 store. You will need a valid ChipnPin card which has to be registered at your current address and your valid passport.

southpolesurfer

Hi

I moved here from NZ 2 years ago. Spotless credit record back home, a number of credit cards and a mortgage, but only just now have I managed to get a Barclaycard initial, having been turned down for other subprime credit cards in the past.

In general I find the UK banking sector incredibly archaic. Customer service is non existent, forget having a conversation with a bank manager....all they want to do is have you fill out online forms which a computer then assesses for eligibility.

Not being able to register on the electoral roll is a definite stumbling block as it's the basis of a lot of credit referencing. But it sounds as if you already have some banking and credit card arrangements in place so as long as you manage these carefully it's just a waiting game.

In general you'll need to be able to show a 3-4 year history of stable address and job data to get the good deals and high credit/loan limits. UK financial providers don't like people to move house or change jobs. Rather than viewing this as a sign of upward mobility, they see it as an indicator of instability and high default risk. NEVER apply for any type of credit within 4-6 months of moving house. You'll more than likely be turned down.

That said, I'd only been resident in the UK for about a month when I managed to open a monthly account with Vodafone on a Blackberry contract. I took them a bank statement verifying my savings balance and current address, and they also took a £120 security deposit. I also find that of all the providers they have the best international coverage and service, and their new Iphone deals offer European data usage included as well as British. So give them a try.

Hope that helps

SPS