How to get credit with no credit?

SeXyDeViL

Sorry if the title is mis-leading but this is a question as opposed to a solution.

Im in the position where I cant get any credit whatsover, at all, no comprende, not a chance, wont even consider

But how is a young starter in life (24yrs) supposed to build credit if they cant even get so much as a store card??!! :exclamati

Any advice from different people with different views would be greatly appreciated.

Thanks in advance

justpaper

are u in HM Prison ? please explain why u cant get credit ? do u work ? how much do u earn ? are u replaying loans ? are u falling back on repayments ?
(is this sounding like a advert?)

im around about the same age but wouldnt consider my self young,. i feel pretty old i guess its the more u done/see the older u feel,.

anyways more info please,. and i think this is the wrong section Mortgages & Endowments u might get a better response (after u given more info) Anything Else MoneySaving or CC section

herbiesjp

Have you got a copy of your credit file - you can get these from Experian or Equifax?

Emmzi

Your other post on the mortgage thread here http://forums.moneysavingexpert.com/showthread.html?t=272205 suggests that actually you HAVE had credit, you've just been a little less than careful with it, hence the problems now.

Once you have your credit report, look at the default dates. It takes 6 years for the last default to drop off. That's roughly when you can start looking at credit again.

In the meantime, pay back anything you still owe, satisfy any CCJs, get some savings together. Have a good relationship with one bank, get your wages paid in every week/month; don't have any bounced direct debits or standing orders. And when your record looks better, approach them for credit first.

herbiesjp

Emmzi wrote:

Once you have your credit report, look at the default dates. It takes 6 years for the last default to drop off. That's roughly when you can start looking at credit again.

quote]

Not strictly true. 6 years is when it will come off your credit file.

There will be lenders that can look to lend to you before this happens, depending on how they assess the severity of the adverse credit history on your file

SeXyDeViL

Great advice but maybe my information was a little short

It started when I took a loan for £10000 when I was 19, I fell behind in payments & thus resulted in this mess. My credit file is on its way to clarify dates & who with though.
Those were college & uni days so I built up overdraft debt too of £1000 BUT NOW I like to believe ive grown up & I currently work as a professional on a salary of 32k.
Would this make a difference now? is it too short a time to be considered afer my punishing for the loan?
As for the age - Justpaper.. It is considered a very young age in the world of business, Im unsure what you do as a proffession but im sure your considered young in some sense.

Could I get shared ownership with bad credit?
Any other methods you could recommend

Again any advice from your kindselves would be greatly appreciated

Many thanks

Emmzi

SexyD,

things that might affect a mortgage loan decision

- is everything paid off now?
- do you have savings to pay a deposit, solicitors and conveyancing, survey report, etc?
- can you demonstrate that you are able to put aside every month the equivalent of a mortgage eg if it would cost you £800 a month for mortgage + insurances + electricty + tv licence etc - are you saving that much a month? When I had first time buyers with no deposit and a bad shoe and holiday habit (ex-banker here), I'd send them away for six months to demonstarae they could in fact live on the budget they would need to with a mortgage.

It may be that your choice is between waiting and saving for now, or taking a higher interest rate as you are not yet a 'prime' target market. I guess I'm asking, you may be determined to buy a house, but are you financially ready?

Hopefully the answer is 'yes, I have everything paid off, 40k saved as a good deposit, and put aside £500 every month after everything else is paid.'

Close?

SeXyDeViL

£40k deposit? Wow

Not quite that close im a few 10's of thousands short

Im going into this with both eyes wide open so am prepared to wait up to 6 months, in that time I hope to have learned about the market via kind people like yourself & find a decent interest rate that wont sting me for being so careless in earlier life.

Should you care to share that handsome sum of £40k im all ears :rotfl:

Emmzi

Lol. Well, maybe 40k is a bit extreme.. but seriously,, how expensive a house/flat are you going to be looking at? You really need 5% deposit, maybe 2.5k for fees, solicitors, etc, and 2-3k for furniture, carpets, curtains etc at their most basic.

Have a look in the property pages and give yourself a fright

SeXyDeViL

Im looking at properties close to the £200k figure but Im also looking at shared ownership so this could go higher

I have the deposit & fees side covered but its just getting the first step onto that ladder first, biggest stumbling block is my credit

Seems as though the whole world is against you when you dont get what you want! - Theres a quote for ya's :T

justpaper

have a loook around for a new build project,. i did have a look 6months back (b'ham city) and flats are on the 150k mark 1 bedroom 3rd floor, with ur includes white items,. carpet down and all that,. so that might be a hassle free route,. and go too a mortgage broker