getting a credit history

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ok i have been looking for a while now and haven’t found a thread. Basically i decided i wanted a new phone and that i was going to get an iphone 4. i found the deal i wanted and proceeded. the company rang me and said they needed to do a credit check, i said i don’t think you will find anything as i am 19 and living with my dad. The woman gets back to me two minutes later saying that she found nothing and as a result can’t have the phone. i asked her why this is and it is because they use credit history for create some questions to prevent fraud. so i hung up and the next day i was thinking about how to create a credit history ... obviously buy something and pay monthly, so i decided i need a new computer so went for that and went for the pay monthly option. i received an email saying i had been accepted then five or so minutes late they sent another one saying they had to decline on the grounds i had no credit history. So they weren’t sure that i would meet the repayments. now I’ve been looking in to this and it seems that you can't do anything without a credit history but also because of they there is no way to create a credit history:/ any help on this would be wonderful as it is really getting to me as i am meant to be moving out when i hit 20 and I’d rather know that i am going to be able to get things without this lack of history biting me in the bum. One of my friends did suggest borrowing a small amount from Wonga and paying it back as that might work but i don’t want to do that and end up out of pocket and still without a history.
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  • izools
    izools Posts: 7,513 Forumite
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    Capital One Classic:

    http://www.capitalone.co.uk/creditcards/credit-card-range.jsf

    Aqua Mastercard:

    http://www.aquacard.co.uk/

    Vanquis Visa:

    http://www.vanquis.co.uk/

    Take out one or two of those - making sure to clear the statement in full each month (never spend more than you can afford to repay in full at the end of each month) - avoid their very high interest.

    After a year your credit history should be good enough for whatever you need, assuming you pay on time all the time.

    Also make sure you are on the electoral role.

    Good luck! :beer:
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  • Fiddlestick
    Fiddlestick Posts: 2,339 Forumite
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    subz91 wrote: »
    Basically i decided i wanted a new phone and that i was going to get an iphone 4. i found the deal i wanted and proceeded. the company rang me and said they needed to do a credit check, i said i don’t think you will find anything as i am 19 and living with my dad. The woman gets back to me two minutes later saying that she found nothing and as a result can’t have the phone.

    Well yes, it's a £500 phone - no way would they give it out without a credit check :)


    One of my friends did suggest borrowing a small amount from Wonga and paying it back as that might work but i don’t want to do that and end up out of pocket and still without a history.

    Nah don't bother with that.

    The best thing to do is to start with a sub-prime credit card and pay it successfully for a year.

    I'd recommend Barclaycard Initial, Vanquis or Capital One.
  • subz91
    subz91 Posts: 11 Forumite
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    Well yes, it's a £500 phone - no way would they give it out without a credit check :)





    Nah don't bother with that.

    The best thing to do is to start with a sub-prime credit card and pay it successfully for a year.

    I'd recommend Barclaycard Initial, Vanquis or Capital One.


    i did think that they would do a credit check but i didn’t think that i would be declined because i didn’t have a credit history and especially for the reason that they wanted to make sure i am who i say i am, couldn’t they have used my national insurance number or something similar
  • Fiddlestick
    Fiddlestick Posts: 2,339 Forumite
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    subz91 wrote: »
    i did think that they would do a credit check but i didn’t think that i would be declined because i didn’t have a credit history and especially for the reason that they wanted to make sure i am who i say i am, couldn’t they have used my national insurance number or something similar

    No, your national insurance number has no bearing on your ability to repay credit agreements.

    It's a £500 handset and they will want to make sure that you have a record of being able to meet credit agreements before giving this to you.

    If you have no credit record, there is no way for them to assess the risk that you might run off with the phone and leave them out of pocket.
  • subz91
    subz91 Posts: 11 Forumite
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    No, your national insurance number has no bearing on your ability to repay credit agreements.

    It's a £500 handset and they will want to make sure that you have a record of being able to meet credit agreements before giving this to you.

    If you have no credit record, there is no way for them to assess the risk that you might run off with the phone and leave them out of pocket.

    i do see what you are saying and if the woman had said that to me i would have understood completely, but she said they do it so they can ask questions to determine that i am who i say i am she didn’t not seem very concerned with my ability to repay at all.
  • carehappy
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    might not be relevant but as far as I'm aware I don't have any credit rating either and had to pay £100 for the phone on contract with an additional £150 deposit because of my credit check
  • izools
    izools Posts: 7,513 Forumite
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    subz91 wrote: »
    i do see what you are saying and if the woman had said that to me i would have understood completely, but she said they do it so they can ask questions to determine that i am who i say i am she didn’t not seem very concerned with my ability to repay at all.

    She personally wouldn't care less whether you repay, it's no skin off her nose - but the network would and it's them that do the credit check and risk analysis.

    You'll soon learn that the vast majority of sales lines, personal bankers, and pretty much anyone who tries to talk to you about credit checks and the like - doesn't actually know jack about how they work or what's involved.

    But certainly get one of the sub prime credit cards alluded to in this thread to start building up credit history ASAP ;)
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  • subz91
    subz91 Posts: 11 Forumite
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    Zak.s wrote: »
    might not be relevant but as far as I'm aware I don't have any credit rating either and had to pay £100 for the phone on contract with an additional £150 deposit because of my credit check
    who did you go with? i was trying t mobile cos they have the best deal for me
  • subz91
    subz91 Posts: 11 Forumite
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    izools wrote: »
    She personally wouldn't care less whether you repay, it's no skin off her nose - but the network would and it's them that do the credit check and risk analysis.

    You'll soon learn that the vast majority of sales lines, personal bankers, and pretty much anyone who tries to talk to you about credit checks and the like - doesn't actually know jack about how they work or what's involved.

    But certainly get one of the sub prime credit cards alluded to in this thread to start building up credit history ASAP ;)


    That is most certainly a good point and i will as soon as i get home from work. and to think when i was about 15 i said to my dad no need to worry about me i’m not stupid i’m not ever going to get one of them credit cards ...
  • izools
    izools Posts: 7,513 Forumite
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    Three are the easiest to get a phone from by far.

    Remember though that, as with all networks, the more expensive the handset you go for the better credit score you need to pass.

    I would suggest taking out a Vanquis / Capital One Classic card and a SIM-Only tariff (these are really easy to pass for); once you've had the sim only tariff for a few months it will be a LOT easier to get a full phone contract from that network :o

    TBH never getting a credit card is creating a rod for your own back (as you've found out)- you don't have to use it. Just take it out and shove it in the back of a drawer; you'll still be building credit history.
    Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
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