How to get credit if you have none???!

daisybear

Hi there. I recently applied for a mobile phone deal (contract) and laser eye surgery on finance - both were declined even though I earn enough to pay it back comfortably and have had no bad credit in the past.

Ive beentold the problem is - is that I have no credit history of any note. So I then applied for a high interest credit card designed for people with bad credit and generally high risk customers with the view to spend a little and pay back in full every month in the hope it would improve the credit rating - low and behold they refused me too!

I seem to be in a catch 22 situation here. I havent been with my bank long but have regular payments into it every month and ave never gone over my limit... would it be any use asking my bank for ne or do the use the same process in acceting and declining clients even though they have my recent financial history at heir fingertips?

Any help greatly appreciated!!

[Deleted User]

Your bank are the most likely candidates to help ad they can see how you manage your accounts. How long have you been with them?

daisybear

Thanks for the reply! Just 3 months - not long. Me and my partner shared a bank account previous to that but it was just her name on the account.

[Deleted User]

You might struggle even with your own bank with just three months. The usual suspects, following your bank, are aqua, Vanquis, Cap1. Who did you try?

Would still be worth a chat with your bank - you might get an indication of ether they'd give a card without them doing a search on you, which is key to avoid unless you have a decent chance of success.

daisybear

It was Aqua that I applied to.

It seems a bit of a silly process if you ask me as someone who is pretty good with their finances can not get a credit card where as someonewith bad credit history still has a chance.

Surely at this rate credit cards will cease to exist as generation upon generation are being refused due to having no credit history?

Seems im in a pickle then

chexum

Check the following credit/debt tests, and mind the questions - consider the electoral registration, how long you have been at your current place, at your current job, etc.

http://www.moneymadeclear.org.uk/tools/debt_test.html
http://www.moneysavingexpert.com/loans/credit-rating-credit-score#checker

If noone is willing to lend to you, and you want to build a credit history, your own bank is the best to talk to, or one you recently had history with.

If you had a joint current account that had overdraft, you should have some public history though. You may want to check your credit reports (the £2 statutory ones only, never mind the score or the free trials).

If they still say no, it's the subprime lenders, usually one of Capital One, Aqua, Vanquis, and Barclaycard Initial work for most people. You need to fulfill some basic requirements, so if you have less than 6 months credit history at all (new to the country, not on the electoral roll, didn't have any bank account so far), then all you can do is wait.

As a last resort, the cashplus creditbuilder option can be a way to put a credit account on your credit history, for £60 a year, if you have lots of IDs that you can readily send. And it still won't bring any immediate result, so you still need to wait about a year or so to start your sub-prime journey.

[Deleted User]

Ok - I'd suggest your next steps are -

1 Talk to your bank (don't apply on line, pop in or phone them up)
2 Try Vanquis. Probably the highest rate out there, but if you're paying back in full each month, it doesn't matter. A year of doing that will open other cards up to you.

Re your point about lack of credit history - I know it seems odd, but you just need to start small and as early as possible and build it up. Even things such as mobile contracts help. Banks will lend again, but right now they're not taking any chances with unknown quantities.

daisybear

thanks for the advice both! ill just keep doing what im doing and then speak to my bank in a couple of months. Ive just registered for my experian credit report to see if there are ant mistakes. Im a bit reluctant to try Vanquis after recently being refused credit twice in quick succession as im led to believe it leaves a 'mark' on your file.

brians_daughter

My youngest sibling encountered this recently around march time i expect. He ended up applying for a 'very' account - online shopping and got a limit of £200. He spent the 1st month on 12 months interest free to get a history going.. he now has a capital one card and pays that off every month. Hes hoping that after new year he will be able to get a mainstream card. He too was refused by aqua and vanquis initially.

Also, are you on electoral role that helps matters a lot

ElkyElky

Aqua is one of the hardest sub-prime cards to get so it's no surprise you were declined. Vanquis and Capital One classic are the easiest and people with even the worst credit histories have been accepted for these cards.

Cheeky.Monkey_3

Hmm, im having that problem too. And working in credit card services doesn't help cause i know all about the damn things but i can't get one for myself!

I had a basic cashcard for years so ive just upgraded to a reward bank account to hope that will up my chances but i don't think ive got much chance until i get some direct debits or subscriptions set up that i regularly pay for about 6-8 months then try again.

The very account sounds like a good idea though i must admit!

Any other companies that give you limits like that do you know??