Quickest way to build history

nathand_2

Hey everyone,

Does just having a card with no debt build up credit history or do I specifically need to be spending on it to do that?

Also does paying a small amount monthly look worse than paying in full every month?

I realize some of these questions may sound daft to those who know what they're doing. Look forward to hearing the answers.

Thanks

edinburgher

Martin Lewis' guide to building/repairing credit history is well worth reading:

Guide to building/repairing credit score

I believe having access to any sort of credit card helps, as this is reported to the CRAs once a month. That said, how can you hope to show that you can manage account/s seperately if you have no history of actually spending on said cards?

The rule of thumb is that you should do some spending on the card and pay it off in full every month (looks best on your credit report).

Anecdotally, however, I have found credit card companies to be more prone to giving you balance increases if you are carrying a small balance (say 20% of your balance). This is purely for conversation purposes and I can't back it up with evidence - so consider things carefully before going down this route!

General tips for building credit score

1. Obtain copies of your credit report from the 3 main UK CRAs - check there are no mistakes and have these amended if there are/leave an explanatory note if required
2. Ensure you're on the Electoral Roll - you're unlikely to get credit without it
3. Close any excess credit accounts (most of us are unlikely to need multiple credit cards etc.)
4. Pay all your bills/credit card bills/mobile phone contracts etc on time - use Direct Debits if this makes things easier for you
5. Space out your applications - try to wait at least 6 months between applications or your credit report will make you look desperate!
6. Consider 'sub prime' sources of credit if you have a tatty credit history - Cashplus offer prepaid credit cards (small monthly fee applicable) that they will offer you a guaranteed loan to pay for - in essence you pay a fiver a month for green ticks/zeroes on your credit report. Three (3) mobile seem to be very generous with their credit checks - I had no trouble taking out basic mobile phone and broadband contracts with a default on my credit report. Vanquis/Capital One are the most common starting points for people who need access to 'real' credit, but will have to pay higher APR for the privilege

Hope these are some use? I've gone from having a basic bank account and no access to credit to having a full current account, two credit cards and two mobile contracts in the last year or so and they helped me along the way.

Linkies

About the Electoral Roll
Cashplus prepaid credit cards
Three Mobile
Capital One

All links are included for information purposes, they're all companies I've found helped rebuild my credit history and I have no affiliation to them other than being a past/current customer

[Deleted User]

Always pay off in full. You will present yourself as a lower risk so be eligible for the better deals.