Zero credit history help

Sebatinsky

I recently applied for the clarity credit card from my bank, Halifax, and got turned down. The person helping me suggested it was because i had no history of having or repaying any credit.

I got my credit report and there's nothing bad against me on there.

The person from the bank suggested i get a store card, but i don't do much purchasing, they also suggested i get a mobile phone contract. Is this a good idea? will it help? Are there any other things i should do? I've already got myself on the electoral roll. Any help would be appreciated

Dr_Cuckoo3

Are any credit offers displayed when you are logged on to internet banking ? - this will be an indication of whether or not the bank is likely to grant a credit card



Halifax offer a pre-approved credit card via internet banking on the link below

http://www.halifax.co.uk/creditcards/landing/more-info/a-nmb-nlm/

so when they make you aware of this offer you will know that they are likely to grant a credit card

The usual method of applying is to ask in branch or by phone whether you are pre-approved for anything

Applying online and/or not mentioning that you are an existing customer of the bank before applying reduces the likelihood of being approved (I assume this is what you did)

It is not too late to ask whether you are pre-approved however

You could always apply for a Vanquis credit card instead

Some people will say that the Clarity card is difficult to obtain and not suited to someone without a history of managing credit accounts , I wouldn't expect that to be a problem if you are an existing Halifax customer though - I would expect them to pre-approve any of their cards

Your halifax current account will be on your credit report and the overdraft limit provides a credit history

Anthorn

Yes a contract mobile phone will build a credit history but go to an agent, not direct to the mobile phone companies because you'll get a better deal and are more likely to be accepted with no credit history.

I bought mine from http://www.buymobilephones.net where I got a very good deal with a free phone. You'll need a current account for a direct debit and have a debit card for backup. Beware the free 3 months of phone insurance on the order form: Remove it if you're not prepared to pay a fiver a month for the insurance when the free period expires.

There are loads of others so you might like to shop around.

kwmlondon

The next time you need to make a small/medium purchase e.g. TV or fridge, then apply for it on credit. Many places will offer a 0% purhcase rate over 6 months, but by doing this you will quickly build up a credit history.

camuk81

Seb, can you open a small line of credit i.e. a store card or catalogue. Buy something the odd time then wait till the statement arrives and pay it off in full. This looks better on your file.

Sebatinsky

Thanks for all the replies, Dr_Cuckoo, I had a look at my online banking and i don't receive any credit card offers when i log in. I don't have an overdraft facility which probably counts against me. When i applied they did know i had a current account as i applied at a local branch, although the account is very new.

Thanks to the rest i'll definitely follow your advice.

Maestro.

How new is the account... if you have no internal history with them the chances are slim.

Sebatinsky

The current account is pretty new, however i've had an ISA with them for nearly a year so i'm not a new customer.

DCFC79

Just let teh credit history come natural eg pay the mobile phone contract off each month, next step get a credit card and use it for purchases and pay off the balance before the payment date.

I did the above and it worked for me from when i first started working to now.

chanz4

Give it 6 months after your income / current account has been active