HELP - How do i get credit.

Bethanyjjane

Hello there

I'm 18 years old, just come out of school and taken a gap year. I do however have a job. But the big problem is, I have no credit whatsoever, neither bad nor good just none, and who would, but how do I get good credit and where can I look to find this information. As I haven't got any credit i'm finding it hard to get a phone, rent a flat etc. and I really could do with some help. I've been suggested to get a credit card and pay it off each month but are there any other ways because I don't trust myself to not spend a lot on it.

Thanks

happycamel_2

I started by getting a credit card with a low limit and having the full balance direct debited each month so I couldn't run up debt. You can view your statement online at any time so the bill at the end of the month should never be a surprise.

The key problem you have is "I don't trust myself to not spend a lot on it". Right now you need to recognise that you are responsible for your financial situation for the rest of your life, every decision you make from how hard you study for exams, what job you apply for and what you buy. Every time you borrow you have to find the money to pay back the capital and the interest and still fund that month's living expenses. Borrowing will always make you poorer, wherever possible save first then spend.

You're right you need to build a credit rating but time, being on the electoral roll and one card, paid off in full, will take of that.

Well done for posting on here, you are already showing a mature attitude. You've done well to get a job already. I left school terrified of being poor and determined to make my own way, I worked through uni, trained as an accountant and now I'm over paying my mortgage and living very comfortably. You can do something similar and you're on the right track already.

Maestro.

To build a credit rating you just need to use credit and then give it back. To make it as painless as possible you can try going to your own bank and asking for a card, explaining your circumstances. Some banks are better than others with this, whereas others will completely ignore the fact that you're a long standing existing customer *cough Clydesdale.

When my own bank didn't want me I applied for Vanquis. it's a grit your teeth moment because they are one step away from lone sharks, with their ludicrous APR, less than favourable sales tactics and the after sales calls every few months trying to sell you something new. But it's a necessary evil really.

forgotmyname

If you dont trust yourself not to spend on it and not repay it back each month is a surefire way to trash your credit file.

Had issues myself a while back. Luckily sorted now, but its hard work. Too hard for some people or some situations.
I was on decent money, But the bills got higher each month, Then taken ill for much longer than expected.
Missed payments everywhere. I presume these are still on my credit file now.

ulsterbeef

There are different ways. I never had any credit and I was able to get a new pc and ps3 on direct debit :S maybe Northern Ireland is different but I cant see it as the items were bought at a UK wide chain. Direct debits are one way, so why not create a few small, little value ones?