Possible to get a credit card if no income?

GreatBigBookcase

You make a good point Bugsy. I put that I had no credit history, but I'd forgotten about my student loan repayments over the last few years, they must be on there, and I've always been on the electoral roll so maybe that'll help...other store cards, graduate loan, etc. were from much longer ago so probably not much help now.

Anyway, I'll apply properly once I'm back and see what happens (Basford Lad, I'll let you know about that hat ). It's not that big a deal, I don't actually need a credit card per se (I have some non-UK ones that I can use if needed), I was just trying to work out a way to build up a more substantial credit history once I'm back in the UK and keeping a credit card seems the easiest way to do this.

Thanks all.

CRISPIANNE3

RayKay wrote: »

Hello All,

Now sure if anyone can help with this, but thought I'd ask...

I'm currently living abroad, have done since 1997 with just two one-year periods back in the UK (around 2000 and 2006) in that time. I'm moving back to the UK next month, coming back with enough money to buy a small house in cash and enough savings to be a stay-at-home mum to my baby for up to two years.

Anyway, I was wondering how easy it would be for me to get a credit card in this situation? i.e. with no income.

I'm thinking it would be good to have one, to use and pay off immediately, just to give myself a bit of credit history in the UK, am I right in thinking this? My UK credit checks all come back as excellent, but if there's no recent history of loans, mortgages, etc. on my credit file, might that make me less credit-worthy in the future if I apply for a mortgage or loan, for example?

I've had a bank account with the Co-op all the time I've been away and have sent bits of money back to that account, but nothing regular.

Would appreciate your thoughts.

If you cannot get a regular card then why not get a prepaid credit card.

GreatBigBookcase

CRISPIANNE3 wrote: »

If you cannot get a regular card then why not get a prepaid credit card.

Yes, thought of that, but think I read somewhere that these didn't have the same credit history building effect as an unsecured card? Don't know for sure. Will look more into it. Thank you!

YorkshireBoy

RayKay wrote: »

I'd forgotten about my student loan repayments over the last few years, they must be on there

I don't think Student Loans appear on your credit report?

GreatBigBookcase

YorkshireBoy wrote: »

I don't think Student Loans appear on your credit report?

Aah. Ok, one more thing against me then!

Tixy

RayKay wrote: »

and I've always been on the electoral roll so maybe that'll help...other store cards, graduate loan, etc. were from much longer ago so probably not much help now.

Were you registered on the electoral roll as an overseas voter? or do you mean you were on as though resident in the UK all along?

RayKay wrote: »

Tixy, thanks for your comment, but my UK bank statement and student loan statement has been sent to my parents' address for the last six years at least, and that's where I'll be living when I first move back to the UK.

Old style student loans only appear on your credit file if you default on payments, new style loans never do.

Are your UK bank aware that you are living abroad?

GreatBigBookcase

Tixy wrote: »

Were you registered on the electoral roll as an overseas voter? or do you mean you were on as though resident in the UK all along?

I've been on the electoral roll all the time I've been abroad, you can stay on for 15 years I believe, but I've had two periods of living back in the UK during my 16 years abroad so am still entitled to be registered. The last time I lived in the UK was 2006/7, but I didn't apply for an overseas vote for the 2010 GE.

Tixy wrote: »

Are your UK bank aware that you are living abroad?

Hard to say...there's been a lot of HK$ transfers into my account, but maybe they just think I have a generous friend in HK...

After Crispianne's comment I've looked more into the prepaid cards, and I've found one that does build credit history, so if I can't get a normal card then at least I know I can start with that. Baby steps...

izools

Also your income wouldn't be £NIL as you'd surely be entitled to Child Benefit and once your savings drop below £16,000, child tax credits and income support. Once again once your savings drop below £10,000 - £12,000 (varies depending on local council) you may be entitled to their local scheme to help with council tax (not council tax benefit as that is being scrapped in April).

Although with no mortgage or rent to pay you'll be in a great position to hopefully get back in to work in a year or two as a full time salary would easily afford childcare and household expenses when you don't have a mortgage / rent to account for

GreatBigBookcase

Thanks izools. I hadn't really factored in benefits, etc. as when I first come back I'll have enough savings to not need to claim anything. But, you're right, my savings will drop! So there might come a point where I can claim certain things. And yes, being mortgage free will allow me a lot of flexibility when it comes to going back to work in terms of childcare, the amount of work I'll need to cover expenditure, etc. so it won't be too long before I'm back to being viewed as a 'normal' UK resident.

izools

Also when you go to buy a house (avoid apartments due to ground rent and service charges eating their way through your savings) you will find that being a "Cash Buyer" puts you in a good position to bargain.

Don't be afraid to look at auctions and the such like, too. You could bag a bargain, spend comparatively little doing the place up and be left with much more capital than you originally thought, not to mention equity