New to the UK building a credit history

BLS1502

Hi
My partner has only just arrived in the UK and wants to build a credit history. We have been advised that he should get a credit card and spend around £50 per month and pay it off in full and that this is the fastest way to build a history. I don't want to apply for cards to be declined which will put him in a worse position. Can anyone recommend a card or a way to go about this please. Thanks for your help

grumbler

BLS1502 wrote: »

Hi
My partner has only just arrived in the UK and wants to build a credit history. We have been advised that he should get a credit card and spend around £50 per month and pay it off in full and that this is the fastest way to build a history.

Why £50?! Will it be slower with £30 or £500?

I don't want to apply for cards to be declined which will put him in a worse position.

Do you mean you don't want him to apply?

Can anyone recommend a card or a way to go about this please. Thanks for your help

I think it's too early to apply for a CC, but as he doesn't have any history yet with the current account, the only way is to try one of Bad-credit Credit Cards.
It's worth reading Credit Ratings article first and registering on the electoral roll if he is eligible.

IMO it's better to start with a mobile contract (sim-only are easier to get) and/or with a catalog card/account than with a credit card.

Venusflytrap

I agree with Grumbler.

When I first moved to the UK years ago it was neigh impossible to even get a bank account; more so I was a student. So I started with a mobile phone contract, then after a few months I opened a basic bank account with HSBC where my student funds were paid into. At this point I still couldn't upgrade to a standard/full bank account. I however was offered a Barclaycard initial (while strolling through a mall) which I got accepted for (with an APR then of 34.9%!). After 3 years or so, I had built up a sufficient credit history to upgrade my bank account with HSBC and obtain their CC, which was the first of many. This is a good idea - to 1st apply for credit with the lender you bank with.

If your partner keeps a consistent and tidy credit history over the next few years, doesn't make rushed and continuous credit applications and utilises the credit he does have, in no time he will be appealing to more and more lenders and have access to desired credit products.

BLS1502

BLS1502 wrote: »

Hi
My partner has only just arrived in the UK and wants to build a credit history. We have been advised that he should get a credit card and spend around £50 per month and pay it off in full and that this is the fastest way to build a history. I don't want to apply for cards to be declined which will put him in a worse position. Can anyone recommend a card or a way to go about this please. Thanks for your help

thanks for responses. £50 chosen as it was suggested on a website as manageable amount. I do want my partner to apply in his own name as my credit history is fine and he wants the independence. He has mobile phone in my name because I work in education and we qualify for additional discount so can't go that route.

Buzby

First thing to do is get on the Electoral Register, then air for the data to filter through before applying for anything!

Jox

If your partner isn't British then they won't be able to get on the electoral roll.

My hubby is non-EU, came to UK a few years ago on spouse visa, he opened a basic Barclays bank account. I put his name on all the bills and council tax so he has proof of address.

He applied for a Vanquis card last year and got accepted. He spends about £200 a month on it and pays it off in full.

He's applied for a barclaycard and been declined. He will try again after about 6 months.

He's just got British citizenship so can now go on the electoral roll.

grumbler

Jox wrote: »

If your partner isn't British then they won't be able to get on the electoral roll.

What about EU citizens?

Venusflytrap

grumbler wrote: »

What about EU citizens?

EU citizens can go on the ER as well as non-EU Common Wealth citizens (of which there is a specific list).

So Jox, not true that if one isn't British they cannot be registered on there.

udydudy

Jox wrote: »

If your partner isn't British then they won't be able to get on the electoral roll.

......

Non-EU commonwealth citizens can go on the electoral roll but cannot vote in National Elections. The official website is aboutmyvote .co.uk
Where you will find forms and details.

I would say the steps should be
1) Register for electoral roll.
2) Transfer a utility bill(Gas/Electricity account maybe)
3) Pay as you go mobile registered in his name which can later be changed to pay monthly(SIM only or with a cheap handset) with same provider -- but using a cashback site and/or a mobile website like e2save or mobiles which are carphonewarehouse group websites. The monthly cost will be only £3 or 4 which is a small price to pay to build the initial credit history.
4) Open basic bank account(if not possible individually then as a joint account holder with you if possible)
5) Sub prime credit card
6) Upgrade bank account to one with O/D & Debit card
7) take a standard rate credit card with your bank...
...and then your OH is there....provided they have been diligent with maintaining the credit accounts and not delaying payments even by a day or bouncing direct debits even if it bounces and paid the same day.

derfo

Am an Expat in UK myself and these are the steps I took to build my credit rating.

1 - Have a note put on my credit reports (Experian and Equifax) that I cannot be on the Electoral Register due to my immigration status (American citizen).
2 - I had an AMEX in USA and I was able to open an AMEX credit card account here
3 - Opened a Cashplus Credit Builder account
4 - Got a monthly mobile contract with TMobile
5 - Had a HSBC Passport account but then switched to a First Direct Current account but with £250 overdraft
6 - Opened a Joint Current account with my spouse at MetroBank

nuks

BLS1502 wrote: »

Hi
My partner has only just arrived in the UK and wants to build a credit history. We have been advised that he should get a credit card and spend around £50 per month and pay it off in full and that this is the fastest way to build a history. I don't want to apply for cards to be declined which will put him in a worse position. Can anyone recommend a card or a way to go about this please. Thanks for your help

Hello there. Does he have a job? When I moved to the UK two years ago Barclays offered me a £500 overdraft limit when I opened a current account with them - they asked for a copy of my job offer and called my employer. Also, as others said, he should register for the electoral roll if he can (Commonwealth or EU citizens can).

Next step for me was to get a mobile phone. I got a monthly contract with Vodafone, with the phone included (had to pay £100 as deposit), however for SIM-only plans he might not have to pay any deposit.

Also companies like British Gas report payments to CRAs so it's worth getting a contract with them.

After 6-7 months I was able to get a credit card from Barclays, low limit high interest rate, paid in full all the time.

I now have three credit cards that are not the 'credit builder' type (Tesco 0%, Halifax Clarity 12.9%, Barclaycard Simplicity 7.9%).

Good luck!