The struggles in obtaining credit when you are new to the U.K.

MPH80

Thrugelmir wrote: »

What advantages?

Cashback ... section 75 protection ... chargebacks ... Reward points ... Interest free periods ...

fart

MPH80 wrote: »

Cashback ... section 75 protection ... chargebacks ... Reward points ... Interest free periods ...

Yes but why would someone fret about not having those things? Except for the cashback it's not like any of it is life changing. Cash is infinitely better because you're not in debt.

If OP can comfortably afford to live without credit i don't see why it would be such a big deal that they couldn't obtain any?

I'm buying a house at the moment and can afford to buy outright, yet the missus' mother and father both have advised us to get a mortgage...it's like some people actually like owing money.

izools

What advantages?

If credit card details are stolen your salaries and bank balance are secure in your current account.

Not to mention the fact that anyone who approaches a lender for an unsecured personal loan or mortgage with no credit history other than utilities will usually be told to take a long walk off a short plank - or at best is given awful terms, costing them a lot in the long term.

fart wrote: »

Yes but why would someone fret about not having those things? Except for the cashback it's not like any of it is life changing.

You say that when someone you've bought from sells you dodgy merchandise or goes out of business and you've got no S.75 protection to fall back on.

fart

izools wrote: »

You say that when someone you've bought from sells you dodgy merchandise or goes out of business and you've got no S.75 protection to fall back on.

LOL the chances of that happening are so very slim that you shouldn't switch cash for credit because of it. Amazon is probably the cheapest place to shop online and its customer protection is fantastic. If you're purchasing off companies where this has to be a consideration then you need to look at where you're buying from.

I'd rather stick to purchasing things off trusted names and not be enslaved to a creditor every month, but i'm probably a dying breed.

Cycrow

Yes, lets stick to using cash to buy from big companies, perhaps from Woolworths or Comet.
nothing could go wrong there

fart

Cycrow wrote: »

Yes, lets stick to using cash to buy from big companies, perhaps from Woolworths or Comet.
nothing could go wrong there

Hahaha. You're right now i think about it, let's become reliant on pretend money that the bank will charge us to use - how ever did people cope with purchasing before credit cards.

Cycrow

if you pay of the credit cards each month, then you are not paying the bank anything extra.

fart

Cycrow wrote: »

if you pay of the credit cards each month, then you are not paying the bank anything extra.

Only if they're interest free.

fart

PasturesNew wrote: »

I'm never on a good salary, I've no credit cards because I've never needed/wanted one. If I can't afford it, I don't have it. OK, I actually have nothing ... but, more importantly, I don't owe anything to anybody.

I'll never have any other line of credit as long as i live. The trend is a downwards slope.

litheplay

blon wrote: »

Would be especially thrilled at reading about the experience of people who've been in a similar situation, i.e., moved to the UK.

My experience is completely different than yours.

I moved to the UK in June 2011 - EU citizen as well - and I already have 4 different credit cards, regular ones not subprime (Barclaycard simplicity, Tesco 0% purchases for 18 months, MBNA platinum, and Halifax Clarity). And I have a £2K overdraft limit with Barclays, currently. I also have a Halifax mortgage, I bought a property in May 2012.

Steps:
- bank account with Barclays in June 2011 right after arrival. Because I had a job offer to show them, they gave me a £500 overdraft limit upfront (so it wasn't a basic account, it was regular)
- registered on the electorall roll right away
- got a Vodafone mobile contract in July 2011
- late 2011 I ordered my statutory credit reports from all 3 credit agencies (also signed up for noddle this year) - this was to make sure all was clear on it as I was already looking for properties to buy
- got the first credit card - Barclaycard - around January 2012 I believe, when Barclays displayed a message in my account online saying I'm pre-approved for a credit card. it wasn't their Initial card, can't remember now the name of it, but I since switched to their Simplicity one
- got the rest of the credit cards right in the months after I got the mortgage, so 2nd half of 2012

No idea what my credit rating is now, but I have low utilisation ratio, as my balance is under £1K and my available credit on all cards is something like £15K). Also made sure I updated the electoral roll when I moved and now I use noddle to 'monitor' my credit profile.