Mobile Phone Contract For The Sake of Improving Credit Rating

Shellshocker93

Ok here is the deal with me. I am trying to build up my credit rating in the next 2 years. I have checked my record and been rated "Fair" by Experian (740, not that it matters). But I want to to get it into the Good/Excellent in the next 2 years because I want a Mortgage (Get on the Let market is the dream).

I am on the Electrol Reg, however it doesn't show due to my awkward address and I am getting it sorted.

I have no credit history in the sense of getting credit but I am only 20. I have got a Loan from my bank (£10k) for a car and have got it over 5 years but plan to settle 2 years in.

But I read in numerous places that having numerous lines of successful credit is the way to go.

So I was going to do this - Take out a cheap Mobile phone contract for like £8 a month, get cashback from the deal, sell phone and add all the money to the phone account, basically paying about £2.30 a month for 2 years. This will show I have settled 2 finance agreements in 2 years.....Right?

Reason for not getting a phone to use on contract is because I am very happy with my Giffgaff PAYG, £12 a month, 250 mins, Unlimited Data/Texts AND I can call 0800 for FREE!

Good idea or please tell me why it is insane (as I suspect I am not seeing it haha)
:cool:

Cycrow

mobile phone contract could help, but it won't make a massive difference really.

ideally, you would want some proper credit account showing on your file, like a credit card.

A credit card will also no cost you anything and not lock you into a long contract (as long as you are sensible with it)