Help - no credit rating

ekam88

Hi all. Wondering if some of you wonderful minds could help me please?

I'm in my twenties -have three debit cards with no over daft. I owe no money other than my student loan and a Government loan (which I pay back every month). I pay rent each month and a gym membership and have never missed payments. My issue is is that I cannot get a credit card to build up my credit rating as I have no real evidence of credit.

Can someone recommend to me the best way to be able to build up my credit rating please? Or is there a credit card I can get that doesn't require a credit check? I recently tried to apply for an Argos card to build up my credit rating but was refused. It seems to be very hard to build up a credit rating when you're not given the opportunity to do it.

Thanks for all your help in advance.

SuperHan

Getting an overdraft with the bank is usually an easy first step - they know your spending habits better than anyone else and are most likely to approve you.

Next is a credit card with your bank, or with the lenders such as Capital One, Vanquis etc, as they have lower requirements than some of the other mainstream lenders.

Getting a mobile phone on contract will also report on your credit report, so that will have a positive effect too

ekam88

SuperHan wrote: »

Getting an overdraft with the bank is usually an easy first step - they know your spending habits better than anyone else and are most likely to approve you.

Next is a credit card with your bank, or with the lenders such as Capital One, Vanquis etc, as they have lower requirements than some of the other mainstream lenders.

Getting a mobile phone on contract will also report on your credit report, so that will have a positive effect too

Thanks SuperHan. Do you think it would be wise going into my bank and talking through about getting a credit card with them? I just don't want to apply for a credit card and be rejected and for that to have an adverse effect.

If I was to get an overdraft facility on one of my accounts but I never go into my overdraft will that have no bearing on my credit rating? ie. do I have to go into my overdraft and repay it off for it to build my credit rating? Thanks for your help, greatly appreciated.

nidO

ekam88 wrote: »

If I was to get an overdraft facility on one of my accounts but I never go into my overdraft will that have no bearing on my credit rating? ie. do I have to go into my overdraft and repay it off for it to build my credit rating? Thanks for your help, greatly appreciated.

Having an overdraft but not using it will help. With an overdraft regardless of whether you use it that credit availability will get reported to the CRAs as credit that you have available and are "up to date" with (ie not late on payments, defaulting, etc) which will form part of building up a history of having credit and managing it properly for yourself.

ekam88

nidO wrote: »

Having an overdraft but not using it will help. With an overdraft regardless of whether you use it that credit availability will get reported to the CRAs as credit that you have available and are "up to date" with (ie not late on payments, defaulting, etc) which will form part of building up a history of having credit and managing it properly for yourself.

Thanks nidO I did not know that, that is good to know. Thanks!