Timescales for building credit rating

BP1987

Hi, i'm just wondering about timescales of applying for different things and have come up with a plan and was wondering if any experts can advise me whether or not it is realistic or whether i should change some of the times i have in my head to help me plan my future better.
The target is to get a mortgage in 4 years time. I have never had any form of credit. The only thing i have at the moment is a Nationwide Flexplus Account which i have held for 2 months, i dont currently have an overdraft or any credit facilities anywhere.

Month 1 - 3 Get a mobile phone contract and possibly a catalogue. And start putting money away for a mortgage deposit 200 per month

Month 9 - 12 Get a credit card maybe a couple.

Never miss any payments on any of these accounts for the next 3 years.

Would i look good for a mortgage by this point? or will it depend on the amounts of the credit card/s and catalogues?

Just want to get a timescale in my head from going from no credit history to excellent credit history..


Thanks

Tixy

2-3 years of an active good credit history should be sufficient to obtain a mortgage (just in terms of your credit history obviously subject to all other mortgage requirements/finances etc).

The key of course is to never miss any payments on any credit accounts (or have payments bounce in your bank account at all or go overdrawn above any overdraft facility).

Using a credit card (and repaying it) is an ideal way to demonstrate you can handle credit and repay your commitments and so I would think that should be your main focus.

Are you on the electoral roll?
Have you tried getting a credit card at all yet (a subprime card for example)? If you are able to get a card then you wouldn't need to get a catalogue or phone contract (unless you wanted one anyway).

If you haven't tried getting a card I would make an application to somewhere like vanquis. If you are turned down its no big deal and you could then revert to your idea of starting to build up a history with a mobile phone account.

BP1987

Yes i'm on the electoral roll, i've not attempted a credit card app yet as when ive used the pre eligibility checker its says 50% chance for a Vanquis and the others are 30% chance or even 20% chance, i did the pre eligibility for the Barclaycard initial but that said i wasnt eligible so its kind off put me off applying until im satisfied that i stand a good chance of being accepted.

matttye

I second what Tixy says. Apply for a credit card and then if that fails go for a phone contract. If you get a SIM only contract these are cheaper, but they're still reported to credit files usually and you're more likely to get one as they're not subsidising a handset. I know, at least, that O2 and Three report SIM only contracts to credit files.

Have you looked at something like the CapitalOne secured card? This is where you pay some money as a security upfront before they will lend to you.

You can read FAQ's here: http://www.capitalone.co.uk/support/faqs-secured-card.jsf

The credit limit will be low but lenders will not be able to tell who your lender is or that it's a 'secured' credit card. In other words, it will just look like any other credit card on your report.

pr0berts

4 years ago my credit report was very bad reading and I could not any credit today my Experian score is 999.

4 years is plenty o time for most things.

Thrugelmir

Consider saving for a deposit via a scheme such as Nationwide's Save to Buy, Halifax run something similar. Alternatively directly with a local building society. As saving on a regular basis demonstrates an ability to manage your money. Also will be a major positive when applying to the same institution for a mortgage. Having a credit card while positive to a degree won't provide the same boost in terms of your overall credit standing.

The_Boss

pr0berts wrote: »

4 years ago my credit report was very bad reading and I could not any credit today my Experian score is 999.
.

So what? The Experian score means naff all and you may still not be able to get credit. If you can, it's nothing to do with the Experian score anyway.

ricky_v

First and foremost apply for the Capital One CLassic Extra as you'll most likely be accepted and you'll get 0.5% cashback and £10 per year.

http://www.moneysavingexpert.com/credit-cards/cashback-credit-cards#caponeclassic

Set up a direct debit to pay off the statement amount off in full. Use the card for all your spends.

A couple of years later you'll have a credit history for the mortgage application plus free money from the cashback:rotfl:

pr0berts

Fully accept my case may not be the same as the OP's. My original post merely stated 4 years is a long time and that a lot can be achieved in this timescale. As regards tone, I respond in kind.

fawnsinthegarden

You would be surprised, after everything fell off my record I was able to get a mainstream card straight away to my surprise. I used the MSE eligibility checker and ignoring M&S's 90% chance anomaly, I found everything else a good accuracy.

The_Boss

The Experian score being 999 is meaningless and not really an indicator at all. People with defaults on here have reported scores of 999 too when most lenders would not touch them with a bargepole. All that indicates is how worthless CRA scores are.