build up a credit rating as a student?!?!

NCD1811

hello there!!

if anybody could help it would be fantastic!

I'm a 22 year old first year student at university and I'm starting to think ahead to the future. I will be definitely hoping to move out of my parents house at the end of the course (2017) and into a nice shiny house with my partner. However, obviously as a student i don't have a steady income therefore no credit rating.
We do NOT want to rent a house as we're looking for somewhere very long term.

I've looked at credit/store cards but i'm just a little confused about what route to go down in order to build up a credit rating over the next few years.

I understand credit/store cards can be a slippery slope which is why i don't want to rush into it. I have in my mind that the only expense i will use with the credit card is petrol which is roughly around £200 per month which i set aside just for that purpose so i'll always be able to pay it off on the credit card quickly.

I have a phone bill which i pay with direct debit each month but as it's under my partners name, I believe it won't be able to be used as credit.

So i guess what i'm looking for is advice on how to go about building up a credit and what are the best pathways to go down to do it!

thank you!!

ACG

Bank account and mobile phone should be enough - that combined with savings for your deposit should be plenty when applying for a mortgage.

If you want a credit card to pay for fuel etc again thats fine but you do not NEED credit to get a mortgage.

NCD1811

thank you!

so even though the phone bill isn't in my name i could still count it as reliably paying bills therefore building up credit?

I'm worried that the time to apply will come around and i'll be rejected for not having a long history of credit

ACG

Sorry, I keep doing this! I scanned through it and seen phone and thought that would be fine.

It would help your partner but not yourself. It would need to be a phone in your name to have any chance of helping you.

If you dont want to change your contract just get a credit card like you suggested and use it/pay it off and im sure you will be fine.

gjchester

NCD1811 wrote: »

I'm worried that the time to apply will come around and i'll be rejected for not having a long history of credit

Your credit record isn't about how much you can borrow, its a measure of how you managed that borrowing. Any lender will be looking to see that you have reliably paid it off loans, they don't get to see what amount you have borrowed. Regular borrowing an loans is good, not a one a year use and immediate payback, that not a long term measure of your reliability.

Getting a card for putting petrol on and paying it in full each and every month would be a good start, as is a mobile (or any other regualr bill / utility) in your name if possible, as it shows you can reliably pay off a debt.

However remember its down to you, if you go mad, or don't pay it off that too will be reported.

kingstreet

NCD1811 wrote: »

However, obviously as a student i don't have a steady income therefore no credit rating

Plenty of "Experian 999ers" have no job/provable income but still believe every form of credit is theirs at the best rates.

This just goes to show, mortgage lenders rely on a lot more information than what the CRAs choose to record and use for their "credit scores."

Annisele

Make sure you're both registered on the electoral roll (assuming you're eligible to register). Lenders want to make sure they know who you are, and the electoral roll helps a little bit with that. (Plus, if you are eligible you're legally required to be on the thing).