Credit Rating Problem?

Wayne87

Hello everybody from a first time poster!

Hopefully there will be an easy answer to this, because I am new to credit and need to learn my way.

I was recently declined for an overdraft facility. It didn't upset me because I did not particularly need the facility (I'm not in debt and I have several savings accounts). But it made me realise that having never had a credit card, banks will have no reason to trust me when I eventually want credit / a mortgage / etc.

I feel like getting a credit card will help. But I'm worried I may be declined and make the problem worse.

Can anybody offer any friendly advice please?

Thanks

forgotmyname

Have you missed any bill payments in the past 6 years?

If your own bank declined an overdraft then it maybe worth trying one of the sub prime credit card companies like AQUA etc. The interest is terrible.

What you need to do is use it every month and pay it off in FULL every month. Dont pay less than the full amount because the interest rate is rubbish.

After a year or so try for a better card.

Thrugelmir

Obtaining credit facilities isn't a badge of honour that has to be obtained. There are avenues that can be pursued to obtain a mortgage without doing so.

jimmy*c

^^^ +1

Not sure an OD would be the most suitable as you'd have to empty your account first to even be able to start using it, and that doesn't exactly show good management. My history isn't the best in the world but try for a high APR card as typically they're more willing to take on the risk of you as a customer.

Wayne87

Thanks for the responses.

Nope, I've never missed any bill payments - BUT - I have very very few bills as I still live with my parents. So I guess, from a credit view, I'm an unknown quantity to most banks. They have no idea whether I would manage my credit well or not.

As for the overdraft - like I say, it was fine because I didn't need or want one anyway. It has just gotten me thinking that maybe I should do more to look after my credit score. (I move bank accounts pretty often for the best deals and have recently heard that might be deteimental).

I've done some reading on Experien searches. Does anybody have any history with them? I guess my main feeling is, I want to try and avoid being rejected for a card in case that dirties my history further.

jimmy*c

Leave it a few months until you next apply for any credit. Don't pay an experian subscription - it costs a fortune for what it is and the score means nothing. You can check your reports from the three credit reference agencies - Noddle is free (callcredit), and you can order £2 reports from Experian and Equifax.