Does SIM-only deal count towards credit score?

idkwhattosay

Hi, I'm sorry for opening this thread but I can't find information online. I was going to get a mobile contract to build credit history but I really don't need it so I had a look at SIM only deals but I'm not sure if that counts towards credit rating or not?

EDIT: And also does the payment amount matter? £35 vs £8.

forgotmyname

Do you have any history? Any bills in your name? Lived at the same address long? On the electoral roll?

idkwhattosay

Lived at the same address for 1.5years, on electoral roll since Sep 2015, recently got a CC and had a £1k loan which was paid off. No other bills on my name.

BlueEyedGirl

idkwhattosay wrote: »

Hi, I'm sorry for opening this thread but I can't find information online. I was going to get a mobile contract to build credit history but I really don't need it so I had a look at SIM only deals but I'm not sure if that counts towards credit rating or not?

EDIT: And also does the payment amount matter? £35 vs £8.

In answer to your question. Yes a sim only deal paid by direct debit will count towards building a credit history, it really does not matter how much it is per month.

HappyMJ

idkwhattosay wrote: »

Hi, I'm sorry for opening this thread but I can't find information online. I was going to get a mobile contract to build credit history but I really don't need it so I had a look at SIM only deals but I'm not sure if that counts towards credit rating or not?

EDIT: And also does the payment amount matter? £35 vs £8.

If you really don't need it then don't get it.

A credit builder credit card will suffice. Use it at least once per month more if you can pay it off in full every month and it won't cost you a penny.

idkwhattosay

Cheers all! You saved me £27 every month.

redux

A mobile phone contract does appear on the file, not the amount just an ok marker, and who knows how much notice other creditors would take.

I have three zero line rental contracts, but I imagine all of that would make very little difference compared to the conduct of a credit card.

Don't spend money just for the sake of it if you don't need to.

idkwhattosay

Thanks redux. I was thinking maybe just a credit card isn't enough and it would be better if I had two sources of credit on my name.

HappyMJ

idkwhattosay wrote: »

Thanks redux. I was thinking maybe just a credit card isn't enough and it would be better if I had two sources of credit on my name.

You only need to hold the credit builder card for just a few months before applying for another one such as one that gives you a reward on your spending and a bigger credit limit. You will then hold 2 cards then a few months later you open yet another credit card holding 3 cards and eventually close the credit builder card having 2 cards again as that card really is quite useless and actually hurts those who have very good credit but it's a good card to start off with.

Eventually once you've managed your credit well for about a year and saved lots of money for a deposit and as long as you can afford the mortgage repayments you may want to apply for a mortgage if that is your ultimate aim.

If your aim is to get a car on HP or a loan to buy a car then again as long as you can afford it you also should be able to do that.

What I'm trying to say it doesn't take very long at all to build a good credit history. Miss a payment and you've got to wait another year before your missed payment is ignored for most loans and mortgages. Default on a credit agreement and you've got to wait 6 years from the date of default before it's ignored. Really ignore paying a loan back and end up with a CCJ and you may never be able to borrow the money for a mortgage.

idkwhattosay

Thanks HappyMJ, that actually answers a lot of my questions.

chuckley

Personally no, I thought it did though until recently.

Virgin mobile are nowhere to be seen on any of my reports and I've been sim-only for a few years.

However, when you think about it, it isn't credit.