Struggling to build good credit

HarlowC

Hello everyone, I'm a newbie to this forum.

A bit about my situation; I'm 26 and up until 2 years ago I'd never used credit at all. I had a current account and paid for everything on my debit card. I'm at the point now where I'm starting to think about my future. My goal is to be able to get a decent car on finance and eventually a mortgage.

I stared my credit building with a Studio catalogue - the only thing I could get at the time. Over the past two years I've managed to build up my credit report with new accounts, here is a snapshot at my credit file accounts, limits and balances:

Studio £1130 - £0
Littlewoods £750 - £420.44
Very £400 - £211.97
Freeman's £500 - £48
Jacamo £300 - £63.28
JD Williams £125 - £47.80
Ambrose Wilson £225 - £27.50
Argos Card £750 - £0
Next Directory £150 - £11.99
Simply Be £125 -£0
Three mobile contract
Halifax Current Account
Nationwide Current Account

Total credit limits = £4,455
Outstanding balances = £830.98
Utilisation ratio = 18.7%
Missed payments = 0

I now have two current accounts - one I use for all my bills and essentials like groceries etc, the other I use for disposable income. I have a mobile contract (sim only) and a few catalogues. I have never missed a payment and try hard to keep my utilisation always under 30% and I'm also on the electoral roll. I've been rejected for all credit "building" cards like Barclaycard initial, vanquis, capital one and Aqua.

If I continue to look after all current credit accounts, how long will it be before I'm accepted for credit cards and (hopefully) car finance? Currently the only negative thing on my report is too many searches which is temporary and the age of my accounts is quite young.

Thanks so much for any advice.

Harlow
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[Deleted User]

You've got a lot of accounts there. Are you carrying debt on any of them?

If so, aim to clear them, then close down a few. Give it three to six month then try again for one of the sub prime cards.

I assume your credit files don't show anything untoward?

shortcrust

Lenders like stability! 13 new accounts over two years seems like a lot to me. It's better to have a small number of accounts that you manage well over a long period of time. Close any accounts you don't need and just leave things as they are for a while. Give it six months and try again for a credit card.

DCFC79

You don't need all them, Id close half of them and just use your card/cash if you need something.

Thrugelmir

For a mortgage ensure that you've continuous electoral roll history, open a Help to Buy ISA and discipline yourself to save. Spend cash not buy on credit.

As others have said close accounts that you don't need.

Time allied with good conduct builds a good credit profile.

A4445

4x JD Williams accounts seems a lot. You can use 1 account on any of their brands. I'd close 3 of them plus their interest rate is shocking!

[Deleted User]

The only note about JDW - they do spam you with offers, which can be useful if you buy their stuff - more accounts = more offers (I seem to get emails or letters most days!!!)

When you ask to close an account (I've got 6 or 7) they usually give you a 25% discount voucher (but automatically keep the account open if you use it). So I'm in a continual trap of trying to close the 3/4 worst ranked ones down, getting and using an offer (as prices are then on par with high street), then needing to wait again to clear the statement etc!

As I'm ex-BR it's worse for me - I needed clean history ASAP, hence the ridiculous number - I'd certainly axe some of yours though OP. Assuming you have no adverse information, you don't need to gain that level of history - you just need consistency as suggested above.

I'd keep the following then hold off with searches for 6 months and try for a card again then:

Keep:
Studio (High limit, shows you're reasonably trusted)
Littlewoods
Jacamo (Highest JDW limit)


Axe:
Very (can use Littlewoods)
JD Williams £125 limit (Screams subprime... and with a £125 limit that's a dead giveaway that it's the JDW group)
Ambrose Wilson & Simply Be (just use the Jacamo account)

Maybe:
Argos Card
Next (if you use it)

Is the Argos card the store card one issued by them (Home Retail Group), or the branded Credit Card issued by Vanquis?

If it's Vanquis, it's probably worth keeping as it's a full credit card. If it's a HRG one, you might want to axe it, depends if you actually use the benefits - the interest free periods are pretty useful if you buy from them.

You probably need a little bit of stability after that, then try for Capital One, Aqua etc if you want a credit card (they should do more for your credit file than a shopping account from JDW & co)