Building up a credit rating from nothing

dstar86

My boyfriend currently has a very thin credit file as he has only has a savings account, and no outlays as he still lives at home and therefore is not responsible for paying utility bills, rent, etc and has no direct debits (has a pay as you go phone and no credit card). He also gets paid cash in hand for a job that he doesn't earn very much from. I think he should still be okay to apply for a bank account and I have asked him to do this so he can get on the credit radar, so to speak. If he starts putting his income straight into a current account as opposed to his savings account, and regularly withdrawing from it, this would be good however I don't think this will greatly improve his credit rating.

I on the other hand have a salaried job, pay rent and have several other direct debits, plus credit card and have a generally good credit rating.

I'd ideally like to move in with him in the future and share finances, however I don't know how this will affect my credit rating for things like mortgages, etc.

What can he do to boost his credit rating? I considered having him pay my utility bills from his bank account but I've heard that doesn't make a difference to his credit ratings unless the account is in his name. Bit stumped and in need of some advice!

[Deleted User]

Get a sub prime card if he can, use regularly and clear in full each month. Don't miss payments or go over limit.

Thrugelmir

What's the purpose of wanting to build a credit rating ?

dstar86

Well I'm concerned if we ever went for a joint mortgage, or if he wanted a loan for a car for instance, or even a mobile phone contract and he's not got a decent enough credit rating these things will be rejected.

amfan

I built my credit history up from scratch by using a pay monthly mobile phone and a next credit account. Adding after a year or so a Capital One credit card, used just to buy petrol and pay off in full each month. I didn't need credit at the time, but like you want for your partner, was just ensuring that when I needed to rely on it there was a history there.

Paying off utility bills won't make much difference, none of the regular bills I pay have ever appeared on my credit file. A bank account won't do anything either, unless it has an overdraft facility avaialble.

JimmyTheWig

I'd suggest starting with getting a bank account. The bank he has the savings account with is probably the best starting point.

I know that without an overdraft this won't help the credit history, but I doubt he can get a credit card without a current account.