No credit history, wanting to build one- advice wanted

blahmoo

I've just graduated University and am in a full time job at the moment. I have zero credit rating to my knowledge (apart from my student loan debt and a small interest free overdraft of £1500 which is gradually being reduced). In the medium term future I want to buy a new car, most likely on one of those very attractive 0%APR deals that manufacturers advertise from time to time. In the long term I want to save for a deposit and get a mortgage on a property.

My question is, should a apply for a credit card and pay it off in full each month to boost my credit rating? Or is this a not necessary?

If it is necessary, how long will it take for the effects of a credit card to impact positively on my credit rating? Are there any particular cards that may be good for somebody in my situation?

Thanks for your help

DCFC79

Remember its not the credit rating thats important, the history is what lenders see. Maybe the Aqua card, luma cards are what you need. Who knows jow long it takes, you just need to provs to lenders you can show you can manage your money so no missing a card payment.

Thrugelmir

You've an overdraft to clear. This tells a potential lender a lot about the state of your finances.

Superscrooge

blahmoo wrote: »

My question is, should a apply for a credit card and pay it off in full each month to boost my credit rating? Or is this a not necessary?

If it is necessary, how long will it take for the effects of a credit card to impact positively on my credit rating? Are there any particular cards that may be good for somebody in my situation?

Thanks for your help

Using a credit card regularly and paying the balance in full each month, is an excellent way to show that you can be trusted with credit.

It usually takes around six months of responsible credit card use before you start being accepted for higher credit limits and the better credit cards.

As regards which credit card? Try your own bank, or use the MSE eligibilty checker to see which credit cards you are likely to be accepted for

https://www.moneysavingexpert.com/eligibility/credit-cards/

National_Debtline

Hi blahmoo

It’s worth reading through this MSE guide to improving your credit history:

www.moneysavingexpert.com/loans/credit-rating-credit-score

James
@natdebtline

Dobbibill

To your knowledge, you have no history.

If you have an OD then there should be something on your file. Mobile phone contracts are also a common bill that will show up.

Why not check your reports, this should be done regularly anyway.

Check your Call Credit report on Noddle, your Equifax report on Clearscore (both are free versions) then you are only left with Experian data to get either by paying £2 for your statutory report or via a free trial.

Take no notice of the score but do check all personal details, accounts, address changes etc etc