Aged 18 and zero credit history

ForeverAwake

I turned 18 in April, and I have ZERO credit history, even my current account isn't listed on my report.

I wanted to start building up a good credit history so I decided to be realistic (I realised I won't be eligible for many credit cards) so I applied for a catalogue with Studio and JD Williams.

Rejected for both.

Then in August I applied for 4 more accounts; Fifty Plus, Laredoute, Grattan and Ace catalogues.

Rejected for all.

Then this week I applied for Fifty Plus catalogue again and a Vanquis credit card and was accepted for both (£150 and £250 starting limits).

Don't know what's changed with my credit rating as my credit file is still ZERO history?

I'm puzzled.. but happy I've finally got my foot on the credit ladder

[Deleted User]

Everyone has zero credit history when they turn 18 - because you can't have any credit history before you are 18. Current accounts are often not reported, and usually only when they have an overdraft.

Slow it down. You're lucky you ended up getting anything with the number of applications you've put in. Use your Vanquis card, pay off in full each month and stick with that for a while.

Dobbibill

Wow, that's alot of applications...........You need to stop applying now and work with what you've got.

Do you have a mobile phone contract? This should be reporting to the CRAs.

What type of current account do you have? If it's converted from a youth account then it may not report for several months.

The thing you need now is time. Use the credit you've been given sensibly and time will do the rest of the work.

DCFC79

Id forget about the catalogue accounts and just focus on your account being in the black eg the positive.

Take out a £10 phone contract.

ForeverAwake

Dobbibill wrote: »

Wow, that's alot of applications...........You need to stop applying now and work with what you've got.

Do you have a mobile phone contract? This should be reporting to the CRAs.

What type of current account do you have? If it's converted from a youth account then it may not report for several months.

The thing you need now is time. Use the credit you've been given sensibly and time will do the rest of the work.

Yes it's a youth account.. cash card since I was 11 with Halifax.

I have a mobile contact that I pay but it's in my parents name, 24 month agreement,so I won't be looking for a mobile contract til I've finished honouring that agreement.

Lingua

ForeverAwake wrote: »

Yes it's a youth account.. cash card since I was 11 with Halifax.

I have a mobile contact that I pay but it's in my parents name, 24 month agreement,so I won't be looking for a mobile contract til I've finished honouring that agreement.

Make sure you're registered to vote, be consistent with your information when applying for credit, stay in your credit limit and at the earliest opportunity get the phone contract (so after the 24 motnh period).

I was (and still am) in the same situation. I have a phone contract (SIM-only, £17/mnth or £3.67 after cashback) and a credit card with a low credit limit which I repay monthly. Apparently low credit limits can be a negative sign, so at some point perhaps it would be good to increase it. Of course that would best be done in the future, or you may look desperate for credit. If you're heading to uni, your student overdraft will also be taken into consideration.

Lingua

Dobbibill

ForeverAwake wrote: »

Yes it's a youth account.. cash card since I was 11 with Halifax.

This type of account doesn't report to the CRAs. I've had one for over 30 yrs and it has never appeared on any of my files. Funnily enough, it was my first ever account too

I have a mobile contact that I pay but it's in my parents name, 24 month agreement,so I won't be looking for a mobile contract til I've finished honouring that agreement.

Now that you are 18, your parents can ask the mobile phone company to transfer ownership of the contract.
This will involve a credit check so that it reports against you rather than them.

PaulW922

All current accounts, which probably does not include the youth account you currently have, now report to CRAs, even the basic ones. These are a good way to start building up a credit history. You do not need to have an overdraft or anything like that, but just to use your account responsibly. If you speak to Halifax they will probably convert your current young persons account to a current account.

ForeverAwake

Fifty Plus have not accepted me like I thought logged back in to find my credit limit is now 0.00 and order (15.00) cancelled

Dobbibill

They may want you to make a few purchases, paying off with your debit card in full before they give you a credit limit.

Either way, I would stop applying now for a while and play the hand you've been dealt.

You need to have patience.

ForeverAwake

Dobbibill wrote: »

They may want you to make a few purchases, paying off with your debit card in full before they give you a credit limit.

Either way, I would stop applying now for a while and play the hand you've been dealt.

You need to have patience.

I've already stopped applying.. won't be applying for any credit products for at least another 6 months