first CC, no history

tangerine123

Hi all

I am trying to build my credit score. I have read loads about it, and I've done some eligibility calculations. However, apparently I would not be approved for any credit card. Some info:

-I have direct debits
-I am on electoral roll
-I've never missed a payment
-I have never been in an overdraft
-I make cca 12k a year

-I am a student taking a year off (no student loan though), might or might not be going back next year. I've been to my bank today (Lloyds), and they changed my status from student to employed (not sure if that's a good or a bad thing). I tried to get an appointment for some credit card consultation, but the lady at the front desk told me I wouldn't be eligible anyway, but she couldn't explain why.

-I moved 3 times in the last 3 years, I spent 1st year of uni in one house, 2nd year in a house closer to uni, and this year I moved to another city.

I did online eligibility check with Capital one, and it says there is a good chance I'd be approved, BUT their eligibility criteria states:
We're not likely to accept you if you:
Have not had credit in the UK before

Also, I tried to buy my computer in instalments in August, but was rejected by PayPal and Barclays (Apple apparently has a contract with them).

I don't need the credit card urgently, I just want to have one to build my credit.

I applied for credit reports from Experian and Equifax 2 weeks ago but still haven't got them.

I also joined ClearScore, which estimates my credit at 298, saying that:
Positive 6:
You have no Court or Insolvency data
You have no accounts in Default or Repossession
You have been on the Electoral Roll at your current address for a long time
You have made very few applications for credit in the past year
You have very few / no accounts in arrears
Your current Telecoms balance is relatively low

Negative 1:
You have no active credit card accounts

I can't even get a contactless debit card. I realise I am not the wealthiest person on Earth, but I make enough to be able to live a normal life and always have at least £1000 on my account (again, I know it's not much, but should be enough for contactless payments).

I am at a loss to understand what I'm doing wrong.

Could anyone suggest a credit card that would likely accept someone with no history? Almost all of them are for bad score.

Thank you for any kind of advice

Paul_1977

Why do you want a CC? It could lead to large debts.

There are cards like these, but honestly I would wait until you are higher wages and apply with Lloyds or Barclaycard.

https://www.oceanfinance.co.uk/landing/credit-card/?appid=PPC_aqua

Even if you match what they want, they can say NO. I was working for four years on £20k, my bank still refused me.

Barclaycard gave me one, and another bank also. Some banks are just strict. These days with the crash etc it's worse.

[Deleted User]

Aaua or Vanquis would be a good place to start.

If you get one, do three things -

- use it regularly
- clear it in full each month
- ignore your credit score

tangerine123

Well I just thought I'd start taking care of it sooner rather than later, as credit history isn't built in a day. And I'd never spend more than I can afford, never been the type. I just thought I'd get it sorted now, rather then one day when I actually need a loan and won't be able to get it cause there'd be no history.

Linda32

Just to let you know my personal experience. The only credit history my OH had was back in the day when 'credit' meant British Telecom allowing you to use your home phone for 3 months before they sent you the bill, and our joint mortgage.

He would have been early 40's when he applied for his first card Santander 123 he got it straight away.

TheShape

OP, you said you've never been in an overdraft. Do you have an authorised overdraft on your account? If you have one available it will show on your credit file. If you then don't use it, it's a positive for you credit worthiness.

TheShape

Linda32 wrote: »

Just to let you know my personal experience. The only credit history my OH had was back in the day when 'credit' meant British Telecom allowing you to use your home phone for 3 months before they sent you the bill, and our joint mortgage.

He would have been early 40's when he applied for his first card Santander 123 he got it straight away.

Having a mortgage (assuming no missed payments) is a big positive when applying for credit though. It shows that someone else has been willing to lend you a large amount, demonstrates responsibility and I expect makes it far easier for credit providers to track you down if you default.

tangerine123

Hm, I've never thought about authorising an overdraft, thanks for suggesting it! Maybe I'll wait a few years before applying though, it's just that all the information I found on the internet seemed so overwhelming and I started panicking a bit, thinking applying as early as possible would be the right thing to do

Dobbibill

Try the eligibility checker....it's not guaranteed but worth a look if your bank aren't able to offer you a CC at the moment.

https://creditcards.moneysavingexpert.com/?bad-credit&_ga=1.27867836.1037682649.1480869123

Ignore you score, no-one else sees it except you. Any provider will score you according to their criteria not a random number.

You say you have DD's but don't say for what. Do you have a mobile phone contract? This is probably being reported to the CRAs therefore demonstrating you keep up with payments.

All I would add is don't do a lot of applications. If you get declined, don't take it personally, just wait and in time things improve.

MEM62

tangerine123 wrote: »

Hi all

I am trying to build my credit score. I have read loads about it, Maybe not enough. You do not have a credit score, you have a credit history. Any 'score' offered by CRA's is a randomly generated number. and I've done some eligibility calculations. However, apparently I would not be approved for any credit card. Some info:

-I have direct debits
-I am on electoral roll
-I've never missed a payment
-I have never been in an overdraft
-I make cca 12k a year

-I am a student taking a year off (no student loan though), might or might not be going back next year. I've been to my bank today (Lloyds), and they changed my status from student to employed (not sure if that's a good or a bad thing). I tried to get an appointment for some credit card consultation, but the lady at the front desk told me I wouldn't be eligible anyway, but she couldn't explain why.

It is possible that you just do not meet their criteria and are therefore not the sort of customer that they want to attract.

-I moved 3 times in the last 3 years, I spent 1st year of uni in one house, 2nd year in a house closer to uni, and this year I moved to another city.

I did online eligibility check with Capital one, and it says there is a good chance I'd be approved, BUT their eligibility criteria states:
We're not likely to accept you if you:
Have not had credit in the UK before

Also, I tried to buy my computer in instalments in August, but was rejected by PayPal and Barclays (Apple apparently has a contract with them).

I don't need the credit card urgently, I just want to have one to build my credit.

I applied for credit reports from Experian and Equifax 2 weeks ago but still haven't got them.

I also joined ClearScore, which estimates my credit at 298, saying that:
Positive 6:
You have no Court or Insolvency data
You have no accounts in Default or Repossession
You have been on the Electoral Roll at your current address for a long time
You have made very few applications for credit in the past year
You have very few / no accounts in arrears
Your current Telecoms balance is relatively low

Negative 1:
You have no active credit card accounts

I can't even get a contactless debit card. I realise I am not the wealthiest person on Earth, but I make enough to be able to live a normal life and always have at least £1000 on my account (again, I know it's not much, but should be enough for contactless payments).

I am at a loss to understand what I'm doing wrong.

Probably nothing. You just need to build some credit history, which I understand is difficult when nobody will give you credit. Try one of the sub-prime credit card offerings.

Could anyone suggest a credit card that would likely accept someone with no history? Almost all of them are for bad score.

Thank you for any kind of advice

As already pointed out Aqua or Vanquis would be worth trying.

Norscbu

With your sort of income and a credit card you're only a few bad decisions away from a slippery slope of a potential lifetime of debt and misery. Good luck!