Renting but need to improve credit score of 999

m450

My credit score is 999, I've got a credit card that I pay off IN FULL every month with a limit of £700 (increased from £500 last year to improve my credit)

I am stuck in the 'you can't get credit because you don't have credit' loophole!

I am renting so don't have bills to pay for, I'm on GiffGaff and bought my phone so I don't have a phone contract and I pay insurance etc by card so I don't get stiffed on the direct debit...

Short of wasting money on a loan I don't need, what should I be doing to 'build credit' that won't cost me money?

Would a sim only £5 a month 'contract' help?

I want to buy a house in about a year so anything I can do to get away from 999 would be great please!

forgotmyname

Carry on as you are, I spend on my CC monthly and every now and then they increase my credit limit.

Would a contract help what? Your "score"? My "score" went down yey my bank increased my credit limit the same time. Scores are worthless.

Nebulous2

Your credit card limit is quite low. Is it a credit-building card? It might be worth applying for a mainstream credit card with your own bank.

Make sure you are on the electoral roll.

If you are renting what about utilities? Some of them report to the credit agencies.

Other than that I certainly wouldn't take on any expense just to build a credit history.

You could also address the other side of the equation - save as much of a deposit as you can. Do you have a help-to-buy ISA?

DCFC79

m450 wrote: »

My credit score is 999, I've got a credit card that I pay off IN FULL every month with a limit of £700 (increased from £500 last year to improve my credit)

I am stuck in the 'you can't get credit because you don't have credit' loophole!

I am renting so don't have bills to pay for, I'm on GiffGaff and bought my phone so I don't have a phone contract and I pay insurance etc by card so I don't get stiffed on the direct debit...

Short of wasting money on a loan I don't need, what should I be doing to 'build credit' that won't cost me money?

Would a sim only £5 a month 'contract' help?

I want to buy a house in about a year so anything I can do to get away from 999 would be great please!

You don't have a credit score/rating.

Whats on your credit history as that's what lenders see.

Fireflyaway

There is new organisation whose name I don't recall, but if your landlord agrees, you pay them and they transfer the money to your landlord. Your payments are then reported to the credit reference agencies building up a picture that you can handle your rent on time.
You can always find a mortgage lender who manually underwrites mortgages. Instead of the computer saying no, they will look at your income / circumstances / savings etc and make an informed decision on your affordability and risk etc. A good credit score only shows you borrowed and paid it back. Surely its better to not have to borrow so I do feel annoyed that people who are careful are penalised.

SnowTiger

m450 wrote: »

Short of wasting money on a loan I don't need, what should I be doing to 'build credit' that won't cost me money?

Would a sim only £5 a month 'contract' help?

I want to buy a house in about a year so anything I can do to get away from 999 would be great please!

You could also open a catalogue credit account. Catalogues are usually an expensive way to buy things, however they usually offer new customers a significant welcome discount, with further discounts possible via the likes of TopCashback.

Open an account, buy something you want/need, pay off the balance after you get the statement, then leave the account open.

Get another credit card.

Use your credit card to pay for everything, where possible. And don't pay in full until after you've received a statement if possible. I know a few people who rarely use their credit card - lots of green ticks on their credit reports, but no usage to demonstrate responsible borrowing.

Voyager2002

No-one has mentioned that a credit score of 999 is a perfect score.

So the point is, your credit score is meaningless. There are various things that you can do that demonstrate to a lender that you would be a good risk: they boil down to borrowing, but only when you need to do so, and making all agreed payments.

PixelPound

Strange, the OP starts with announcing the 999 score, and includes it in the headline, then ends his post wanting to get away from the 999 score.

Apply for any credit, that will reduce your "score", though as has been said above, applying for credit that is useful for your goal of getting a mortgage seems an obvious choice. The option of getting a second CC looks an easy choice since it looks like you have a credit-builder type card with a low limit - this is useful irrespective of the mortgage or the score effect as often the credit builder cards aren't the best deals to stay on long term.

Your problem, mortgage wise, is credit history, no real proof of been able to manage credit other than a single card with a low limit that constraints you.

SuperHan

Are you being declined for credit? What have you applied for and not got?


I can't imagine that most people are much different to you when applying for their first mortgage, and you do have a credit history in repaying your credit card.


I would suggest you're overthinking this, unless of course you have been declined recently.

jlaw4

My best friends partner had NO credit history, and although it impacted what they could borrow and that they aren't in stable jobs, they got a mortgage from a high street lender.

Just use your credit card for spending and pay it back, don't take out unnecessary credit! Ask a broker what your chances would be, maybe do an AIP closer to the time with a soft check to see what it says.

JIR

With your renting, check Creditladder (can't post link as new). You pay them and they pay your landlord same day. They aren't yet showing on credit reports but their aim is that they will log your rent payments with Experian each month in the same way as banks do with mortgages