Young and Struggling to Build Credit

HannahLEMC

Hi,

I'm currently 23 and my credit score has dropped rapidly. The only two factors to improve on my (clearscore) credit report are that I need to update my current address on the electoral roll (I move soon so will be doing that) and my largest credit card limit is low (£200).

I have a bad credit credit card from ocean finance/capital one which built my credit great but I was refused a higher credit limit even after a year.

What can I do to build my score and report if nowhere lets me get a proper credit card/increase my credit limit? Really struggling as even when my credit score was great I was rejected for a proper credit card.

I need all the advice I can get as I'm at a loss.

Thanks
Hannah

[Deleted User]

The good news is that your credit score is a pretend number that only you see, so start by ignoring that.

Continue to use the card, clearing in full each month.

Check your three credit files. What appears on their in terms of negatives? Not the CRA opinions, but real negatives such as defaults.

Being on the ER will help enormously.

Fireflyaway

Don't worry. A credit score doesn't represent your sucess, income, savings etc. It's mostly only a measure of your borrowing and ability to pay back on time.
Being on roll will help.
I'd personally rather have a good income and savings behind me regardless of my score. I gave up checking mine ages ago.

fatbelly

I've never checked my score.

Now that the statutory reports are free, I just check them occasionally to make sure everything is accurate.

Moving address frequently will put lenders off a bit but provided you are on the electoral roll and seen to be handling credit properly (set up a d/d for the contractual minimum amount to avoid late payments) you should be OK

HannahLEMC

Thanks, I thought being on the roll would effect it a bit and I’ll be on it when I move to the permanent place next week.

I’m just slightly concerned as to why after having a credit card and never missing a payment for a year I didn’t get accepted for another and can’t increase my limit? Maybe I’ll try to get a document from equifax about actual standing factors rather than look at the report

[Deleted User]

What’s you incomings and outgoings?

What are you after from Equifax? They won’t tell you any more than what you can see on your credit reports

DCFC79

Why you concerned about your score ?


I never worried about my credit score/report when I was 23, I just didn't spend more money than what I had, save what I could and had a credit card and used it for maybe petrol.

meer53

This is a classic example of how people are brainwashed about "credit scores" You don't need to "build credit " It "builds" itself.

Use your card, pay it off, don't spend more than you can afford to repay, live within your means.

Thats how you end up with no problems in the future.

HannahLEMC

I've never been in debt and always spend within my means. I think it comes from difference between friends, some people are getting accepted and I'm being refused when I've never had money trouble and it worried me slightly that that was happening.

[Deleted User]

So as above.

What’s you incomings and outgoings?
Are you on the electoral roll?
You defiantly have no other debts or defaults?
Do you have any other credit accounts - mobile phone contract, utilities or broadband that reports to CRA’s?

gionnetto

HannahLEMC wrote: »

I’m just slightly concerned as to why after having a credit card and never missing a payment for a year I didn’t get accepted for another and can’t increase my limit?

You don't talk about your utilities and/or financing! Any contract you've got that, for example, shows a default or different addresses all at once? It's easy when you are young, because you move around a lot, and because you don't care about changing the address on your bill (especially if you get them paperless).

It is, indeed, unusual that such a low credit limit isn't upped after a year of always paying on time!

It might also be that your file is thin... You might need another subprime card, or one of those "useless" credit building products that do build your credit history after all (that's the point of paying few pounds a month, duh).

Oh, and another thing. CRAs will not tell you the specifics of why your individual score is low, but they might give you pointers (browse the net about this topics). However, lenders need to tell you why they rejected your application.