Building credit from scratch

Callumrayb

I turned 18 on the 14th and applied for my first credit card through my bank. (Lloyds) I was declined obviously, I immediately registered on the electoral roll at my current address.

So I opened a LOQBOX account and a pockit prepaid card account with a credit builder option. I also was able to get a £20 monthly Sim for a 2 month period.

Am I on the right track to building credit? If so how long would this take for credit agencies to report my accounts?

My current income is around £1350 a month (benefits due to disabilities.)

Any advice would be appreciated! Thanks for reading.

[Deleted User]

Try applying for a sub prime credit card.

It will help to demonstrate responsible borrowing much more than your current products.

But use it wisely - spend on it, then clear in full when you get your statement.

Callumrayb

Any recommendations on sub prime cards? I'm also in the UK and can't seem to find any secured cards.

[Deleted User]

Try the like of aqua, Vanquis, Capital One.

Capital One do a secured card.

Willing2Learn

Try Aqua, CapitalOne or Vanquis

Edit : There is an echo is this room. Or I'm too slow typing

Callumrayb

Can only seem to find a USA secured capital one card. Do I need to ring them up to apply?

I just tried aqua and got a decline.

Willing2Learn

https://www.capitalone.co.uk/creditcards/secure/find-my-card.jsf

If CapitalOne decline you for their standard cards, then they may exercise their option to accept you for their secured card instead.
https://www.capitalone.co.uk/support/faqs/secured-card.jsf

Callumrayb

I got the message "Your credit score is too low" and didn't get offered for a secured card.

Any ideas?

Willing2Learn

Callumrayb wrote: »

I got the message "Your credit score is too low" and didn't get offered for a secured card.

Any ideas?

Callumrayb wrote: »

I immediately registered on the electoral roll at my current address.

This could be the reason why. Have you checked your three credit files to confirm your ER has been updated correctly? How long have you lived at your current address? Is there any negative data on your credit files?

Have you got a mobile contract at your current address?
Have you got any utility contracts at your current address?

Don't make any more credit applications for the time being. (Hold off for at least six months, or even better still, wait a full year)

Callumrayb

Just checked at checkmyfile and ER has not been updated on Equifax. But has on experian, TransUnion and crediva. I registered on the ER on the 14th-15th sometime. How long until its registered with Equifax?

I really want to start climbing with my credit score so do i really have to wait 6 months?
I don't have a contract in my name it's in my mother's.
And I don't have any utility bills as I am living with my mother.

Willing2Learn

It is not your 'credit score' that is causing a problem. It is either due to negative indicators being recorded against you on your credit files, or the simple fact that you have either no or little history of successfully managing credit at your current address. You need to start building a history I think. You can start this process by applying for a SIM-only mobile phone account at your current address. And then open up accounts for electric and gas with you paying by Direct Debit. That way, you will be building a positive history in your credit files.

Re credit scores. Lloyds, Aqua and CapitalOne did not use the credit score that you have seen on checkmyfile. They scored you against their own independent criteria and policies using the data (history) held in your credit files, added to the data you submitted in your credit application. Lloyds would also have used the data they already hold on you as an existing customer.