Building A Credit History From Scratch

Pinkvimto

Hi all,

I posted on here a while back regarding where to start in building a credit history here in the UK having lived abroad since birth and recently moving back here.

Thanks to everyone’s advice I have managed to get a Monzo bank account, which I am having my wages paid into. I have also joined the electoral register and our council tax bill is in joint names.

Can anyone else recommend anything I can be doing short term to help? I realise it is going to take time (realistically I am thinking 12 months + before I even apply for a mobile phone contract or credit card etc.)

Should I have a household bill set up to regularly come direct debit out of my account? At present everything comes out of my husbands account, however would say changing the council tax or British gas direct debit to come out of my account, help?

Any other tips to help build my credit file would be great fully received! It’s not that I have bad credit history... I simply have no credit history having no previous UK addresses etc for the past 30 years.

Thanks in advance

[Deleted User]

I wouldn't worry about utilities.

Try for a sub prime credit card every three months or so.

Ben8282

Whose account the money comes out of doesn't matter. What matters is whose name is on the bill.
Council tax will not report to CRA's so forget that.
Get a mobile phone contract. SIM only will do. That should report.
Make sure you are on the ER.
Have you checked that your Monzo bank account is actually being reported to any CRA's as it won't help in any way if it is not being reported.
As already suggested try for a sub prime credit card, use it every month and repay in full every month.

Matty36

Try Loqbox. Im currently using that to help build my credit.

Its a minimum of £20 per month and you get it all back at the end of 12 months if you pay it into a new bank account (or at a cost of £30 at the end of 12 months if you pay it into your own bank account) £30 small price to pay to get a healthy credit history.

Each payment is reported to all CRA's so its worth looking into

DCFC79

You dont really need anything like Loqbox.


as Ive said before a sub prime card and a sim only contract would do but preferably from a network who report to an agency.

Ben8282

Matty36 wrote: »

Try Loqbox. Im currently using that to help build my credit.

Its a minimum of £20 per month and you get it all back at the end of 12 months if you pay it into a new bank account (or at a cost of £30 at the end of 12 months if you pay it into your own bank account) £30 small price to pay to get a healthy credit history.

Each payment is reported to all CRA's so its worth looking into

No don't try loqbox.

DCFC79 wrote: »

a sim only contract would do but preferably from a network who report to an agency.

Good point. Try EE. They definately report.

gionnetto

Pinkvimto wrote: »

Can anyone else recommend anything I can be doing short term to help? I realise it is going to take time (realistically I am thinking 12 months + before I even apply for a mobile phone contract or credit card etc.)

I relocated to the UK a little over 2.5 years ago. Here's what I did after getting a current account with BOFI:
1) joined the ER
2) joined the rental exchange (but I'm assuming you aren't renting, so this might not apply to you)
3) I got a couple of "credit builder" (very) small loans - JUST to build history
4) one year later, I got a credit card - which I used sparingly but regularly and paid it off each month
5) another year later, I got a 0% purchases credit card, another current account and a SIM only mobile plan
6) even if they don't build credit history, don't forget to get a regular saver and an instant savings account.

My next targets are a cashback credit card and/or one for travelling - don't know in what order yet.

Life is good.

gionnetto

DCFC79 wrote: »

You dont really need anything like Loqbox.

You do, when you are brand new to the UK. Nobody else will do you credit before at least six months have lapsed, due to the stringent fiscal requirement (183 days) before you can be considered fiscally resident in the UK. No point having useless rejections in your credit history. Loqbox is cheaper than other options (such as the ones I had to use, because Loqbox wasn't available back then).

DCFC79 wrote: »

as Ive said before a sub prime card and a sim only contract would do but preferably from a network who report to an agency.

Some networks, such as O2, will not give you a SIM only plan because they check Equifax along with Experian, and Equifax is more prudent in assessing a borrower. Three only checks Experian but reports to all.

[Deleted User]

Equifax aren’t a lender, so how do Equifax “asses you as a borrower”?

Ben8282

gionnetto wrote: »

3) I got a couple of "credit builder" (very) small loans - JUST to build history
.

What exactly are credit builder loans? Never heard of them. I really hope you didn't take out payday loans.

sashforth9

TIP of the day. DO NOT GO WITH LOQBOX - Its a con. It all depends on how good your creditworthiness is. If you have poor credit anything under a score of 550 DO NOT DO THIS. I saved for 12 months only to be told at the end if I want to redeem the money I had saved there would be a charge. I only saved £20 a month totaling 240 only to be £30 down when I came to redeem it.
I agree they do tell the credit reference agency, you have paid the loan back in full. But if you want to reclaim ALL the money-back you have saved they get you to open up one of their sponsored bank accounts for them to pay the money in to. The problem is UPON OPENING a NEW bank account, that bank carries out a hard search on your credit file to see if YOUR CREDIT WORTHY thus damaging your credit file if not WORSE when you started to save with LOQBOX. There is a far better way to improve your credit and this company is defiantly NOT I repeat NOT one of them..!!!!