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No credit history

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My husband has no credit history as he used cash to pay rent/bills in shared accommodation before we got together and when he moved in with me all the bills were in my name and we left it like that for convenience, he signed up for a credit score app which had him in the fair category so he took out a credit builder credit card to try and improve his score, when the card arrived he put it in a safe place and genuinely forgot about it, when he received his last credit score report his score had dropped massively and it had gone into the poor category, the credit card account was marked closed, he called them and they said they closed the account due to inactivity and couldn't reinstate it so he tried the soft check eligibility form for a similar card with another company to basically start over and it came back as refused. We could understand the massive drop in credit score if he racked up a debt and missed payments etc on the card but he never even made a first purchase with it. We are wondering why it would happen and where we should go from here. Thanks. 

Comments

  • cymruchris
    cymruchris Posts: 5,562 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    The aim of using a credit card to improve your credit profile is to actually use it rather than lock it in a drawer. If, and when he gets another card, he needs to make some purchases on it monthly, and then pay the statement balance in full every single month, preferably by direct debit. That shows good financial management, and it's what future lenders look for.

    For the here and now, is he on the electoral roll at your current address? Make sure he's there - it'll say on his credit report if he is. If he's not - get him registered. (This can take a while before he actually appears on the credit reference agencies data)

    Does he have a mobile phone contract that gets paid by direct debit? Is is in his name? If so, it should also be showing on the credit report. If for any reason he's on pay as you go, he needs to get a basic sim-only contract, where a monthly payment is made and reported to the credit agencies. 

    If you're married - and you have the bills in your name, and they are showing on your credit file (not all utilities report) then you could add his name to the accounts, so that they too will begin to report activity. (Is there any reason why you wouldn't' want a recorded named association with him?)

    Who was the card company that closed the account?

    Which card company failed you on eligibility?

    Have you tried any other eligibility checkers?
  • MovingForwards
    MovingForwards Posts: 17,149 Forumite
    10,000 Posts Seventh Anniversary Name Dropper Photogenic
    Ignore the credit score as it's not seen or used by financial institutions, it's the credit history and other things they use when assessing applications.

    Add your husband to the utility bills and if he really wants a credit card, and will use it, see if his own bank will provide one.

    All your husband needs is a current account, ideally two (one that uses visa the other that uses MasterCard, just in case of any technical issues), be on the electoral roll and if he wants it a mobile phone, possibly a credit card, definitely on the utility bills as they act as secondary ID.
    Mortgage started 2020, aiming to clear 31/12/2029.
  • Alex9384
    Alex9384 Posts: 980 Forumite
    Fifth Anniversary 500 Posts Name Dropper Photogenic
    If you get a credit card, definitely use it! Even if it's just once a month. Pay for petrol or some groceries, then you can lock it in a drawer, but don't forget to use it again the next month, and so on. As soon as you get your new card, set up a direct debit for FULL payment each month and make sure there's always enough money in the current account from which the direct debit is to be taken.

    I would try soft checks with other card providers. One may decline you, while other may accept you.
     
    EPICA - the best symphonic metal band in the world !
     
  • PRAISETHESUN
    PRAISETHESUN Posts: 4,861 Forumite
    Sixth Anniversary 1,000 Posts Photogenic Name Dropper
    In my experience a thin credit file is just as bad, if not worse than a bad credit file - at least with someone who defaulted on a loan you have evidence to show how they might behave in future. Thin files have no evidence to show either good or bad behavior so lenders see them as high risk.

    As you're no doubt aware, you need to get your husband some credit history. Ignore the scores on your credit files and focus instead on getting some positive credit history built up (on time payments in full). It may take a while as not every lender will provide credit to people with thin files, but using eligibility checkers with multiple sub-prime providers there should be someone who will accept him. Then the key thing is to use the card! Make a few small purchases every month (eg. groceries, petrol - things you'd normally buy anyway, don't use it as an excuse to spend unnecessarily) and pay it off in full. Rinse and repeat and eventually he will start being eligible for higher limits, betters cards, etc. 

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