Credit Score at 18

bazzyb

Dylanm2002 said:

GabiB said:

If you are so desperate about your credit score being good (which if I was old enough to have one I would be due to my money geekiness), then IF YOU ARE SENSIBLE (hope it’s clear enough) and have a good reason for needing a good credit score (good deals for products during uni or a gap year) then see if you can get a credit building card but spend very little on the card and pay it off IN FULL every month avoiding interest, but this is a only if you really need to, not just because you want to.

The problem is I can't get a credit building card or any type of credit as I do not show any credit history / score. However, I need to get credit to make my credit score higher and show I have a good history of paying back credit. This is for a mortgage. I'm wanting to get a mortgage asap because renting I find is a waste of money and i'll be able to afford a deposit after a year working at my new job.

Mortgages are underwritten differently to credit cards.  You don't need a credit card to get a mortgage.  It might be worth trying a different mobile provider if they have a suitable tarriff (I have heard Three are easier to get accepted with than others, not sure how accurate that is). 

If you're on the voter's roll, have a bank account and a mobile contract that will be more than sufficient for lenders and CRAs to be able to trace you.

[Deleted User]

You have no score. No one does. Stop obsessing over that.

Focus on asking the CRAs to create your files. You're a long way off from getting a mortgage so remember the this is a marathon, not a sprint.

Dylanm2002

DCFC79 said:

Dylanm2002 said:

DCFC79 said:

Dylanm2002 said:

Mickey666 said:

Why do want credit at 18?  I’d suggest doing your best to avoid it if possible.

I need credit in order to gain a credit score for a mortgage. Next month i'm hopefully starting an extremely high paying job so I will be able to save enough for a deposit after a year.

Your score is only seen by yourself, lenders see your history.

The problem is, I can't see my score. Lenders cannot verify my identity. So i'm unable to get any type of credit.

Get a monthly sim

There's 2 othrr credit ref agencies, check them 2.
Do you have a bank account ?
Is it in a good state ?

Experian, ClearScore, Totally Money and Equifax I tried, None of them could verify my identity. I have two bank accounts. One with Natwest and one with Lloyds. 

Dylanm2002

bazzyb said:

Dylanm2002 said:

GabiB said:

If you are so desperate about your credit score being good (which if I was old enough to have one I would be due to my money geekiness), then IF YOU ARE SENSIBLE (hope it’s clear enough) and have a good reason for needing a good credit score (good deals for products during uni or a gap year) then see if you can get a credit building card but spend very little on the card and pay it off IN FULL every month avoiding interest, but this is a only if you really need to, not just because you want to.

The problem is I can't get a credit building card or any type of credit as I do not show any credit history / score. However, I need to get credit to make my credit score higher and show I have a good history of paying back credit. This is for a mortgage. I'm wanting to get a mortgage asap because renting I find is a waste of money and i'll be able to afford a deposit after a year working at my new job.

Mortgages are underwritten differently to credit cards.  You don't need a credit card to get a mortgage.  It might be worth trying a different mobile provider if they have a suitable tarriff (I have heard Three are easier to get accepted with than others, not sure how accurate that is). 

If you're on the voter's roll, have a bank account and a mobile contract that will be more than sufficient for lenders and CRAs to be able to trace you.

I currently have a contract with Virgin Mobile for my phone and sim. It's in my Dads name and I just give him the money. I will double check about transferring it in my name but last time we checked I believe you can only transfer the account.

Dylanm2002

Deleted_User said:

You have no score. No one does. Stop obsessing over that.

Focus on asking the CRAs to create your files. You're a long way off from getting a mortgage so remember the this is a marathon, not a sprint.

But the point is, if I have enough for a mortgage, why not get one? I don't need credit in the sense that I don't have money, I want to increase my credit so I have a higher chance of getting accepted for mortgages etc. I will look at asking the CRAs to create some files on me. 

MEM62

Dylanm2002 said:

Mickey666 said:

Why do want credit at 18?  I’d suggest doing your best to avoid it if possible.

I need credit in order to gain a credit score for a mortgage. 

No you don't.  You need a credit history to obtain a mortgage - along with a somewhat chunky deposit. 

PRAISETHESUN

@OP - I think you're failing to grasp the difference between your "credit score" and your "credit history"

Credit score - marketing gimmick devised by the CRAs. Ignore this.
Credit history - the record of your financial behavior that is used by lenders to determine if you are eligible for their products. This is what you need to focus on.

For a mortgage you need decent credit history - possibly a few years worth. Indeed as was mentioned above, this is a marathon not a sprint. I understand your problem as I had a very similar issue when I first moved to the UK - I basically didn't exist as far as the CRAs were concerned. It's a fairly straightforward process to get things sorted but it will take time.

You need to go direct to the CRAs (Experian, Equifax and TransUnion) and request a copy of your statutory credit report. They are obliged to provide you with this information if you request is. If/when they come back saying they are unable to locate your records, then you need to raise a formal complaint and provide them with proof of identity and this should then get you access to your (probably empty) records.

The second issue will then to build some credit history in your name. It's a bit of a catch 22 in that you need credit history in order to get credit in order to build history so you may struggle for a bit here. Try asking your bank if they have anything to offer otherwise you'll need to start with a sub-prime credit card (try an eligibility checker first) and go from there. Making only small purchases you'd usually make anyway (eg. groceries, petrol, your usual round at the pub, etc). Getting a phone contract in your name may also help. If your current deal is in your Dad's name and they won't transfer it to you, then consider cancelling it and taking out a new one in your name. Over time all these will start to get reported to your credit files, and your history will be built up and (hopefully) show that you can be trusted with larger limits, such as a mortgage down the line.

Dylanm2002

MEM62 said:

Dylanm2002 said:

Mickey666 said:

Why do want credit at 18?  I’d suggest doing your best to avoid it if possible.

I need credit in order to gain a credit score for a mortgage. 

No you don't.  You need a credit history to obtain a mortgage - along with a somewhat chunky deposit. 

That's what I meant, I apologise. I'm unable to get any type of credit as they can't verify my identity. I'll be able to afford a deposit after about 10 months at my new job, so that's not an issue.

cymruchris

I can see that you are clearly trying to improve your creditworthiness rather than your 'score' - and you've mentioned that you don't 'need' credit, but are simply thinking of the future as to what steps you can take now to ensure you are more attractive to lenders at a later date. Assuming all of this is true, and you don't try to go crazy and spend spend spend without paying anything back (and it sounds like you wouldn't) - I'd think about the following:

- You are on the electoral register - that's good.

- Who are your bank accounts with - are they savings accounts or current accounts? If savings accounts, they won't report to your credit file. One of the easiest accounts it seems that you can open that does report is a Monzo account. You could put £5 in there - and not use it - and it would still give you the monthly 'green square' or 'tick' to show a well-managed account.

- Mobile phone wise- you may not be able to get a phone contract with a  phone in advance - but you should be able to get a sim-only contract. If your current contract paid by your family can't transfer - then get a PAC code (if you want to keep your number) and apply via something like Three or 02 to get a sim-only deal for £10-20 a month over a 12 month contract.

- Do you have your provisional (or full) driving license yet? Or a valid passport? That might be useful in terms of ID.

- Consider setting up a Loqbox - (There are those here that laugh at this - but I've used it - and can confidently say it helped me) - which is where you agree to pay £x into a savings fund for 12 months - and at the end - you either get it back minus a £30 fee, or you open a new current account (usually with the TSB) and ALL of the funds are transferred into it. It reports on your credit file as a loan, and when completed, is marked as satisfied. Payments can be from £10-200 - but once set, you can't change the payment amount (fixed term contract) and if you change your mind half way through, it could have a negative effect on your file - so only consider this if you can commit to 12 months worth of saving. (The larger the amount you save - the more positive the impact will be on your file).

Once all of the above has been running for 3-4 months - try the eligibility checkers for the sub-prime credit cards - these include Aqua, Vanquis, Capital One amongst others. If you get the message of 'Likely to be approved' or 'Approved' - Only apply for ONE card. If successful - spend a few pounds monthly, wait for your statement and then pay in FULL - EVERY month without fail. (Best to set up a direct debit). 

After 6 months of running your first credit card as outlined above - then try the eligibility checkers for another sub-prime card - and again, make only ONE application. Rinse and repeat going forwards.

If you get turned down for any card after a full application - don't apply immediately for another one. Wait 3 months and try again.

Building a positive credit file takes time and patience - but with the right approach - you can put yourself into a position of demonstrating good financial management over the period of a year or two. And as always gets said - ignore scores - focus on the detail of your accounts, history, payments and accuracy of data.

jay1804

How long have you had your bank account(s) for?  Did you get any letters/communications from your bank(s) saying when you turn 18 they will start to report to the CRAs?