Never had any credit accounts - credit rating showing as Fair

kellyac13

Hi,

I am 21 years old and never had any credit accounts.  My score is showing as fair and yet I can't get credit for even a mobile phone never mind a credit card or loan.  I have a regular wage going into my bacnk weekly of around £400 and yet my bank says i am not eligable for a credit card, loan or overdraft either.

Does anyone have any advice?

Thanks

bradders1983

Yes, stop looking at the 3 digit score, it is absolutely meaningless.

Apply for a sub-prime card with Aqua or Vanquis and pay the balance off every month as a starting point.

Jemima09

Is it showing that you are on the electoral roll? that can make a difference.

PRAISETHESUN

Ignore your credit "score" (lenders don't see or use this for anything) and focus on building solid credit "history".

The best way to build credit history is generally to take out a credit card and manage it responsibly - making a few purchases each month and paying if off IN FULL. If your own bank won't give you a card then your best bet will be to try a sub-prime provider - make sure to use an eligibility checker before you apply. The interest rates will be horrible, but that won't matter as no interest is charged if you pay your balance off in full every month.

https://www.moneysavingexpert.com/credit-cards/bad-credit-credit-cards/

cymruchris

Are you on the electoral roll? (You should be)
Does your current account show in your credit file? (The one where your salary goes)
How long have you had that account? 
What else is listed on your credit file apart from the magic number?
There's usually a record of credit searches - how many products have you applied for over what timescale?

phillw

bradders1983 said:

Yes, stop looking at the 3 digit score, it is absolutely meaningless.

Apply for a sub-prime card with Aqua or Vanquis and pay the balance off every month as a starting point.

It's not that it's meaningless, it just doesn't claim to mean what people incorrectly think it claims to mean.
But yeah, it's irrelevant to whether someone will give you credit. For a start some people build their business around high interest rates and missed payment fees.
My first credit card was with the bank I had a current account with, I don't know for sure but I always thought that was a good avenue.

Grumpy_chap

The OP needs to check their credit file and that there is no incorrect data on there.  Also, steps such as electoral role to make the position as attractive as it can be, while staying truthful of course.

While credit ratings are not important as the number given, in considering the idea of a ladder from poor - average (fair) - good credit history, then it is reasonable that someone with no credit history enters that ladder around the middle is logical.  If it was only a ladder that you could join at the first rung, then everyone would struggle to get their first credit.  Without being on the ladder, then the individual cannot demonstrate ability to manage credit appropriately and reach the higher rungs.  So, the only place an individual with no credit history can logically sit is somewhere near the average.