how to get a credit history

cymruchris

PRAISETHESUN said:

I personally don't see the need to pay to improve your credit history - services such as Loqbox are a waste in my view since you can accomplish everything they offer by yourself. All she really needs is a sub-prime credit card

You've hit the nail on the head - in that yes - all you need is a sub-prime card - but there are people that CAN'T get a sub-prime card - and for them - Loqbox is a decent option - in that from  month 1 they'll be building a positive credit history. There's no need to 'wait 6 months and try again' - only to find that they might need to wait another 6 months and still no guarantee of success.

After 12 months - they'll have a fully satisfied, well-managed credit account on their history which will make them much, much more likely to get that sub-prime card. And if they open a regular current account with the TSB at the end of the 12 months - they don't pay a penny - so it will have cost them nothing. As I've said many times - it's a product that's not for everyone, but it does have a place. Most people seem to write it off as a waste of time - but it was the complete opposite for me.

wubbzy

PRAISETHESUN said:

I personally don't see the need to pay to improve your credit history - services such as Loqbox are a waste in my view since you can accomplish everything they offer by yourself. All she really needs is a sub-prime credit card - use it to make a few small purchases (stuff she'd normally buy anyway such as groceries/petrol/etc) and pay it off IN FULL every month. This way no interest is charged so the APR doesn't matter. Do this and over time (6-24 months from my experience) she will begin to be eligible for higher limits and more mainstream products. The sub-prime providers you've listed are fine - I'd make the application and if she gets declined wait 6 months and try again.

thank you she has applied to aqua and they said they needed to check a couple of things and would email her a decision in 7 -10 days, it will be 10 days tomorrow and we haven't heard anything yet so fingers still crossed.

she is sensible with money, like i said she earns £800-£1000 isa a month and puts £100 a month into a help to buy isa, she doesn't need a credit card, she wants to start building up a credit file, her words not mine lol.

unfortunately with the mobile contract, she has one I'm paying only 6 months in so taking out a sim only for a credit rating seems a bit daft

[Deleted User]

wubbzy said:

PRAISETHESUN said:

I personally don't see the need to pay to improve your credit history - services such as Loqbox are a waste in my view since you can accomplish everything they offer by yourself. All she really needs is a sub-prime credit card - use it to make a few small purchases (stuff she'd normally buy anyway such as groceries/petrol/etc) and pay it off IN FULL every month. This way no interest is charged so the APR doesn't matter. Do this and over time (6-24 months from my experience) she will begin to be eligible for higher limits and more mainstream products. The sub-prime providers you've listed are fine - I'd make the application and if she gets declined wait 6 months and try again.

thank you she has applied to aqua and they said they needed to check a couple of things and would email her a decision in 7 -10 days, it will be 10 days tomorrow and we haven't heard anything yet so fingers still crossed.

she is sensible with money, like i said she earns £800-£1000 isa a month and puts £100 a month into a help to buy isa, she doesn't need a credit card, she wants to start building up a credit file, her words not mine lol.

unfortunately with the mobile contract, she has one I'm paying only 6 months in so taking out a sim only for a credit rating seems a bit daft

S75 cover and bonus stuff like cashback are reason enough to have a credit card even without the credit history benefits