Credit History Help - Chicken and Egg Scenario

BlueSlate · 11 March 2022 at 1:13PM

Please advise - I have spent weeks reading through the posts and guides, and really need some help, or to hear other people’s experience.

I returned home from the USA after many years, I have no credit history here anymore. I was successful in getting on the electoral role 3 months ago. I have direct debits coming out of my UK bank (who I have been with for 20 years, no credit card unfortunately).

I pay into LoqBox, pay my rent through Credit Ladder and opened a Starling account. Everything has been successful for 3 months, however I’m still showing as a “?” when searching for my credit history.

I have tried to get a credit card with BIP, and although I show as 95% chance on the eligibility calculator, I then get denied when applying, because they can't find me in the credit system. I just bought a second hand car outright, because I couldn't get a loan and I’m having to use debit card every time, which feels like a complete waste.
I can't set up any house bills because I don't own a house, just rent a room and there are no bills outside of the rent. Work pays for my mobile phone, and I can't afford to just get one for the sake of it, especially when I have been paying into LoqBox, CreditLadder and have 2 UK bank accounts with direct debits coming out.
At this point I’m a sitting duck waiting to show on the credit system, which I hear can take up to 9-12 months. All I want is to get a credit card but can't even get that. What else can I do? There must be a credit card for people with zero history, or new to the UK. BIP was aimed at people with no history and that failed. Please can someone share their experience or advise?

eskbanker · 11 March 2022 at 1:22PM

BlueSlate said:
I have direct debits coming out of my UK bank (who I have been with for 20 years, no credit card unfortunately).

Are you saying that this bank doesn't offer credit cards or just that you don't have one from them? If the latter, have you asked them?

I can't offer any direct experience in this scenario but presume that you'll have read these?

https://www.moneysavingexpert.com/loans/build-credit-history/
https://www.moneysavingexpert.com/credit-cards/bad-credit-credit-cards/

BlueSlate · 11 March 2022 at 1:44PM

My bank does, I just never had one, and they can't give me one as I have no history.

Thank you, yes read those links. BIP credit card is aimed at poor credit and it failed.

[Deleted User] · 11 March 2022 at 2:25PM

You might do better getting a basic SIM only mobile contract and trying an application to someone like Vanquis and then leave it for a while, say 6 months, before trying again

PRAISETHESUN · 11 March 2022 at 4:02PM

I had similar issues when I first moved to the UK - no credit file to speak of so it caused a few issues. Getting on the ER is a good start, and you've already got a current account which will also help. Next thing I'd do is get in touch with Experian, Equifax and TransUnion (the UK credit reference agencies) and request copies of your "statutory credit reports". If/when they can't find you on their systems, they should ask for documents to prove your identity. Provide these and you should should then get access to your credit files - you might need to log a formal complaint to get the ball rolling if they refuse to be helpful.

Next thing is to get a credit card. As above, try one of the sub-prime providers and/or your UK bank. If declined, wait a few months and try again. I had success with the LUMA card by Capital One after being in the UK for about 12 months in case that's of use to you: https://www.luma.co.uk/. In any case make sure to use eligibility checkers directly on the providers website, as opposed to ones on comparison sites such as MSE.

I personally wouldn't bother with Loqbox or Credit Ladder - there's no reason to pay for things you can ultimately do yourself to build your credit history. Other then that, it is a bit of a waiting game unfortunately, but once you get your foot in the door it should be fairly smooth sailing from there.

BlueSlate · 11 March 2022 at 6:16PM

Thank you so much. I figured it is a long waiting game. It is nice to hear from someone who went through the same. I really appreciate the response.

Sandtree · 11 March 2022 at 7:28PM

Does your US bank operate in the UK? Some multinational types (Citi, HSBC, AmEx) have in the past had a country switching service so if you had an AmEx Platinum in the US they will automatically give you one in the UK if you move countries (subject only to sanctions/fraud checks not credit checks)