Credit history after living abroad

PeterLloyd37

I've just moved back to the UK after living in the Netherlands for six and a half years and have been rejected for loans and new bank accounts on the basis of credit scoring. As this is exactly the time when you need some financial help I am a bit !!!!!! off about this. Has anybody else had similar problems or know what I can do? My understanding is that the credit reference companies keep a record of the last six years - so I guess I must be a blank.

Cheers,
Pete.

Malestrom

Make sure you're registered on the electoral role to prove that you are resident in the UK. You should be able to get a basic bank account with at least a cash card and possibly a debit card, although you won't get a switch/maestro card. Once you know you're on the electoral role then you can apply for the Capital One Classic credit card, which is guaranteed to just about anyone thats resident in the uk. Use this regularly and just as importantly, pay it off in full every month. After six months you could talk to your bank about upgrading your account or possibly apply for a small loan. There is no short-term fix for building your credit rating i'm afraid although i'd recommend you apply for your credit records to ensure there isn't anything on there that shouldn't be.

Don't try applying for any other loans or credit cards at the moment though, the searches will show on your credit record and will make it look like you're desperate for credit.

purple12

I was in exactly the same position when I returned to the UK after living in Italy. Basically I had to start again with no credit rating. I opened a basic bank account which was upgraded after six months so I could get a cheque book, then another six months to get a switch card (previously they had given me a Solo card). After about eight months I was able to apply for a credit card through my bank and after that it was all fine really. I have now applied for another credit card with a better rate and assume my credit rating is back to a healthy level.

It has taken me just about two years to get to that point where I can happily apply for any credit I want (not that I want but I'm thinking about buying somewhere to live over the next year so it's nice to know!). I don't know if my experience is typical or not and also i didn't really actively pursue credit for about the first year (i.e. by applying for one of the very high interest credit-building credit cards) and maybe that would have sped things up.

PeterLloyd37

Thanks for the advice. Luckily I kept a UK bank account and credit card going, so all is not lost. It's just frustrating when you get turned down for credit when your ability to pay is fine. It seems like a punishment for being the sort of person that likes to live in different countries and places. That's the feeling back in the UK these days... every foreigner is either a terrorist or money launderer right?