Getting a Credit Card With No Credit History?

gh148

born_again said:

gh148 said:

born_again said:

gh148 said:

cymruchris said:

So just to confirm:

- You're on the electoral roll (How long for?)

- You have no negative points on any of your THREE main credit reference agency reports

- You do have existing accounts in your name on the credit reference agency data? (how many? current account? - if so - how long's it been on there?)

- You have no 'credit' accounts on your files? (No buy now pay later, klarna, that kind of thing?)

How long have you been at your current address?

What income are you declaring? (Approx)

Are you self-employed or employed and earning a salary?

Do you have a mobile phone? If so - who pays the bill?

A good starting point is usually to get a low value sim-only contract that reports to your credit files - there's usually a good chance of getting one even with limited history, and will form a pattern of paying something to give lenders a feel for whether you'll pay back their credit card.

Judging by the questions I assume it's supposed to be easier to get a credit card even with no credit history then? I don't know how long I've been on the electoral roll for but certainly at least a couple of years, I don't have any negative points, I only have a current and savings account, and no credit history at all. I've been at my current address since May 2018, I declare my income as roughly £5000 personal and £105,000 other household income, and essentially self-employed as the director of my own company. I could thus technically make my personal income more if necessary, but at the same time I don't want to draw too much money out of the company account just to get a credit card. I do have a phone but I don't pay for it, plus I already have an unlimited SIM plan as part of our broadband deal so there's no need for me to get any additional SIM card.

I would ring your bank & apply that way. If it is then declined then I would ask to speak to some one in the approval team, as to why, as 5 years at address & that income, seems very odd.

Could you not apply via company?

What do you mean by apply via company?

Via your business banking. So it is a business Credit card, not a personal one.

I have tried it already with Amex, but got denied. I also tried with the bank I already have our business account with, but that's been a nightmare. First time around, I've received no word on any decision for months, had to contact them several times, only for them to tell me I need to re-apply. So I reapplied a few months ago and same thing is happening again, so I gave up hope.

MrFrugalFever

Even those with the worst of credit histories are generally able to get some form of credit card or loan so either;

- there’s more to what you are letting on or something against you that you’re unaware of
or
- you are just unlucky and will need to look at expanding your credit records by way of alternative methods such as mobile phone contract (already mentioned), an asset purchase (such as curry’s/Argos/AO credit facility)

cymruchris

Things are a bit clearer now - so it seems like you have an incredibly thin credit file, this combined with being self-employed and declaring a £5000 annual income won't be doing you any favours. (And totally understand that your income isn't just £5k - but these cards work on data and algorithms - and based on the above it's likely they say 'no' - even if you could afford to pay off the balance 400 times over from your savings account).

As others  have said - although you have a sim deal you are perfectly happy with - I'd look at getting it ported to another major provider who will report to your credit file.

You've got to get more 'positive history' on the records in order credit providers trust you. I'm sure you're a very trustworthy person - but with your file as thin as it is, they (as they say) don't really know you from Adam in terms of your likelihood to repay.

savergrant

daivid said:

99p per month for the 1st six months from Lebara (see MSE cheap sim finder), you may not need any longer.

Lebara's deals aren't contracts, they are recurring purchases, so probably won't help credit history.

fatbelly

Tried Loqbox?

https://www.loqbox.com/en-gb/cro-17-control

gh148

fatbelly said:

Tried Loqbox?

https://www.loqbox.com/en-gb/cro-17-control

Heard of it but I'm not in such a desperate need for a card that I can be bothered to do it.

Alex9384

daivid said:

99p per month for the 1st six months from Lebara (see MSE cheap sim finder), you may not need any longer. Having an overdraft facility on your current account may help - don't use the OD just show you can have access to one and be responsible. Though I'd echo the advice of calling your current bank and if denied ask them for the reason why and if possible suggestions for how to make yourself eligible.

Bear in mind not all phone providers report to credit reference agencies. Not sure if Lebara does.

Alex9384

gh148 said:

fatbelly said:

Tried Loqbox?

https://www.loqbox.com/en-gb/cro-17-control

Heard of it but I'm not in such a desperate need for a card that I can be bothered to do it.

You don't need to be desperate. I did Loqbox about 4-5 years ago simply because I was obsessed with building my credit history (I still am to some extent ). It won't cost you anything if you open one of the current accounts they offer you at the end of the 12 month "contract" with them.

cymruchris

gh148 said:

fatbelly said:

Tried Loqbox?

https://www.loqbox.com/en-gb/cro-17-control

Heard of it but I'm not in such a desperate need for a card that I can be bothered to do it.

Fair enough then - sounds like you don't really need a credit card. To get from having a thin history file to a position where you have the ability to get a card does take a bit of time and effort whichever path you choose.

Things like cashback, purchase protection and rewards are not your thing?

 

(And yes, you likely wouldn't get the rewards and cashback on your first card - but you would get purchase protection - and then further down the line the other benefits as well)

If you can't be 'bothered' to take a few steps to establish a positive credit history - then that's ok.

It takes time to build trust before the big guns will give you a card, but once you're there, the extra benefits can certainly be an advantage.

The sooner you start of course if you can be bothered - the quicker you'll get your first 'not really much good' credit card - but that's the beginning of the journey.

born_again

gh148 said:

cymruchris said:

So just to confirm:

- You're on the electoral roll (How long for?)

- You have no negative points on any of your THREE main credit reference agency reports

- You do have existing accounts in your name on the credit reference agency data? (how many? current account? - if so - how long's it been on there?)

- You have no 'credit' accounts on your files? (No buy now pay later, klarna, that kind of thing?)

How long have you been at your current address?

What income are you declaring? (Approx)

Are you self-employed or employed and earning a salary?

Do you have a mobile phone? If so - who pays the bill?

A good starting point is usually to get a low value sim-only contract that reports to your credit files - there's usually a good chance of getting one even with limited history, and will form a pattern of paying something to give lenders a feel for whether you'll pay back their credit card.

Judging by the questions I assume it's supposed to be easier to get a credit card even with no credit history then? I don't know how long I've been on the electoral roll for but certainly at least a couple of years, I don't have any negative points, I only have a current and savings account, and no credit history at all. I've been at my current address since May 2018, I declare my income as roughly £5000 personal and £105,000 other household income, and essentially self-employed as the director of my own company. I could thus technically make my personal income more if necessary, but at the same time I don't want to draw too much money out of the company account just to get a credit card. I do have a phone but I don't pay for it, plus I already have an unlimited SIM plan as part of our broadband deal so there's no need for me to get any additional SIM card.

Can we take it then, that you still live with parents?
Given 3 years in current house, & not paying utility bills which would give a credit history
A easy out would be to take over paying the broadband billing.

While quoted @ £105.000 what is this figure derived from, given the mention of "Household income"

Which is a bit odd, as usually you only declare your own income when single.