Improve Credit Score

hugoforum

Hi all

I have recently turned 18 and wondering the best way to start up my credit score and start developing a good score. I tried applying for a small credit card with my bank but got declined!! Any other advice or tips? 

SiliconChip

Make sure you're on the electoral register.

Take out a mobile phone contract.

You have no credit score (nor does anyone else in the UK), what you have is a credit history, and making positive additions to it is what will eventually make you eligible for other credit products.

fatbelly

It's catch-22, isn't it?

You want to improve your credit history but can't get one thing that will help.

As above, there are other entries on your file: electoral roll, mobile phone, current account.

If you do a soft search here you can see if someone other than your bank may oblige

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

th081

hugoforum said:

Hi all

I have recently turned 18 and wondering the best way to start up my credit score and start developing a good score. I tried applying for a small credit card with my bank but got declined!! Any other advice or tips? 

I suppose the first question is why do you want a credit card. Remember in aggregate the credit card industry sucks a lot of money from consumers so why are you so keen to join the list. You may be one who does not pay credit cards but why take the chance.  

Richard1212

th081 said:

hugoforum said:

Hi all

I have recently turned 18 and wondering the best way to start up my credit score and start developing a good score. I tried applying for a small credit card with my bank but got declined!! Any other advice or tips? 

I suppose the first question is why do you want a credit card. Remember in aggregate the credit card industry sucks a lot of money from consumers so why are you so keen to join the list. You may be one who does not pay credit cards but why take the chance.  

Most of the population have at least one credit card, so why not an 18 year old starting out to build up a credit history ? 
I think fatbelly's post summarises all the pertinent facts. Good luck, hugoforum. 

daivid

If you are/become a student you may be able to get a student account with an overdraft- managing this well will develop +ive credit history, you may also be offered a student credit card - again discipline is key. I wouldn’t worry much over not having a credit card, I was mid 20s before getting my first by which point I seemed to have a decent credit history from utility bills, mobile phone contracts and managing my overdraft.

th081

Richard1212 said:

th081 said:

hugoforum said:

Hi all

I have recently turned 18 and wondering the best way to start up my credit score and start developing a good score. I tried applying for a small credit card with my bank but got declined!! Any other advice or tips? 

I suppose the first question is why do you want a credit card. Remember in aggregate the credit card industry sucks a lot of money from consumers so why are you so keen to join the list. You may be one who does not pay credit cards but why take the chance.  

Most of the population have at least one credit card, so why not an 18 year old starting out to build up a credit history ? 
I think fatbelly's post summarises all the pertinent facts. Good luck, hugoforum. 

Because UK consumers pay 171 million pounds in interest in a DAY on consumer debt or 62 billion a YEAR. Your typical 18 year old won't know the risks of credit cards until they are trapped by them. As lots (Inc me) have been on these boards.

jbrassy

th081 said:

Richard1212 said:

th081 said:

hugoforum said:

Hi all

I have recently turned 18 and wondering the best way to start up my credit score and start developing a good score. I tried applying for a small credit card with my bank but got declined!! Any other advice or tips? 

I suppose the first question is why do you want a credit card. Remember in aggregate the credit card industry sucks a lot of money from consumers so why are you so keen to join the list. You may be one who does not pay credit cards but why take the chance.  

Most of the population have at least one credit card, so why not an 18 year old starting out to build up a credit history ? 
I think fatbelly's post summarises all the pertinent facts. Good luck, hugoforum. 

Because UK consumers pay 171 million pounds in interest in a DAY on consumer debt or 62 billion a YEAR. Your typical 18 year old won't know the risks of credit cards until they are trapped by them. As lots (Inc me) have been on these boards.

If you're sensible and pay the balance off each month, you won't pay a penny in interest. In fact, some credit cards give you cashback when you spend on them, meaning you get free money just from spending. This is in addition to improving your credit history. I've had credit cards for nearly 10 years and never found the temptation to run up unmanageable debts. 

CliveOfIndia

jbrassy said:

th081 said:

Richard1212 said:

th081 said:

hugoforum said:

Hi all

I have recently turned 18 and wondering the best way to start up my credit score and start developing a good score. I tried applying for a small credit card with my bank but got declined!! Any other advice or tips? 

I suppose the first question is why do you want a credit card. Remember in aggregate the credit card industry sucks a lot of money from consumers so why are you so keen to join the list. You may be one who does not pay credit cards but why take the chance.  

Most of the population have at least one credit card, so why not an 18 year old starting out to build up a credit history ? 
I think fatbelly's post summarises all the pertinent facts. Good luck, hugoforum. 

Because UK consumers pay 171 million pounds in interest in a DAY on consumer debt or 62 billion a YEAR. Your typical 18 year old won't know the risks of credit cards until they are trapped by them. As lots (Inc me) have been on these boards.

If you're sensible and pay the balance off each month, you won't pay a penny in interest. In fact, some credit cards give you cashback when you spend on them, meaning you get free money just from spending. This is in addition to improving your credit history. I've had credit cards for nearly 10 years and never found the temptation to run up unmanageable debts. 

I couldn't agree more.

A long time ago in a lifetime far, far away ...... I got myself into a real pickle.  Racked up spending on credit cards that I couldn't possibly afford, got into the vicious cycle of ever-increasing debt, was within a gnat's whisker of having my house repossessed.

Fast forward 35 years and I now have numerous credit cards, have never paid a penny in interest or charges since the bad old days of my early 20's, and have accumulated what must be several thousand pounds-worth of points of one form or another over the years - which get used for treats for the family.

I guess it's kind of analogous to alcohol.  There are many people who enjoy a trip to the pub on a Friday evening with their friends, or a few glasses of wine and a nice meal with family once every so often, and it can be a wonderfully sociable occasion, something to look forward to after a long week at work.  But equally there are many instances where alcohol abuse has ruined people's lives, relationships, careers.

Alcohol isn't bad, per se - irresponsible use of alcohol is.  The same goes for credit.  Yes, it requires discipline and a basic understanding of how it works, but used responsibly it can be a very useful - and often somewhat profitable - tool.

th081

jbrassy / CliveofIndia,

On average the UK consumers loses out and those that are not sensible subsidise those that are. Coming back to the OP a person who just turned 18 and is desperate to rush into the credit card world would to me suggest someone who will be at risk of not being sensible. Hence my original question why he was so keen to get a credit card. 

Jami74

hugoforum said:

Hi all

I have recently turned 18 and wondering the best way to start up my credit score and start developing a good score. I tried applying for a small credit card with my bank but got declined!! Any other advice or tips? 

Personally I wouldn't rush to get a credit card, but if it is really important to you then try your own bank first as they can see you have regular salary going in and that you are not spending it all on cryptocurrency/gambling etc. 

Like others have said, electoral roll and mobile phone contracts are good. 

th081 said:

Coming back to the OP a person who just turned 18 and is desperate to rush into the credit card world would to me suggest someone who will be at risk of not being sensible. Hence my original question why he was so keen to get a credit card. 

I expect the OP has been reading around the MSE website and has seen that managing a credit card well can improve credit score, hence wanting one. Hopefully the OP has read enough of the forums to realise that the score isn't the important part and has now been reassured that having a credit card is not essential to build credit history.