Help to build a credit score.

Everythingcomesup13

Actually asking for a family member. They are a blank slate to all lenders. They have not had a credit card ever. No loans or a mortgage in well over a decade.

Where do I start with trying to get them on the ladder to a credit card?

My thought process so far is to use alternative payments? They have a mobile phone contract and they've been with their bank for decades but how do I register this with Equifax etc?

Im also thinking about something like Loqbox? But Ive heard good and bad with this.

Can anyone advise on where to start and the do's and dont's

Many thanks in advance

RAS

Firstly, credit scores matter in the US and are irrelevant this side of the Atlantic. Unless you are a credit reference agency trying to sell products to unsuspecting Brits.

Secondly, why would your relative need credit? There's good reason to buy expensive stuff using a credit card to get cover for failed purchases, and often to get mortgage.

Other than that it's generally better to save up and pay for what you want from money you already have. It's called budgeting. Creditors hate it because they can't leach money from you.

It's probably much better for your relative to make those decisions themself, so get them on MSE.

flaneurs_lobster

Do they have regular income?

Does their bank have a 'soft' credit card eligibility checker? Often the best place to ask for a first credit card.

Maybe look at applying for one of the 'credit builder' cards that are mentioned in the MSE section on cards, personally I'd prefer those to a service that charges a subscription to offer 'artificial' loans to report to the reference agencies.

Everythingcomesup13

I must say I don't care for your tone RAS.

My mom is not confident to use these forums so I said I would ask on her behalf. Essentially she has not needed a credit check for a number of years due to being in rented accommodation linked to her husbands work. She needs to move now and is finding it difficult without having any history to even get a loan or mortgage.

Equally even private rent requires a credit check and she is worried as she is a blank slate that she will fail the check.

Not all of us are up to speed on everything as you so clearly are. Thats why we seek the help of people on forums. To hopefully find help not to be spoken to in a condescending manner!

Everythingcomesup13

She is retired so only in receipt of State pension and private pension.

We tried to sign up to Experian just to see what the situation was and they couldn't even produce a report. The file was to thin.

I even tried to use the Capitol One eligibility checker but again it was a no because they dont have enough information.

MattMattMattUK

https://forums.moneysavingexpert.com/discussion/comment/82146958#Comment_82146958

Just checking, are you in the US as you use "mom"? The reason I ask is the knowledge on this forum is very UK specific?

The first things to check are is she on the electoral roll and do any of her bank accounts show? Bank accounts with an overdraft will usually be recorded on credit reports. Other things like utility bills and mobile phones can and often do report to the CRAs.

The issue could be failing to pass a "credit check", but that might not be related to not having borrowing, it could be that she is unable to be verified as who she is, she might be failing affordability etc. Getting a credit card to "improve/build" a credit score is not really a thing, getting one and using it sensibly (paying it off in full every month) can show a record of using credit responsibility which is useful, but it takes time and also may not help in this specific instance.

https://forums.moneysavingexpert.com/discussion/comment/82146963#Comment_82146963

She will hit two problems here, the first is identity verification, it might be more work than normal as the first line verification is based on bank accounts and/or credit cards, together with utilities. There is a slower process to sign up with the CRAs to see the files. You can sign up for free access via the MSE link below, as well as other free options for the different CRAs.
https://www.moneysavingexpert.com/creditclub/

I suspect it is not "they dont have enough information", but more likely they are unable to verify her identity. Can she open a card with her existing bank who already know who she is? She may need to sign up for a new bank account if she has had hers for decades as it may not report. Does she have a passport and driving license to verify her identity with?

The other thing may be that she is failing on affordability, depending on her income.

Everythingcomesup13

Yes Im in the U.K.

She is on the electoral register and has held a bank account with the same bank for over 60 years. She also has a mobile phone contract.

Thank you so very much for the information Matt. Really really helpful.

I did say to her earlier I think talking to her bank might be a good option.

She doesnt drive so has no license and Im not actually sure if she has a passport?? If she does it will be in her old name not her new married name.

Its just knowing where to start.

fatbelly

Loqbox could work but I'd start with her bank.

MattMattMattUK

https://forums.moneysavingexpert.com/discussion/comment/82147000#Comment_82147000

If she has had the same account for 60 years it is very unlikely to be reported to CRAs as it will be pre-authorisation for that and almost certainly will not have an overdraft.

If she has a passport, even expired, that would be helpful, she would also have a marriage certificate if she got married, but note that getting married does not automatically change a woman's name, so it depends on the specifics on the marriage certificate.

Sorting out ID would be a good place to start because it will be needed for everything else.

Everythingcomesup13

Thanks Matt. That has really helped me focus my efforts.

born_again

https://forums.moneysavingexpert.com/discussion/comment/82146958#Comment_82146958

The main point RAs said is true. Credit score is a meaningless figure.

Does your mum have a bank account? If so then they have a history on her.

If she has been paying a mobile contract via DD, then she has a credit history, same with utility DD's etc. History is what counts to lenders.

Lenders never see the score, only CRA are interested in pushing products via it.