Building credit history in the UK - problem with cards

ScarletBea

I moved here last summer and now I want to build up a good credit history in the UK, so I thought getting a credit card was a good idea.
I don't need it for credit, as thankfully I have a good income and savings, and I really wouldn't need it for internet shopping, etc, either, because I have already a credit card with my portuguese bank, but from what I've read here, having an english card and paying it in full every month is a good way to build up the credit history (I can't see any other way - I don't want a loan and I'd like a good history before I'm really old...)

So I thought of getting a cashback card, as the interest rate was of no use to me. I was using some search facilities to find the best and because of the "smart search" in the moneysupermarket site I discovered that because I've lived here less than 1 year and never had credit, my credit rating "needs improvement" and I'll most probably be rejected for the cashback cards. They suggested a couple of basic cards, that really have got nothing that interests me.

So my issue is: do I get one of these basic ones, just for the credit building purpose, or do I go talk with someone at my bank directly (where they see that I earn a good salary - 40% tax band), and they might give me the gold card, that even though it doesn't give me any cashback, at least it's got some insurances and travel discounts?
Or do I wait another 4/5 months and then try again after it's been a full year?
I don't even know if they would be prepared to do some extra work from normal when assessing my application (checking my income, maybe contacting my home bank for credit history, etc), instead of just blindly following the "normal uk steps"...

simongregson

I would try your own bank initially, they will be aware of your income and how you conduct your account. Do you have an overdraft? These usually help you build up a credit record as well.

If you go via your own bank you should be able to get a better deal than the cards aimed at people with bad (rather than no) credit history. You can then apply for a cashback card after a year or so.

Are you on the electoral roll? You will usually be automatically rejected if you are not. You can get added at your address as an EU national, I think you can even vote in some elections even if you don't have citizenship.

ScarletBea

simongregson wrote: »

I would try your own bank initially, they will be aware of your income and how you conduct your account. Do you have an overdraft? These usually help you build up a credit record as well.

I've got an overdraft but I've never used it.
There I have the current account and a savings account - usually I only use it as a "stationing account" while I move it to another higher interest account (after all, Natwest esavers is only 4.6%...).
I suppose it is a better move, yes.

Are you on the electoral roll? You will usually be automatically rejected if you are not. You can get added at your address as an EU national, I think you can even vote in some elections even if you don't have citizenship.

Yes, that was one of the first things I did once I moved (my council was actually quite quick in sending me the forms).

udydudy

ScarletBea wrote: »

I moved here last summer and now I want to build up a good credit history in the UK, so I thought getting a credit card was a good idea.
..... but from what I've read here, having an english card and paying it in full every month is a good way to build up the credit history .......

...I don't even know if they would be prepared to do some extra work from normal when assessing my application (checking my income, maybe contacting my home bank for credit history, etc), instead of just blindly following the "normal uk steps"...

AFAIK....best steps is

1) get your self on the Electoral Roll...(Very Important)
2) Ask your own bank first..do you have a debit card/cheque guarantee card with them? if not ask for that first. if you do ask for credit card in branch.
3) if they reject...try Vanquis Bank they will give a measly credit limit but having a credit card account on your file helps in future. you could also try capital one for their low credit score product.
4) after 3-6 months try with any of the main high street banks, again best is your own bank.

you should be up and running in the next 1 year with lot better limits and general acceptance provided the economic scenario does not deteriorate in the next few quarters.

One suggestion from personal experience is after you get a card with the main high street banks/building society cancel your card with the low credit score provider like vanquis. I believeit does affect you credit standing(other experienced MSE's correct me if I am wrong)

Bets of Luck in your quest.

Penelopa.Pitstop

I've got credit card from my bank after 7 months in UK. I was registered on Electoral Roll and employed full time. They just run credit check on me and there was no problem at all despite the fact I didn't have credit anywhere else before.

My advice would be to start with your bank. Good luck.

simongregson

ScarletBea wrote: »

I've got an overdraft but I've never used it.
There I have the current account and a savings account - usually I only use it as a "stationing account" while I move it to another higher interest account (after all, Natwest esavers is only 4.6%...).
I suppose it is a better move, yes.

Most of the banks will report your overdraft even if you are not using it. This will be good information on your credit report. Even if they don't report it, the fact that you have had an overdraft and not gone over limit will score + points on your Natwest internal credit score.

They would probably love to give you a credit card, banks like Natwest have sales targets for products like credit cards. As you are on the electoral roll, I would go to the branch and ask to apply for a credit card, and see what happens.

Even if unsuccessful, one credit search on your file is going to have little effect. They may not even credit search you if they already did so when you opened your current account.

Good luck!