credit score - pointless

Sebastien
Sebastien Posts: 5 Forumite
in Loans
Hi all,
I moved from France to the UK 2years ago and plan to buy a house in a couple of years with my girlfriend. I'm fortunate enough to not need any credit card and without debts, and my financial state is good. However I heard about the credit score thing and I'm a bit confused as:
- I didnt have any student loan in this country, so no debts.
- I've been paying my council tax, broadband, phone, ... on time and by debit.
- I currently dont need a credit card.

I guess my credit score is now null because I don't live under credit.
Do you think, in that case, the bank could refuse me a loan when the time comes for me to buy a house ?

thank you
Seb :)

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    Perhaps, but not because of the fictional score.

    Get a credit card if you can and build some credit history.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Sebastien wrote: »
    I guess my credit score is now null because I don't live under credit.

    The fact that you pay your bills on time is in itself an indication of how you manage your money. The lack of negativity is therefore a positive.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    What is confusing you about the credit score thing? Have you read MSE's guide to credit scores?

    https://www.moneysavingexpert.com/loans/credit-rating-credit-score
  • Nasqueron
    Nasqueron Posts: 8,808 Forumite
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    In the UK a credit card gives you up to 56 days interest free on purchases and section 75 protection on most purchases, some give cashback or bonuses. Question is more why wouldn't you want one?
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    First Anniversary Name Dropper First Post I've been Money Tipped!
    Nasqueron wrote: »
    In the UK a credit card gives you up to 56 days interest free on purchases and section 75 protection on most purchases, some give cashback or bonuses. Question is more why wouldn't you want one?

    S75 only on purchases of more than £100 and of course less than £30k
  • Nasqueron
    Nasqueron Posts: 8,808 Forumite
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    venison wrote: »
    S75 only on purchases of more than £100 and of course less than £30k

    Which covers 99.99% of every purchase that normal people would likely need to put on a CC and have a need for a S75 claim given the limits available to most people. Purchases under £100 are unlikely to be serious enough to need S75 and not many people buy stuff over £30k without some form of other cover e.g. an expensive car has insurance or a major house build would have liability cover etc
  • Shakin_Steve
    Shakin_Steve Posts: 2,700 Forumite
    First Anniversary Photogenic First Post Name Dropper
    Regarding the house purchase: If you have a large enough deposit, I doubt very much that many banks would turn you away. They do, after all, own the house till you've paid for it.
    I came into this world with nothing and I've got most of it left.
  • ReadingTim
    ReadingTim Posts: 3,970 Forumite
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    Shakin_Steve wrote: »
    Regarding the house purchase: If you have a large enough deposit, I doubt very much that many banks would turn you away. They do, after all, own the house till you've paid for it.

    Define "large" - anything less than 50% of the purchase price means the bank has more skin in the game than the borrower, so more to lose. Also, banks prefer to deal with money, not property - repossessing then selling properties is a time consuming and expensive business and can result in the bank making a loss. As a result, they're not too keen on taking this risk with someone who's credit history isn't very well known.
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
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    Any theres me thinking....FINALLY, someone is telling the forum in a single post that the credit score is pointless.....

    Oh well, we will just have to state that fact on every other post instead.

    Good lucks
  • MallyGirl
    MallyGirl Posts: 6,617 Senior Ambassador
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    Sebastien wrote: »
    Hi all,
    I moved from France to the UK 2years ago and plan to buy a house in a couple of years with my girlfriend. I'm fortunate enough to not need any credit card and without debts, and my financial state is good. However I heard about the credit score thing and I'm a bit confused as:
    - I didnt have any student loan in this country, so no debts.
    - I've been paying my council tax, broadband, phone, ... on time and by debit.
    - I currently dont need a credit card.

    I guess my credit score is now null because I don't live under credit.
    Do you think, in that case, the bank could refuse me a loan when the time comes for me to buy a house ?

    thank you
    Seb :)

    When my OH and I bought our first house together he had quite a full history of paying back borrowing whereas I had hardly ever borrowed anything. It was an instant yes for him whereas for me I was referred to the underwriters. We did get the mortgage in the end but I could have done without the worrying wait.
    I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
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