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  • FIRST POST
    • Pinkvimto
    • By Pinkvimto 2nd Nov 19, 4:11 PM
    • 4Posts
    • 0Thanks
    Pinkvimto
    Building A Credit History From Scratch
    • #1
    • 2nd Nov 19, 4:11 PM
    Building A Credit History From Scratch 2nd Nov 19 at 4:11 PM
    Hi all,

    I posted on here a while back regarding where to start in building a credit history here in the UK having lived abroad since birth and recently moving back here.

    Thanks to everyone’s advice I have managed to get a Monzo bank account, which I am having my wages paid into. I have also joined the electoral register and our council tax bill is in joint names.

    Can anyone else recommend anything I can be doing short term to help? I realise it is going to take time (realistically I am thinking 12 months + before I even apply for a mobile phone contract or credit card etc.)

    Should I have a household bill set up to regularly come direct debit out of my account? At present everything comes out of my husbands account, however would say changing the council tax or British gas direct debit to come out of my account, help?

    Any other tips to help build my credit file would be great fully received! It’s not that I have bad credit history... I simply have no credit history having no previous UK addresses etc for the past 30 years.

    Thanks in advance
Page 1
    • zx81
    • By zx81 2nd Nov 19, 4:12 PM
    • 24,399 Posts
    • 27,195 Thanks
    zx81
    • #2
    • 2nd Nov 19, 4:12 PM
    • #2
    • 2nd Nov 19, 4:12 PM
    I wouldn't worry about utilities.

    Try for a sub prime credit card every three months or so.
    • Ben8282
    • By Ben8282 2nd Nov 19, 4:29 PM
    • 4,397 Posts
    • 2,420 Thanks
    Ben8282
    • #3
    • 2nd Nov 19, 4:29 PM
    • #3
    • 2nd Nov 19, 4:29 PM
    Whose account the money comes out of doesn't matter. What matters is whose name is on the bill.
    Council tax will not report to CRA's so forget that.
    Get a mobile phone contract. SIM only will do. That should report.
    Make sure you are on the ER.
    Have you checked that your Monzo bank account is actually being reported to any CRA's as it won't help in any way if it is not being reported.
    As already suggested try for a sub prime credit card, use it every month and repay in full every month.
    • Matty36
    • By Matty36 2nd Nov 19, 6:22 PM
    • 162 Posts
    • 103 Thanks
    Matty36
    • #4
    • 2nd Nov 19, 6:22 PM
    • #4
    • 2nd Nov 19, 6:22 PM
    Try Loqbox. Im currently using that to help build my credit.

    Its a minimum of £20 per month and you get it all back at the end of 12 months if you pay it into a new bank account (or at a cost of £30 at the end of 12 months if you pay it into your own bank account) £30 small price to pay to get a healthy credit history.

    Each payment is reported to all CRA's so its worth looking into
    • DCFC79
    • By DCFC79 2nd Nov 19, 7:42 PM
    • 35,375 Posts
    • 22,326 Thanks
    DCFC79
    • #5
    • 2nd Nov 19, 7:42 PM
    • #5
    • 2nd Nov 19, 7:42 PM
    You dont really need anything like Loqbox.


    as Ive said before a sub prime card and a sim only contract would do but preferably from a network who report to an agency.
    • Ben8282
    • By Ben8282 2nd Nov 19, 8:10 PM
    • 4,397 Posts
    • 2,420 Thanks
    Ben8282
    • #6
    • 2nd Nov 19, 8:10 PM
    • #6
    • 2nd Nov 19, 8:10 PM
    Try Loqbox. Im currently using that to help build my credit.

    Its a minimum of £20 per month and you get it all back at the end of 12 months if you pay it into a new bank account (or at a cost of £30 at the end of 12 months if you pay it into your own bank account) £30 small price to pay to get a healthy credit history.

    Each payment is reported to all CRA's so its worth looking into
    Originally posted by Matty36
    No don't try loqbox.
    a sim only contract would do but preferably from a network who report to an agency.
    Originally posted by DCFC79
    Good point. Try EE. They definately report.
    Last edited by Ben8282; 02-11-2019 at 8:51 PM.
    • gionnetto
    • By gionnetto 5th Nov 19, 6:27 PM
    • 219 Posts
    • 38 Thanks
    gionnetto
    • #7
    • 5th Nov 19, 6:27 PM
    • #7
    • 5th Nov 19, 6:27 PM
    Can anyone else recommend anything I can be doing short term to help? I realise it is going to take time (realistically I am thinking 12 months + before I even apply for a mobile phone contract or credit card etc.)
    Originally posted by Pinkvimto
    I relocated to the UK a little over 2.5 years ago. Here's what I did after getting a current account with BOFI:
    1) joined the ER
    2) joined the rental exchange (but I'm assuming you aren't renting, so this might not apply to you)
    3) I got a couple of "credit builder" (very) small loans - JUST to build history
    4) one year later, I got a credit card - which I used sparingly but regularly and paid it off each month
    5) another year later, I got a 0% purchases credit card, another current account and a SIM only mobile plan
    6) even if they don't build credit history, don't forget to get a regular saver and an instant savings account.

    My next targets are a cashback credit card and/or one for travelling - don't know in what order yet.

    Life is good.
    Your cholesterol levels are not seen, or used, by your heart and arteries, so ignore it.
    .
    • gionnetto
    • By gionnetto 5th Nov 19, 6:32 PM
    • 219 Posts
    • 38 Thanks
    gionnetto
    • #8
    • 5th Nov 19, 6:32 PM
    • #8
    • 5th Nov 19, 6:32 PM
    You dont really need anything like Loqbox.
    Originally posted by DCFC79
    You do, when you are brand new to the UK. Nobody else will do you credit before at least six months have lapsed, due to the stringent fiscal requirement (183 days) before you can be considered fiscally resident in the UK. No point having useless rejections in your credit history. Loqbox is cheaper than other options (such as the ones I had to use, because Loqbox wasn't available back then).

    as Ive said before a sub prime card and a sim only contract would do but preferably from a network who report to an agency.
    Originally posted by DCFC79
    Some networks, such as O2, will not give you a SIM only plan because they check Equifax along with Experian, and Equifax is more prudent in assessing a borrower. Three only checks Experian but reports to all.
    Your cholesterol levels are not seen, or used, by your heart and arteries, so ignore it.
    .
    • Gary_Dexter
    • By Gary_Dexter 5th Nov 19, 7:12 PM
    • 7,001 Posts
    • 4,655 Thanks
    Gary_Dexter
    • #9
    • 5th Nov 19, 7:12 PM
    • #9
    • 5th Nov 19, 7:12 PM
    Equifax aren’t a lender, so how do Equifax “asses you as a borrower”?
    • Ben8282
    • By Ben8282 5th Nov 19, 8:20 PM
    • 4,397 Posts
    • 2,420 Thanks
    Ben8282
    3) I got a couple of "credit builder" (very) small loans - JUST to build history
    .
    Originally posted by gionnetto
    What exactly are credit builder loans? Never heard of them. I really hope you didn't take out payday loans.
    • sashforth9
    • By sashforth9 7th Nov 19, 7:06 AM
    • 1 Posts
    • 0 Thanks
    sashforth9
    TIP of the day. DO NOT GO WITH LOQBOX - Its a con. It all depends on how good your creditworthiness is. If you have poor credit anything under a score of 550 DO NOT DO THIS. I saved for 12 months only to be told at the end if I want to redeem the money I had saved there would be a charge. I only saved £20 a month totaling 240 only to be £30 down when I came to redeem it.
    I agree they do tell the credit reference agency, you have paid the loan back in full. But if you want to reclaim ALL the money-back you have saved they get you to open up one of their sponsored bank accounts for them to pay the money in to. The problem is UPON OPENING a NEW bank account, that bank carries out a hard search on your credit file to see if YOUR CREDIT WORTHY thus damaging your credit file if not WORSE when you started to save with LOQBOX. There is a far better way to improve your credit and this company is defiantly NOT I repeat NOT one of them..!!!!
    • boo_star
    • By boo_star 7th Nov 19, 7:08 AM
    • 2,905 Posts
    • 2,231 Thanks
    boo_star
    TIP of the day. DO NOT GO WITH LOQBOX - Its a con. It all depends on how good your creditworthiness is. If you have poor credit anything under a score of 550 DO NOT DO THIS. I saved for 12 months only to be told at the end if I want to redeem the money I had saved there would be a charge. I only saved £20 a month totaling 240 only to be £30 down when I came to redeem it.
    I agree they do tell the credit reference agency, you have paid the loan back in full. But if you want to reclaim ALL the money-back you have saved they get you to open up one of their sponsored bank accounts for them to pay the money in to. The problem is UPON OPENING a NEW bank account, that bank carries out a hard search on your credit file to see if YOUR CREDIT WORTHY thus damaging your credit file if not WORSE when you started to save with LOQBOX. There is a far better way to improve your credit and this company is defiantly NOT I repeat NOT one of them..!!!!
    Originally posted by sashforth9
    Your credit score is meaningless.

    You could have saved yourself £30 by opening the account they wanted you to open, withdrawing the money and then closing it.
    • PRAISETHESUN
    • By PRAISETHESUN 7th Nov 19, 9:46 AM
    • 1,409 Posts
    • 764 Thanks
    PRAISETHESUN
    I went through the same process when I first moved to the UK. I echo the comments above about not bothering with LOQBOX or similar "credit building" services. Everything they do you can do yourself for free.

    Make sure to register on the ER at your current address. Open a bank account if you can (you might struggle with anything other than a "basic" account at first). It'll probably take a while but after a few months it'd be worthwhile trying for a sub-prime card. Use an eligibility checker to see what might be available to you. I got my first card after 9 months in the UK, but your experience may vary. Get access to your credit files from all 3 CRAs (Experian, Equifax and TransUnion) - you will have to jump through some hoops to verify your identity but it's relatively straightforward.

    A problem I found was that many providers require 3 years address history in the UK to apply for their products. Some lenders don't strictly require it, but their application forms are not set up to accommodate it (they won't let you write in foreign postcodes hence the forms are effectively unable to be completed). The LUMA card from Capital One was the first lender I had success with in case it helps. Otherwise any sub-prime card will do.
    • gionnetto
    • By gionnetto 7th Nov 19, 6:41 PM
    • 219 Posts
    • 38 Thanks
    gionnetto
    What exactly are credit builder loans? Never heard of them. I really hope you didn't take out payday loans.
    Originally posted by Ben8282
    Credit builder loans are products such as Credit Improver and Cashplus advance, where you pay 5-10 GBP a month just to basically build history. Loqbox is far better, because it's 30 GBP a year, and only if you decide not to move those funds to one of their sponsors.
    Your cholesterol levels are not seen, or used, by your heart and arteries, so ignore it.
    .
    • Ben8282
    • By Ben8282 7th Nov 19, 7:49 PM
    • 4,397 Posts
    • 2,420 Thanks
    Ben8282
    Credit builder loans are products such as Credit Improver and Cashplus advance, where you pay 5-10 GBP a month just to basically build history. Loqbox is far better, because it's 30 GBP a year, and only if you decide not to move those funds to one of their sponsors.
    Originally posted by gionnetto
    Oh I understand.
    As far as the Cashplus credit builder is concerned I would actually agree that, under certain very specific circumstances, this can be beneficial but not for the reason that you may imply. The circumstances under which I believe it could be beneficial is where an individual has no credit whatsoever, does not exist as far as credit is concerned. As this will be reported to the CRA;s it will bring an otherwise blank credit file into existance. However, the amount of the loan is so small that it will have no effect on lenders decisions and I would imagine it would be immediately obvious to any potential lender what it was. One such loan would be sufficient. I can see no reason for multiple loans of this nature.

    Your comment above is contradictory. You say that the Cashplus loan is £5-10 per-month and then say that the loqbox is only £30- a year. But what you don't say is that the Cashplus loan represents a fee for a prepaid cad which the person taking out the loan will presumably use and would be paying anyway as presumably they have no bank account and need the Cashplus prepaid card while the £30 loqbox amount is their charge for giving you your money back and the actual amount that you will have to pay each month will be significantly higher and that loqbox will keep whatever you are paying each month for a whole year, will not pay you any interest and will then either charge you £30 to get it back or force you to open an account of their choosing.
    • gionnetto
    • By gionnetto 10th Nov 19, 12:33 PM
    • 219 Posts
    • 38 Thanks
    gionnetto
    The circumstances under which I believe it could be beneficial is where an individual has no credit whatsoever, does not exist as far as credit is concerned. As this will be reported to the CRA;s it will bring an otherwise blank credit file into existance.
    Originally posted by Ben8282
    Which was exactly the situation I was in, and the OP's as well.
    Your cholesterol levels are not seen, or used, by your heart and arteries, so ignore it.
    .
    • Willing2Learn
    • By Willing2Learn 10th Nov 19, 6:41 PM
    • 4,764 Posts
    • 4,307 Thanks
    Willing2Learn
    Which was exactly the situation I was in, and the OP's as well.
    Originally posted by gionnetto
    On that basis, I would have thought that having utility accounts recorded on a credit file would also be useful in building a credit file, for someone who is new to the country.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Ben8282
    • By Ben8282 10th Nov 19, 8:13 PM
    • 4,397 Posts
    • 2,420 Thanks
    Ben8282
    On that basis, I would have thought that having utility accounts recorded on a credit file would also be useful in building a credit file, for someone who is new to the country.
    Originally posted by Willing2Learn
    Yes definately.
    • gionnetto
    • By gionnetto 11th Nov 19, 7:59 PM
    • 219 Posts
    • 38 Thanks
    gionnetto
    On that basis, I would have thought that having utility accounts recorded on a credit file would also be useful in building a credit file, for someone who is new to the country.
    Originally posted by Willing2Learn
    See, the problem is, many utilities require some credit history or they turn you down. The beginnings are hard! I was lucky enough that I got a job offer when I was still living abroad and the offer came with a package that ensured I'd get a current account set up via my employer's business relationship with a bank. But not everybody is so lucky... I've had friends who relocated here without a job offer and had to start with a basic account, no utilities, PAYG SIMs, etc. It can be hard, and depressing.
    Your cholesterol levels are not seen, or used, by your heart and arteries, so ignore it.
    .
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