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  • FIRST POST
    • Rocksolid
    • By Rocksolid 2nd Dec 19, 7:04 PM
    • 58Posts
    • 3Thanks
    Rocksolid
    New comer in UK and credit score funny story
    • #1
    • 2nd Dec 19, 7:04 PM
    New comer in UK and credit score funny story 2nd Dec 19 at 7:04 PM
    Hello,

    I'm in UK since less than a year.
    Based on experience elsewhere, for me here the credit score makes me laugh.

    So, they want me to take a loan to show them I'm able to repay, or get a credit card, well in both cases I can't because everybody asks 3 years of address history in UK.
    Then actually I've got a stupid credit card from one of the credit institutes, probably I made a mistake to send them my bank statement of a bank that I don't actually use, the balance was 70 pounds... So they gave me a card of 200, I laughed for 3 hours...
    Even if I ask a raise, they will maximum of 200 pounds, and we all know they won't do that because is too risky for me, if they base the calculation on the first statement provided, any cool idea?

    I've heard about to get multiple credit cards, this is the craziest I've seen online 😂, but if is real I may evaluate...

    So my credit score from credit monitor is 571/710...
    I know this is not reliable because it was the only platform to accept my short address history, for a proper credit history I should have 3 years address history, or that at least makes sense for a practical consideration for mortgages/loans etc...
    Should I request anyway to some real association like Halifax or Experian my real credit report?
    My application for the credit card could have been affected also from that...

    Objectives/summary of this thread:

    1) Improve the credit score
    2) Get a better credit card, ideally from high street banks, aprox 2-4k.
    3) Be sure if a real report could help me to understand what I need to do.
    4) I relocated 3 times already, not sure how much is affecting my credit score...
    5) I have 3 bank accounts, removing one could help?
    6) Should I really use less than the 30% of my actual cc balance? Which is 200 in total? It's silly 😂 Or should I keep using it? My understanding is if you use credit it means you need it, that is you are screwed... But in UK it looks like you have to use it anyway...

    I accept any suggestion 😊.
    Currently I can't apply for any kind of loan/mortgage for this reason...
Page 1
    • Rocksolid
    • By Rocksolid 2nd Dec 19, 7:07 PM
    • 58 Posts
    • 3 Thanks
    Rocksolid
    • #2
    • 2nd Dec 19, 7:07 PM
    • #2
    • 2nd Dec 19, 7:07 PM
    I've got few contracts monthly debited on my bank account, this should help a bit on the long run, how long no one knows ��.

    I made few mistakes in the thread between credit history and credit score, I'm aware that the score is made Also by the history, not only how you use it.

    All the other advises on this website have been used, like electoral register etc...
    • Thrugelmir
    • By Thrugelmir 2nd Dec 19, 7:12 PM
    • 65,939 Posts
    • 58,048 Thanks
    Thrugelmir
    • #3
    • 2nd Dec 19, 7:12 PM
    • #3
    • 2nd Dec 19, 7:12 PM
    So, they want me to take a loan to show them I'm able to repay, or get a credit card, well in both cases I can't because everybody asks 3 years of address history in UK.
    Originally posted by Rocksolid
    Who is "they"......
    ““there really is no such thing as ‘the future’, singular. There are only multiple, unforeseeable futures, which will never lose their capacity to take us by surprise.””
    ― Niall Ferguson
    • zx81
    • By zx81 2nd Dec 19, 7:14 PM
    • 24,390 Posts
    • 27,189 Thanks
    zx81
    • #4
    • 2nd Dec 19, 7:14 PM
    • #4
    • 2nd Dec 19, 7:14 PM
    I hope you're ok after laughing for three hours - that sounds a little worrying, especially over a credit card.

    The good news is that the £200 limit is a good start for someone so new to the UK. Use it wisely for a few months, then apply for another card. Time and good behavior, not points, is what will drive your credit worthiness.

    As long as you're clearing your card in full each month, don't worry about your utilisation percentage. And never take a loan that incurs interest to build credit history. Show lenders you can afford to live without borrowing.

    Check your three credit files just to ensure everything is ok on them.
    • Rocksolid
    • By Rocksolid 2nd Dec 19, 7:29 PM
    • 58 Posts
    • 3 Thanks
    Rocksolid
    • #5
    • 2nd Dec 19, 7:29 PM
    • #5
    • 2nd Dec 19, 7:29 PM
    @Thrugelmir who bilded this genius system...

    @zx81 I have credit card debited into my account, so no problem to pay the amount, if this helps, I don't need the credit card, so I can also don't use it at all... I took a credit card only for the score... What is better in this stage of my career as credit scorer? ��

    3 credit files? Do you mean from all the 3 institutions? So I have to pay around 6o pounds to know from all them?
    Or the credit report is made of 3 parts?

    Thanks a lot for your reply.
    • zx81
    • By zx81 2nd Dec 19, 7:31 PM
    • 24,390 Posts
    • 27,189 Thanks
    zx81
    • #6
    • 2nd Dec 19, 7:31 PM
    • #6
    • 2nd Dec 19, 7:31 PM
    All cards are the same. They all build history. Just make sure you use it and clear in full.


    Your three files are from Experian (MSE Credit Club), Equifax (Clearscore) and TransUnion (Noddle). Different lenders will check different ones. But make sure to ignore the score. It doesn't work as you think it does.

    The credit files (via the right route) are all free - who were you planning to pay £60 to?
    • Ben8282
    • By Ben8282 2nd Dec 19, 8:36 PM
    • 4,382 Posts
    • 2,414 Thanks
    Ben8282
    • #7
    • 2nd Dec 19, 8:36 PM
    • #7
    • 2nd Dec 19, 8:36 PM
    To address your objectives.
    1. As you say yourself the credit score is meaningless and therefore there is no need to attempt to improve it.
    2. This will require a little patience. See also 5 below.
    3. Not really understood. Your credit files are a 'real' report
    4. Lenders like to see address and employment stability. Frequent change of address will not be beneficial t your objectives.
    5. Removing a bank account will not hep with anything. You say you have 3 bank accounts. What sort of accounts are they? Do they all report on your credit files? Why do you need 3 bank accounts? Presumably one of these bank accounts receives your pay. This is the account to concentrate on. It is likely that after a sufficient length of time has elapsed and this bank can see your pay regularly coming into the account and a good balance being maintained and any overdraft facility not being used they may offer you a credit card.
    6. With such a small limit you really have no choice but to use a substantial amount of it in order for the card to be of any practical use to you. I don't know who the issuer of this card is but so long as you use it and repay in full each month they will in all probability increase the limit quite quickly. Your comment above that you don't use the card but took it out only for your score makes no sense to me. How can you improve your credit history if you don't use the thing and repay?

    I do understand your feelings about the low limit but don't be insulted. Such low limits are not unusual on a first card and the lender will increase it if the account is well conducted.
    Who is "they"......
    Originally posted by Thrugelmir
    I would imagine whoever the OP is using to check their credit score has started to make suggestions to them as to how to improve it.
    These suggestions should be ignored. They are intended as a marketing tool to get you to take out credit products for which whoever is making the recommendation will receive a financial consideration,
    I've got few contracts monthly debited on my bank account, this should help a bit on the long run, how long no one knows ��.
    Originally posted by Rocksolid
    Can you clarify what these contracts are? If you were able to obtain them, then perhaps things are not as bad with your ability to obtain credit as you appear to believe.
    I made few mistakes in the thread between credit history and credit score, I'm aware that the score is made Also by the history, not only how you use it..
    Originally posted by Rocksolid
    But you continue to refer to your credit score and your desire to improve it in subsequent posts.
    I've heard about to get multiple credit cards, this is the craziest I've seen online ��, but if is real I may evaluate...
    .
    Originally posted by Rocksolid
    Yes it is crazy if you think about it. If you could successfully apply for multiple credit cards then you wouldnot be experiencing any problems in obtaining them would you?
    Currently I can't apply for any kind of loan/mortgage for this reason...
    Originally posted by Rocksolid
    Well actually you can apply. Nobody is preventing you from making applications.

    Could you please clarify what is your ultimate objective?
    Last edited by Ben8282; 02-12-2019 at 8:49 PM.
    • yksi
    • By yksi 2nd Dec 19, 8:53 PM
    • 37 Posts
    • 50 Thanks
    yksi
    • #8
    • 2nd Dec 19, 8:53 PM
    • #8
    • 2nd Dec 19, 8:53 PM
    It's hard to do much when you are new here, but it's not true that you can't do anything before 3 years here.

    Use the card, pay it off in full every month. Don't close any accounts. Stop moving around (if possible!) and in a month or two, you might be able to apply for a better card (don't apply too often because this looks bad).

    Ask your bank about an overdraft and never use it... and try to go on a mobile phone contract, even if it is £10/month sim-only plan, as these will both add to your credit history.

    The credit score number is not what matters, it is the history, where you prove over time that you can manage money. You find it silly that they won't lend you £2,000 - but would you lend it to me? No, because you don't have a clue whether I am trustworthy. And that's how banks feel about you right now. In time they'll trust you.
    • T-G-C
    • By T-G-C 2nd Dec 19, 9:07 PM
    • 530 Posts
    • 269 Thanks
    T-G-C
    • #9
    • 2nd Dec 19, 9:07 PM
    • #9
    • 2nd Dec 19, 9:07 PM
    You mentioned laughing about being assigned a £200 credit limit? This is standard practice for those with a limited or non-existent credit file. This is the case for those resident in the UK since birth, so especially applies to those moving here with a fresh electoral registration.

    Was you expecting them to grant access to thousands of pounds on a whim? No, your statement would not have been used to decide your credit limit. The computer does this automatically using application information (e.g income details), credit history and overall affordability. Identity checks are well...identity checks.

    If you manage your current limit responsibility then... wait for it (try not to laugh for three hours at this bit)... you might start seeing increases to £500 then £1000 etc. in the future.
    Advice provided from this account does not consist of any professional knowledge. For professional debt advice, please contact either National Debtline or StepChange. Advice may consist of personal experience, opinion and/or informational sources.
    • Thrugelmir
    • By Thrugelmir 2nd Dec 19, 10:18 PM
    • 65,939 Posts
    • 58,048 Thanks
    Thrugelmir
    @Thrugelmir who bilded this genius system...
    Originally posted by Rocksolid
    No answer to my question?

    Bottom line is that it's time builds your credit history. There's no magical wand to be waved.
    Last edited by Thrugelmir; 02-12-2019 at 10:21 PM.
    ““there really is no such thing as ‘the future’, singular. There are only multiple, unforeseeable futures, which will never lose their capacity to take us by surprise.””
    ― Niall Ferguson
    • Rocksolid
    • By Rocksolid 3rd Dec 19, 1:09 AM
    • 58 Posts
    • 3 Thanks
    Rocksolid
    Oh so many replies...

    So... As contract I mean my phone sim plan contract of 20 pounds, + gym, contact lenses, and another probably, so nothing special...

    The point is how they endeed up to give me 200 for this card, it's just a simple credit institute for my understanding, not a bank, probably this is the reason, those usually offer max 1200.
    In another country after 3 months I've got 2000 euros (I was poorer in percentage of local purchase power with my salary) , but I understand that here is not different than my original country (Italy) , bankruptcy atmosphere.
    So for now nothing to do with this company, will see in 2 months how much they raise.

    One street bank didn't neither approve my request for a credit card, for my understanding unsufficient credit history.
    My high street bank instead says that I'm not entitled, when my average in my account is 12k aprox since the beginning, with up and down due to payments yes but no problem at all, always more than 9k there, this wonderful bank says that I need to stay at least 1 year with them, then maybe I get some sort of credit ��, so if I change bank because of this stupid rule I may lower my credit score and also my chances to get it from my new bank...

    Question to you guys, when you say to clear out the cc, you mean use it all and pay it in time? Or always remain on 30%?
    With 200£ I just used it in the supermarket for 50£...

    I extimated 60 pounds for credit files because 20x3, it looks the average price of each.
    So, should I really check all them? Damn, why there is no central institution for this important matter?
    • Rocksolid
    • By Rocksolid 3rd Dec 19, 1:17 AM
    • 58 Posts
    • 3 Thanks
    Rocksolid
    So asking for an overdraft is a good idea? Are we sure? If I were the bank I would look bad to the customer face for such request ahahhs, when you talk about overdraft is not the same as credit, you are already done when you used it...

    I can even apply to multiple credit cards but the amount will be always low I think, and not in banks as said, just credit institutions, or even Amazon for example but that is another story...

    I would be curious to know how a direct debit of a credit card is made it differently than a direct debit for a mobile contract for example, I didn't find info online, they are both periodic but for the cc it may not happen if I don't use it, so in the credit report will look differently as evaluation?
    • Ben8282
    • By Ben8282 3rd Dec 19, 1:42 AM
    • 4,382 Posts
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    Ben8282
    1. Nobody offers a maximum credit limit of £1200. £1200 is a representative example that all lenders are required to use in their interest payable examples.
    2. Concerning the credit card. Use it. Wait for a statement. Repay it. Use it again. Pay the full statement balance each month to avoid interest.
    3. An overdraft facility is a good idea but the overdraft should never be used.
    4. A direct debit for a credit card is no different. Each month when you receive a credit card statement the direct debit will be taken the appropriate number of days after. Obviously if there is no balance because the credit card is not used the direct debit will not be taken. In the case of an unused credit card the payment amount for that period will of course be reported on the credit files as 0. I'm sure direct debits for credit cards must work the same way both in Italy and the other country where you were given a credit card with a Euro2000 credit limit after two months of residency.
    Last edited by Ben8282; 03-12-2019 at 2:42 AM.
    • eskbanker
    • By eskbanker 3rd Dec 19, 10:33 AM
    • 11,916 Posts
    • 14,726 Thanks
    eskbanker
    I extimated 60 pounds for credit files because 20x3, it looks the average price of each.
    So, should I really check all them? Damn, why there is no central institution for this important matter?
    Originally posted by Rocksolid
    Check your three credit files without paying at https://www.moneysavingexpert.com/loans/check-free-credit-report/

    Also worth reading https://www.moneysavingexpert.com/loans/credit-rating-credit-score/ if you haven't yet....
    • Rocksolid
    • By Rocksolid 4th Dec 19, 4:25 PM
    • 58 Posts
    • 3 Thanks
    Rocksolid
    Yes it is 561/710, and I believe is an approximation because official Institutions like Experian require 3 years full address history in UK to register myself there, so I will never know my credit score till 3 years, it means no credit before then, basically other 2 years of rent to pay <3.

    That aproximation I don't even know if is good or bad, the app doesn't say anything...
    • Rocksolid
    • By Rocksolid 4th Dec 19, 4:26 PM
    • 58 Posts
    • 3 Thanks
    Rocksolid
    Sorry the previous message is a mistake and I can't remove it.
    • zx81
    • By zx81 4th Dec 19, 4:27 PM
    • 24,390 Posts
    • 27,189 Thanks
    zx81
    That aproximation I don't even know if is good or bad, the app doesn't say anything...
    Originally posted by Rocksolid
    You'll know by looking at the data. Trouble is, you keep looking at the scores.
    • Rocksolid
    • By Rocksolid 4th Dec 19, 4:31 PM
    • 58 Posts
    • 3 Thanks
    Rocksolid
    I tried to remove the post but from the phone it doesn't work, or I have no permissions.

    What about looking the data? How can I look my history if I can't neither register? I don't know what they hold about me, moneysavingexpert gives me just the score, and the cards I have and overdraft values, that for me is zero, I haven't any overdraft and all my banks show up there.

    I have also the list of soft and hard checks, but what to do with them? I know that, I applied for few things, even the car insurance is there as soft check...
    • zx81
    • By zx81 4th Dec 19, 4:33 PM
    • 24,390 Posts
    • 27,189 Thanks
    zx81
    That is the data.

    Your accounts and their history.
    • Ben8282
    • By Ben8282 4th Dec 19, 4:38 PM
    • 4,382 Posts
    • 2,414 Thanks
    Ben8282
    This is very confusing.
    You say you can't register.
    You say you can see the credit score, a list of the cards you have and the 'overdraft values', Not sure if by the term 'overdraft values' you mean balances or credit limits as you appear to be talking about credit cards and go on to say that you have no overdraft before confirming that your bank accounts are showing. You also say that you can see soft and hard searches.
    What more are you expecting to see?
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