Building a Credit History from Scratch

HappilyNorth · 11 January 2018 at 1:07PM

Hi Guys,

My wife is currently on a two and half year UK visa. She is allowed to work and has a full time job but is not allowed to be registered on the Electoral Roll.

We would like to start to build a credit history for her where there is currently none.

I've contacted all 3 main credit agencies but none have any details about her.

What is the best way to start the credit building process?

Any advice is much appreciated.

Thanks.

Candyapple · 11 January 2018 at 1:25PM

Try basic bank account first:
https://www.moneysavingexpert.com/banking/basic-bank-accounts

Then try for a SIM only contract:
https://www.moneysavingexpert.com/phones/cheap-sim-only-contracts

Then try for subprime credit card:
https://www.moneysavingexpert.com/credit-cards/bad-credit-credit-cards

HappilyNorth · 12 January 2018 at 12:26PM

Thanks Candyapple.

My wife and I already hold a joint bank account and she's a sharer on my Vodafone contract, so I guess getting a SIM only contract is not really worth it?

I highly doubt she'll qualify even for a subprime credit card at the moment. Any other ideas?

EDIT: I've just seen giff gaff are offering a £5 a month contract only SIM deal with no credit check. Is it worth applying for that?

KeepOnRunning · 12 January 2018 at 1:05PM

I'm in a similar situation although my girlfriend has been in the UK around 4 years now. I had her sign up to Noddle and she had no credit history.
She wasn't aware she'd need to consider her credit record before trying to get a mortgage/loan, however she already had a bank account with Barclays.

She couldn't get a mobile phone contract (inclusive of phone), however she could get a SIM only deal which she has done. She was frustrated that her other EU friends have somehow been accepted, however I think it's for the best she gone onto SIM only.
Anyway, I have also helped her get a credit card with the bank she holds her bank account with (as above - Barclays). I've told her to only use the credit card for petrol and food purchases, then pay it off straight away.

Now she'll play the waiting game to get some history, however no rush for us as I already have a mortgage myself and we don't plan on buying together for another few years, hopefully by then her credit report will show some history and obtaining a mortgage won't be too difficult.

I hope this helps, but ultimately I don't think there's a quick fix.

HappilyNorth · 12 January 2018 at 1:23PM

Many thanks. Is it worth her signing up to Noodle or registering with the 3 main agencies? Sorry, not sure how all this works.

KeepOnRunning · 12 January 2018 at 1:48PM

I would personally sign up to all 3, however don't expect to see much (if anything) for a few months. It won't speed anything up (as in get history posted to the report any quicker) but you'll learn when some information is posted.

Anthorn · 12 January 2018 at 5:03PM

HappilyNorth wrote: »

Thanks Candyapple.

My wife and I already hold a joint bank account and she's a sharer on my Vodafone contract, so I guess getting a SIM only contract is not really worth it?

I highly doubt she'll qualify even for a subprime credit card at the moment. Any other ideas?

EDIT: I've just seen giff gaff are offering a £5 a month contract only SIM deal with no credit check. Is it worth applying for that?

Re. a mobile phone contract, the opposite. Credit builds credit and a mobile phone contract is the most basic form of credit. Go for a rolling monthly sim only contract. Sharing your mobile contract doesn't cut it.

I would be inclined to doubt a basic bank account because since it doesn't provide credit it might not be listed on the credit history which is what you want. Since your wife is already an account holder in a joint account she will likely qualify for a sole account with the same bank. A sole bank account is one of the essentials too

A mail order catalogue account should be easy to get but not too many. Just one is enough. Try jdwilliams.co.uk

Lastly try for an Aqua Start card:
https://www.aquacard.co.uk/credit-cards/aqua-start/

Lastly as I said, credit builds credit but a credit history is not built in a day. Expect 6 months to two years for it to have an effect and 6 years to fully build it.

HappilyNorth · 12 January 2018 at 7:32PM

Ok, thanks for the advice. So to sum up:

Ask Nationwide for a sole account (does her salary have to go in there or could we just stick a few quid in each month?)
Register with 3 main reference agencies & Noddle
Take out the giff gaff £5 a month SIM only contract
Apply for JD Williams catalogue
Apply for Aqua card

Anything else?

[Deleted User] · 12 January 2018 at 7:43PM

Try for a card, such as aqua, before messing around with catalogues.

Sillymoney · 12 January 2018 at 9:21PM

Both my Nationwide accounts, joint and single report to the credit agencies monthly (no overdraft on either). If your joint account is with Nationwide already you might find little benefit in opening another account. Otherwise as mentioned above credit card, sim only and catalogue would be a good place to start.

HappilyNorth · 13 January 2018 at 9:23AM

Thanks one and all.

Just to clarify, based on the differing opinions above, is having a sole account (whether you have a joint account which is reported to the agencies each month) an essential or not?

Building a Credit History from Scratch

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