How do I build up my credit rating fast?

Hi

So I want to get a mortgage but my credit score is causing a slight problem.

I have never damaged my credit history, however I think the problem is that I haven't ever taken out much credit in the past so it's hard for potential lenders to to lend to me.

I had just attempted to apply for what I thought would be an easy to get loan (so I could put footprints on my credit file) and I was turned down.

Can anyone recommend a loan company who would accept someone with a lack of credit history so that I can create footprints, so show that I am responsible with money?
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Comments

  • Ignore your score and forget about getting loans.

    Get a card with a sub prime provider. Use regularly and clear in full each month.

    That is the easiest and free way to build a credit history (not a score). Make sure you're on the ER.

    When you come to apply for a mortgage, use a broker who can place your application correctly.
  • K789
    K789 Posts: 22 Forumite
    Do you know how long that may take before I have a good credit score?
  • Candyapple
    Candyapple Posts: 3,384
    First Post First Anniversary Combo Breaker Intrepid Forum Explorer
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    K789 wrote: »
    Do you know how long that may take before I have a good credit score?


    Ignore your score and forget about getting loans.

    Get a card with a sub prime provider. Use regularly and clear in full each month.

    That is the easiest and free way to build a credit history (not a score). Make sure you're on the ER.

    When you come to apply for a mortgage, use a broker who can place your application correctly.

    Did you even read the post? :wall:
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
  • Ignore your score.

    The longer you demonstrate good behaviour, the better. It varies by lender, but a mortgage is going to require more than a few months of using a card.

    It all depends on your complete circumstances.
  • K789
    K789 Posts: 22 Forumite
    That's why I was hoping to take out a few personal loans and pay them all back in full early. But I was hoping someone could put me onto companies how would definitely give me a loan
  • K789
    K789 Posts: 22 Forumite
    If I used a guarantor to get a loan would that still show up on my credit file as if I were the one taking out the loan?
  • Why are you obsessed with taking out a loan which will mean unnecessary interest payments when you can simply follow ZX81's advice and take out a sub prime credit card. Pay the balance in full each month and build a credit history for free?

    If you have little credit history, any loan applications will either be refused or will be at a very high rate of interest
  • cjmillsnun
    cjmillsnun Posts: 615 Forumite
    edited 14 November 2017 at 7:31PM
    K789 wrote: »
    If I used a guarantor to get a loan would that still show up on my credit file as if I were the one taking out the loan?

    Please do not use a guarantor to get a loan. Amigo loans are IMO worse than loan sharks. They have criminally high interest rates, and if you get into financial trouble, the poor guarantor is lumbered with a debt they never wanted. Also mortgage companies may view it poorly as getting into unnecessary debt which could impact affordability.

    ZX81 is right to suggest getting a card. Use it to no more than half the credit limit and pay off in FULL every month.

    If you're on a PAYG mobile get a sim only contract as well. Other than that, it takes time. There is no quick fix.
    2.88 kWp System, SE Facing, 30 Degree Pitch, 12 x 240W Conergy Panels, Samil Solar River Inverter, Havant, Hampshire. Installed July 2012, acquired by me on purchase of house in August 2017
  • K789 wrote: »
    That's why I was hoping to take out a few personal loans and pay them all back in full early. But I was hoping someone could put me onto companies how would definitely give me a loan

    Taking out 'a few personal loans' will tell lenders you are desperate for cash, with no contingency funds.

    Surprisingly, that's not a good look when you're applying for a mortgage.
  • DCFC79
    DCFC79 Posts: 40,598
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    K789 wrote: »
    If I used a guarantor to get a loan would that still show up on my credit file as if I were the one taking out the loan?

    A guarantor isnt the answer.

    Just dont go there.
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