How do I build up my credit rating fast?
K789
Posts: 22 Forumite
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?
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
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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.0 -
Do you know how long that may take before I have a good credit score?0
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Do you know how long that may take before I have a good credit score?Deleted_User wrote: »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.com0 -
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.0 -
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 loan0
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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?0
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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 interest0 -
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 20170 -
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.0
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