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  • FIRST POST
    • kah22
    • By kah22 11th Mar 18, 12:54 PM
    • 1,378Posts
    • 484Thanks
    kah22
    Late start building credit rating
    • #1
    • 11th Mar 18, 12:54 PM
    Late start building credit rating 11th Mar 18 at 12:54 PM
    My newhew, about 40ish has never had a credit card, bank loan, or things like that. It wouldn’t be to much to say when he had money it was easy come easy go. The only credit thing I think he’s ever had is his mobile contract. Everything is cash

    He’s now been given the oppertunity to set up his own handyman operation. He’s got a van, has done quite well and has now been offered a pretty decent contract

    Of course with no credit history he’ll have no credit rating. Can he push this up quickly and how. The credit Union is big here in NI and I’ve suggested he open an account there, pay regular amounts into it by standing order and start borrowing from it and pay it back 7 or 10 days later on the grounds that he is borrowing a money and paying it back. The interest wouldn’t be that big and it might help him build up a bit of a rating. Does that make sense or am I well off centre

    Another option I’m thinking about about suggesting is one of those limited credit cards but again I’m not to sure

    I’d be very interested to here some tips

    Kevin
    Illegitimi non carborundum
Page 1
    • zx81
    • By zx81 11th Mar 18, 1:50 PM
    • 17,239 Posts
    • 18,326 Thanks
    zx81
    • #2
    • 11th Mar 18, 1:50 PM
    • #2
    • 11th Mar 18, 1:50 PM
    A credit card, of any description, would be the easiest, cheapest and most effective means of building a credit history.

    Never pay interest to build a credit history.
    • cjmillsnun
    • By cjmillsnun 11th Mar 18, 2:26 PM
    • 602 Posts
    • 734 Thanks
    cjmillsnun
    • #3
    • 11th Mar 18, 2:26 PM
    • #3
    • 11th Mar 18, 2:26 PM
    There is no universal credit rating. Only history that is used by lenders with other information (specifically any past dealings they may have had with you and the information you give them on the application) to make a decision on whether or not they will lend to you...

    As ZX81 has put, a credit card is one of the easiest and, if paid in full every month, the cheapest way to build a history.

    Go to a credit builder lender like Vanquis, Aqua, Luma, Capital One or Barclaycard Initial and you should be able to get something.

    Also consider getting a mobile phone contract. A sim only deal can be had for very little money and is cheaper month to month than a Pay as you go in most cases.
    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
    • kah22
    • By kah22 11th Mar 18, 4:26 PM
    • 1,378 Posts
    • 484 Thanks
    kah22
    • #4
    • 11th Mar 18, 4:26 PM
    • #4
    • 11th Mar 18, 4:26 PM
    The mobile contract is the only debt he has

    Re the credit cards, I certainly agree that if you pay each month then they are great wat for building a credit rating.

    Of the cards mentioned which would you recommend. This seems a contradictory statement but did I read that you can buy a pre-paid credit card. That does t make sense though

    Kevin
    Illegitimi non carborundum
    • cjmillsnun
    • By cjmillsnun 11th Mar 18, 4:33 PM
    • 602 Posts
    • 734 Thanks
    cjmillsnun
    • #5
    • 11th Mar 18, 4:33 PM
    • #5
    • 11th Mar 18, 4:33 PM
    Don't bother with pre-paid. I don't see how they can have a positive impact on credit history.

    Of those above, Aqua would be my go-to. They drop their APR if you manage the account well. This is good as these credit builder cards tend to have eye watering interest rates (not an issue if you pay in full every month).
    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
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