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  • FIRST POST
    • Sebastien
    • By Sebastien 6th May 18, 10:42 PM
    • 1Posts
    • 0Thanks
    Sebastien
    credit score - pointless
    • #1
    • 6th May 18, 10:42 PM
    credit score - pointless 6th May 18 at 10:42 PM
    Hi all,
    I moved from France to the UK 2years ago and plan to buy a house in a couple of years with my girlfriend. I'm fortunate enough to not need any credit card and without debts, and my financial state is good. However I heard about the credit score thing and I'm a bit confused as:
    - I didnt have any student loan in this country, so no debts.
    - I've been paying my council tax, broadband, phone, ... on time and by debit.
    - I currently dont need a credit card.

    I guess my credit score is now null because I don't live under credit.
    Do you think, in that case, the bank could refuse me a loan when the time comes for me to buy a house ?

    thank you
    Seb
Page 1
    • zx81
    • By zx81 6th May 18, 10:43 PM
    • 16,803 Posts
    • 17,813 Thanks
    zx81
    • #2
    • 6th May 18, 10:43 PM
    • #2
    • 6th May 18, 10:43 PM
    Perhaps, but not because of the fictional score.

    Get a credit card if you can and build some credit history.
    • Thrugelmir
    • By Thrugelmir 6th May 18, 10:53 PM
    • 58,454 Posts
    • 51,828 Thanks
    Thrugelmir
    • #3
    • 6th May 18, 10:53 PM
    • #3
    • 6th May 18, 10:53 PM
    I guess my credit score is now null because I don't live under credit.
    Originally posted by Sebastien
    The fact that you pay your bills on time is in itself an indication of how you manage your money. The lack of negativity is therefore a positive.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Pixie5740
    • By Pixie5740 7th May 18, 11:01 AM
    • 12,111 Posts
    • 17,044 Thanks
    Pixie5740
    • #4
    • 7th May 18, 11:01 AM
    • #4
    • 7th May 18, 11:01 AM
    What is confusing you about the credit score thing? Have you read MSE's guide to credit scores?

    https://www.moneysavingexpert.com/loans/credit-rating-credit-score
    • Nasqueron
    • By Nasqueron 7th May 18, 11:06 AM
    • 4,492 Posts
    • 2,654 Thanks
    Nasqueron
    • #5
    • 7th May 18, 11:06 AM
    • #5
    • 7th May 18, 11:06 AM
    In the UK a credit card gives you up to 56 days interest free on purchases and section 75 protection on most purchases, some give cashback or bonuses. Question is more why wouldn't you want one?
    • venison
    • By venison 7th May 18, 9:57 PM
    • 2,041 Posts
    • 2,190 Thanks
    venison
    • #6
    • 7th May 18, 9:57 PM
    • #6
    • 7th May 18, 9:57 PM
    In the UK a credit card gives you up to 56 days interest free on purchases and section 75 protection on most purchases, some give cashback or bonuses. Question is more why wouldn't you want one?
    Originally posted by Nasqueron
    S75 only on purchases of more than 100 and of course less than 30k
    Ex Board Guide
    • Nasqueron
    • By Nasqueron 9th May 18, 9:59 AM
    • 4,492 Posts
    • 2,654 Thanks
    Nasqueron
    • #7
    • 9th May 18, 9:59 AM
    • #7
    • 9th May 18, 9:59 AM
    S75 only on purchases of more than 100 and of course less than 30k
    Originally posted by venison
    Which covers 99.99% of every purchase that normal people would likely need to put on a CC and have a need for a S75 claim given the limits available to most people. Purchases under 100 are unlikely to be serious enough to need S75 and not many people buy stuff over 30k without some form of other cover e.g. an expensive car has insurance or a major house build would have liability cover etc
    • Shakin Steve
    • By Shakin Steve 9th May 18, 11:48 AM
    • 1,429 Posts
    • 1,152 Thanks
    Shakin Steve
    • #8
    • 9th May 18, 11:48 AM
    • #8
    • 9th May 18, 11:48 AM
    Regarding the house purchase: If you have a large enough deposit, I doubt very much that many banks would turn you away. They do, after all, own the house till you've paid for it.
    I came into this world with nothing and I've got most of it left.
    • ReadingTim
    • By ReadingTim 9th May 18, 12:35 PM
    • 2,652 Posts
    • 3,784 Thanks
    ReadingTim
    • #9
    • 9th May 18, 12:35 PM
    • #9
    • 9th May 18, 12:35 PM
    Regarding the house purchase: If you have a large enough deposit, I doubt very much that many banks would turn you away. They do, after all, own the house till you've paid for it.
    Originally posted by Shakin Steve
    Define "large" - anything less than 50% of the purchase price means the bank has more skin in the game than the borrower, so more to lose. Also, banks prefer to deal with money, not property - repossessing then selling properties is a time consuming and expensive business and can result in the bank making a loss. As a result, they're not too keen on taking this risk with someone who's credit history isn't very well known.
    • foxy-stoat
    • By foxy-stoat 11th May 18, 1:45 PM
    • 1,650 Posts
    • 893 Thanks
    foxy-stoat
    Any theres me thinking....FINALLY, someone is telling the forum in a single post that the credit score is pointless.....

    Oh well, we will just have to state that fact on every other post instead.

    Good lucks
    • MallyGirl
    • By MallyGirl 11th May 18, 2:40 PM
    • 2,677 Posts
    • 7,680 Thanks
    MallyGirl
    Hi all,
    I moved from France to the UK 2years ago and plan to buy a house in a couple of years with my girlfriend. I'm fortunate enough to not need any credit card and without debts, and my financial state is good. However I heard about the credit score thing and I'm a bit confused as:
    - I didnt have any student loan in this country, so no debts.
    - I've been paying my council tax, broadband, phone, ... on time and by debit.
    - I currently dont need a credit card.

    I guess my credit score is now null because I don't live under credit.
    Do you think, in that case, the bank could refuse me a loan when the time comes for me to buy a house ?

    thank you
    Seb
    Originally posted by Sebastien
    When my OH and I bought our first house together he had quite a full history of paying back borrowing whereas I had hardly ever borrowed anything. It was an instant yes for him whereas for me I was referred to the underwriters. We did get the mortgage in the end but I could have done without the worrying wait.
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