credit rating and banks, help a noob

[Jeros]

My housemate cant get credit for having no credit history, GOD FORBID THAT HE NEVER HAD USE FOR A CREDIT CARD OR OVERDRAFT!

Also i have some questions for the bank wise about this, its part of my experion credit report:

my current report:

You have £0 of available credit (excluding mortgages) (what?)
You have £*** of outstanding debt (excluding mortgages and defaults) (i wish i had the money for a mortgate!)

You are using 0% of your available credit
You have 4 credit accounts (including settled accounts

You have 0 accounts overdue
You have missed 0 repayments in the last year





What does "credit account" mean? I have accumlated 3 current accounts of the years, a savings, and an old joint i cant get rid of (ex out the country, long story)


could a "credit account" refer to my T-Mobile account? My Three Mobile Internet account?


i had a old account a few years back that i got into debt with and have since settled so i can see that is one, also i had a current account with the co-op for years that i closed years ago.

I wish it gave more info

 

[Marc]

Unfortunatley yes, it is rather difficult to get credit when you have no credit history. To build up his credit profile, he should be applying for credit cards such as capital one, Aqua and Vanquis as these are the ones most likely to give him a credit card. The interest rate on the 2 latter ones will be something stupid like 30%, BUT, if he doesnt spend a lot on them he wont really notice the interest. It is also advisable NOT to pay off the total in full each month as this isnt attractive to the credit industry.

As for your report, it means in the past you have had 4 different kinds of credit.

 

[Edmond]

When i applied for my morgage back in '91, my then girlfriend and i had no cards, never got HP or finance, or missed an type of payments, being DD's or SO's

Therefore we had no credit rating and had to wait for them to approve our morgage, which was a pain as it took a week and the house we were buying nearly fell through because of it. My mate was buying at the same time and had his last 3 cars on tick (and paid for them with out missing any payments) and had a perfect credit rating and got his morgage approved in 24 hours

 

[collegien]

Unfortunatley yes, it is rather difficult to get credit when you have no credit history. To build up his credit profile, he should be applying for credit cards such as capital one, Aqua and Vanquis as these are the ones most likely to give him a credit card. The interest rate on the 2 latter ones will be something stupid like 30%, BUT, if he doesnt spend a lot on them he wont really notice the interest. It is also advisable NOT to pay off the total in full each month as this isnt attractive to the credit industry.

As for your report, it means in the past you have had 4 different kinds of credit.

I read one of teh leaflets for the Vanquis cards once. The credit limits start at about £200 and the interest rates go as high as 69% tbh you would have to be crazy to accept those terms. I would avoid it tbh.

 

[Marc]

I read one of teh leaflets for the Vanquis cards once. The credit limits start at about £200 and the interest rates go as high as 69% tbh you would have to be crazy to accept those terms. I would avoid it tbh.

You missed the point of my post.

Someone with no credit rating would not be able to get a main stream credit card. They would however, be able to get a Vanquis card. They would NOT get a 69% interest rate, I tell you that now. They would get 30% tops. ANyway, thats not my point. The point is, spend a little each month but dont pay it all off each month. As long as you make the repayments on time, it will improve your credit rating. Paying it off in full each month doesnt really improve your credit rating.

The increased interest rate is a small price to pay, for building up a credit history.

 

[Mey]

Alternatively build up masses of debt for it and then nip into your local bank and ask for a balance transfer they will wipe your arse for it

 

[Fafnir]

Dont use CC go Debit

 

[Mey]

Debit doesn't give you a credit rating because its not credit.

 

[Imgormiel]

My advice, dealing with these shysters who don't even know the law properly, it's hardly surprising that credit is an issue, couple that with the fact people went nuts and borrowed like it was the feast of Galilee, you got your answer.

Basically what they are saying is, no credit history, you aren't a good subject for making money out of you, and yes it is that ruthless. Think about it as though they are doing you a favour. Ok, it will take a few months longer but at the end of it you feel the sense of satisfaction that it has been paid for in cash, it's your's and no wanker has made cash off you for doing it that way.

 

[Hawkwind]

Moving to the states in 6 or 7 months and have all this to look forward to.