Credit Rating

CoxyBoy123

CoxyBoy123

CoxyBoy123

Associate
Joined
30 Oct 2009
Posts
480
Location
Halifax, West Yorkshire
I recently tried to gain a mobile contract but was turned down because of my non existent credit history, I have a full time job so plenty of income.

What would be the easiest way to gain a credit history, i know one of the obvious ways is to get a credit card, does anybody have any recommendations?

Joe
 
Thats a toughie, as the only way to get a credit history is basicly to get into debt and slowly pay it off......which tbh, is not a good thing to do.

Get a personal loan, a credit card and make minimum payments (dont miss any ofc!) a mortgage, anything where you are in debt and paying interest for the privilege.

Dont pay your c/card off every month so avoiding interest charges, that really goes against you
 
Freakbro said:
Thats a toughie, as the only way to get a credit history is basicly to get into debt and slowly pay it off......which tbh, is not a good thing to do.

Get a personal loan, a credit card and make minimum payments (dont miss any ofc!) a mortgage, anything where you are in debt and paying interest for the privilege.

Dont pay your c/card off every month so avoiding interest charges, that really goes against you
Click to expand...

:confused::confused:

How does getting a credit card and paying it off in full every month go against you?

If you get a credit card and pay it off in full every month, this is good for your credit rating !
 
Ironic Namesake said:
:confused::confused:

How does getting a credit card and paying it off in full every month go against you?

If you get a credit card and pay it off in full every month, this is good for your credit rating !
Click to expand...

Not at all, why would a credit card company want people who pay off their debt every time and thus earn no money from.

The perfect person is one who has a balance on their c/card and pays minimum balance every month.

As long as you dont miss payments you will keep getting higher credit ratings as your the sort of person they make most money off.
 
Freakbro said:
Dont pay your c/card off every month so avoiding interest charges, that really goes against you
Click to expand...

This is good for your credit rating but bad for credit card limit.
If you pay off your credit card in full every month the bank makes no money off of you and therefore are unlikely to up your limit as you have shown no evidence for needing it.
Paying it off every month shows that you are low risk (mid risk customers make the best CC customers.) Being low risk is good for the credit rating.
 
Ironic Namesake said:
:confused::confused:

If you get a credit card and pay it off in full every month, this is good for your credit rating !
Click to expand...

Yes and no. Credit rating is about a couple of things:

1. Will we get our monoey back
2. How much can we make from him

Obviously paying back in full satisfied 1 well, but 2 not so well.
 
Get a credit card from your bank. You've a much higher chance of getting one with them than anyone else first time around as they know your history.

I failed a credit check to move into a flat for similar reasons (just didn't have a credit history), but got a CC from my bank (HSBC) with a £3k limit no problems/questions asked, and I'm self-employed so variable income and was in my overdraft at the time too I think. Applied online and arrived within a week.
 
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Freakbro said:
Not at all, why would a credit card company want people who pay off their debt every time and thus earn no money from.

The perfect person is one who has a balance on their c/card and pays minimum balance every month.

As long as you dont miss payments you will keep getting higher credit ratings as your the sort of person they make most money off.
Click to expand...

You are confusing a good credit card customer for the bank with someone who would be considered low risk. Mobile phone companies won't care how good a credit card customer you are, they want their money in full each month.
 
Thanks guys,

Any reccomendations on a credit card? I have already been turned down for a mobile contract, so I dont want to be turned down for a Credit Card as this would look baddd.

Kg648, does this help, because dont I start to be charged as soon as I use the overdraft? Looking as though I cant control my money?
 
Freakbro said:
Not at all, why would a credit card company want people who pay off their debt every time and thus earn no money from.

The perfect person is one who has a balance on their c/card and pays minimum balance every month.

As long as you dont miss payments you will keep getting higher credit ratings as your the sort of person they make most money off.
Click to expand...

Your credit file doesn't show what you paid back each month - it simply shows whether or not you made a payment if a payment was required.
 
You could try for one of those 'starter' credit cards that Aqua (RBS) and Vanquish do. They have credit limits of a few hundred and basically no minimum income requirements and 56 days interest free. That's what I did when I turned 18. Now got a card from my bank with a credit limit of a few thousand for emergencies and big purchases that I intend to pay off in full.
 
I am moving into a new apartment hopefully in the next month, with a small mortgage so this will get me going, but I was hoping I would have everything sorted, i.e. credit rating, before i move in so I dont come across any unsuspected problems
 
CoxyBoy123 said:
Cheers guys, this is helping, its ridiculous never needed credit always payed in full
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You should have a look at using a credit card then. Obviously you don't need it for the money, but it has advantages in that many have cashback/points/loyalty schemes, you get better protection than debit card transactions, if you pay it off in full every month you loose nothing.
 
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