Leasing a car to boost credit rating?

[exelero]

Hey there. Currently my credit rating is non-existent, never had a credit card or anything like that, no loans whatsoever. My problem is that in a couple of years I'll be looking at purchasing a property and maybe borrow around 90-100k£. What is the best way to boost my credit rating? Leasing a car seems to be the easiest but any thoughts appreciated.
Thanks

[p4cks]

Wouldn't a credit card be a cheaper and more sensible option?

[exelero]

I really don't know. Credit card might be cheaper, but leasing over 24 months spending on the car of course is around 6-8k does that mean that I borrowed the whole amount and paid it back? I really don't know. Obviously the credit card I the cheapest option but usually there is an interest of at least 20%

[kiethton]

Take the credit card, put all your day to day spending on it and pay it off in full each month. No cost of doing so (maybe some benefits depending on card) and all helps toward the rating.

[BoRED S2upid]

Sounds like an expensive way to do it get a credit card spend a bit on it every month pay it off, set up some DD’s and pay them every month it will soon increase you don’t need to spend a fortune on a new car to do this.

[bigandclever]

Two step process: first, get on the electoral roll.

Second, get a credit card, spend your monthly expenditure on it and PAY IT OFF IN FULL, ON TIME. Who cares what the apr is, you’ll be PAYING IT OFF IN FULL, ON TIME.

In a couple of years your credit score will be enormous. Not that it matters, since it’s down to how the lender will score you, but we’ll worry about that then.

[exelero]

Got you. So funny that my bank won't give me a credit card but they have no real issue with giving me around 4k overdraft instead of say 1.5 k credit. Maybe its time to switch banks? By the way by getting to the electoral roll you mean to register to vote??

[kiethton]

Yes, it's a key thing for your credit rating - links your name and details to your address in a traceable way

[Rewe]

You can get a credit card from anywhere; you don't have to use your own bank. Don't worry about the interest rate because you will be paying the full balance each month and won't pay any interest.

IF you need a car AND leasing makes sense for you then do this as well (but I can't see how this would be better than saving for your deposit)

[exelero]

Alright guys credit card it is. Thank you for normal answers

[Whistle]

And with a credit card you can get cash back free.
I pay mine in full every month so don’t pay any interest and every December I get about £170.00 cash back as a percentage of my years spend.

Anything bought on line I use Quidco 1st then pay with my cash back card for double bonus free cash.

Win win.

[Wacky Racer]

exelero said:

Alright guys credit card it is. Thank you for normal answers

Make sure you pay it off IN FULL, or if you can't for whatever reason pay it off the next month.

[exelero]

I understood that bit. I don't see the point of carrying a balance on a say 38% APR

[DanGPR]

There are many credit cards on the market offering upwards of 18th months interest free on purchases.

Credit can be your friend.

[Gareth79]

With most cards you can even set it to pay off the full amount by DD automatically. Obviously you need to be sure that you always have enough to cover the balance, but that encourages you to not abuse it. At the very least, set it to pay off the minimum payment then you aren't risking a missed payment, which will be a negative mark on your credit record.

[bazza white]

Get a mobile contract to. You could just get a sim only for 12 months or even a monthly rolling contract.

[eldar]

Also worth signing up to a free credit scorer like Noddle or similar.

[Taaaaang]

What makes you think you will be approved for car leasing with a poor credit score?

[exelero]

Looks like everyone gets approved for a car lease. They want to sell their cars I guess

[kiethton]

exelero said:

Looks like everyone gets approved for a car lease. They want to sell their cars I guess

Far from it, a PCP is far easier to get but a totally different kettle of fish however