No credit history
Discussion
I've had a John Lewis store card since 1995 but other than that I've been living debt free for the last eight years or so. As a result I have no credit history; a credit check with Experian proves a clean bill of health, but also a lack of debt and therefore a supposed high risk.
Is there anything that can be done to improve things, and if so how long would this take to filter through and improve things? I'd really like to take advantage of the current used car market.
Is there anything that can be done to improve things, and if so how long would this take to filter through and improve things? I'd really like to take advantage of the current used car market.
I was in this position not long ago myself. Never ahd any credit so found it really hard to get a loan - I managed to get a really good loan on a good rate from Alliance and Leicester somehow (possibly the fact my OH's Mum works there and helped me!). I have no idea if that has improved things yet though. I've had the loan 2 years, never missed a payment etc...
The other thing that doesnt help is that I rent and move houses fairly often. They see this as a really bad thing.
I hate the fact that My and Mrs 5 kids council scum can get credit so easily just becasue they have had so much in the past, whereas I can't even though I earn good money in a stable job and have never missed a payment on anything.
The other thing that doesnt help is that I rent and move houses fairly often. They see this as a really bad thing.
I hate the fact that My and Mrs 5 kids council scum can get credit so easily just becasue they have had so much in the past, whereas I can't even though I earn good money in a stable job and have never missed a payment on anything.
Definitely on the Electoral Roll and already have direct debits for Virgin Mobile, Plusnet and Toucan. Should these appear on a credit record? I've taken the option to convert the JL storecard to a credit card but will also pick up another with a 0% purchases, just to build things up. Thanks for the input!
markoos said:
Definitely on the Electoral Roll and already have direct debits for Virgin Mobile, Plusnet and Toucan. Should these appear on a credit record? I've taken the option to convert the JL storecard to a credit card but will also pick up another with a 0% purchases, just to build things up. Thanks for the input!
You should be well on your way then. Play it cool. Pay it off etc! 
markoos said:
As a result I have no credit history; a credit check with Experian proves a clean bill of health, but also a lack of debt and therefore a supposed high risk.
That is ridiculous! Are they saying that if you'd spent all your life in debt you'd somehow be able to take on more debt?
Simpo Two said:
markoos said:
As a result I have no credit history; a credit check with Experian proves a clean bill of health, but also a lack of debt and therefore a supposed high risk.
That is ridiculous! Are they saying that if you'd spent all your life in debt you'd somehow be able to take on more debt?To the OP: get a mortgage and don't miss any payments.
I believe that's about the best thing you can do for your credit rating.markoos said:
I've had a John Lewis store card since 1995 but other than that I've been living debt free for the last eight years or so. As a result I have no credit history; a credit check with Experian proves a clean bill of health, but also a lack of debt and therefore a supposed high risk.
Is there anything that can be done to improve things, and if so how long would this take to filter through and improve things? I'd really like to take advantage of the current used car market.
When where you planning on buying a car? I am in the same position, looking to get something at the end of next month but need to borrow half of the money and i have no credit history. Is there anything that can be done to improve things, and if so how long would this take to filter through and improve things? I'd really like to take advantage of the current used car market.
dibbers006 said:
*Get a Credit Card... Buy Petrol with it and pay it off each Month. (Make sure you pay it off!)
Indeed. Egg have 2% instant cashback with Shell, or Shell's own card gives 3% (and 1% on anything else). Stick your usual spending on there, pay off in full every month and you earn more interest the longer the cash stays in your current account, you don't pay any interest on the CC and get a three-figure sum back in cashback at the end of the year. Plus if someone at a dodgy petrol station or restaurant copies your details, you go back to using your debit card for a bit while they sort it all out.tomTVR said:
markoos said:
I've had a John Lewis store card since 1995 but other than that I've been living debt free for the last eight years or so. As a result I have no credit history; a credit check with Experian proves a clean bill of health, but also a lack of debt and therefore a supposed high risk.
Is there anything that can be done to improve things, and if so how long would this take to filter through and improve things? I'd really like to take advantage of the current used car market.
When where you planning on buying a car? I am in the same position, looking to get something at the end of next month but need to borrow half of the money and i have no credit history. Is there anything that can be done to improve things, and if so how long would this take to filter through and improve things? I'd really like to take advantage of the current used car market.
[/quote]
That's how credit ratings work, having debt and paying it back proves you are a good debtor. Think of it like an insurance no claims discount.
To the OP: get a mortgage and don't miss any payments.
I believe that's about the best thing you can do for your credit rating.[/quote]
How does Mortgage Lending work when compared to other debt then? Id have thought getting a mortgage would be the hardest thing to do with no history? Do they tend to go on deposit and earnings more than past credit history?
Metroarea said:
How does Mortgage Lending work when compared to other debt then? Id have thought getting a mortgage would be the hardest thing to do with no history? Do they tend to go on deposit and earnings more than past credit history?
Yes pretty much, it not as much of a risk since it's a secured loan. If you stop paying they can just take the house.Edited by Neil_H on Monday 22 December 23:22
Couple of years ago I applied to Alliance & Leicester to invest £3000 in an ISA. Now I had dealt with them many times over the yers with personal loans etc. Got a letter giving me the knock back.When I questioned it they said I was given a poor rating by the credit agencies.They would not expand any more on this and suggested I contact the said agencies. For this privelege it cost ne £15 at the time and I got a full report from the 3 main agencies. This was in 2006 and the report went back to 1991. 1991 FFS!!!
To cut short, the bottom line was my mortgage was paid, I had no loans, I paid the CC every month, my phone was PAYG, I had had no credit searches done on me in the last two years, so in their eyes I was a bad risk. Bad in the sense that I had no recent credit history.
Very strange.
Even more strange, after I got the letter, I got my OH to apply and she was accepted right away!!!
Bearing in mind in all this that I was trying to GIVE them money, not asking for any!!!!!
To cut short, the bottom line was my mortgage was paid, I had no loans, I paid the CC every month, my phone was PAYG, I had had no credit searches done on me in the last two years, so in their eyes I was a bad risk. Bad in the sense that I had no recent credit history.
Very strange.
Even more strange, after I got the letter, I got my OH to apply and she was accepted right away!!!
Bearing in mind in all this that I was trying to GIVE them money, not asking for any!!!!!
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