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Please help me improve my credit rating

(13 Posts)
ladypete Tue 19-Nov-13 19:03:35

I am currently trying to improve my credit rating. I have no plans to take out a loan/mortgage in the near future but am trying to get it to the best it can be.

I tried to open a credit card at my bank about 6 months ago and it was declined. The bank manager said the only pointers he could see on my account were the age of my accounts (I am young so admittedly I don't have a financial history of 20+ years) and the fact that I would be a first time borrower. I do pay Direct Debits for my mobile, health insurance, virgin media etc and never have payments declined. I just wanted a Credit Card so that I could have my phone bill on it for example, pay it off immediately month by month and build up a strong credit rating.

I have checked my address on the electoral register, I am registered with my home phone number (which is the same as my mum's if that makes any difference) and haven't applied for numerous cards at once.

Is it a case of sitting it out? Any other advice? It's just frustrating as friends my age live off their credit cards, I have no intention to and yet won't be accepted.


ladypete Tue 19-Nov-13 19:04:37

I am also registered as self-employed if this makes any difference? I do have PAYE earnings too.

CogitoErgoSometimes Tue 19-Nov-13 19:33:12

Have you applied with any CC providers other than your bank? e.g via comparison sites? Pre-paid credit cards could be an alternative for the short term.

ladypete Tue 19-Nov-13 19:45:52

I applied with independent companies a few years ago, but I was probably too young (in lenders eyes) and possibly applied for too many at once. I'm off to google pre-paid credit cards now...

Casmama Tue 19-Nov-13 19:51:03

It might be worth getting a copy of your credit report to see the number of searches etc. experien or equifax will provide this for a small charge.

Next step could be prepaid as Cogito suggests or applying for a card for those with poor credit. Be warned that the interest rates on these are astronomical so best to use and pay off the balance every month.

Moneysavingexpert is a great website for impartial advice.

manzanillaplease Tue 19-Nov-13 21:24:08

If you have no plans to get a mortgage soon and don't need other credit, I'm not sure why you care?

You could apply for one of these: The interest rate is simply appaling, but if you repay the whole amount every month that won't matter. The odd mistake is going to prove very expensive though...

ladypete Tue 19-Nov-13 21:58:41

Casmama thanks, I have checked with those companies through their 30 day free trials and the results said "good" along with exactly the same points the bank manager said. It was their advice to check the electoral register etc etc. This is part of what made me even more baffled as to why I am being rejected.

manzanillaplease mainly because I don't want this struggle further down the line if I was looking to get a mortgage etc. I thought it would be sensible to build up a strong credit rating now whilst I am living at home and not desperate for credit.

I'll have a look at vanquis and the other pre-paid cards.
All your advice is appreciated smile

CogitoErgoSometimes Wed 20-Nov-13 10:09:54

I was thinking back over my early financial days (quill pens, abacus.. very old smile ) I had a bank account from age 17 and didn't apply for a credit card or even an overdaft until I graduated age 21 by which point I was renting my own place, had a good record of being in credit at the bank, name on utility bills, electoral roll etc. How old are you?

ladypete Wed 20-Nov-13 22:35:52

cogito I'm 22. I didn't need a student loan so haven't been able to prove myself that way. I live at home but do pay about 6 direct debits a month..

I was finally given my first overdraft earlier this year when I opened a second account, so I've managed to get that far!

Did you apply through your bank or through one of the high interest first time/bad credit rating companies?

CogitoErgoSometimes Thu 21-Nov-13 08:15:33

Don't forget we are talking the Middle-Ages... confused I applied for an Access card through my bank at the time when you had to provide pay-slips, utility bills and other concrete proof. None of this instant approval business then

I don't think you should worry unduly about your credit score really. However, were you to rent your own place and be named account holder for utilities, insurance and so on, I think that would work in your favour.

Mumoftwoyoungkids Sat 23-Nov-13 12:12:52

I think you are being very sensible.

No real advice (get a credit card, pay it off in full each month was the advice I was going to give but you've already thought of this) but keep going as if you get it right now your life will be so much easier in the long run.

caketinrosie Sat 23-Nov-13 12:19:41

Same thing happened to me when I was young (sob!) I got a catalogue, spent a couple of months buying cheap crap then paid it off. Showed I could borrow and pay back without too much trouble. Watch the credit cards though they are the devils own! grin

ladypete Sat 23-Nov-13 18:32:16

Thanks everyone. caketinrosy I have seem family members struggle with credit cards so I am fully aware and have no intention of doing the same! Thankfully they are all sorted now.

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