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Original poster

Spouse can't get credit because has no credit - what do we do??

64 replies

Deathpledge · 23/02/2021 20:51

My spouse and I are in our early 40s with a primary school aged child. We've been married for over 15 years. Partner is a high rate tax payer and earns roughly twice my salary. We don't own any property, and live in a flat that comes with my spouse's job. We are in the extremely fortunate position of having a large lump sum (from inheritance, from selling in-laws' house) and we are thinking of buying a house of our own so that we have somewhere to live if my partner stops working at the place that provides our accommodation/for retirement in 20 years.

My partner is very good with money, has lots of savings and no debt - used to have a credit card until recently but they cancelled it as it wasn't being used. All utilities and both our mobiles are in my name as we got a good deal. I have no debt either and no credit card.

We looked at our credit ratings. Mine are good (Equifax) and perfect (Experian) but partner's are poor. The only reason we can think of is the lack of credit. We decided it would be a good idea for my partner to take out a credit card and pay it back in full every month to build up a credit history, but the application was declined. It's incredibly frustrating, as it seems like the only reason not to get credit is that there's no existing credit.

What the frick do we do?

We're looking at houses that would need a bit of a mortgage (we can pay about 60-75% deposit depending on the price of the house) - more than I would be lent on my own, I think, but around twice our combined salary/three times the higher salary. Are we screwed? Did the failed credit card application set us back 12 months? Feeling a bit helpless and at the mercy of credit score people at the moment.

Please help.

OP posts:
Original poster
Deathpledge · 23/02/2021 20:53

PS I am well aware that this is hugely first world problems and acutely aware of how privileged we are Blush

OP posts:
Overwhelmed245 · 23/02/2021 20:53

I use credit karma and it tells me what I need to do to improve it

TierFourTears · 23/02/2021 20:58

Get his name on some of the utility bills.
Get his mobile contract in his name.

Have another look for a credit card in a few months - try whoever you bank with if that's not the one that was declined. Use it, and pay it in full each month.

AlCalavicci · 23/02/2021 20:58

I wish I could help but I am in a similar situation .
I have never had a credit card , I rent my home (always pay at least one month in advance , my choice ) , my company pay for my phone , gas and electric are on prepaid meters , all other bills are DD or standing order .
Purely out of curiosity just before christmas last year I checked my credit rating as I knew my DB was struggling and was considering taking out a lone for to give him as a gift .
My rating was abysmal !

BilboBercow · 23/02/2021 21:02

If you've looked at his credit report it will tell you specifically why his credit score is poor. It breaks it down for you.
The fact that he's had a credit card in the past means he doesn't have "no credit history". I imagine he's also had a mobile phone contract in his name at some point.
Get his full credit report

Knittedfairies · 23/02/2021 21:06

Make sure he's on the electoral roll too.

Bythemillpond · 23/02/2021 21:08

If you go on Experian (I think) there is a way to look up which of any credit cards you are most likely to be approved of without it impacting your credit file or there are certain credit cards that are more likely to give you a small credit limit to get you started so you can up your credit worthiness
Are you both on the electoral role?

Moondust001 · 23/02/2021 21:10

I think lenders are being very cautious at the moment - I have a great credit history but a couple of months ago when one of my cards literally closed down (bad timing - it was a speciality credit card for people who travel a lot recommended on MSN, and who knew that launching a credit card aimed at travellers in February 2020 wasn't a great idea?) I applied for another card and got turned down! Despite a great credit history, no debt at all (I always pay the card off in full), and being a home owner with a good wage. So it could be that lenders are being overly risk averse...

However, MSN do some great advice pages on such situations for people like your OH, but I believe that if it is poor credit history they advise getting a sub-prime card like Aqua or Vanquis. Spend an amount on it every month and pay it off in full every month. The interest rates are very high - so do not use it for borrowing. But that allows you to build up your credit history.

Nocares · 23/02/2021 21:29

I had 0 credit when I bought my first house a couple years back. Never needed a credit card or finance luckily.
I just went to a mortgage broker and got a mortgage.

I've bought another property since and had no problems. Still not got a credit card.

Just go to a broker.

If you really want a good credit rating then just buy fro. On 0% finance (like a sofa or fridge or something), then pay it off over 12 months. Sorted.

Original poster
Deathpledge · 23/02/2021 21:33

@TierFourTears

Get his name on some of the utility bills. Get his mobile contract in his name.

Have another look for a credit card in a few months - try whoever you bank with if that's not the one that was declined. Use it, and pay it in full each month.

Thanks - I'll start doing this.
OP posts:
Original poster
Deathpledge · 23/02/2021 21:46

@BilboBercow

If you've looked at his credit report it will tell you specifically why his credit score is poor. It breaks it down for you. The fact that he's had a credit card in the past means he doesn't have "no credit history". I imagine he's also had a mobile phone contract in his name at some point. Get his full credit report
I've paid for Equifax and Experian and it's all very vague - there's literally nothing on there on Equifax apart from the electoral roll, and all Experian has is the old mobile phone. It just says on Equifax that there are no credit agreements and a "poor repayment conduct assessment"
OP posts:
Original poster
Deathpledge · 23/02/2021 21:47

@Knittedfairies

Make sure he's on the electoral roll too.
We're both on the electoral roll, but Credit Karma says that I'm not. I've asked them for help.
OP posts:
Original poster
Deathpledge · 23/02/2021 21:47

@AlCalavicci

I wish I could help but I am in a similar situation . I have never had a credit card , I rent my home (always pay at least one month in advance , my choice ) , my company pay for my phone , gas and electric are on prepaid meters , all other bills are DD or standing order . Purely out of curiosity just before christmas last year I checked my credit rating as I knew my DB was struggling and was considering taking out a lone for to give him as a gift . My rating was abysmal !
I'm so sorry - it's very frustrating!
OP posts:
LubaLuca · 23/02/2021 21:54

Totally Money is very useful for looking at the details of credit history - every credit search, payment, missed payment, all accounts open and closed...

There must be more to this than him not having a credit card at the moment. I never have done, but I've always had a very good credit score. I wonder if he has at some point defaulted on something that he's forgotten about.

Original poster
Deathpledge · 23/02/2021 21:56

@Bythemillpond

If you go on Experian (I think) there is a way to look up which of any credit cards you are most likely to be approved of without it impacting your credit file or there are certain credit cards that are more likely to give you a small credit limit to get you started so you can up your credit worthiness Are you both on the electoral role?
After the main current account bank declined the application, my partner very quickly applied for a card with another bank. This was probably a bad idea. No answer on that one yet.
OP posts:
WineInTheWillows · 23/02/2021 21:59

I second Credit Karma. They tell you exactly what to do to improve.

Bythemillpond · 23/02/2021 22:09

Deathpledge
But did you try without it impacting the credit score

Original poster
Deathpledge · 23/02/2021 22:09

Can't sign up for Totally Money or Credit Karma as neither can find the credit report Shock

OP posts:
Original poster
Deathpledge · 23/02/2021 22:10

@Bythemillpond

Deathpledge But did you try without it impacting the credit score
I think so
OP posts:
LubaLuca · 23/02/2021 22:14

@Deathpledge

Can't sign up for Totally Money or Credit Karma as neither can find the credit report Shock
I don't know why that might be.

Does he have trouble getting home or motor insurance quotes? They're all recorded as credit searches.

Chanandlerbong01 · 23/02/2021 22:21

Can he get an overdraft? Then he doesn’t have to actually use it but it shows he’s responsible

Original poster
Deathpledge · 23/02/2021 22:23

I do the home insurance. One of the credit score things did show the motor insurance check. I'm beginning to think it's a problem with our address (it is a bit tricky and not entered in the same way everywhere because it's hard to know what fields to put everything in).

OP posts:
Original poster
Deathpledge · 23/02/2021 22:34

@Chanandlerbong01

Can he get an overdraft? Then he doesn’t have to actually use it but it shows he’s responsible
That is a good idea, thank you.
OP posts:
Original poster
Deathpledge · 23/02/2021 22:44

The current accounts aren't even in the credit report - is that normal?

OP posts:
AlwaysLatte · 23/02/2021 22:54

Similar here when just out of interest I decided to check my credit score, expecting it to be perfect as no debt - been in this house 16 years, mortgage free, never had any cars or anything on credit except for a credit card which I use for risky things like holidays sometimes where I get extra protection (and transfer the money over immediately, although my husband often uses his CC for it so it's not every time) and yet it wasn't top score. I presume it would be ok for credit if I needed it but I don't know. I'm baffled. The only thing I can think of is that I took out a credit card when someone suggested it for getting rewards for grocery shopping but I didn't even use it once and it eventually got closed down.

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