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

[Deathpledge]

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.

[Chanandlerbong01]

My current accounts are on mine. I use ClearScore which is probably the same as the others but it gives you the option of adding accounts that are missing

[Deathpledge]

The second credit card application was declined. We feel like we're completely at the mercy of these credit score companies, which seem to hold different information depending on how we enter our address.

[meditationsituation]

I can recommend the Barclaycard Forward credit card - my brother was in exactly the same situation. Once he got the card and started paying it off every month, his credit rating went up and up.

[meditationsituation]

Also, you don’t need to pay for a credit report. I can also recommend the ClearScore app, it literally tells you exactly what it is bringing your rating down and makes suggestions for how to sort it. Brother loves it as they keep emailing him every month saying his rating is going up!

[SatsumasOrClementines]

Can't sign up for Totally Money or Credit Karma as neither can find the credit report
That’s so odd. Has she tried to contact them to find out why?
Could you post on MSE and see if anyone’s had the same issue?

I also agree with the suggestion she gets an overdraft.

[SendMeHome]

You don’t want to be looking at credit scores. Companies do their own scoring when you apply, the scores the Equifax and Experian sell you are for them only; and they don’t provide credit.

You need his actual report.

and a "poor repayment conduct assessment"

That’s likely to be the problem. That suggests there has been missed payments at least in the last six years. It might be a mistake, but you need to see the actual report to see what shows.

If he had a credit card recently, it won’t be lack of credit that’s stopping him from being able to get more. It’s going to be whatever is flagging up as making him high-risk for not repaying.

[Deathpledge]

We can't use the apps as they can't find the credit report.

[Deathpledge]

@SendMeHome

You don’t want to be looking at credit scores. Companies do their own scoring when you apply, the scores the Equifax and Experian sell you are for them only; and they don’t provide credit.

You need his actual report.

and a "poor repayment conduct assessment"

That’s likely to be the problem. That suggests there has been missed payments at least in the last six years. It might be a mistake, but you need to see the actual report to see what shows.

If he had a credit card recently, it won’t be lack of credit that’s stopping him from being able to get more. It’s going to be whatever is flagging up as making him high-risk for not repaying.

How do I get the full report?

[Soontobe60]

He needs to get a credit card and use it. If he buys his fuel and maybe put something like a Netflix subscription on it, then sets it to pay off the full amount each month, his credit score will soon rise. It doesn’t matter if its a high interest card as long as he pays out off in full each month.

[Deathpledge]

I'm paying for something at Experian and Equifax but can't seem to see all the financial information. How do I get the full reports?

[chillychills]

I used checkmyfile to check my report, someone had fraudulently opened a phone contract in my name but it didn’t show on Experian or equifax my friend who is a mortgage broker suggested checkmyfile and the fraud was on there

[Deathpledge]

Clearscore have now blocked the account as they can't match the details with a credit report.

[Deathpledge]

I feel so helpless.

[Deathpledge]

@SendMeHome his old credit card doesn't even show up on Experian or Equifax. It just seems like a giant game of guess the address.

[crunchiess]

Do they have a phone contract?

That's the only credit I'v ever had in my life and my rating is very good and never had an issue with getting a mortgage (even recently during covid). Never had to go to a broker either, just the bank directly. I don't need a credit car or car on finance etc so haven't bothered.

Something is going on that's making him appear high risk, unpaid utility bill in the past etc etc. If you get the free trial with Experian it will show you exactly what the mortgage can see.

[Deathpledge]

Utility bills and mobile phones are in my name. He has no credit agreements at all.

[Deathpledge]

I've now added his name to the electricity and broadband. I'll get him to set up a mobile phone, but we might have to wait a while before doing that after two declined credit card applications.

[Bythemillpond]

The second credit card application was declined. We feel like we're completely at the mercy of these credit score companies, which seem to hold different information depending on how we enter our address

But you would know this immediately if you did an application that left no imprint on your credit file as if you go through the process it matches your credit file against loads of different credit cards and will tell you which ones will be more amenable to give you a credit card and which ones won’t

[moofolk]

PayPal credit worked wonders for my rating

[EmptyOrchestra]

It won’t just be the lack of credit making his rating poor. I had one credit card with a low limit that I never used and a mobile phone contract and mine was at the high end of good - I’ve had to get a higher credit limit and use my credit card to increase it.

Either it’s the address - whatever problems you’re having verifying the address may well explain the issue - or there are missed payments or defaults on his credit history. Even if he doesn’t have credit he shouldn’t be refused a credit card just because he doesn’t have credit. Something else is up here.

[minipie]

Have you actually tried applying for a mortgage? You may be presuming it’s a problem when actually the banks would be able to see the full information and would be happy to give a mortgage ?

[Lochroy]

If there are differences on how your address is entered get them cleared up by contacting whichever agencies this applies to. It's a ball ache to do, but essential.

Do not apply for any more cards for now. If you've just had two declined, it implies some sort of desperation. Look online to see how long you should wait.

Do your research and look for a credit card designed for people with no credit history. It will have a hideous APR, but should be fine to use as long as it's paid off each month.

[Bythemillpond]

We have an issue with our address as the postcodes got changed but we have never had an issue.

Have you done the Credit Expert application that leaves no trace on your credit file to see immediately which cards will be more likely to be given.
Even getting something like an Aqua credit card or something similar would help. But again you will be able to see if you are likely to get one if you did a non impacted search.
If you had to wait for a reply to see if you were able to get a particular credit card is not doing a no impact mass credit card search.

[MixedUpFiles]

In the long run, he needs to have a credit card, charge to it every month, and pay it in full every month.

How to deal with the current problem, I have no idea. It might be easier to get a store card, but I don’t really know. Not an expert on today’s application climate.

[Deathpledge]

I've just been accepted for a normal credit card with a standard APR and good limit with the bank I have my current account with. I will look into adding him as a second card holder in a few months in the hope that this will improve his rating. The bank has my address wrong. It's also pretty different on the electoral roll from what appears on drop down lists, which is why it doesn't match up for credit reports. I'm hopeful I can get the council to change it but I'm not sure how quickly this will take effect.