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General => General discussion => Topic started by: Bellend on 01 February 2013, 18:30
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Was refused a credit account today as have zilch credit history. I'm sure I was supposed to get something from Snap-On but haven't used it in about a year now.
Mobile has just gone into my name as two year contract in my mums, now transferred to me.
Just wondering on the best way to build decent history without doing things like getting cars on finance etc.
I.E somehow get a credit card, pay on that then pay it straight off kinda thing.
Cheers. :smiley:
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Hey End of Bell :cool:
Hope you're well pal. All this depends on your past and present situations which are personal so please don't share too much on the interweb !
Credit history takes time to alter, so its not a case of getting a credit card etc and expecting changes straight-away.
For best advise you should speak to someone like a financial advisor, solicitor, accountant, banking advisor etc but you will need to relay your past and present financial history in order to obtain the most optimum assistance. Please do not disclose your personal info to any old tom-dick-and-harry !
I am an accountant and can help if you need me to (PM though !), if not please heed my advise !
Red
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At least you've identified that you have no credit, as opposed to bad credit.
A good way to work on that is to establish a history of sensible borrowing. Have you thought about trying to get a credit card like one of the ones listed in the link below?
http://www.moneysupermarket.com/shop/credit-cards/bad-credit/
If not give it a go. The trick is, spend a little on it, then once you get your statement pay it off in full. In fact, set up a direct debit so that it always pays in full. You'll never pay any interest and you'll never end up in debt, plus your credit history will slowly start to show that you always pay off your borrowings. Lenders will find that very attractive.
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Avoid sh!tty lenders with high apr they can have negative effects like wonga etc!! And as said credit card if you use it like a debit card mate within a year or 2 it can make a huge difference!! My mate was in a hit situation got himself in heaps of debt got a debt plan paid it off he got a credit card from Vanquis I think and he did that for a couple of years registered on the electoral register set up direct debits properly for bills like mobile and gas electricity etc and now he has just been accepted for a mortgage!!
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get on the electoral register :wink: :smiley:
mortgage advisor has stressed the wife gets on soonest.
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a pm you sent me last week said you could easy buy a focus st on credit if you wanted to :grin: :grin: good thing mine is bought out right :kiss: good old josho at his best
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Ah, nice pm love I am feeling . . . . . . :whistle:
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Paying for a shizzle for myself from the age of 18 got me going.. I had friends that lived at home till they were 30!... left home with poor credit!
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Do what I did
Credit card (tesco had the longest interest free offer of 16 months), then within 3 hours of it being in your wallet slap the limit. Thankfully I'll be able to pay it all off within the month, so that should shoot my credit rating pretty high.
I'll also be putting direct debits (phone and sky) on the credit card, then paying them off straight away with the debit card, so that again will help increase it.
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Get a credit card, spend £10
Pay off £15 cut it up.
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Don't get credit in anyway, shape or form :lipsrsealed:
Live on what you earn and save for the odd treat or speak to a family member if really stuck :smiley:
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My combined credit cards have a limit of 22k! :grin:
It took me 10 years to learn to be sensible with money. Cleared them all off and now I'm responsible enough to actually have them. I'd lower the limits, but they're a good reminder of what I don't want to go back to.
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Don't get credit in anyway, shape or form :lipsrsealed:
Live on what you earn and save for the odd treat or speak to a family member if really stuck :smiley:
Eh.... How does that help when you need to get a mortgage?
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Don't get credit in anyway, shape or form :lipsrsealed:
Live on what you earn and save for the odd treat or speak to a family member if really stuck :smiley:
Eh.... How does that help when you need to get a mortgage?
That is a whole different ballgame to be fair.
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Don't get credit in anyway, shape or form :lipsrsealed:
Live on what you earn and save for the odd treat or speak to a family member if really stuck :smiley:
Eh.... How does that help when you need to get a mortgage?
I was literally just about to ask the same thing!
Credit is a game, when you're young you just don't understand the rules.
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As per post #2 from Red it isn't as simple as get a credit card. It's a history, and it doesn't matter how much or how little you spend it is about you paying it back consistently over a long period of time.
Up until last year I had an almost perfect score, buying a house pummels it. :sad:
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I got a credit card last month! Same reasons as belled, all I usemine for is the weekly food shop! The money is always in my direct debit account, statement comes in, its paid off ASAP!!
22 and I got a £9000 limit :laugh: I obviously am earning to much money :whistle:
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Don't get credit in anyway, shape or form :lipsrsealed:
Live on what you earn and save for the odd treat or speak to a family member if really stuck :smiley:
Eh.... How does that help when you need to get a mortgage?
That is a whole different ballgame to be fair.
Not really, It's the biggest purchase of your life and you need a good credit history. For those like myself that have nobody to fall back on moneywise, a good credit rating is useful for if I ever get in the sh*t and need help.
As per post #2 from Red it isn't as simple as get a credit card. It's a history, and it doesn't matter how much or how little you spend it is about you paying it back consistently over a long period of time.
Up until last year I had an almost perfect score, buying a house pummels it. :sad:
Yarp, same here 3 years ago!
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This time last year I had a really bad credit rating. Now I got a better than uk av. How? I looked at my earnings, setup a savings account and regularly (each month) put money in there, next I looked at who I owed money, contacted them and paid them all off ASAP. Then I took out a capital one credit building credit card. Used it, paid it off, used it paid it off this went on for awhile. Then I went to my bank got a better credit card with a higher limit, better APR and did a balance transfer to my capital one, to pay it off then cancelled it and cut it up. Now I pay my bank a fixed amount and I have 16 months at 0% APR.
Couple of tips I could give due to exp and research.
* if you get a credit card try not to max it. But use it with a few hundred of its limit. Maxing it can give the personer that you are struggling for money.
* using money lender like wonger will hurt your credit rating. There seen as a last resort for people that cannot get credit anywhere else which in turn make you look like your struggling for money.
* if you get a credit card shop around and be carful with it e.g use it to fill your tank then pay it off straight away.
* setup a savings account.
Hope this helps :)
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^^^^ very nicely put.
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Cheers for most of the replies :)
It is mainly for mortgage etc as seriously saving for one now. Not for soon obviously but couple of years etc.
I have used Wonga once when stupidly forgetting my wallet and was miles awqy with no money, got Wonga into my spare account I don't use and claimed a lost card through Natwest which allowed emergency cash. Paud it back the next day. How bad is that? Only ever the once.
So obviously I need to speak to an advisor but a credit card for day to day things could be handy?
Credit account was for car parts as it's a pain having to have cash all the time and harder to manage
Cheers.
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Don't get credit in anyway, shape or form :lipsrsealed:
Live on what you earn and save for the odd treat or speak to a family member if really stuck :smiley:
Eh.... How does that help when you need to get a mortgage?
That is a whole different ballgame to be fair.
Not really, It's the biggest purchase of your life and you need a good credit history. For those like myself that have nobody to fall back on moneywise, a good credit rating is useful for if I ever get in the sh*t and need help.
1, NEVER and i repeat never borrow or expect to be able to be bailed out by family - it can tear a family apart. and is certainly used in any arguements in the future about money. ex wife left me in a REAL bad place and it was in the days that the RAF took a dim view to you being in a world of sh!t financially. :whistle:
2, credit cars and loans - are the KEY part of the ballgame that is mortgages. for example
32 year old - NEVER had credit for anything, car, car insurance, mobile phones etc etc etc was ALWAYS paid cash. nice deposit on a house, could he get a mortgage for the rest - nope - it was like he never existed - add in he never registered on the voting register - Nick Leeson had more chance of a loan from the banks :laugh:
42 year old. £39k limit total on my 3 credit cards :shocked: :whistle: still got £6k ish to pay off, a loan and credit card list as long as my cars owned list including bouncing round the 0% offers like zebedee on crack and yet I have a great credit score and have my pick of mortgage offers :laugh:
:smiley:
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If you've used wonga yous should have some sort of footprint?
Hop on experian or so and have a look. Just cancel the free trial afterwards
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if you go for a free trial credit check
go via topcashback
use credit expert
get £5 for free
:wink:
need a friend referal for topcashback just ask :kiss:
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I've got some debt behind me thanks to family matters, and after reading chuff's post I couldn't agree more. Never borrow from family, it's the worst thing you can do. My family fell apart 3 years ago for this very reason. What you want to do is take everyone's advice on credit cards, buy with them and then pay them off in full, it shows you are responsible.
A couple of other things from me though, if you have credit cards that are paid off and you don't need them, close them down. Lenders look at the available credit you have to spend at any given moment. I didn't realise I had two credit accounts adding up to a few grand that I didn't need anymore, so closed them down. My current cards add up to about £9000 but only two thirds of each is used.
Ultimately, just he sensible. :cool:
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Worth pointing out that your credit score doesn't take into account savings. Saving money is just a very sensible thing to do :) A mobile phone contract helps as well. They're easy to get, you pay it monthly. Boom!
I had my identity stolen a few years ago and my credit was ruined, so know pretty much everything about it as I had to fix it. Got it back up to a very high level and just bought a house no bother.
Most of the advice on here is very sound, definitely agree with Chuff Re borrowing from family. Shame I owe my sister 3.5k :grin:
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With a mortgage, the key thing is to show banks you can make consistent payments, whether it be loans, credit cards, store-credit (littlewoods :sick:) or even overdraft facilities, these will all be on your credit record. IE, I had to use littlewoods for one thing when I moved in and cleared it, 12months later my credit score still shows it's clear with them willing to lend upto £1500 in credit.
If you are after loans, banks get funny with people like me, as I always go out, get a credit card with x amount of months 0% rack it up and clear it quickly and onto the next card, the joys of trying to do up a house in stages! Loan companies absolutely hate this for one simple reason, they can tell you are able to clear the finances, but they don't see you as profitable, as all they want to do is make money, they are after people who will borrow for as long as possible and keep up with payments, in their eye's I won't make them money, which is dam right! Why would I take out 5k at 2k interest at 5 years when I could clear that in a year with a credit card.
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Now am out the uk I don't have to pay mine anymore.....will that leave me with bad credit rating... :whistle: :grin:
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steve - fcuk off :grin:
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Thats what people said on a immigration forum....if you never intend to settle back in the UK then dont pay them...
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I've had a credit card for 2 years missed a few payments, and also had a contract phone for 7/8 years, no loans, finance on expensive jewelerry and managed to get a large mortgage. Deposit size helps as well.
Check your experian report as there may be something a miss if you can't get a credit account for car parts.
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Something worth noting, plenty of good advice on here but if you have got loans and are paying them off properly, it does look good but try and make sure you haven't got large amounts still due or long terms left over when it comes to going for a mortgage as they will take into account your outgoings to calculate how much you can afford to pay them back. This could impact how much they are willing to lend you.
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Something worth noting, plenty of good advice on here but if you have got loans and are paying them off properly, it does look good but try and make sure you haven't got large amounts still due or long terms left over when it comes to going for a mortgage as they will take into account your outgoings to calculate how much you can afford to pay them back. This could impact how much they are willing to lend you.
No question on this. They will look at you incomings and out goings including all DD's, day to day spending, and apply a percentage factor as well. This will affect how much you can borrow.
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credit cards and morgages are weird things.
i can borrow more on credit card than i can get a morgage for. how the hell dose that work
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Just become an Abseiler like me. You soon know how to budget your money, then when you have, get a credit card and like others have said use it for phone bills, shopping etc. Then pay it off straight away.
Who am I kidding Abseiler's don't earn enough for credit cards!!! Until you get on the rigs!!! :laugh:
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Lot's of very useful advice! :afro:
Agree'd with the family thing, sister borrowed couple of grand off my brother when a loan was taken out and then not needed but they had used a small amount to buy a car. Borrowed couple of grand to pay the loan back within 14days so didn't cost anything. Then her husband lost his job. No tension really at all other then the feeling that I'd hate.
Don't want to borrow any more than I can afford ever until obviously a mortgage. AFAIK you need three years books when self employed? So will need to start properly from April.
Phone bill is a start and thinking of Tesco credit card, 3% on food and fuel and I get through stacks of fuel.
Big learning curve and huge headaches I can see in the near future with tax, paperwork etc. :sick:
Really appreciate the advice though! Some really useful stuff.
Got another window cleaning round today, just got rid of all of mine and saw this one and got it. Not owned by me but I rent it. Perfect as less hassle, I get x amount a month from it minus contingencies and it's local. Plus 5 days a month and 600-800 quids worth. Plus as it's not owned by me if I can't do it there's other people to do it.
Thought this was a good idea as it's regular money coming in for the quiet months.
Going to try and book a meeting with a business advisor, got some cash saved but no real trail to it as the last years been a bit messy!
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credit cards and morgages are weird things.
i can borrow more on credit card than i can get a morgage for. how the hell dose that work
Probably because you can get more credit in total on cards from multiple lenders, with a mortgage it's usually only from one lender.
Tis ok though, if you've got enough credit on plastic, go buy a house with them. :grin:
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Am on the electorial role! Credit score is fair. 3 good things, two negative, one missed payment that shouldn't have gone through anyway and one because I'm young.
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Am on the electorial role! Credit score is fair. 3 good things, two negative, one missed payment that shouldn't have gone through anyway and one because I'm young.
How old are you, I bought a place at 21, my problem is kicking the misses out :grin: :grin: :grin: Houses are pretty cheap round rochester especially at the moment with the base rate being around 4% mortgage deals are quite good, down side is deposit, plus around £2000 solicitors fee's and then surveying.
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Am on the electorial role! Credit score is fair. 3 good things, two negative, one missed payment that shouldn't have gone through anyway and one because I'm young.
Get in touch regarding the wrong missed payment and get it removed. I had the same thing - they were trying to take money for an old phone contract which was cancelled. I wrote O2 a letter / email and they got in contact with Carphone warehouse who got the default removed and boosted the credit score.
Chances are it's the missed payment which is stopping you getting credit as people won't want to lend to someone who can't payback. But once it's removed you'll be happy days.
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Am on the electorial role! Credit score is fair. 3 good things, two negative, one missed payment that shouldn't have gone through anyway and one because I'm young.
How old are you, I bought a place at 21, my problem is kicking the misses out :grin: :grin: :grin: Houses are pretty cheap round rochester especially at the moment with the base rate being around 4% mortgage deals are quite good, down side is deposit, plus around £2000 solicitors fee's and then surveying.
:grin:
Yeah it's more getting the actual mortgage. Not tried nor want to try at the moment though.
Am on the electorial role! Credit score is fair. 3 good things, two negative, one missed payment that shouldn't have gone through anyway and one because I'm young.
Get in touch regarding the wrong missed payment and get it removed. I had the same thing - they were trying to take money for an old phone contract which was cancelled. I wrote O2 a letter / email and they got in contact with Carphone warehouse who got the default removed and boosted the credit score.
Chances are it's the missed payment which is stopping you getting credit as people won't want to lend to someone who can't payback. But once it's removed you'll be happy days.
Okay, good shout thanks. Was insurance payment. I'll give em a ring!
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If it doesn't get anywhere your next step is to refer your case to the financial/insurance ommundbson (LOL RUM SPELL = GOOD)
Loads of template letters online to use so if it's s genuine muck up on their side negatively affecting you, you'll be able to sort it.