British Expats

British Expats (https://britishexpats.com/forum/)
-   Moving back or to the UK (https://britishexpats.com/forum/moving-back-uk-61/)
-   -   building up credit rating (https://britishexpats.com/forum/moving-back-uk-61/building-up-credit-rating-843718/)

Wombat7 Sep 23rd 2014 3:45 pm

building up credit rating
 
Moving back to UK after 34 years out of country. Have opened HSBC account and have a UK a HSBC credit card. All done from Canada.

We will be renting when we first get there while we look for the right property to buy.

When buying a car, do you think we should try and do that on finance so that we can start building up a credit rating? We are retired and will be cash buyers, so the credit rating will not be necessary to get a mortgage etc, and we could buy the car for cash, but would be interested in people's views.

Many thanks

Novocastrian Sep 23rd 2014 4:11 pm

Re: building up credit rating
 

Originally Posted by Wombat7 (Post 11415491)
Moving back to UK after 34 years out of country. Have opened HSBC account and have a UK a HSBC credit card. All done from Canada.

We will be renting when we first get there while we look for the right property to buy.

When buying a car, do you think we should try and do that on finance so that we can start building up a credit rating? We are retired and will be cash buyers, so the credit rating will not be necessary to get a mortgage etc, and we could buy the car for cash, but would be interested in people's views.

Many thanks

Hi Wombat. I can beat that ;), we'll be moving back, at least for a while, next year after 38 years.

We'll be in very much the same position as you describe. I don't have any input to your credit rating question, although I know that today's Brits seem obsessed by the concept.

I'd be interested to learn why someone like you and me should bother about it? I'm likely missing something but mortgage and vehicle purchase and such like aside, what else would a credit rating be good for?

Wombat7 Sep 23rd 2014 4:43 pm

Re: building up credit rating
 
I heard someone on R4 "You and Yours" who was having issues getting a cell phone plan. he bought his house for cash, his car for cash but had to get a pay as you go plan on the mobile!

have had some contact with a rental agent who told me that, even though we would pay 6months rent upfront, we would need to have a credit check.

Novocastrian Sep 23rd 2014 5:15 pm

Re: building up credit rating
 

Originally Posted by Wombat7 (Post 11415546)
I heard someone on R4 "You and Yours" who was having issues getting a cell phone plan. he bought his house for cash, his car for cash but had to get a pay as you go plan on the mobile!

have had some contact with a rental agent who told me that, even though we would pay 6months rent upfront, we would need to have a credit check.

OK, I see. I said I was probably missing something. ;)

lf1 Sep 23rd 2014 9:23 pm

Re: building up credit rating
 
Like you, I went the HSBC route, prior to moving back. I don't think you need to incur the costs of financing a car to establish your credit rating. I put my name on the electoral roll and started paying my bills (broadband, council tax, electricity) and that seems to have been sufficient. The only time that, to my knowledge, my credit rating was checked was when I changed from a pay as you go mobile to a contract. However, you could probably pay that up front too. Others on here have managed to rent without a credit rating, but as you mentioned had to pay 6 months upfront.

Good luck with your move.

Wombat7 Sep 23rd 2014 9:46 pm

Re: building up credit rating
 
excellent, many thanks for that info. knew about getting name on electoral roll as soon as possible. havd an unlocked iPhone so quite happy to start off with a pay as you go.

WhoDearMeDearNoDear Sep 28th 2014 2:03 am

Re: building up credit rating
 
Didn't know about getting name on electoral poll asap, good info. Thanks!!

quiltman Sep 28th 2014 2:37 am

Re: building up credit rating
 

Originally Posted by WhoDearMeDearNoDear (Post 11420749)
Didn't know about getting name on electoral poll asap, good info. Thanks!!

Yes, electoral roll quite important! most credit checks use this to see if you do actually live there!Not being on the roll raises a question mark. you may get asked why, but often you just get refused credit. Almost all accounts requiring credit - Gas, electricity,water,cable, phone etc do credit checks before opening account.The best credit rating is having cards etc with an up to date payment record.Getting the first credit account is the hardest, then it's usually easy unless you've been a naughty person!
Cell phone accounts usually do the credit check whilst you are in the store -people want to walk out with their new phone!

Sally Redux Sep 28th 2014 8:11 am

Re: building up credit rating
 
We had to buy phones instead of getting a contract because of no UK credit rating. We are trying to get a mortgage, which is not straightforward without three years' UK residence. However, npower ran a US credit check with no problems.

cyrian Sep 28th 2014 8:28 am

Re: building up credit rating
 
As well as the info above, get another credit card and pay it off each month or set up a standing order to cover the minimum payment each month.
Open a store card. Some cards like M&S give you cash-back vouchers to use in-store.
Pay your utilities monthly by Direct Debit.
I have no interest in credit rating because I don't need credit but my children are neurotic about it.

lgabriel73 Sep 28th 2014 9:34 am

Re: building up credit rating
 

Originally Posted by cyrian (Post 11420864)
As well as the info above, get another credit card and pay it off each month or set up a standing order to cover the minimum payment each month.
Open a store card. Some cards like M&S give you cash-back vouchers to use in-store.
Pay your utilities monthly by Direct Debit.
I have no interest in credit rating because I don't need credit but my children are neurotic about it.

Most stores won't give you a card until you have been resident for 12 months.

michali Sep 28th 2014 12:13 pm

Re: building up credit rating
 
We recently failed a credit rating to open a premier account at HSBC. We were allowed to open a standard account. However, I was surprised I failed as I am on the electoral roll, have had a different bank account for over twenty years, a credit card always paid up, utility bills for the past four months, etc! I presume after more time back here, I will eventually get a good rating!

Wombat7 Sep 28th 2014 1:50 pm

Re: building up credit rating
 

Originally Posted by michali (Post 11420969)
We recently failed a credit rating to open a premier account at HSBC. We were allowed to open a standard account. However, I was surprised I failed as I am on the electoral roll, have had a different bank account for over twenty years, a credit card always paid up, utility bills for the past four months, etc! I presume after more time back here, I will eventually get a good rating!

We opened up an HSBC premier in Canada. Canada then "introduced" us to HSBC UK and we now have Canadian accounts and UK accounts. I like it becuase when you go to the global view option on the web you can see all the accounts. Also have UK a cheques and Uk credit card - all sent to Canadian address

spouse of scouse Sep 28th 2014 2:01 pm

Re: building up credit rating
 
I'd use your existing UK credit card to build your credit rating - if you use it for all your everyday purchases and pay the whole balance before the due date you won't incur any interest and you'll establish yourself as a good credit risk in no time.

I'd strongly advise against buying a car on finance, you'll pay a ton of interest and I don't think you need to do this to establish a credit rating. Best of luck :starsmile:

lgabriel73 Sep 28th 2014 5:01 pm

Re: building up credit rating
 
If you have an Amex you can actually change that to a UK Amex once you get back without having to go through the UK credit stuff as its based on your current Amex account. They dont give you a high credit line but its enough to start building up your UK credit.


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