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

Re: building up credit rating
 

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?

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.

Re: building up credit rating
 

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

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.

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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.

Re: building up credit rating
 

Didn't know about getting name on electoral poll asap, good info. Thanks!!

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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!

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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.

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.

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

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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!

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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

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:

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.

Re: building up credit rating
 

UK companies will search credit ratings for many things, phone contrcts, interest free purchases of furniture, always a good idea as it spreads the paying back at no cost to you, even getting utilities like phone and internet in your house. Using a credit card and never missing a payment, even better paying it off every month, will do it, even if you can afford to pay by debit card, using the CC will build up your rating.

Re: building up credit rating
 

after reading all the threads about UK credit, we are moving back to the UK next year after 12 years in the US we still have a UK bank account will I need to get a credit rating again ???????

Re: building up credit rating
 

When trying to get a home to rent, phones, all that lovely stuff, will they run a US credit check? We're looking to move back within the next 2 years and have a great credit here, but zero there. If they won't, how else to start building it if you don't have HSBC (we are with USAA)? My husband's company will be sponsoring his visa...does that at all help? Thanks

Re: building up credit rating
 

Question, do you get on this electoral roll if you aren't renting yet? My Hunny just went over yesterday but he'll be staying with family... Does he get on the electoral roll for that address? What happens when he finds work and moves? How does ge get on the roll anyhow?

So many questions!!!:eek:
Thanks!

Re: building up credit rating
 

AFAIK, any eligible adult living at a given residence can be added to the electoral roll. See this FAQ page for further details.

Re: building up credit rating
 

I wonder if people are in danger of trying to hard with credit rating, I think just let it happen by itself.

When we moved back the first time, had no problem getting everything connected and a mobile phone contract. We also got a mortgage. But as for anything else, we found most places had a two year wait before they will extend any credit. Credit rating would not have helped with that. I would not borrow money for a car, incurring cost, just to get a credit rating, not if I can buy the car outright.

Re: building up credit rating
 

Tried to rent somewhere for six months but credit check was rejected "computer said no". So paid the six months rent in advance. once we have address would be good to get mobile contract on unlocked phone - we shall see.

All part of the exit tax as I see it. No question, UK will be more expensive and and hassle but we are going to the other advantages

Re: building up credit rating
 

Sineface, you mentioned you bank with USAA, do you know that you can get car insurance in the UK through USAA? With USAA you keep your driving record, whereas if you start afresh with a UK insurance company they consider you a brand new driver and charge you accordingly.

USAA London Office phone number: 0207 6551800

We kept our US bank account and pay the premium by direct debit in dollars. Hope this helps.

Re: building up credit rating
 

Wow, Janelle, that is great news! Thanks for sharing!

Re: building up credit rating
 

Would be interested in other comments on the statement that "if you start afresh with a Uk insurance co they consider yiu a brand new driver"

We have a letter of no claims from Canada, but saw one website saying that the "no claims" had to be in UK - think it might have been AVIVA.

Other experiences?

Re: building up credit rating
 

A slightly tangental one. I have a car insured in France for use when we're in that house. The French company (AXA) only wanted proof that I'd been insured in Canada for at least 5 years, which of course was no problem.

Our plans have now changed and we'll be splitting our time roughly 50/50 between France and the UK for a few years (I've mentioned why on a couple of other threads). My current thinking is just to bring the French insured and registered car over for the times we're in the UK.

Insurance problem solved; and cheaper than owning two "half" cars.

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After reading comments on BE about the difficulty of transferring no claims to UK insurers I did not even bother getting quotes from UK insurers.

USAA is a special organisation; if you are eligible to join, you want to keep it. It was set up in 1922 by some military officers who could not get insurance on their cars because of the constant moving around which is the nature of military careers. Nowadays USAA has expanded to provide insurance, banking and financial services to people with some connection to the US military. Consequently they are adept at dealing with customers who keep moving all over the world.

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I don't recall having any trouble when I moved back from Bermuda.

I just got an online quote for the car I might like to get with Direct Line, without a no claims discount and it was £300, which seems perfectly fine to me although I am used to ridiculous prices in Australia now.

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My experience was that while my overseas and prior UK NCB (about 25 years' claim-free driving) was taken into consideration, my premium was higher for a couple of years because of no recent driving experience in the UK.

In other words, as an overseas driver, I was deemed to be a greater danger on the roads until I got used to driving on the left and using roundabouts. ;)

Re: building up credit rating
 

I obtained a copy of my Cdn claims history from my Insurer and my driving abstract (history) from Ab Govt. NFU accepted both and gave me a much better price than I had been quoted by other markets. After 2years, in the UK, they dropped my premium by £200 approx after 2 years claims free.

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Sounds quite reasonable to me.

My city planners have decided to try roundabouts in some areas in Toronto. So how do they do that? Well first build roundabout and then put stop signs on the east west road, and no stop sign on the north south road:ohmy:

Re: building up credit rating
 

My impression is that things such as no claims, credit histories, bank accounts, etc all transfer from Canada and Oz a little more easily than they do from the US. OP is moving from the US to UK.

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Interesting Janelle. One on line quote did say that all no claims had to be earned in UK. But quote partner got was way less than we pay in Toronto. Nice to have one thing that will be cheaper

Re: building up credit rating
 

This is great advice. I opened up an Amex in Canada for this very reason. After over 6 years away my credit file will be as if I never lived there. So a great way to reestablish. I've found a lot of places don't take it in Canada. Is this the same in UK?

Re: building up credit rating
 

[QUOTE=Wombat7;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.

How did you go about setting up the account from within Canada? I am trying to do that but they want a prove of address in the UK, which i will not be able to provide until after the move..