Go Back  British Expats > Living & Moving Abroad > Moving back or to the UK
Reload this Page >

How to build a credit rating in the UK

How to build a credit rating in the UK

Old May 4th 2020, 9:53 pm
  #1  
Just Joined
Thread Starter
 
SilverSpring's Avatar
 
Joined: Feb 2020
Posts: 9
SilverSpring is an unknown quantity at this point
Default How to build a credit rating in the UK

Hi everyone,

Apologies, as I am sure this has been asked before but I wasn’t able to find the answer to my question.

My husband moved to the UK on a spouse visa in Feb 2020. We are trying to get his credit score up and running, as he is obviously starting from 0.

He’s set-up a bank account with Monzo, as at the moment we are not able to get into the main banks to open an account, but will as soon as we are able to.

He has a job, full time and so is earning a regular income.

We set up a Loqbox account for him where he is saving a certain amount each month, which is designed specifically to boost your credit score.

Last night we tried to apply for a SIM only 12 month contract, however this was declined due to his lack of a credit rating.

He isn’t able to register on the electoral role, as he is not from a European or commonwealth country.

Advice please on what else we can do at this stage to boost his score, and how we can get him approved for things like a phone contract or maybe a credit card (we haven’t tried this option yet).

Thank you in advance
SilverSpring is offline  
Old May 5th 2020, 11:38 am
  #2  
BE Forum Addict
 
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 2,806
durham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond repute
Default Re: How to build a credit rating in the UK

It can be tough. When we moved back in 2016 I put my wife's name on my credit card, utility bills etc. When our son moved back in 2017 we had to add him to our mobile phone plan for him to get a sim only plan. Like my wife it took at least 6 months of paying utility bills and Council tax before he got a credit rating good enough to get his own mobile phone plan etc.
durham_lad is offline  
Old May 5th 2020, 11:40 am
  #3  
Just Joined
Thread Starter
 
SilverSpring's Avatar
 
Joined: Feb 2020
Posts: 9
SilverSpring is an unknown quantity at this point
Default Re: How to build a credit rating in the UK

Thanks for your reply! I will see if I can get him added to one of my credit cards, as I hadn’t thought of that!

I think it’s going to be a long winded process, but anything I can do to move things along would be great.

Thanks again!
SilverSpring is offline  
Old May 5th 2020, 1:32 pm
  #4  
Concierge
 
mikelincs's Avatar
 
Joined: May 2006
Location: ex ex-pat, in Taunton
Posts: 24,292
mikelincs has a reputation beyond reputemikelincs has a reputation beyond reputemikelincs has a reputation beyond reputemikelincs has a reputation beyond reputemikelincs has a reputation beyond reputemikelincs has a reputation beyond reputemikelincs has a reputation beyond reputemikelincs has a reputation beyond reputemikelincs has a reputation beyond reputemikelincs has a reputation beyond reputemikelincs has a reputation beyond repute
Default Re: How to build a credit rating in the UK

I thought everyone, even if not elegible to vote, had to register. Are you certain he can't go on the electoral roll as this is usually the first port of call to be checked for anyone wanting credit.
mikelincs is offline  
Old May 5th 2020, 1:37 pm
  #5  
Just Joined
Thread Starter
 
SilverSpring's Avatar
 
Joined: Feb 2020
Posts: 9
SilverSpring is an unknown quantity at this point
Default Re: How to build a credit rating in the UK

Thanks for your reply.

When I go to the “register to vote” page on .gov.uk it states the following:

“Who can register

You must be aged 16 or over (or 14 or over in Scotland).

You must also be one of the following:
  • a British citizen
  • an Irish or EU citizen with a permanent address
  • a Commonwealth citizen who has permission to enter or stay in the UK, or who does not need permission”

Therefore it doesn’t seem he is eligible as he doesn’t come under any of the above categories. I did read online somewhere you could apply for a notice of correction on your credit file to explain the reason you are not able to vote, but in order to do this he needs a credit score, and at the moment he has no score at all, so as soon as we can, we will try to apply for the notice of correction.

Thanks
SilverSpring is offline  
Old May 5th 2020, 4:30 pm
  #6  
BE Forum Addict
 
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 2,806
durham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond repute
Default Re: How to build a credit rating in the UK

Originally Posted by mikelincs View Post
I thought everyone, even if not elegible to vote, had to register. Are you certain he can't go on the electoral roll as this is usually the first port of call to be checked for anyone wanting credit.
This was one of the first things our son did, he is a UK citizen, but that didn't appreciably help his credit rating which is based on a history of paying bills. Took him 6 months to do things like get a mobile phone plan in his own name.
durham_lad is offline  
Old May 5th 2020, 8:28 pm
  #7  
Forum Regular
 
Joined: Dec 2019
Posts: 30
blokeandbird is an unknown quantity at this point
Default Re: How to build a credit rating in the UK

Get a broker and get a mortgage if you can afford to. Down payment is higher but starts building a solid credit score.
The cars you may have being paying cash for, dont. Put down more than 50% and then make 6 months payments, then pay off.
Currys may let you buy a tv on credit as high interest. If you can pay 6 months then pay off.

As for credit cards, if you google you will find there are ones out there just for the purpose of building credit from zero.
blokeandbird is offline  
Old May 5th 2020, 11:06 pm
  #8  
Lost in BE Cyberspace
 
Joined: Nov 2012
Location: bute
Posts: 9,493
scot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond reputescot47 has a reputation beyond repute
Default Re: How to build a credit rating in the UK

Do you NEED credit to live ?
scot47 is offline  
Old May 6th 2020, 8:39 am
  #9  
BE Forum Addict
 
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 2,806
durham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond reputedurham_lad has a reputation beyond repute
Default Re: How to build a credit rating in the UK

Originally Posted by scot47 View Post
Do you NEED credit to live ?
A credit rating is quite different from needing credit. The example above about a sim-only mobile phone plan is an example. You are paying a monthly fee for their services, not borrowing money to buy a phone.

Without a credit rating it is extremely difficult to rent a house or rent a car. When we moved back in 2016 we found it very hard to rent a house and had to stump up 6 months rent in advance plus the usual security deposit. I was able to rent a car because I had a US credit card to put up as security, even though I actually paid the bill after the 10 days rental with a cheque from my UK bank account. We had kept our UK bank for the 29 years we had been out of the country and had my UK private pension going into it plus transfers from our US account. However, owning a bank account does not build up a credit rating as we had not proven that we could pay bills in the UK for many, many years.

To get a credit rating you do not need to have any credit just proof that you pay bills on time and in full.

Last edited by durham_lad; May 6th 2020 at 8:45 am.
durham_lad is offline  
Old May 6th 2020, 11:02 am
  #10  
Concierge
 
mikelincs's Avatar
 
Joined: May 2006
Location: ex ex-pat, in Taunton
Posts: 24,292
mikelincs has a reputation beyond reputemikelincs has a reputation beyond reputemikelincs has a reputation beyond reputemikelincs has a reputation beyond reputemikelincs has a reputation beyond reputemikelincs has a reputation beyond reputemikelincs has a reputation beyond reputemikelincs has a reputation beyond reputemikelincs has a reputation beyond reputemikelincs has a reputation beyond reputemikelincs has a reputation beyond repute
Default Re: How to build a credit rating in the UK

Originally Posted by durham_lad View Post
This was one of the first things our son did, he is a UK citizen, but that didn't appreciably help his credit rating which is based on a history of paying bills. Took him 6 months to do things like get a mobile phone plan in his own name.
It may not have helped his credit rating, but they do use it to prove you are actually living where you say you are.
mikelincs is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.