Announcement

**Never-In-Doubt** · 15 February 2011, 22:10

The Basics

[CENTER][FONT=Verdana][SIZE=5][COLOR=DarkOrange]The Basics[/COLOR][/SIZE][/FONT][/CENTER]
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[/SIZE][/FONT] [FONT=Verdana][SIZE=2]Contrary to popular belief, it is possible to get credit even when you think you’re wasting your time applying. Granted, not all lenders will see you in the same light so you need to play the game and apply to the lenders that are prepared to give you a chance.[/SIZE][/FONT][FONT=Verdana][SIZE=2] If you have a bank account the first choice should always be your bank as they may use behavioural scoring which may approve you.

[/SIZE][/FONT] [FONT=Verdana][SIZE=2]Due to the higher level of risk involved, the credit limits usually start smaller and the APR will be higher but remember, you are only going to use and abuse these accounts until you build up a credit history afterwhich you’d be looking to start applying to the mainstream providers such as the leading banks and financial institutions that offer a whole range of colourful cards & higher limits![/SIZE][/FONT][FONT=Verdana][SIZE=2]

[/SIZE][/FONT] [FONT=Verdana][SIZE=2]So, where do you start? This is the easy part; no matter what your background you will almost certainly be able to apply for one of the accounts in the sections that follow, with the likelihood of acceptance being slightly higher than if you went and applied to your typical credit card provider.[/SIZE][/FONT][FONT=Verdana][SIZE=2]

[/SIZE][/FONT] [FONT=Verdana][SIZE=2]The first thing to remember is that credit is a luxury, it is not a right and no-one is automatically entitled to credit; similarly the credit provider is not obliged to tell you the exact reasons as to why you were declined – they do, however, have to give you the basis which will usually be one of the following:
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1.[/B] Failed to reach their credit score/criteria acceptance level
[/SIZE][/FONT] [FONT=Verdana][SIZE=2][B]2.[/B] Adverse data received from credit reference agency[/SIZE][/FONT][FONT=Verdana][SIZE=2]
[/SIZE][/FONT] [FONT=Verdana][SIZE=2][B]3.[/B] Fraud Prevention[/SIZE][/FONT] [FONT=Verdana][SIZE=2]
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Lets assume you get declined for option 1. This can be appealed using the Template Letter and sending additional information. Options 2 or 3 would really mean you need to get a copy of your credit files, prior to applying as depedant upon what data is registered will have a huge impact on any positive decision for credit.[/SIZE][/FONT]

**Never-In-Doubt** · 15 February 2011, 22:10

New to credit

[CENTER][FONT=Verdana][SIZE=5][COLOR=DarkOrange]New to Credit[/COLOR][/SIZE][/FONT][/CENTER]
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Lets assume you're brand new to credit, either you've never needed credit before or you're young and want to try it for the first time; whatever your reason to wanting to apply you're more than likely to be accepted so long as you ensure that the following is in order:
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1.[/B] You are on the Electoral Register
[B]2.[/B] You do not have any adverse credit
[B]3.[/B] You have checked your credit reports (all 3 of them) recently

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[FONT=Verdana][SIZE=2]If the above sounds familiar then there is no real reason that stands out why you'd be rejected a credit based facility from one of the leading sub-prime providers. Now you have to ask yourself the following:
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1.[/B] I have a bank account
[B]2.[/B][/SIZE][/FONT][FONT=Verdana][SIZE=2] I do not have a bank account

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[FONT=Verdana][SIZE=2]If you do have a bank account then it is always recommended that you try your own bank first as most banks now run what is called behavioural scores which is like an internal credit score.

If you do not have a bank account, for whatever reason, this is the first thing you need to sort out before applying for a credit based facility as your chances will be almost zero if you do not even have a basic provision for basic banking.[/SIZE][/FONT] [FONT=Verdana][SIZE=2]

Therefore, the best way to go forward would be to get yourself a bank account and then consider one of the sub-prime credit cards such as [/SIZE][/FONT] [FONT=Verdana][SIZE=2][URL="http://www.vanquis.co.uk/home/home.aspx"][B][COLOR=#22229c]Vanquis[/COLOR][/B][/URL] or [URL="http://www.aquacard.co.uk/"][B][COLOR=#22229c]Aqua[/COLOR][/B][/URL]. If you feel you want to start lower, then look into getting a catalogue - so long as you aren't dripping with defaults; [/SIZE][/FONT] [FONT=Verdana][SIZE=2][URL="http://www.jdwilliams.co.uk/shop/"][B][COLOR=#22229c]J D Williams Group[/COLOR][/B][/URL] is a great starter catalogue. [/SIZE][/FONT]

**Never-In-Doubt** · 15 February 2011, 22:11

Clean Credit File - Adverse Data in the Past

[CENTER][FONT=Verdana][SIZE=2][SIZE=5][COLOR=DarkOrange]Clean Credit File - Adverse Data in the Past[/COLOR][/SIZE]
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If you've had adverse data registered against you in the past but your file is now clean (after 6 years) then the most suitable products would be as follows;

[/SIZE][/FONT] [FONT=Verdana][SIZE=2][COLOR=DarkOrange]Credit Cards;
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1. [URL="http://www.vanquis.co.uk/home/home.aspx"]Vanquis[/URL][/B]
[B]2. [URL="http://www.aquacard.co.uk/"]Aqua[/URL][/B][/SIZE][/FONT] [FONT=Verdana][SIZE=2]
[B]3. [URL="http://www.capitalone.co.uk/creditcards/capital-one-classic-card.jsf"]Capital One[/URL][/B][/SIZE][/FONT] [FONT=Verdana][SIZE=2]
[B]4. [URL="http://www.barclaycard.co.uk/creditbuilder/"]Barclaycard[/URL][/B][/SIZE][/FONT] [FONT=Verdana][SIZE=2]
[B]5. [/B][/SIZE][/FONT][SIZE=2][B][URL="http://www.rbs.co.uk/personal/credit-cards.ashx"]RBS[/URL][/B][/SIZE]
[FONT=Verdana][SIZE=2][B]6. [URL="http://www.flybe.com/card/default.htm"]Sygma Bank (FlyBe)[/URL][/B][/SIZE][/FONT] [FONT=Verdana][SIZE=2]
[B]7. [URL="http://www.tescofinance.com/personal/finance/finance/creditcards/index.jsp"]Tesco[/URL][/B][/SIZE][/FONT] [FONT=Verdana][SIZE=2]
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All the above credit card providers give varying limits ranging from £200 - £3000+ depending on your individual circumstances. If you get rejected for one card, don't be put off just try another but don't get happy with the apply button because too many searches are a bad sign and show desperation to potential lenders. It is best to stay within 6 searches in a 6 month period with a maximum of 10 in any 12 month period.

[/SIZE][/FONT] [FONT=Verdana][SIZE=2][COLOR=DarkOrange]Bank Accounts;
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1. [/B][URL="http://www.hsbc.co.uk/1/2/personal/current-accounts;jsessionid=0000OaCgP6iK2Mtz9Kc6kjDYfT9:12ntf1n0a"][B]HSBC Current Account[/B][/URL]
[B]2. [/B][/SIZE][/FONT] [FONT=Verdana][SIZE=2][URL="http://www.citibank.co.uk/personal/banking/?merchant=citi"][B]Citi Bank[/B][/URL]
[B]3. [/B][/SIZE][/FONT] [FONT=Verdana][SIZE=2][URL="http://www.barclays.co.uk/current-accounts/"][B]Barclays Bank[/B][/URL]
[B]4. [/B][/SIZE][/FONT] [FONT=Verdana][SIZE=2][URL="http://www.halifax.co.uk/bankaccounts/bankaccountshome.asp"][B]HBOS[/B][/URL]
[B]5. [/B][/SIZE][/FONT] [FONT=Verdana][SIZE=2][URL="http://www.lloydstsb.com/current_accounts.asp"][B]Lloyds Tsb[/B][/URL]
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These providers all offer a Basic Bank Account if you fail the score for a full account and they all offer a Visa Debit Card with their Basic Accounts with the exception of Citi who do not offer Basic Banking, but their normal accounts are very good, apparently. It is also worth considering getting a catalogue or two, the green 0's on your credit report all add up and it does no harm getting a catalogue, even if you never use it. A selection of 'easy to get' catalogues are listed below;

[/SIZE][/FONT] [FONT=Verdana][SIZE=2][COLOR=DarkOrange]Catalogues;
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1. [URL="http://www.jdwilliams.co.uk/shop/"]J D Williams Group[/URL][/B]
[B]2. [URL="http://www.lwsdg.co.uk/"]Shop Direct Group[/URL][/B][/SIZE][/FONT] [FONT=Verdana][SIZE=2]
[B]3. [URL="https://www.next.co.uk/directory.asp"]Next[/URL][/B][/SIZE][/FONT] [FONT=Verdana][SIZE=2]
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These catalogues range in status dependant upon your individual circumstances, for example JD Williams will almost certainly offer a £125 start limit whilst Littlewoods/Empire (SDG) generally offer £500 starting limit with their accounts. Next is for the more exclusive with a good credit file, ideally people with a bank account and one long standing credit card.

[/SIZE][/FONT] [FONT=Verdana][SIZE=2][COLOR=DarkOrange]StoreCards;
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1. [URL="http://www6.marksandspencer.com/pages/default.asp?PageId=Interim&Product=CA"]M&S Chargecard[/URL][/B]
[B]2. [URL="http://www.debenhams.com/webapp/wcs/stores/servlet/CategoryDisplay?langId=-1&storeId=10001&catalogId=10001&top=Y&categoryId=18640"]Debenhams Account[/URL][/B][/SIZE][/FONT] [FONT=Verdana][SIZE=2]
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The above list is not exhaustive but based on the general feeling amongst MSE users and acceptability prospects. Remember, you are not guaranteed credit and if you get declined, try appealing using the [URL="http://forums.all-about-debt.co.uk/showpost.php?p=54050&postcount=6"][B]Template Letter[/B][/URL] - you never know, for the price of a stamp it could well be worth it...
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**Never-In-Doubt** · 15 February 2011, 22:11

Soiled Credit File - Currently Have Adverse Data Registered

[CENTER][FONT=Verdana][SIZE=2][SIZE=5][COLOR=DarkOrange]Soiled Credit File - Currently Have Adverse Data Registered[/COLOR][/SIZE]
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If you've currently got adverse data registered against you, it's worth remembering some lenders will still allow you credit. Try to get a catalogue first of all as [B][URL="http://www.jdwilliams.co.uk/shop/"]J D Williams Group[/URL] [/B]are generally quite lenient and offer most people a starting limit of £125. If you feel you'd rather apply for a credit card, the first card of choice should be a [B][URL="http://www.vanquis.co.uk/home/home.aspx"]Vanquis[/URL] [/B]card, again expect a small start limit of around £250.

If you do not have a bank account then discount the above and consider applying to get a bank account. It is worth noting that so long as you don't have any fraud related entries registered against you that all banks should be able to offer you a [B][URL="http://www.moneymadeclear.fsa.gov.uk/pdfs/bank_accounts.pdf"]Basic Bank Account[/URL][/B], some are better than others as they come with a Visa debit card and not Solo/Electron.

In order to obtain a [B][URL="http://www.moneymadeclear.fsa.gov.uk/pdfs/bank_accounts.pdf"]Basic Account[/URL][/B], it is best to go into the bank and apply in person. Some will ask that you apply for a full account and if they refuse you, they may be able to offer a Basic Account - this is perfectly normal and should be expected. The best Basic Accounts come from the following banks;[/SIZE][/FONT][INDENT][FONT=Verdana][SIZE=2][B]
1. [/B][URL="http://www.hsbc.co.uk/1/2/personal/current-accounts;jsessionid=0000OaCgP6iK2Mtz9Kc6kjDYfT9:12ntf1n0a"][B]HSBC Current Account[/B][/URL]
[B]2.[/B][/SIZE][/FONT][FONT=Verdana][SIZE=2] [URL="http://www.barclays.co.uk/current-accounts/"][B]Barclays Bank[/B][/URL]
[B]3. [/B][/SIZE][/FONT] [FONT=Verdana][SIZE=2][URL="http://www.lloydstsb.com/current_accounts.asp"][B]Lloyds Tsb[/B][/URL]
[B]4. [/B][URL="http://www.nationwide.co.uk/current_account/managing_your_account/cash_card_account.htm"][B]Nationwide[/B]
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Lets assume you have a bank account already, or have been accepted for one it is worth considering that more and more banks are now reporting conduct of basic accounts to CRA's using the term 'full bank account' which is great for you, the customer.

So, the best credit cards would really be the main Sub-Prime ones such as;[/SIZE][/FONT][INDENT][FONT=Verdana][COLOR=Black][SIZE=2][B]
1. [/B][URL="http://www.vanquis.co.uk/home/home.aspx"][B]Vanquis[/B][/URL]
[B]2. [/B][/SIZE][/COLOR][/FONT] [FONT=Verdana][COLOR=Black][SIZE=2][URL="http://www.aquacard.co.uk/"][B]Aqua[/B][/URL]
[B]3. [URL="http://www.capitalone.co.uk/creditcards/capital-one-classic-card.jsf"]Capital One[/URL][/B][/SIZE][/COLOR][/FONT] [FONT=Verdana][COLOR=Black][SIZE=2]
[B]4. [URL="http://www.barclaycard.co.uk/creditbuilder/"]Barclaycard[/URL][/B][/SIZE][/COLOR][/FONT] [FONT=Verdana][SIZE=2]
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Regards to catalogues, it's hard to say who will accept you but its definitely worth trying [COLOR=Black][URL="http://www.jdwilliams.co.uk/shop/"][B]J D Williams Group[/B][/URL][/COLOR]. If you notice a pattern evolving of declines then it may be worth actually getting a copy of your credit files; [URL="http://forums.all-about-debt.co.uk/showpost.php?p=75&postcount=2"][B]details found here[/B][/URL].

At the end of the day, if you get one account it is a start and it's the first step back onto the credit ladder, however you look at it. One secret to remember, if you want faster credit limit increases is to pay a little off each month via Direct Debit (minimum payment amount) but also send over some extra funds, even an extra 30 pounds per month shows good risk and the more you use your account then your odds for greater limits and availability with mainstream lenders improve dramatically.
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**Never-In-Doubt** · 15 February 2011, 23:34

Additional Information

[CENTER][FONT=Verdana][SIZE=5][COLOR=DarkOrange]Additional Information[/COLOR][/SIZE][/FONT][/CENTER]
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To get a copy of your credit record, simply send a cheque/postal order for £2 payable to the agency and send this with details of your full name, address history for the last 6 years and I.D to confirm your identity.

[/SIZE][/FONT] [FONT=Verdana][SIZE=2][COLOR=DarkOrange]Credit Reference Agencies(CRA's):
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1. [URL="http://experian.metafaq.com/templates/experian/main/answerPage?_mftmfenv:linkEntryCategory=$Order_Report&_mftmfenv:linkEntryClient=$experian&_mftmfenv:linkEntryName=$orderbypost"]Experian[/URL][/B]
[B]2. [URL="https://www.econsumer.equifax.co.uk/consumer/uk/sitepage.ehtml;jsessionid=a854f771fb7d973851c32a3d7dd79:vyK0?forward=gb_elearning_credit14"]Equifax[/URL][/B][/SIZE][/FONT] [FONT=Verdana][SIZE=2]
[B]3. [URL="https://www.callcreditcheck.com/"]Call Credit[/URL][/B][/SIZE][/FONT] [FONT=Verdana][SIZE=2]
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The Fraud Prevention Agencies do not hold credit related data about us. In order to view the data they hold about you, you have to issue a SAR to them with payment of £10 (see below).

[/SIZE][/FONT] [FONT=Verdana][SIZE=2][COLOR=DarkOrange]Fraud Prevention Agencies (FPA's):[/COLOR][/SIZE][/FONT][INDENT][FONT=Verdana][SIZE=2][B]
1. [URL="http://www.cifas.org.uk/default.asp?edit_id=880-28"]CIFAS[/URL][/B]
[/SIZE][/FONT] [FONT=Verdana][SIZE=2][B]2. [URL="http://www.experian-da.com/solutions/fraud_prevention.html"]Experian Data Analytics[/URL][/B][/SIZE][/FONT][FONT=Verdana][SIZE=2]
[/SIZE][/FONT] [FONT=Verdana][SIZE=2][B]3. [URL="http://www.synectics-solutions.com/"]Synectics Solutions[/URL][/B][/SIZE][/FONT][FONT=Verdana][SIZE=2]
[/SIZE][/FONT] [FONT=Verdana][SIZE=2][B]4. [URL="http://www.nhunter.co.uk/data.html"]N Hunter[/URL][/B][/SIZE][/FONT][FONT=Verdana][SIZE=2]
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[FONT=Verdana]It will be necessary, on occasion to issue a Subject Access Request to the Credit or Fraud Agencies. This is perfectly normal, just remember they have a time limit of 40 days in which to respond - this is ICO guidance, not their own. [/FONT][/SIZE][FONT=Verdana][SIZE=2][URL="http://forums.all-about-debt.co.uk/showpost.php?p=1863&postcount=17"][B]Full details of SAR including Template Letter can be found here.[/B][/URL] For information on the useful relevant legal authorities; see below:
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1. [/B][URL="http://www.ico.gov.uk/Home/what_we_cover/data_protection/your_rights.aspx"][B]Information Commissioner's Office (ICO)[/B][/URL]
[B]2. [/B][/SIZE][/FONT] [FONT=Verdana][SIZE=2][URL="http://www.opsi.gov.uk/acts/acts1998/ukpga_19980029_en_1"][B]Data Protection Act 1998 (DPA)[/B][/URL]
[B]3. [/B][/SIZE][/FONT] [FONT=Verdana][SIZE=2][URL="http://www.opsi.gov.uk/acts/acts2000/ukpga_20000036_en_1"][B]Freedom of Information Act 2000 (FOI)[/B][/URL]
[B]4. [/B][/SIZE][/FONT] [FONT=Verdana][SIZE=2][URL="http://www.financial-ombudsman.org.uk/"][B]Financial Ombudsman Service (FOS)[/B][/URL]
[B]5. [/B][/SIZE][/FONT] [FONT=Verdana][SIZE=2][URL="http://www.fsa.gov.uk/"][B]Financial Services Authority (FSA)[/B][/URL]
[B]6. [/B][/SIZE][/FONT] [FONT=Verdana][SIZE=2][URL="http://www.moneymadeclear.fsa.gov.uk/"][B]Money Made Clear[/B][/URL]
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In order to utilise the useful resources on this topic; the following links should help you learn all you need to allow you to start climbing the credit ladder:[/SIZE][/FONT][INDENT][FONT=Verdana][SIZE=2][B]
1. [URL="http://www.consumeractiongroup.co.uk/forum/"]Consumer Action Group Forum[/URL][/B]
[B]2. [URL="http://www.which.co.uk/advice/your-credit-score-explained/index.jsp"]Which - Credit Score Explained[/URL][/B]
[B]3. [URL="http://www.moneysavingexpert.com/banking/credit-rating-credit-score"]MSE - Credit Rating & How it Works[/URL][/B]
[B]4. [URL="http://www.moneymadeclear.fsa.gov.uk/"][B]Money Made Clear[/B][/URL][/B]
[B]5.[/B] [URL="http://forums.moneysavingexpert.com/showthread.html?t=1449625"][B]Sub Prime Credit Card[/B][/URL][/SIZE][/FONT][/INDENT]

**kilasuit** · 16 February 2011, 04:35

Re: How to get back onto the Credit Ladder

i am awaiting may to come to apply for tesco again as i stupidly applied within their timeframe for spacing applications out.

could i apply for rbs plat as things stand above?

**Never-In-Doubt** · 16 February 2011, 04:56

Re: How to get back onto the Credit Ladder

[QUOTE=kilasuit;54111]i am awaiting may to come to apply for tesco again as i stupidly applied within their timeframe for spacing applications out.

could i apply for rbs plat as things stand above?[/QUOTE] I wouldn't, not unless you've waited 6 months (usually) since your last GROUP application (ie RBS is the same group) :winks

**TheTruth1** · 26 March 2011, 02:56

Re: How to get back onto the Credit Ladder

Hi Niddy

I'm new to the forum. This this is a fantastic thread! I am a British national who has just returned to the country after leaving to live abroad at the age of 17 (I am now 26).

I am now on a long term mission to build a decent credit history for my self from scratch as I have none whatsoever. I've never had credit in this country and I don't think I have ever been on a the voter's register prior to leaving back in 2002 so as you can imagine getting credit has been a nightmare. Here is my story so far and the plan.

[I]- November 2010 I applied to be registered on the voters register. I understand that this is fundamental in getting credit anywhere

- I have been in full time employment as of February this year and earn approximately 1500 a month after tax.

- After confirming I was on the register earlier this month I thought I'd try and get myself a bank account, and managed to get an advance account with HSBC just earlier this week. This will come with a Visa debit card which I'm quite pleased about.

- I don't think I will qualify for a even a Capital One Classic or a Vanquis so I've decided to go for a Freedom prepaid Mastercard with the Credit Booster option which should add some worthwhile regular payment history to my credit report. I'll get one of these and look toward trying out for a Vanquis/Capital One after 12 months.

After contacting customer services of Freedom and Cashplus (both of which offer the same credit boosting option) I've decided to go for the Freedom card because unlike Cashplus they update your credit file as soon as your first monthly payment has been made where as Cashplus only updates your credit file 90 days after you get your card. Also the Freedom card is about 1 pound a month cheaper at £3.95. I'll do this within the next 2 weeks.

- I am due to come into about £10000 sometime next month and plan to initially place it into my HSBC savings account (the savings account came with the Advance account) I am hoping to try and build a good relationship with HSBC and I hoping this will help some how.

- In June I plan to try and get a mobile phone contract. I am sooo scared of being rejected for credit and this showing on my file so I am going to go for something very basic. After doing some research it seems 3G are the easiest to get credit with so I plan on sign up for their Sim Only 1 month rolling contract for £10.

I'll probably try and upgrade to a better contract on another network sometime later?

- Come September I will apply for a catalogue. I read somewhere here on the forum how someone signed up just to buy something for a fiver and paid it off immediately, and this showed up as a nicely on his file.

- Next year, February 2012 I'll apply for a Vanquis/Capital One card and hopefully a year of regular payments via phone contract/prepaid card/catalogue and being on the voters register since 2010 should be enough to get me accepted.

- Summer 2012 I will apply for a HSBC credit card. (Although the guy who opened my Advance account did say I should come back and apply in 3 months, I know I'll be rejected so I'm not going to bother)
[/I]

So that's as far as I've got. My ultimate aim is to get a mortgage at least at around the age of 32/33 and possibly finance about 5000 to get a car maybe 2 to 3 years from now. So here are my questions to any one that can give me some help and advice

1. What do you think of the plan?

2. I am contemplating maybe taking out 2 prepaid cards instead of 1 to double the amount of good payments shown on my credit file. They don't do a credit check for these cards, just an I.D verification so I think getting 2 different prepaid credit booster cards may be a good idea. What do you think?

3. Is there any way I will be able to use my 10000 in savings to improve my credit rating or improve the relationship with my bank?

4. How likely would it be for me to qualify for a Vanquis/Capital One classic credit card in about 12 months time?

5. How likely would it be for me to qualify for a HSBC credit card in about 16 months time?

6. Any thoughts or ideas on any other ways I could improve my credit that I may not have thought of?

Thanks in advance!!

**MrsD** · 26 March 2011, 08:42

Re: How to get back onto the Credit Ladder

Niddy is on holiday but will be back soon.

This is not my area of expertise but I would just point out that there is no such thing as a good relationship with a bank, its business only and its one sided towards them, pay your money in and they'll be fine, get in to difficulties of any financial kind and they will stand on your face, keep this in mind, only use them for what you absolutely need to and you will be fine. Feel sure that I read somewhere that the prepaid cards were pretty nondescript when it came to credit histories but I may be wrong.

**TheTruth1** · 29 March 2011, 08:46

Re: How to get back onto the Credit Ladder

[QUOTE=evenlessdopey;63272]Niddy is on holiday but will be back soon.

This is not my area of expertise but I would just point out that there is no such thing as a good relationship with a bank, its business only and its one sided towards them, pay your money in and they'll be fine, get in to difficulties of any financial kind and they will stand on your face, keep this in mind, only use them for what you absolutely need to and you will be fine. Feel sure that I read somewhere that the prepaid cards were pretty nondescript when it came to credit histories but I may be wrong.[/QUOTE]

Hi evenlessdopey

thanks for your reply. Your totally right about the bank relationship, it is all business. I just thought keeping the savings with them could in some way help with a future application for a credit card or over credit products in showing healthy account status'?

Thanks again! :)

**Never-In-Doubt** · 30 March 2011, 03:45

Re: How to get back onto the Credit Ladder

[QUOTE=evenlessdopey;63272]Niddy is on holiday but will be back soon.[/QUOTE] Cheers - leave me all the long ones to deal with :lol :lol

(just messing!).... :pissmy :pissmy

**Never-In-Doubt** · 30 March 2011, 04:09

Re: How to get back onto the Credit Ladder

[QUOTE=TheTruth1;63263]Hi Niddy[/QUOTE] Hi & welcome :salute :salute

[QUOTE=TheTruth1;63263]I'm new to the forum. This this is a fantastic thread! I am a British national who has just returned to the country after leaving to live abroad at the age of 17 (I am now 26). I am now on a long term mission to build a decent credit history for my self from scratch as I have none whatsoever. I've never had credit in this country and I don't think I have ever been on a the voter's register prior to leaving back in 2002 so as you can imagine getting credit has been a nightmare. [/QUOTE] Well you're in a good position to move on - details below :beer

[QUOTE=TheTruth1;63263]
[I]- November 2010 I applied to be registered on the voters register. I understand that this is fundamental in getting credit anywhere

[/I][COLOR=Blue]Correct - well done....[/COLOR][I]

- I have been in full time employment as of February this year and earn approximately 1500 a month after tax.

[/I][COLOR=Blue]Ok, that helps in getting credit, naturally....[/COLOR][I]

- After confirming I was on the register earlier this month I thought I'd try and get myself a bank account, and managed to get an advance account with HSBC just earlier this week. This will come with a Visa debit card which I'm quite pleased about.

[/I][COLOR=Blue]Great news - HSBC still use behavioural scores so after 6 months all you need to do is go into branch and ask for an account review to see if you're entitled to any overdraft/credit card etc.... the system will auto generate a yes/no across all available credit...[/COLOR][I]

- I don't think I will qualify for a even a Capital One Classic or a Vanquis so I've decided to go for a Freedom prepaid Mastercard with the Credit Booster option which should add some worthwhile regular payment history to my credit report. I'll get one of these and look toward trying out for a Vanquis/Capital One after 12 months.

[/I][COLOR=Blue]Forget these prepaid things - waste of money. Banks and other lenders see what they are and really they are no reflection on your ability to manage credit being it is impossible to go overlimit with them. The fact they update credit files means little being the data recorded is usually disregarded in mainstream scoring. Just give it 6 months then apply to HSBC as above, then when you've got a full 12 months on the voters roll consider an application to capital One or Vanquis - the others will still be a little hard to pass at such an early stage...[/COLOR][I]

After contacting customer services of Freedom and Cashplus (both of which offer the same credit boosting option) I've decided to go for the Freedom card because unlike Cashplus they update your credit file as soon as your first monthly payment has been made where as Cashplus only updates your credit file 90 days after you get your card. Also the Freedom card is about 1 pound a month cheaper at £3.95. I'll do this within the next 2 weeks.

[/I][COLOR=Blue]Don't! See comments above![/COLOR][I]

- I am due to come into about £10000 sometime next month and plan to initially place it into my HSBC savings account (the savings account came with the Advance account) I am hoping to try and build a good relationship with HSBC and I hoping this will help some how.

[/I][COLOR=Blue]This helps with HSBC behavioural scoring - definitely speak to them about a high interest savings account, obviously it'd make sense to pay it in at the time you go for the account review (6 months of clear banking history) - so ensure you use HSBC as your main account and do not go overlimit or miss any direct debits...[/COLOR][I]

- In June I plan to try and get a mobile phone contract. I am sooo scared of being rejected for credit and this showing on my file so I am going to go for something very basic. After doing some research it seems 3G are the easiest to get credit with so I plan on sign up for their Sim Only 1 month rolling contract for £10.

[/I][COLOR=Blue]I'd hold fire for now, you'll need 12 months voters roll as minimum, as you now have a HSBC bank account, give it a year and you'll find credit a lot easier to obtain as a whole..... you need history, not worthless junk for the sake of it - remember that![/COLOR][I]

I'll probably try and upgrade to a better contract on another network sometime later?

[/I][COLOR=Blue]Just wait a year (i.e. 12mth HSBC bank records then apply for any contract, direct with the dealer (ie not via carphone warehouse/online adverts)...[/COLOR][I]

- Come September I will apply for a catalogue. I read somewhere here on the forum how someone signed up just to buy something for a fiver and paid it off immediately, and this showed up as a nicely on his file.

[/I][COLOR=Blue]Not true, you'll be scored the same as everyone and if you qualify then you qualify - regardless, if rejected they offer you cash payment or cancellation of order - they will not just give you credit to allow a small order. Don't waste your time with this nonsense - it's not going to help your credit long-term as you already have a full bank account with HSBC...[/COLOR][I]

- Next year, February 2012 I'll apply for a Vanquis/Capital One card and hopefully a year of regular payments via phone contract/prepaid card/catalogue and being on the voters register since 2010 should be enough to get me accepted.

[/I][COLOR=Blue]Don't be so hasty - but yea, around March/April 2012 i'd apply to vanquis & capital one.[/COLOR][I]

- Summer 2012 I will apply for a HSBC credit card. (Although the guy who opened my Advance account did say I should come back and apply in 3 months, I know I'll be rejected so I'm not going to bother)

[/I][COLOR=Blue]You could do this after 6 months have passed so technically you'd be looking at 6 months after the month of account inception so in October sometime....[/COLOR][/QUOTE] See my replies in blue, next to your points raised.....

[QUOTE=TheTruth1;63263]So that's as far as I've got. My ultimate aim is to get a mortgage at least at around the age of 32/33 and possibly finance about 5000 to get a car maybe 2 to 3 years from now. So here are my questions to any one that can give me some help and advice

1. What do you think of the plan?

[COLOR=Blue]see my replies in blue above![/COLOR]

2. I am contemplating maybe taking out 2 prepaid cards instead of 1 to double the amount of good payments shown on my credit file. They don't do a credit check for these cards, just an I.D verification so I think getting 2 different prepaid credit booster cards may be a good idea. What do you think?

[COLOR=Blue]Forget it - see my reply above regards to this. Pointless excercise and waste of money - totally.[/COLOR]

3. Is there any way I will be able to use my 10000 in savings to improve my credit rating or improve the relationship with my bank?

[COLOR=Blue]Yes, HSBC would allocate it within their behavioural score and it'd lower your risk band...[/COLOR]

4. How likely would it be for me to qualify for a Vanquis/Capital One classic credit card in about 12 months time?

[COLOR=Blue]Very - after 12 months of banking showing on your credit file, so next march/april yea - go for it....[/COLOR]

5. How likely would it be for me to qualify for a HSBC credit card in about 16 months time?

[COLOR=Blue]Very likely - see my point above about this.[/COLOR]

6. Any thoughts or ideas on any other ways I could improve my credit that I may not have thought of?

[COLOR=Blue]Nope![/COLOR]

Thanks in advance!![/QUOTE] See my replies in blue, within the above quote....

Hope the above helps, best of luck! :beer

**TheTruth1** · 30 March 2011, 16:22

Re: How to get back onto the Credit Ladder

Thanks! this is A LOT of help!!

So from what your saying my HSBC current account is my best asset in building my credit history and I should really just concentrate on running that perfectly and apply for an credit card and overdraft in 6 months?

[QUOTE][COLOR="Blue"][I]This helps with HSBC behavioural scoring - definitely speak to them about a high interest savings account, obviously it'd make sense to pay it in at the time you go for the account review (6 months of clear banking history) - so ensure you use HSBC as your main account and do not go overlimit or miss any direct debits...[/I][/COLOR][/QUOTE]

Sorry if the answer to this is obvious but, what is the advantage cashing the 10000 at the time of my account review as opposed to next month (April) when I receive these funds?

Overall I get the gist I've over complicated things a little for someone who has already got a full current account? I've ended up being bought into schemes like prepaid cc's and catalogues. Thanks for the advice NID!!

**Never-In-Doubt** · 30 March 2011, 16:43

Re: How to get back onto the Credit Ladder

[QUOTE=TheTruth1;64152]Thanks! this is A LOT of help!!

So from what your saying my HSBC current account is my best asset in building my credit history and I should really just concentrate on running that perfectly and apply for an credit card and overdraft in 6 months? Sorry if the answer to this is obvious but, what is the advantage cashing the 10000 at the time of my account review as opposed to next month (April) when I receive these funds?

Overall I get the gist I've over complicated things a little for someone who has already got a full current account? I've ended up being bought into schemes like prepaid cc's and catalogues. Thanks for the advice NID!![/QUOTE] Hiya

Pretty much spot-on, yes - HSBC is your best bet right now, well done for getting that. As for the funds, you may not get the best rate there that's why i'm saying it's only advisable to do it as a temporary measure, so if anything pay it all in and leave it until the 6mth period as this will boost your internal behaviour score immensely.

To give you an idea, someone random with no adverse credit would apply to HSBC and as a newbie, start with a behaviour score of say 40-50 (allows a normal bank account); then after 6 months of useage it'll go to around 55-65 which qualifies you for a credit card and overdraft. When you have these and manage things for a full 12 months (so 18mth in total) - your score would be high enough to get pre-allocated a loan, usually to around £10k.

Now, bear in mind what these behaviour scores mean is that you'll ONLY be pre-qualified subject to a credit check - however if there is a lack of data on the credit ref then the behaviour score can kick in meaning it passes you, whereas normally it'd have to decline you. So it kinda helps but only so long as your credit file remains clean. Lack of data (or accounts) will not matter too much with HSBC - adverse data will matter though.

Hope that helps to explain better?

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