Building Credit in the U.K.

Almost the same as my last post but here it goes anyways...


So since I have debt and bad credit here in America.. after I move to England.. is it going to be impossible to build credit in England? You don't need credit to rent in the U.K., like you do in America? Its ridiculous that you do in America.. I got lucky.. I moved out when I was 20, and the only reason my landlord didn't look at my credit is because I'm an Electrician, and he wanted work done, ha ha.

Thanks!

Sean

I'd suggest starting with a basic bank account (no frills, no overdraft facility, etc) to start once you're over here.

http://www.hmrc.gov.uk/leaflets/fsa.pdf

At some point, the bank will probably offer you an upgrade that would include some overdraft facility.

You might also try doing some small catalogue orders to begin - this is fairly common & easy to do over here.  Same thing with store cards, but beware the high interest on these if you carry a balance on them!

Good luck!

Many letting agents will demand credit - there are lots of threads on this.  For example, I had to get my mum to go guarantor on my rent because I am self employed, which effects my credit rating.  Many others who have just moved here have had to put down six month deposits.  It depends on the individual letting agent or landlord.

Vicky

I can second what Vicky said, lots of landlords do require a credit check.  Since I was new to the country, I had to have my BF act as a gaurantor, even though he wasn't moving in with me.   I think it's completely fair that they require credit checks, if there is a chance you won't be able to manage your money and not pay rent for a few months, they will be screwed.  Here in the UK, I understand it is pretty difficult to get a bad tenant out of a flat. 

If you are moving over here to be with a partner, make sure their credit is good enough.  If you are moving for a job, maybe get your employer to write you a letter of reference. If you are moving over on your own....maybe a family member could be a gaurantor?

It will take a few months to build up a credit history here...
Open a bank account.
See if they will give you a credit card.   If not right away, try again in a few months.
Open some low limit store credit cards if possible. 
Make sure to pay your utility bills on time.  That will definitely help your credit check.

I'd suggest starting with a basic bank account (no frills, no overdraft facility, etc) to start once you're over here.

http://www.hmrc.gov.uk/leaflets/fsa.pdf

At some point, the bank will probably offer you an upgrade that would include some overdraft facility.

You might also try doing some small catalogue orders to begin - this is fairly common & easy to do over here.  Same thing with store cards, but beware the high interest on these if you carry a balance on them!

Good luck!

so are store cards somewhat easy to get? ive never been able to get one in the us..

my dh put me on his evans mastercard as an authorize user, willthat help? but he has the card as i would get loose with it and charge it well out of proporation! lol.. where did u guys first get ur store cards from?

my dh put me on his evans mastercard as an authorize user, willthat help?

It'll give you a card to use, but won't help you establish your own credit.   DH did the same thing with his egg card when I first moved over and wasn't allowed a bank card - that way I could withdraw cash and make purchases using a card with my name on it, but it was still his account and his credit history.

so are store cards somewhat easy to get? ive never been able to get one in the us..

A lot of store cards are branded Visa or MasterCards and so aren't that easy to get. I think what people are referring to is a catalogue account. Try Next or LeRedoute or Littlewoods. You won't actually get a physical card, but you'll have an account to use on their catalogue purchases. And they're VERY easy to get in my experience.... Check their websites - I don't know if you can open an account without making a purchase....

I opened an HSBC bank account no problem when I arrived--although i was only given a Solo card at first with no overdraft.

I opened an HSBC bank account no problem when I arrived--although i was only given a Solo card at first with no overdraft.

That's the place to start. I opened a Halifax account with relative ease when I first came over. But it was only after about a year of monthly deposits that they gave me an overdraft and then a credit card. It takes time to get started, but once you're started you can build it really quickly. I've been here four years and I have more credit cards than I should have ( ) and a car loan.... Next stop... a mortgage!!!

A Next account is pretty easy to get - I got one on virtually no credit.  I've also gotten a Tesco credit card with very little credit history in the UK.

thanks guys for the help! does next have plus size clothes? i did apply for an evans account but didnt get it... anyways i have a current account with halifax, and i gt that when i was here on a vistors visa....but it was hard to be honest! my dh has excellent credit, so i hope i can follow him lol...