How to start building credit?

So obviously when us expat Americans come over to the UK, we've got no credit history. I've tried to start building credit by applying for a store card, but I was rejected because they say I have no credit. So how are you supposed to build credit if you've got none to begin with? Any suggestions?

I was able to qualify for a UK AmEx card based on my US one, so if you have an AmEx, that's a good route.

After over a year of banking with Lloyds, they approved me for their credit card based on my money management ability. I have been refused for all other cards, though, so I think at this point it will just take time to establish a longer-term credit history.

I tried applying for a special card geared towards people with bad/no credit, and was denied that one as well. I looked into secured cards briefly, but didn't find any that would help establish credit history (i.e. report back to the credit agencies). That doesn't mean none exist, though.

I also had the best luck with my bank.  After about a year of being here, they offered me a variety of credit options including a loan, which I took out to pay off a credit card in America.  Since then I have been approved for a store card as well.

You may find this thread useful:

http://talk.uk-yankee.com/index.php?topic=61537.0

Hi,

There's a number of topics within this section about this, so do have a read through of those as the basics are pretty much the same. Get a Pay as you go mobile phone contract, tesco club card or anything which is easy to get started with no credit history. purchase regularly etc and build up a relationship with those companies. You might also look into stumping up front the cost of a mobile phone handset so that the companies give you a monthly rolling contract and then later a full 12 month one. It's the longer term money managability the credit agencies score you on. Get an account with credit expert http://www.creditexpert.co.uk/ and look at their various guides on how to build credit. Getting on the electoral register is a very good enhancement, but I know it's more involved if you are American (or foreign) and not a British Citizen etc.

If you have an American Express account in the USA, they'll gladly transfer your credit history internally to the UK offices and they will also begin to report to the UK credit agencies to help boost your rating.

There's more nuances recently as the financial markets and companies try to come out of the financial turmoil, one aspect I'd suggest is to get a pre-paid credit card, perhaps from PayPal, and operate that card for some months and then give them a call to see if they'll allow a small limit £100 or £250 say on a normal credit card from them. Another thing would be to perhaps buy something you can afford right now, but put it on a say 6 monthly payback scheme, interest free hopefully. Another aspect is that you are looking for accounts on your credit history which show as 'Settled' - this means you've had some sort of credit and have successfully settled the account.

When you see your credit report, you'll see the monthly markers system showing how many months you paid without being late etc. Things to watch out for are not to make too many formal credit applications and not to miss payment dates.

By monitoring you report each month and making changes accordingly, you'll start to build that history. It's tougher than it used to be since lending practices have been tightened, but be patient and it will work for you.

Cheers, DtM!

Just FYI: 

One of the big reasons at this point for not having credit will include the fact that they can't verify who you are/where you live, which they do by checking that you registered to vote.  Obviously, if you aren't a Citizen, you can't vote.  So run - don't walk - to your credit history report, and find out how to submit a Notice of Correction.

Your Notice of Correction should say something to the effect of "I (name) am not on the electoral poll because I am not a Citizen of the UK.  I am a resident of the UK and have a visa."

Then, make sure your information is correct and check it monthly.  After I made this change, my credit report jumped from Poor to Fair in one month.  You'll still have other things to do, and alot of places online require you to have lived here for more than 2 years, but its a good start.

Keep in mind when you add a note to your credit report (as least this is what Experian told me) you will not be able to be approved for on-the-spot credit (immediate approval) as they will always have go to back and check what the note is.

I too was going to ask this question, glad I found this post. I'm going to look into getting an AM EX card to help with this transition.

Keep in mind when you add a note to your credit report (as least this is what Experian told me) you will not be able to be approved for on-the-spot credit (immediate approval) as they will always have go to back and check what the note is.

I had Experian put a note on my credit report about me not being on the electoral roll as well. I recently applied for 18 months of interest-free credit at Best Buy for a new tv. (buying my husband a 58" plasma tv  )When the guy put my application through the computer, it prompted him to call whoever. And he was on the phone for literally 10 seconds and was told that my application was approved.

Sheriam, I could hug you.

I looked for ages for a credit card or a store card - turned down everywhere. I finally got one from M&Cos and I about hugged her too. She looked a little frightened.

Sheriam, I could hug you.

I looked for ages for a credit card or a store card - turned down everywhere. I finally got one from M&Cos and I about hugged her too. She looked a little frightened.

 

Sheriam, I could hug you.

I looked for ages for a credit card or a store card - turned down everywhere. I finally got one from M&Cos and I about hugged her too. She looked a little frightened.

ROTFLMAO!

Hey...I take hugs!

Thanks to everyone for all the good information here - especially the tip about how to address not being on the electoral roll.

For me, I figured the best place to begin was at the beginning, so I went online to Experian and requested a copy of my credit report. It was not immediately accessible, however (probably due to the fact that we moved/changed our address 2 months ago) and I received an email from them requesting that I send them a copy of my birth certificate or passport together with 2 original pieces of mail (utility company bills, etc.) to prove my identity - which I did today.

I don't want a credit card (been there, done that back in the US), but I suppose it's a necessary evil over here just like it is in the US if one wishes to establish credit.

Yeah. Credit is credit. A credit card is only one type.  Anything from loans to mortgages...even certain jobs! require a look at your credit history.

Yeah. Credit is credit. A credit card is only one type.  Anything from mobile phone plans to loans to mortgages...even certain jobs! require a look at your credit history.