Building Credit in the UK?

My fiancé and I have set our wedding date in October 2009.  Now that the date is settled, I'm trying to figure out the practicalities of actually moving to the UK.  I have excellent credit in the US, but from what I've read on this forum, that does bupkis for me in the UK.  I've spoken with my fiancé, and I'm not sure that he has any credit since he's never bought anything on credit, has never bought a house or rented a flat and doesn't have an overdraft on his sole bank account.  In fact, I don't think he's ever had a bill in his name.  Even his mobile is pay as you go.

I want us to be able to rent a flat of our own right away, and based on what I've read elsewhere on this forum, having good credit will help that process.  I know how one goes about building credit in the US, but I'm not sure if the same process applies in the UK.  Any advice would be greatly appreciated.

Also, I'm assuming that I can't build credit from the US.  Is "piggybacking" on my future DH's credit a possibility like it is in the states?  That is to say, can I improve my credit rating quickly by having DF add me to his credit card once we're married?

Hey there,

We are  in the EXACT same position. Does anyone have any insights into this topic?

Thanks,

Martin

Ways to start building credit here in the UK:

- Having an overdraft on a bank account (if you can get overdraft privileges, which isn't always possible for everyone right at the first)

- Get a catalogue account going (La Redoute, Additions, Littlewoods, etc etc)

- Get a store card account (Next, Topshop, Evans, etc)

Having your British partner 'add' you to his UK credit card account isn't going to really do anything.  There aren't 'joint' credit card accounts in the UK - credit card debts are solely registered here.  Although you may get a card printed in your name to use on his account - the account will still be solely his, in terms of its registration and the obligation for it to be repaid (by him alone).

I didn't have any credit when I moved here, but DH's credit (although minimal because he's never used credit cards) was good.  His bank set up a separate joint checking account for us which has overdraft privileges.  We also got a joint mortgage in the first year - on the basis of his income & credit.  I imagine I must have good credit on the basis of the overdraft & the mortgage, because I routinely get credit card offers - but neither of us use credit cards, so it's a moot point.

you should be able to get a contract mobile without too much trouble which should build credit- you may have to pay a deposit up front, though.

Hi there,

Some points to think about for when you're both here and in the meantime for him to 'start' building credit here in addition to what's been mooted so far

1. Get him registered on the electoral roll - once you are here, you as well.
2. Get a 'pre paid' Credit card and start to use it - Paypal for instance do one.
3. Speak to the bank and see if they'll allow him (and you once your here) a credit card with a very very low limit - £250 lets say. The trick here is to buy something say £150 worth in the first few months and ENSURE it's paid off before the end of the month, if you can work an element of your budget in that figure to 100% make sure that happens, the credit agencies will like it!
4. If he can get a mobile phone contract say at a tariff of £10 or £15/month that'd be helpful in building a rating - ensuring he pays it every time and regularly.
5. Having a BT telephone line also helps - having a phone line attached to a physical location/address where it's 'likely' you or him can be expected to be reasonably contacted will look favourable to the credit agencies.
6. Don't apply for 'too' many store cards and credit cards and any loans etc - the amount and frequency of applications and possible rejections is noted - stay sensible here
7. Other elements can help, for instance if he puts the electric bill, or Internet service bill in his name at the address and pays in full regularly with no defaults they'll all help.
Other elements apply if you have existing accounts and debts etc - and from what you've said he has none of those at the moment in his name. When you do marry, it's wise from a financial point only to maintain separate accounts where possible, becoming 'financially' linked to another person can have adverse effects on your rating and vice versa - obviously this element is personal to you but be aware of it i.e if one person does have a poor rating (for whatever reasons!) then it'll affect you - do some reading up on this.

With the store cards thing - be very careful to pay off as much as you can if not the 'full' amount, the interest and APR charges they have are extremely high, but use them carefully and they can help your rating.

In a nutshell, you are trying to maintain a stable and good repuation in that you are careful with your money, debts and repayments.

hope the above helps!

Cheers, DtM! West London & Slough UK!

1. Get him registered on the electoral roll - once you are here, you as well.

I'd agree about getting him registered.  But I wasn't aware that a person could register for the electoral role, unless they are entitled to vote here - i.e., British citizens, and residents here who are citizens of the Republic of Ireland, Commonwealth and European Union.

Oops!

I've 'assumed' the OP was getting hitched to a UK fella! - seeing as that's quite a popular thing to happen it's kind of ingrained in my mind here!

apologies to the OP for assuming that!

Cheers! DtM! West London & Slough UK!

I've 'assumed' the OP was getting hitched to a UK fella! - seeing as that's quite a popular thing to happen it's kind of ingrained in my mind here!

I think she is - so he (the UK citizen) could most definitely be registered on the electoral roll, if that is indeed the case.  But she (if she is a US citizen, which I think she is) would have to wait until she has British citizenship to register for voting --> electoral roll.

I wasn't aware that a person could register for the electoral role, unless they are entitled to vote here - i.e., British citizens, and residents here who are citizens of the Republic of Ireland, Commonwealth and European Union.

That is my understanding as well.  Also, it can be difficult to impossible to get a bank account, with or without overdraft, much less a credit card, before you have a place to live.  This is because you need to show proof of address, generally in the form of a utility bill.  This is the problem I'm having at the moment, since I'm living with the in-laws, so can't get my name on the utilities. 

You're right in that the best of credit ratings in the US means absolutely nothing in the UK. Sad, but true.

What you can do from the US --
1. Get an account with a bank that also has branches in the UK. i only know of HSBC. Anybody know of any others?
2. Make sure you get a debit card for your US bank account so that in a pinch you can get cash from an ATM.

Once you are here --
1. For a flat, look in local papers for private landlords. My experience they don't ask a lot of questions as long as you pay a deposit and always pay on time.
2. Do follow the other poster's advice to get one of those secured credit cards. It'll have a paltry limit, but it's better than nothing.

Hope that is of some use.

From another thread...

We actually wound up waiting a lot longer than we needed to after we arrived (we waited until we had proof of address since most banks ask for it), but we went to Lloyd's on Wednesday and opened a joint account with just our passports.[\quote]

That reminded me that a friend who is a student said she was able to open an account with Lloyd's soon after arriving in the UK. It's worth a shot.