Ways to Establish Credit in the UK

I know there are a few older posts on this same subject but I was wondering if we could start an updated topic on this subject to include current (i.e. post credit crunch) info.  Can anyone give ideas on how to start establishing good credit for USC in the UK?  I'm in the UK on a spouse visa and I don't work so I'm wondering how I'm supposed to start establishing good credit when I have no income.  I'm actually finding it difficult to even open a bank account due to lack of monthly income.  Even getting ridiculous department store cards usually require a minimum residency term.  My hubby has excellent credit and we'd like to buy a house in 6-12 months and I'd like to have my name on the mortgage...but don't want no credit on my part to pull our join credit rating down or make our interest rate higher.

Hi .. Shrubs!

Currently, the same sort of practices to start building credit in the UK are the ones to go for, nothing as yet has really changed. So it'll be a case of getting a mobile phone by perhaps paying a larger up front deposit, persuading the store's to give you a chargecard, asking the banks for a very low limit credit card and then being disciplined in paying back each month etc etc.

do you have an American Express card issued in the US? if so, transfer it to Amex UK and they'll start submitting information to the credit agences right away - pending of course you've got good history with them! - as i've mentioned previously, that would be a good shot in the arm.

Lending is going to be much tougher from this point on, I think gone will be the days of credit and large mortgage multipliers etc being thrown around like water. To get the very best rates I think will require substantial deposits.

Things have softened a little recently though, as less and less people are wanting to go for big ticket items like mortgages and house purchases, they're trying to shore up some interest, but it's still very very little. Most people are putting off purchases like this becuase they simply don't know if they'll have a job in 12 months time.

Speak directly to Experian and Equifax to see what they suggest and if theres things you coul dtry in your situation.

I have been reading that the USA credit system is thinking of some shakeups including extending credit by getting an extra card, which sounds crazy from the current information usually given, however post economic meltdown things have changed for many people so the credit scoring system is probably going to change as well, perhaps those changes will filter down to the UK as well, but nothing as yet.

Depending on your individual circumstances, look very carefully at the potential property purchase, the UK will be the very last of the G8 or G20 to pull itself out of the mire with this insane level of debt we have as a whole, and this mire is potentially going to cause another marked downturn in proerty pricing ie another crash, before values start to fim up again. This is likely to occur in the short term for th crash over the next 12months or so, with the gradual firming up of pricing over the next 3-5+ years or so. And that's of course IF it happens Who knows, if there's no second crash, then pricing will continue to rise and lending won't match leading to a shortage of properties for sale and firmness and increases in asking prices. If the crash does occur, it will invariably be tied in with job losses etc and lending will be further curtailed.

Interest rates cant't go any lower, they'll only go up, so you've got to look even more closely to a house purchase.  Increase your credit rating and keep talking to the banks, building societies, mortgage brokers, the credit angencies, and save as much of a deposit as you possibly can and then look at the right time at what the market is doing etc.

Also, where abouts would you be condisering to buy a propoerty and what type etc?

Cheers, DtM! West London & Slough UK!

Is your name on any household bills? If not get on them. Also, if your husband has any credit cards, see if you can be added as another cardholder. If you are on a joint bank account with your husband, you may even be able to get a low limit credit card through them.

I got a UK American Express because I was a member in the US. I still had to provide a copy of my bank account inorder to get the card.

Getting the bank account was fairly easy, just went in with my husband, he "introduced" me to the bank. I didn't (and don't) have a job, but told them that I was looking for a full time job. I put some of my savings into the account to get the ball rolling.

Also, if your husband has any credit cards, see if you can be added as another cardholder.

Here, that's not going to do anything for her credit-wise.  She might obtain an authorised card (her name on the card) on his account for her to use for purchases, but it's still his account, reported on his credit record, and nothing to do with her credit record.  Credit cards in the UK are single name, never joint, for who is liable/responsible for paying the account - and whose credit report it goes on.

Other suggestions on the thread are helpful - mobiles, household bills, maybe a joint overdraft/bank account, etc.  Maybe see if you can get a small line of credit with a catalogue?  Or possibly a low limit store card?

When we bought our house, it was solely on the merits of my husband's credit, and I only had FLR at the time.  We went through the whole process based on his salary/credit/etc and when it got to the legal bits, we said that we wanted my name on the title to the house along with DH's name.  The lender said - fine, as long as we also put her name on the loan.  We said, fine - put my name on.  I don't even think they ran a credit check on me, or if they did - it certainly showed nothing, except maybe our joint bank account that has an overdraft privilege.  (We also put 1/3 of the purchase price as a down payment, so were only borrowing 2/3 value, maybe that helped?)

However, that was 5+ years ago, and they may be more strict about stuff now.  Still it's worth a try if you can find a lender who isn't particularly awkward about it.

Thanks for all the suggestions guys.  Currently my name is on nothing.  We inquired about adding my name to his AOL and BT accounts but were given some excuse why it couldn't be done (which was so ridiculous that I can't even remember what it was...I chalked it up to laziness on their part).  I think things in our personal lives got a little hectic after that so the whole thought process of establishing credit got pushed to the backburner.  I'm pretty sure British Gas would allow the gas and electric to be put in my name since they are currently marked to 'occupier'.

As for department cards, I've checked several places online and most require 12 months of residency...so that's out for now unless someone has a suggestion for a specific store that doesn't require that.

As for banking, I just need to look around a little more.  We contacted 3 or 4 different banks initially but I was immediately refused due to not having a monthly income.  I'm pretty sure they were all checking accounts...perhaps savings accounts have different requirements?  I have a bit of savings in my US account (which I will be keeping) but I could transfer some money over to get it started up.

I use a prepay mobile because I get calls to the US for £0.02/minute and I haven't found any contracts that come close to competing with that...but it's good to have as a possible option to help speed things along if I need it.

I remember reading most of this from before I moved to the UK...I had just forgotten most of it since my focus has been redirected lately.

An FSA (Financial Services Authority) flyer on basic bank accounts:

http://www.moneymadeclear.fsa.gov.uk/pdfs/bank_accounts.pdf

Print out a copy.  Pick a bank (see page 6 of the flyer).  Follow the instructions in the flyer - make sure you have the relevant IDs, proof of address, etc as indicated.  Go into the bank of your choice.  Say you want to open a basic bank account - ask for the account product by name (the names of the accounts are on page 6).

If the bank refuses to open the account for you, ask to speak to the person's supervisor or a manager.  Tell them that their bank has publicised to the Financial Services Authority (FSA) that they will open a basic bank account for you as long as you aren't disqualified by one of the 'reasons for being declined' (see page 6 again), usually history of fraud or undischarged (UK) bankrupt.  Then ask why the bank is refusing to open a basic bank account for you, when they have publicised to the regulatory authorities that they will. 

Bear in mind that a basic bank account will not have overdraft or cheque writing privileges - again see page 6 as to what is offered for each bank's basic account.  But it's a place to start if you can't start anywhere else.

If your husband has an account somewhere, they might be willing to set up a joint account for the two of you together.  That's what we did.

You're in Wakefield, so not sure if that falls into Leeds catchment for this, but you could certainly query:

http://www.leedscitycreditunion.co.uk/index.asp

to see if you can open an account there!  Credit unions are a good option!

If you have a Citibank credit card, they'll also transfer your credit to the UK. I just faxed the form in to do that yesterday.

I applied for the AmEx transfer, and they haven't asked me for bank account proof yet - they say they want a certified copy of my passport, and that's it.

Also, I would try Lloyds TSB. I showed up here last fall (on a visit, so no job/permanent address) and they gave me a current account (with overdraft) and a savings account based on my passport (UK, but they said they'd have accepted my US one as well).

Good luck!

Thank you for posting this. I'm starting to collect info on how to get this going after we move this summer. DH and I are both coming in with a blank slate, credit-wise, and it is all a bit overwhelming to start from scratch.

Just an aside Shrubbery, what prepaid mobile plan do you have that has a 2p/minute the US?? 

For catalogues - there are loads of them:  Littlewoods, La Redoute, etc.  Buy yourself some clothes!  Heee!  (you can shop them online, but once you're on the list, you'll get paper catalogues & flyers through the post)

I recently ordered £18 worth of stuff from La Redoute & paid for it outright.  Today, I got a mailer from them telling me that I have credit privileges (not that I'm planning to use them).

So that is worth a try. 

This wont work for the OP since she doesnt work, but for others reading this, Barclays offers a card which they specifically say is suited for (among other people) those who are new to the country.  You must have a permanant UK address for over 3 months and have regular income of over £10,000 annually. The interest rate is high, as you would expect, but assuming its being used to make small purchases and then pay off immediately, you wouldnt have to worry too much about that.

My phone contract helped so much with my credit report in a good way.  I did have to pay upfront a deposit, but it was worth it (got it back after a year). 

Which phone companies do contracts with a deposit?

I got one with Orange. The deposit is for the phone rather than the contract.

I got one with Orange. The deposit is for the phone rather than the contract.

I did the same...Orange. (Plus they are a decent network)