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Credit Cards To Build Up Credit History

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Hello

 

Does anyone have any recommendations for a credit card for an individual who hasn't ever had one before but is looking to build up their credit history? 

 

They have a good salary and will pay off the amount each month. Ideally it would be an account that is easy to set up and can be set up/accessed online. 

 

Thanks

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Think there all the same you got to borrow money and pay it back to get a credit history . I always paid cash for things never had to borrow so no credit history  they wouldnt let me have a mobile phone ring a bank up ask em best way if youre paying having money such as wages paid in each week may help ask /   Had to get my sky phone through wife load rubbiish

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3 hours ago, spider1 said:

Think there all the same you got to borrow money and pay it back to get a credit history . I always paid cash for things never had to borrow so no credit history  they wouldnt let me have a mobile phone ring a bank up ask em best way if youre paying having money such as wages paid in each week may help ask /   Had to get my sky phone through wife load rubbiish

It's not rubbish at all. It's common sense.

 

Lenders make their decisions based on an assessment of risk. If they are going in blind to someone who has no credit history many will be reluctant to lend or for those that do - lending is very limited to an initial low value credit limit often with a higher interest rate until they are satisfied that the card holder can be trusted and has the regular means to pay.

 

Let's face it it's all just algorithms really.  As long as someone has a credit card in their name over many years which remains either a low balance or clean balance it will still enhance their credit history, build it up and shows their responsibility which opens the doors to more frequent, available and better value credit in the future.

 

That goes for mobile phone accounts, TV packages, utilities, catalogues and anything else which involves a deferred or rolling payment.

 

It's a part of modern life and people who sit there insisting on clinging on to paying cash for everything and not letting "the man" snoop into  their business unfortunately get left behind.

 

In answer to the original post Capital One have a simple credit builder card with a low £300 limit which is good for establishing records. Either that or they may wish to try their own bank if they've been with them for a while as they will already have sight of their expected and regular earnings and may be keen to offer them additional services.

 

As with all these things, my trick would be to buy something low value and regular that would normally be paid for out of their current account e.g. the weekly food shops and then pay it off as soon as the the statement comes in to avoid interest. Keep doing that for a few months and credit score will start to increase.  There is no harm in having a card there just in case. Even with a low value they are useful particularly in giving extra protections when purchasing online or for some types of credit card they offer zero fees when spending in a different currency abroad.

 

Back in the days when we were allowed to travel abroad I used to do that quite a lot on holiday instead of messing around taking wads of foreign currency. 

 

Edited by ECCOnoob

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I’ve used Tesco historically which has been good, also recently had a Virgin one and the app is really user friendly.

My advice would be to put as much of your monthly outgoings on it as you can, the more you spend (and pay off) the better your credit score.

I started a new job a few years ago which involves a lot of travel so I regularly put between £5-£7k per month on my card, it was noticeable after a while how much easier it was to get better loan deals and fast acceptance for any sort of credit. 
If you worry about paying if off as you have to wait for the statement to come through, you could transfer your monthly budget to a separate account so it’s put to one side.

 

 

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Posted (edited)

Yes, get the Capital One credit card. Buy something on CC, but pay the  whole amount early.

 

Get the Saintsbury or similar CC, Argos card and repeat the process above.

 

In about 2 year your credit score will go through the roof.

Edited by croat77

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On 29/12/2020 at 14:02, Janus said:

Tesco bank is operated online and over the phone. They have a banking app . Club card points when you use the card.

https://www.tescobank.com/credit-cards/rewards/

Tel: 03458353353

I use a Tesco CC for years for all daily purchases.  I pay my bill off when it reaches £200 and get money vouchers back every quarter or so (about a tenner).

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I always use Martin Lewis' website - Money Saving Expert. Loads of info and advice.

 

You can also join his free Credit Club which tracks your credit score and history. It's not perfect, but gives a good indication of how successful you'll be when applying for credit.

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