How do i build a credit history?!

kenny · Joined: 05 Dec 2006 Posts: 2

Its CRAZY!

I have just tried to get a loan to go traveling, but i have been completely refused because i dont have a credit history! its sooo ridiculous! i dont have a credit history because i have always been careful with my money and not taken out credit cards or store cards?!

Is the only way to get a credit history through having store cards etc? How long will it take to "Build a credit history"?

Im soooo peeeed off, i cant believe it!

Andrew · Posted: Tue Dec 05, 2006 1:32 pm Post subject:

Kenny,

You could do worse than read this article from "This is Money".

Our downloadable guide to credit rating may also help.

All the best,

Andrew

Loz · Joined: 05 Dec 2006 Posts: 4

Is there anywhere when you can see your credit rating for free?

Thanx

Caroline · ClearDebt Advisor Joined: 27 Nov 2006 Posts: 10

If you click on the link to the "this is Money" article above, there is a link to your Experian credit report.

It is a 30 day free trial so make sure you cancel it after the 30 days or you will be charged!

x

kenny · Joined: 05 Dec 2006 Posts: 2

Thanks Andrew,

I've mailed the loan company asking for a review of my application and taken out a credit card which I will use for my petrol and pay it off each month. Ill see if things have improved soon.

Any ideas how long till i've got a good enough rating to get this loan?

Kenny

Andrew · Posted: Fri Dec 15, 2006 4:45 pm Post subject:

Try again in 3-4 months (that's probably a realistic minimum). Longer would be better. Oh, and don't pay off the entire amount in one month - but do pay it all off the month after... That MIGHT help too. The banks are after profitable customers almost as much as they want good ones!

Meanwhile, try putting aside AT LEAST the amount you are going to have to pay every month on that loan - just to convince yourself you can cope with the repayments when you get back.

Have you thought how you'll finance the payments whilst you are gone?

All the best,

Andrew