# UK credit cards and credit history



## CuriousNow (Jan 10, 2013)

Hi all,

I just moved to London. Have got bank accounts set up with HSBC and Halifax.Wasn't that difficult for an EU national with apartment lease and council tax bill. I need to build my credit and after reading some of the posts here, have some questions. By the way I am self employed and will register as a sole trader but may set up a private limited later.
I did get on the electoral register today, after reading from this forum

1.My apt rental covers all utilities so I don't have any utility bills in my name.

2.I have a giff gaffe SIM card and pay 10 pounds for month for pay as you go. Should I sign up for a mobile contract to establish credit history? What carrier would you suggest if I live in North London?(for good coverage)

3. Can anyone recommend some credit cards that would take people with no UK credit history, secured credit cards or whatever you call those things?

Thanks for whatever help or advice !


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## punktlich02 (Aug 21, 2012)

CuriousNow said:


> Hi all,
> 
> I just moved to London. Have got bank accounts set up with HSBC and Halifax.Wasn't that difficult for an EU national with apartment lease and council tax bill. I need to build my credit and after reading some of the posts here, have some questions. By the way I am self employed and will register as a sole trader but may set up a private limited later.
> I did get on the electoral register today, after reading from this forum
> ...


If you have an Amex card, or if you banked with HSBC abroad (at least if you are a Premier customer, but you pay for that) you can get a UK card on demand. There are other, including US, banks that do that.

By and large, mobile phone bills aren't good for proof of address or much else. Another wrinkle is that many or most utilities bill online and charge extra for paper bills, and many or most demanders of proof of residence don't accept online bills. 

It used to be that your bank manager was the source of credit and credit reference but who has a bank manager anymore? The best connection may be your business banker (I would say "employer's banker" but you don't have one. Google this query: <establish credit quickly uk>. The Guardian advisor suggests not getting a store card (very easy to get because the interest rate is 30% or so and credit limits low) but I think it's not a bad idea so long as you never, ever carry a balance. I don't think you should deal with the crooks who offer credit to recent bankrupts. (I was once a bankruptcy lawyer.) Be careful about applying for too many cards or lines of credit at once--that counts against you. 

My kids had credit cards thrown at them at Uni. I had a Barclaycard in Britain years ago and I was just a tourist here. Things may be different now, but unless you know something I don't, I can't see credit as being hard to get. Especially if you fill out a direct debit mandate at the same time.

But, really, what do I know.


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## CuriousNow (Jan 10, 2013)

Thanks for your tips Punktlich02.

I dont have a Premier HSBC account should I be changing to a Premier account?


I will google what you told me

So which departmental store should I apply for a store card? John Lewis or any other suggestions?

Some people on this forum recommend getting a mobile phone contract, what do others think?

Thanks


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## punktlich02 (Aug 21, 2012)

CuriousNow said:


> Thanks for your tips Punktlich02.
> 
> I dont have a Premier HSBC account should I be changing to a Premier account?
> 
> ...


John Lewis is not a store card. It's run by HSBC on behalf of John Lewis. If you can get one, that's among the best UK cards if you pay it off -- 1% of JL purchases in points, 1/2% of out-of-store purchases. I've had one since they were first issued. Before that I had a Peter Jones card, (i.e. a store charge card but not a credit card, a pay-in-full type). 

Mobile phone: I have an iPhone that I bought for cash from Apple in California when I was visiting there. I have a monthly-pay O2 contract that costs me £16.50 a month and I rarely go over. But if you use yours a lot, look around. These days there are great prepay deals; my Swiss phone is one of those and the credit never expires (though the call charges are hefty when I do use it).


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## fsog23 (Aug 20, 2012)

My understanding (and experience so far) is it used to be pretty easy to establish credit, but not so much these days.

I'm not sure if it's different for you being an EU national, but I've lived here since February and thought the mobile phone contract was a sure way to establish credit only to find out that it was declined because you're required to be resident in the UK for two years - which is a requirement for establishing credit with any UK lender as far as I know.

The best advice I've been told is to ensure your bank account never goes into overdraft, use a Visa or Mastercard debit card and put your name on as many utility bills as possible ensuring they are always paid on time.

It's a tough situation because you want to apply to try and establish yourself, but denials will go against you so waiting it out is the better option in my opinion.

If you're interested, I was told by the guy at the mobile phone store that you can trick the system by just saying you've lived here for more than two years, but I've decided against doing that since I'm in the middle of the immigration process and don't want any black marks against my name.


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## CuriousNow (Jan 10, 2013)

fsog23 said:


> My understanding (and experience so far) is it used to be pretty easy to establish credit, but not so much these days.
> 
> I'm not sure if it's different for you being an EU national, but I've lived here since February and thought the mobile phone contract was a sure way to establish credit only to find out that it was declined because you're required to be resident in the UK for two years - which is a requirement for establishing credit with any UK lender as far as I know.
> 
> ...


Thank you fsog23 for your input.

I haven't tried getting the mobile phone account, but hey they might let me since I have an EU passport  I do like my giff gaff pay as you go account and won't get a contract unless IT IS RECOMMENDED for getting credit history established.

As for tricking the mobile company by saying that i have been a resident for two years, I am sure they will ask for previous addresses etc and also I have only been less than 3 months. I also recently (today) got on the electoral register.

Any others want to chime in on my original post ?


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## CuriousNow (Jan 10, 2013)

punktlich02 said:


> John Lewis is not a store card. It's run by HSBC on behalf of John Lewis. If you can get one, that's among the best UK cards if you pay it off -- 1% of JL purchases in points, 1/2% of out-of-store purchases. I've had one since they were first issued. Before that I had a Peter Jones card, (i.e. a store charge card but not a credit card, a pay-in-full type).
> 
> Mobile phone: I have an iPhone that I bought for cash from Apple in California when I was visiting there. I have a monthly-pay O2 contract that costs me £16.50 a month and I rarely go over. But if you use yours a lot, look around. These days there are great prepay deals; my Swiss phone is one of those and the credit never expires (though the call charges are hefty when I do use it).


What is a Peter Jones card? I will look into that. Did it help you to establish your credit history ?

Wonder what other store cards will help to get a credit history going.


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## ddang (Jun 21, 2012)

CuriousNow said:


> Hi all,
> 
> I just moved to London. Have got bank accounts set up with HSBC and Halifax.Wasn't that difficult for an EU national with apartment lease and council tax bill. I need to build my credit and after reading some of the posts here, have some questions. By the way I am self employed and will register as a sole trader but may set up a private limited later.
> I did get on the electoral register today, after reading from this forum
> ...


I got on a 12 month contract with 3G after only living here for two months. The only way I could think that was possible was because my husband and I have joint banking accounts. He was the primary holder on my contract then a month later we called on Three and switched it to my name. I thought for sure it wouldn't happen as they had to run a credit check but some how it worked. I still can't get a credit card in my name though which sucks... I hate having to build it up again.


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## CuriousNow (Jan 10, 2013)

I already got on the electoral register a few days ago.

1.So once again, can anyone tell me if getting a mobile contract will help me to establish a credit history??

2. Get a store card and if so any recommendations?



3. What other things can I do to start the ball rolling?


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