Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk
What is your credit history? in simple terms your credit history is a file which records your financial health, for example it will record when you have applied for credit, how much credit you have access to.
If you have just moved to the UK, have just turned 18 it is possible you credit history would have much to show.
When you apply for credit such as a loan or a mobile phone contract the provider will look at your credit history to determine the level of risk you may pose. The lower your credit score is the lower your chances are of receiving credit.
If you have never applied for credit means you will have a low credit score which results in lower chances of receiving credit. If this sounds like a catch 22 situation it need not be. When companies lend money, they want to see a history of responsible borrowing, it helps them decide if you’re likely to pay them back on time.
There are simple and quick ways to build your credit history, for instance as soon as you can register onto the electoral roll if you have not done so.
You may have the best credit rating in another country but that will not count for anything here in the UK, you will have to start from the beginning even if you are an expat.
If you are looking for a loan here in the UK we would advise that you take a copy of your credit report in your current country and send it to your lender, this could help with your application
A Credit Reference Agency or CRA retains a credit report on your financial credit history using information they have access to, this can mean that there may be discrepancies between the various credit agencies based on which information they have about your credit history.
If you want to get a copy of your free Experian Credit Score by signing up with Experian you will get to see your up-to-date Experian Credit Report, and you will get personalised tips for improving your credit score and report alerts.
Here are some simple ways to start building up your credit score and greatly improving your chances of being accepted for credit.
Please bear in mind that some of these steps may take up to six months to start showing up in your credit report, but we advise that the sooner you start the sooner you can take advantage of having a healthy credit score.