Build a Credit Rating in the UK↗
It’s unlikely, when you are new to the UK, that you will have a UK credit rating because you will not have had any debts or credit history in the United Kingdom. As a result you may be refused credit by many British banks and credit card companies. This can be frustrating, as a credit card is often an essential part of modern life, allowing you to shop online, spread large unexpected expenses over time or even to keep in hand just in case of emergencies.
Even if you have been living in the UK for some time, for example if you were studying in the UK, you may not have a credit record because you have not borrowed any money. You may be in a similar situation after relocating to the UK.
Just because you have recently arrived in Great Britain and have no credit rating that does not mean that you may not be able to get access to credit. You can apply for a Vanquis Bank Credit Card.
Vanquis is willing to consider applications for credit cards from people who find it difficult to get credit elsewhere, including those new to the UK. Starting with a responsible credit limit that is intended to match your ability to repay and manage your debts, Vanquis could be your first credit card in the UK.
Vanquis Bank, as part of a UK financial services group, is based in Chatham, London and Bradford, Vanquis has helped over 3 million UK based persons access credit+.
New to the UK: Credit Cards for people with no credit history
According to the Office for National Statistics some 566,000 people arrived in the UK in the 12 months to December 2011.
A new arrival may have no banking history or no credit history in the UK. This can make access to bank accounts and credit cards difficult because the person has no history of having borrowed and repaid money in the UK and no history of being registered at one UK address so there is little information on a credit file that banks can use to assess a person’s creditworthiness i.e. no credit rating to evaluate.
There is little substitute for building up a history of being responsible with credit in the United Kingdom. New arrivals can start to build a credit rating using a credit card like Vanquis, provided that they repay at least the minimum payment each month and remain within credit limits.
Building your Credit Rating Before Arriving in the UK
Unfortunately, even for a person with a good credit rating elsewhere, a credit rating is generally not transferable between countries. On some occasions, a person with a good credit history with a bank abroad may be able to obtain credit from a branch of that same bank in the UK. For example, by borrowing and repaying money from a local branch of an international bank that also has branches in the United Kingdom, the local bank manager overseas may provide a reference to the UK branch manager. However, this option may not be feasible for everyone.
Vanquis will consider applications from people who do not have an established credit history in the UK, and responsible use of the credit card can help build a UK credit rating.
Steps to building your creditworthiness in the UK
As well as using a credit card to build a credit history in the UK, some general tips include:
- Register on the Electoral Roll (if eligible)
- Ensure utility bills are in your name
- Make sure all bills are paid on time