I recently moved to the UK. Should I do something to build up my credit history?

[msangi]

Hello,
I recently moved to the UK and I'm a bit afraid by my lack of credit history.

At the moment I am not needing any credit nor I foresee I'll need it in the near future but at a certain point I'd might ask for a mortgage and I guess having some credit history could be handy.

I was thinking at getting a credit card, do some payments with it and make sure I always pay everything off on time so I won't have to pay some extra fee. Does that make any sense?

[daverobev]

Yes, get a credit card, pay in full.

For a mortgage proof of income and all that is very important.

You might want to try a secured card or a card with whoever you bank with. Capital One have stuff for people new to credit.

The other option to jumpstart is if you have an Amex in your previous country. They do a global transfer program that is very helpful.

[msangi]

Thanks for your reply. I've never had an Amex so I'm going to apply for a card with my bank.

In other discussions I found online I see that there is a consensus I should use somewhere in the range of 20%-40% of the credit limit. Would it be a good practice?

[UnleashHell]

I'd check to see if amex is accepted wherever you are doing your grocery shopping. then just pay for all your shopping on that and paying it off each month.  if you can get a card that gives you a % back of your spend then better still.

I had a similar problem years ago when I moved to the usa. I ended up getting a car loan in order to get dredit. I needed a car anyway but the rate I paid because of no credit in the usa was usary at best! better to get a card and pay it off each time!!

[daverobev]

Less than 30% but more than 0% gives the most, but remember the utilisation stat is for that month only; if you are at 90% then pay it all off, by the next billing cycle it's all good.

AMEX is accepted at all the main supermarkets in the UK.

[theonethatgotaway]

The good news is that if you have a decent income, you can go to your local bank and they will approve a credit line to you based on that.

Also, credit in the UK is also tied to your home address.

[msangi]

Thanks for all the advices. I'm going to apply for a credit card soon. And of course I'll use it in the most moustachian way possible :)