Research from Experian, the global information solutions company, has shown that a consumer without credit history may encounter difficulties due to the fact that lenders have nothing on which to base their decision. Experian commented that the amount of people opting not to register on the electoral roll is also an obstruction - this is the [...]
no credit history is pretty much is like bad credit history. So i suggest you get a few credit cards (with high APR) but always repay straight away whatever you spend, and in one year you will have far better choice.
Indeed, when I needed to build up a credit history, I got a credit card to help with that - but do remember to ensure they are paid off every month via Direct Debit.
Paying for retail goods via a credit card also comes with extra consumer protections.
Just don't fall into the trap of treating the credit card as credit you don't have, but instead to debit money you can afford to spend.
You need to have shown some kind of trust at some point down the line. The electoral roll is certainly important and I think a fair amount of people even forget to contact their local council and get listed, which can really go against them.
No credit history is definitely a drawback. There is no question about it.
Not every credit card helps build a profile though. In the UK there are a number of cards that actively promote themselves as helping build a credit rating. Each of them does have a high APR though, Capital One Classic is one such card and so is the Vanquis Bank Credit Card but Vanquis has the highest APR of any credit card on the UK and they are part of the Provident Group so in my view morally questionable.
No credit history is definitely a drawback. There is no question about it.
Not every credit card helps build a profile though. In the UK there are a number of cards that actively promote themselves as helping build a credit rating. Each of them does have a high APR though, Capital One Classic is one such card and so is the Vanquis Bank Credit Card but Vanquis has the highest APR of any credit card on the UK and they are part of the Provident Group so in my view morally questionable.
I am agree with this fact that No credit history is definitely a drawback.
Its because if u want to make profit the credit card is not only a option so one should be aware of the new market trend and other features provided by the various banks.
it is very true that having no credit history can be a draw back . But I went the route of trying to get credit cards also ,but the down fall to that is if you dont have credit you end up having a really bad interest rate, and I know I got to the point of realizing that paying that much interest was not worth it, and I waited until I needed a car and then bought one on credit. THe interest rate was not nearly what the credit card was ...and it gave me a few years to pay it off and did help in starting credit
No credit history is a huge setback in today's climate. Prior to the recession it was possible for people who had no credit history but had a good overall profile to obtain prime finance rates. This has become more difficult of late due to the lending institutions being forced into more responsible lending.
Registering on the electoral roll is always a good place to start. Getting a contract mobile phone, Capital One Classis or Vanquis card and maybe a store card may also be helpful.
No credit history could be a setback
