New credit, please help.?
I've just now gotten my first photo ID (Passport). I'm 21 and I'm on benefits, due to being unemployable until now. My monthly income is around £400-450. (Not entirely from benefits) I've been looking at cars on finance and they're pretty cheap! £230ish a month is easily manageable as I have no other financial commitments.
I took a credit check, but it doesn't find me! Am I right in assuming this means I have zero credit? I have no bills as I live with my parents and I'm totally lost on how to improve / gain credit, or even just be able to see my score on credit check sites.
I'm so afraid to apply for the car and be declined, resulting in my credit being lowered. So to avoid that I thought improving my credit first would be the smartest decision to improve my chances of being accepted the first time?
This is quite messy, my apologies. I just need advice on what I should do to improve/better my chances at being accepted for a car, or how can I improve my credit enough in a short time, to be accepted!
- SCATTY cLv 61 month ago
Firstly, NO mainstream lender will lend to anyone on benefits. And secondly, the cost of that loan will take about 50% of your monthly income. Again, it's not happening.
As you are in the UK there isn't anyone who will lend to you either unless you are registered on the Electoral Roll. So if you aren't on it, get registered on it, or even with full-time work, you aren't getting credit.
And getting photo ID has no bearing on your credit rating. It just helps prove you are who you say you are.
All that said, there are SOME credit cards designed for people with no or bad credit. Capital One is an example. The interest rate will be stupidly high and the credit limit about £100. But just get the card. Use it even once a month for something you would buy anyway and when you get your statement, pay it off in full, never pay late and never miss a payment. Over time that will build you some credit. But miss a payment or pay late, well that is a black mark on your credit file for three years.
Building credit doesn't happen over night. It takes months and years to build.
- No MercyLv 72 months ago
u will NOT be able to buy a car in credit if u re on benefits. believe me
- TavyLv 72 months ago
You need a credit history and the way to start is by getting a credit card and paying it off in full each month. If in the U.K. Tesco is one you can get. Buy everything with it and pay in full each month. It can take up to 6 months to get a good credit rating.
Very few financiers will give a loan to someone on benefits.