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Credit history is the evidence using credit, over time. So what happens if you don’t have much of that?
The best thing to do, is to make a start! The sooner you start building credit history, the better it’ll be for applying for things like mortgages, credit cards and loans in the future.
In the UK, rent doesn’t traditionally contribute to your credit history — but with Loqbox Rent it can! Put your monthly rent payments towards building a brighter financial future, today.
It doesn’t matter if you pay rent to a private landlord, letting agent or to your local council. Loqbox Rent can securely identify the rent payments leaving your bank account and report them to Experian to build your credit history.
The best thing to do, is to make a start! The sooner you start building credit history, the better it’ll be for applying for things like mortgages, credit cards and loans in the future.
In the UK, rent doesn’t traditionally contribute to your credit history — but with Loqbox Rent it can! Put your monthly rent payments towards building a brighter financial future, today.
It doesn’t matter if you pay rent to a private landlord, letting agent or to your local council. Loqbox Rent can securely identify the rent payments leaving your bank account and report them to Experian to build your credit history.
What is a credit history?
Credit history: Your credit history is what it says on the tin — it’s the history of how you use credit. If you’ve ever purchased a car, phone or laptop on finance, or taken out a personal loan, then there’ll be a history of how much you borrowed and when you paid it back.
If you’re just starting out, Loqbox Rent can help you build a stress-free credit history by reporting your rent payments. Easy!
Credit file: There are three main credit reference agencies in the UK — Equifax, Experian and TransUnion. They each gather your financial information from the companies who you deal with (like your bank or utility suppliers) to create a personalised credit file.
What lenders use: Lenders will use your credit file information, and run it through their own algorithms to decide whether to approve your request to take out their financial product.
They aren’t looking at your credit score (that’s for you to have an estimate of how healthy your credit information appears to be). But they will be looking for things like missed payments.
If you’re just starting out, Loqbox Rent can help you build a stress-free credit history by reporting your rent payments. Easy!
Credit file: There are three main credit reference agencies in the UK — Equifax, Experian and TransUnion. They each gather your financial information from the companies who you deal with (like your bank or utility suppliers) to create a personalised credit file.
What lenders use: Lenders will use your credit file information, and run it through their own algorithms to decide whether to approve your request to take out their financial product.
They aren’t looking at your credit score (that’s for you to have an estimate of how healthy your credit information appears to be). But they will be looking for things like missed payments.
Does everyone have a credit history?
If you’ve ever used credit — with a credit card, a personal loan, or even a phone contract — then you have a history of that credit use.
It’s best to think of your credit history like a record of how you used your credit over time, how much you borrowed and how well you paid it all back (i.e. hopefully no missed payments).
If you haven’t used credit, then you won’t have a credit history. Banks and lenders sometimes call this a ‘thin file’ — which means your credit file is pretty empty due to there not being much evidence of credit use.
We know that many people handle their money brilliantly, but there does need to be a paper trail of that evidence. And that’s what credit histories are all about! It shows what lenders like to call ‘creditworthiness’.
Having a credit history matters because when a bank or lender considers lending to you, they are going to look for some evidence that you can pay them back. If there isn’t any evidence of how you use credit, then they may be wary to lend to you. And their wariness could mean you’re offered poorer rates on mortgages, loans and credit cards (boo!).
If you haven’t used credit, then you won’t have a credit history. Banks and lenders sometimes call this a ‘thin file’ — which means your credit file is pretty empty due to there not being much evidence of credit use.
We know that many people handle their money brilliantly, but there does need to be a paper trail of that evidence. And that’s what credit histories are all about! It shows what lenders like to call ‘creditworthiness’.
Having a credit history matters because when a bank or lender considers lending to you, they are going to look for some evidence that you can pay them back. If there isn’t any evidence of how you use credit, then they may be wary to lend to you. And their wariness could mean you’re offered poorer rates on mortgages, loans and credit cards (boo!).
If you want to make a difference to your credit history today, don’t be shy — the sooner you start building your credit history, the more of it you’ll have. And getting started with Loqbox for just £2.50 a week, can help you build yours without hard credit checks or hassle.
How to find out your credit history
Equifax, Experian, and TransUnion are the UK’s three main CRAs (credit reference agencies). They each hold a report of your credit history and this helps them to generate your credit scores. Psst — they each have their own scoring system, so you have three credit scores, not one.
Legally, they must offer you a basic statutory credit report (although it won’t contain your credit score).
However, if you’d prefer to check your credit report freely and as frequently as you’d like to (plus find out your credit score), then you can use these links:
ClearScore* (uses Equifax data)
Credit Club (uses Experian data)
Credit Karma (uses TransUnion data
*Full transparency: If you decide to sign up to ClearScore using the link above, we’ll get a small commission.
Legally, they must offer you a basic statutory credit report (although it won’t contain your credit score).
However, if you’d prefer to check your credit report freely and as frequently as you’d like to (plus find out your credit score), then you can use these links:
ClearScore* (uses Equifax data)
Credit Club (uses Experian data)
Credit Karma (uses TransUnion data
*Full transparency: If you decide to sign up to ClearScore using the link above, we’ll get a small commission.
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Keep in mind.
Credit scores exist to give you an indication of how a lender may view you. It won’t be what a lender sees. So it’s worth putting the effort into building your credit history, because it is a core part of how your credit scores are generated.
Credit scores exist to give you an indication of how a lender may view you. It won’t be what a lender sees. So it’s worth putting the effort into building your credit history, because it is a core part of how your credit scores are generated.
How to build credit with no credit history
If you’re just starting out, you won’t have credit history yet — which is fair enough, we all start somewhere.
It can, however, feel like a bit of a catch-22 that you have to have a good credit history to build credit…but here’s a list to help you get there the simplest way:
It can, however, feel like a bit of a catch-22 that you have to have a good credit history to build credit…but here’s a list to help you get there the simplest way:
✔ Become a household bill payer
If you’re not already, adding yourself as a named bill-payer can be a great first step on your credit history journey. If you live in a house of three or more adults, simply adding yourself to the council tax bill is a fast and easy way to begin your credit history.
Always aim for one hard-check every six months, so spreading time between adding yourself as a bill payer would be smart! Also, you will be declaring your financial connection with the other members of your household. This is something to think about if one of you has poor credit behaviour as it could negatively affect the others in the home.
Always aim for one hard-check every six months, so spreading time between adding yourself as a bill payer would be smart! Also, you will be declaring your financial connection with the other members of your household. This is something to think about if one of you has poor credit behaviour as it could negatively affect the others in the home.
✔ Pay your phone bill
If you’d rather not be financially associated with the other members of your household, there are other ways to start building credit history. Getting a mobile phone contract, or paying your car insurance in monthly instalments both improve your credit history.
✔ Consider a credit-building credit card
There are some credit cards that are specifically designed to help you build your credit history if you are just starting out or need to rebuild your credit history, but they typically have high interest rates.
However, any credit card will help you build your history. Just follow this simple rule: spend on it with just a little money and pay it back in full before you start incurring interest.
However, any credit card will help you build your history. Just follow this simple rule: spend on it with just a little money and pay it back in full before you start incurring interest.
✔ Get started with Loqbox Rent
For just £2.50 a week, we can securely track your rent payments and make regular reports of them to Experian. There’s no hard checks and no hassle! Simply make your membership payments and connect to your bank account every 90 days (we’ll send you a reminder).
Not to mention the access to our other great credit-building features Loqbox Grow and Loqbox Save. Here's how it works.
Not to mention the access to our other great credit-building features Loqbox Grow and Loqbox Save. Here's how it works.
Once you’ve built your credit history, these things can keep it healthy:
✔ Always make your payments
Missing payments can have a negative impact on your credit history. It’ll show up for six years (yikes!), although with time it becomes less important. As a rule, always be sure to pay on time.
✔ Keep your credit file neat and tidy
Check your credit report with Equifax, Experian and TransUnion occasionally. We recommend at least once a year. If you see any errors or fraudulent activity happening under your name, let them know urgently (especially for fraud issues!). Remove any old partners or housemates that you are no longer linked to and confirm your address is correct across all three’s reports.
✔ Keep your oldest credit account going!
If your only evidence of credit is with a mobile phone provider, don’t be too quick to change to another company. Having a good relationship with one provider over many years can look good on your credit file!
Use this as a rule of thumb for the long-term “keep your longest credit account going”.
Use this as a rule of thumb for the long-term “keep your longest credit account going”.
✔ Building credit without a credit history is a long game
There’s no fast fix (as much as we’d like there to be) but improving your credit history isn’t unachievable — it just takes time. Have some patience and persistence, because you’ve got this!
Does paying your rent on time build credit?
Until now, renting has been frustrating. (Especially for people who dream of owning their own home, who spend all that money paying off their landlord’s mortgage, instead of their own.)
And traditionally, rent payments don’t even help to build your credit history to help get you a good mortgage deal (UGH)! But improving your credit history can save you £1,000s on mortgages, credit cards and loan rates.
If you’re a renter, you can finally put your rent money to good use! Build your credit history without the hassle, with Loqbox Rent.
Securely connect your bank account with clever Open Banking technology — then tell us how much your rent is, when it’s due (don’t worry, there’s a buffer in case your rent day falls on the weekend) and we’ll report those regular payments to Experian.
We won’t see or use any other information in your bank account. All you have to do is meet your weekly £2.50 membership payments, reconnect your bank account every 90 days, and let us know if your circumstances change. Read more about how it all works here.
And traditionally, rent payments don’t even help to build your credit history to help get you a good mortgage deal (UGH)! But improving your credit history can save you £1,000s on mortgages, credit cards and loan rates.
If you’re a renter, you can finally put your rent money to good use! Build your credit history without the hassle, with Loqbox Rent.
Securely connect your bank account with clever Open Banking technology — then tell us how much your rent is, when it’s due (don’t worry, there’s a buffer in case your rent day falls on the weekend) and we’ll report those regular payments to Experian.
We won’t see or use any other information in your bank account. All you have to do is meet your weekly £2.50 membership payments, reconnect your bank account every 90 days, and let us know if your circumstances change. Read more about how it all works here.
Build your credit history with Loqbox Rent
Loqbox makes your rent do the work! Start building your credit history today.
Our mission is to help you live a richer life — whatever that looks like for you. Join us now to get on your way to a brighter future.
Our mission is to help you live a richer life — whatever that looks like for you. Join us now to get on your way to a brighter future.
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