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LincolnH

RETURNING TO UK NEXT YEAR AND WORRIED ABOUT CREDIT RATING

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    Posted (edited)

    Hi,

    After 7 years of living in Melbourne we have decided to move back to the UK approx April 2019.  Family/missing UK being the main reasons for our return (my fiancee is Australian and has agreed to move to UK-her sister lives there permanently.)

    Before I left the UK my credit rating wasn't that great mainly from my years of being a student and irresponsible.  Now after 7 years living down under and returning next year I'm wondering how bad my credit rating will be as we will obviously rent when we return but then will look to buy within 6-12 months.  My partner is Australian so she wont have and UK rating.  I read that I should apply for credit card but this will be hard with no UK address?  and also if it gets rejected then it will only make my credit score worse?  I logged onto Expedia to try my credit rating but u you have to have UK phone number/address etc.

    Any info/help from anyone who has been in the same situation would be much appreciated! Thanks!

     

    Henry

    Edited by LincolnH

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    Hi, now I am no expert and happy for others to correct me, but I think a credit rating has a life expectancy of 6 years so you may go back to a clean slate. 

    I think you need to open a basic bank account once there and then work up from that over time. Could you afford to offer 6 months rent up front as a way of getting a place to live?

    Other people have done it so it might be tricky but not impossible. I move back June/July time after nearly 13 years so I’ll let you know!

    @VERYSTORMY @LKC and @Marisawright all returned and usually have some advice on these issues having done it already.

    Over to you guys! 😀

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    Awesome, 13 years not long for you now July is just around the corner!  I'm really looking forward to moving back had the most amazing 7 years here but feel it has run its course now and i'm missing home far too much.  Yeah 6 months rent shouldn't be a problem and family in UK can be my rental guarantor, it was more when it came to applying for a mortgage etc.  We will be leaving a brand new house here so want to try make it as easy as possible for my fiancee and try get our ow place sorted asap.  I never shut down my Natwest account and still have a small amount of money in there but haven't used it for 4 years!  Going to call them tonight UK Tuesday morning and sort it. Would be great if they did wipe the credit rating, but I guess it would be hard for companies to give u credit if you have a 7 year blank in your history... Thanks for your reply

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    Just now, LincolnH said:

    Awesome, 13 years not long for you now July is just around the corner!  I'm really looking forward to moving back had the most amazing 7 years here but feel it has run its course now and i'm missing home far too much.  Yeah 6 months rent shouldn't be a problem and family in UK can be my rental guarantor, it was more when it came to applying for a mortgage etc.  We will be leaving a brand new house here so want to try make it as easy as possible for my fiancee and try get our ow place sorted asap.  I never shut down my Natwest account and still have a small amount of money in there but haven't used it for 4 years!  Going to call them tonight UK Tuesday morning and sort it. Would be great if they did wipe the credit rating, but I guess it would be hard for companies to give u credit if you have a 7 year blank in your history... Thanks for your reply

    That sounds like a plan and great you still have your bank account. Halifax said I only needed a permanent job offer for a mortgage so not months of payslips and Barclays said 3 months of pay slips so not as bad as it could be. Over a few months you should be able to build a bit of a credit rating up, just gradually add a basic credit card, a phone plan and also paying utilities on time etc.

    Wish you all the luck with the move and hopefully your fiancée will settle in, good that her sister is there.

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    Thank you very much and good luck with yours!! Yeah i'm sure she will love it just the weather to contend with ha.  Planning on having children soon and by bringing them up in UK will have cousins, aunties, uncles, grandparents and her sisters kids aswell in comparison to here her parents live in Sydney (we are in Melbourne) and that's the only family we have here.

    Thanks again

    • Thanks 1

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    This is a very good website (also has a forum). Read through here https://www.moneysavingexpert.com/loans/credit-rating-credit-score

    As far as I know, and unless things have changed (they may have) it's very important to note that you must have not had any contact with the companies who you defaulted on for the six/seven years you've defaulted. As I say, things may have changed however up to mid last year when I left the UK it was still the case. I am not suggesting in any way shape or form not to pay debts.

    You can see your credit report free here https://www.clearscore.com/

    • Like 1

    I believe that one of the modern forms of bravery is to say, OK I will start again from scratch.

    Doing something new, learning new things requires great strength, great humility and great courage.

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    In effect, you won't have any credit rating, so you and your Australian partner will be in the same boat. 

    You will struggle to get a credit card at first as a result. 

    I had a job to start on arrival back which made it easy to get a bank account and things. Then, I took out a couple of small (and expensive) loans off some of the dodgy lenders - pay day type who are a lot less interested in credit ratings. Paid them back immediately, so didn't cost too much. That improved my score. Then applied for a credit card from my bank. Very low limit. That helped a LOT. Now, have a excellent score. 

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    Awesome thanks, yeh guess just have to take small steps to start with!  Time to start hitting the overtime and save up as much as possible!  

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    7 hours ago, Amber Snowball said:

    That sounds like a plan and great you still have your bank account. Halifax said I only needed a permanent job offer for a mortgage so not months of payslips and Barclays said 3 months of pay slips so not as bad as it could be. Over a few months you should be able to build a bit of a credit rating up, just gradually add a basic credit card, a phone plan and also paying utilities on time etc.

    Wish you all the luck with the move and hopefully your fiancée will settle in, good that her sister is there.

    It takes longer than a few months to build a credit rating up. This article is a good guide.

    https://www.telegraph.co.uk/finance/personalfinance/11120400/Martin-Lewis-20-things-you-must-know-to-boost-your-credit-score.html

    • Like 1

    Scot by birth, emigrated 1985 | Aussie husband applied UK spouse visa Jan 2015, granted March 2015, moved to UK May 2015 | Returned to Oz June 2016

    "The stranger who comes home does not make himself at home but makes home itself strange." -- Rainer Maria Rilke

     

     

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    20 hours ago, VERYSTORMY said:

    In effect, you won't have any credit rating, so you and your Australian partner will be in the same boat. 

    You will struggle to get a credit card at first as a result. 

    I had a job to start on arrival back which made it easy to get a bank account and things. Then, I took out a couple of small (and expensive) loans off some of the dodgy lenders - pay day type who are a lot less interested in credit ratings. Paid them back immediately, so didn't cost too much. That improved my score. Then applied for a credit card from my bank. Very low limit. That helped a LOT. Now, have a excellent score. 

    While I was hunting for the Money Saving Expert page to post here (somebody beat me to it), I came across a few articles saying NOT to take  pay-day loan, because lenders have changed their attitude to them - even if you pay them back on time, the fact you've even used them is a black mark now.  Exactly the opposite of what it was 12 months ago!

    I can't find the article now, but this one does make reference to it:

    https://www.moneysavingexpert.com/loans/credit-rating-credit-score

     

    • Like 1

    Scot by birth, emigrated 1985 | Aussie husband applied UK spouse visa Jan 2015, granted March 2015, moved to UK May 2015 | Returned to Oz June 2016

    "The stranger who comes home does not make himself at home but makes home itself strange." -- Rainer Maria Rilke

     

     

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    Absolutely stay away from pay day loan companies. Read here http://forums.moneysavingexpert.com/showthread.php?p=57431707&_ga=2.206620309.764604125.1522841541-57860486.1522841541#post57431707

    Also have a good read through the link I (and Marisa) gave. The forum on there is incredibly helpful also.


    I believe that one of the modern forms of bravery is to say, OK I will start again from scratch.

    Doing something new, learning new things requires great strength, great humility and great courage.

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    Posted (edited)
    13 hours ago, Ozzie said:

    Absolutely stay away from pay day loan companies.

    I understand why VeryStormy did it, because when we were in the UK, I remember people being advised to get small pay day loans, and repay them quickly, as a quick way of establishing credit.  The attitude has changed now though.

    Edited by Marisawright

    Scot by birth, emigrated 1985 | Aussie husband applied UK spouse visa Jan 2015, granted March 2015, moved to UK May 2015 | Returned to Oz June 2016

    "The stranger who comes home does not make himself at home but makes home itself strange." -- Rainer Maria Rilke

     

     

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    Posted (edited)

    Don’t you like me as a person Marisa? I feel you comment negatively when I write something. 

     I was just trying to let the OP know that nowadays it is best to absolutely stay away from payday loan companies.

    Whatever Verystormy did in the past may have been right for him/her however I wasn’t commenting on that - just that nowadays it’s not a good idea to use them PD loans if you can help it.

    Not sure what I did/do wrong?

     

    Edited by Ozzie

    I believe that one of the modern forms of bravery is to say, OK I will start again from scratch.

    Doing something new, learning new things requires great strength, great humility and great courage.

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    Posted (edited)
    9 minutes ago, Ozzie said:

    Don’t you like me as a person Marisa? I feel you comment negatively when I write something. 

     I was just trying to let the OP know that nowadays it is best to absolutely stay away from payday loan companies?

     

    And I added a comment because I didn't want people to think VeryStormy had been stupid.  It's very likely that, at the time he took those loans, people were recommending that course of action.  Also, other people might've read that same advice a couple of years ago, so I'm just reinforcing that it was right then, BUT it's not now, as you rightly point out. Nothing against you at all, and sorry if I've somehow managed to upset you.

    Edited by Marisawright

    Scot by birth, emigrated 1985 | Aussie husband applied UK spouse visa Jan 2015, granted March 2015, moved to UK May 2015 | Returned to Oz June 2016

    "The stranger who comes home does not make himself at home but makes home itself strange." -- Rainer Maria Rilke

     

     

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    Posted (edited)

    Your comment did upset me and make me feel like I had done something wrong. I was trying trying be helpful to the OP. 

    I didn’t think/say Very Stormy was stupid??  Still not sure what I have done wrong. It has never been a good idea IMO to take out payday loans and definitely not if you’re looking for a mortgage down the track. What VS did is up to him/her I was simply mentioning what I knew about the loans.

    OP The moneysaving website is a great place to read up all about this.

    Edited by Ozzie

    I believe that one of the modern forms of bravery is to say, OK I will start again from scratch.

    Doing something new, learning new things requires great strength, great humility and great courage.

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    On 03/04/2018 at 09:56, LincolnH said:

    Hi,

    After 7 years of living in Melbourne we have decided to move back to the UK approx April 2019.  Family/missing UK being the main reasons for our return (my fiancee is Australian and has agreed to move to UK-her sister lives there permanently.)

    Before I left the UK my credit rating wasn't that great mainly from my years of being a student and irresponsible.  Now after 7 years living down under and returning next year I'm wondering how bad my credit rating will be as we will obviously rent when we return but then will look to buy within 6-12 months.  My partner is Australian so she wont have and UK rating.  I read that I should apply for credit card but this will be hard with no UK address?  and also if it gets rejected then it will only make my credit score worse?  I logged onto Expedia to try my credit rating but u you have to have UK phone number/address etc.

    Any info/help from anyone who has been in the same situation would be much appreciated! Thanks!

     

    Henry

    If no-one has suggested it yet, get yourself back on the electoral roll asap - before you come home. If you have only been away 7 years you can contact the council where you last lived and get yourself on the roll as a voter living abroad, registered at your last UK address. 

    One of the first things they check for credit is the current electoral roll, and if you are already on it thats a great start. Once you are home, you just change from your previous council to your new one. 

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    33 minutes ago, Nemesis said:

    If no-one has suggested it yet, get yourself back on the electoral roll asap - before you come home. If you have only been away 7 years you can contact the council where you last lived and get yourself on the roll as a voter living abroad, registered at your last UK address. 

    One of the first things they check for credit is the current electoral roll, and if you are already on it thats a great start. Once you are home, you just change from your previous council to your new one. 

    That’s good advice! I put myself back on a couple of years ago and vote in the elections for my last UK electorate. 👍

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