Need advice on building credit history

PoundMan

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Hi guys,

I am 32 years old and have just relocated to the Republic from Northern Ireland to take up a civil servant role within a national government department.
Although I remain on the same island, I was told that because I have essentially moved to a new country then my good credit history from the North doesn't apply down here and that I will have to start all over again from scratch. This is very frustrating because my good credit history doesn't transfer with me down here, but of course in typical fashion any of my outstanding debts from the North still remain fully in place.

I had hoped to get a credit card which I would use to pay for my car fuel bills and would pay off in full each month as that was how I always built credit when I lived up North. I joined KBC bank when I moved down and was told I would need to be employed for 3 months before I could apply for a credit card. So I waited and when I finally applied I was shocked to be rejected and given no real reason why. I only wanted a simple €500 limit credit card purely to pay my monthly fuel bills as a means to building credit down here. I appealed the decision with KBC but it failed and I was told that I cannot re-apply for a credit card with them for another 6 months.

I think part of the reason I was rejected is because I have £18,000 student debts from my studies up North and this is seen as totally normal in the UK for most people to have a student loan. In fact I'm almost certain that student finance isn't even considered when doing credit checks in the UK, but perhaps in Ireland it is viewed as more of a bad debt. These student debts will not be written off for another 17 years, so I need to find a way of building up a good credit history because I will be looking at potentially buying a house in the not too distant future. I'm also scared of applying for credit cards with other banks because each time I get rejected it probably makes my credit report look even worse.

I honestly never expected to feel so financially disadvantaged by moving to the South from the North, I don't know how I'm supposed to get off the ground with building a credit history down here if I cannot even obtain a basic low limit credit card. I've already joined my local Credit Union but sadly they don't offer Credit Cards or mortgages so ultimately I need to try to improve my standing with banks really. Would anyone be able to offer some advice please? I've been told that it is not entirely out of the realms of possibility for employers to sometimes wipe out student debts for their staff members as a kind of education grant or benevolent fund but I don't expect that to be a realistic option for me having only just starting working down here recently.
 
Get yourself on the electoral roll and live at the same address for at least one year.
 
There is no such thing as a 'good' credit history here, only bad ones. It's very different from the UK system.

If the student loan is showing up, the banks here don't treat it any differently to a bank loan. You owe money. The number of cases are so small, it's not worth their while coming up with a specific policy to deal with it differently.

It's easy to find a list of all credit card providers here. You could try a few, and they might have less stringent criteria. Some banks will automatically grant you an overdraft up to the amount of your net monthly salary.
 
Thanks for the input guys, I have got myself on the electoral register and joined the Public Sector Credit Union which deducts savings from my salary at source so hopefully that might help improve my financial standing a little. I've also requested a copy of my Irish credit report from the Central Credit Register so hopefully that might indicate why KBC turned me down for a credit card. I might try Avantcard but I'm guessing that I might not have much luck with any credit card applications until I've completed my probation period with the Civil Service.

Can anyone recommend any other steps that I can take to try to improve my credit rating or to help build a credit history? I'm currently with 48 mobile network which charges my debit card on a monthly basis to renew my membership every 30-days, but perhaps I would be better off with an actual 12-24 month phone contract instead? I'm also planning to buy a car which I intended to pay for using cash savings, but again I'm wondering if it might actually be beneficial to pay a percentage of the car cost using a small loan from the credit union for example instead of paying the whole thing in cash? I've also been advised that whilst I am saving money by living short-term with my girlfriends parents, I may be better served by renting a place in order to build up a history of paying back?
 
I'm currently with 48 mobile network which charges my debit card on a monthly basis to renew my membership every 30-days, but perhaps I would be better off with an actual 12-24 month phone contract instead?
How do you think this will make any difference to your credit rating here??

I've also been advised that whilst I am saving money by living short-term with my girlfriends parents, I may be better served by renting a place in order to build up a history of paying back?
Who is advising you of this?
 
How do you think this will make any difference to your credit rating here??


Who is advising you of this?
I would've thought that a longer-term contract with a mobile phone provider paid via direct debit would look more favourable in the eyes of lenders? It was a mortgage advisor from EBS who told me that it might be an idea to start renting in order to build up a demonstrated history of being able to meet regular payments as currently I am living with my girlfriends parents essentially rent-free with no form of contract.
 
I would've thought that a longer-term contract with a mobile phone provider paid via direct debit would look more favourable in the eyes of lenders?
And how would the bank know if you've a contract or not? There's no Debt, so it's not centrally recorded anywhere that the bank will see. At most the bank will see a transaction on your current account for say EUR 30 and a narrative "Vodafone" (or whoever provider is). It'll be so small every month they literally won't care what it is!

My wife has a prepay phone, and mine is bill pay, and they both appear in exactly the same way on our joint current account.

It was a mortgage advisor from EBS who told me that it might be an idea to start renting in order to build up a demonstrated history of being able to meet regular payments as currently I am living with my girlfriends parents essentially rent-free with no form of contract.
Ok, so to break this one down a bit, because the context of the 'advice' is very important.

If you are thinking of future mortgage applications, the bank will look at you ability to repay. As part of that they'll look at your history of savings. For a person who has been renting, the bank will consider both regular monthly savings, and the documented rent they've been paying.

If you are staying with family, for little or no rent, you need to be making regular monthly savings (set up a separate dedicated account, and don't touch it) which at least cover the mortgage. (obviously if you're going to be buying together with girlfriend, it's your joint savings they'll look at).
Going and paying 1,500 rent per month for 2 years just to create a trail will cost you 36,000 + all your utilities.

A regular savings account will demonstrate the exact same ability to plan & manage finances, and let you build up a deposit much quicker.
 
I have UK student loans of a similar amount to yours and have never mentioned them in Ireland nor seen them appear on my ICB report. The real issue for you here is time as you're effectively a foreigner who has recently appeared seeking credit. The fact it's an NI/ROI thing really has no bearing and from a lender's perspective you might as well be from anywhere in the world. Keep saving regularly, reapply for a credit card in a few months and potentially seek a small loan from your credit union in time. They key here is time...
 
I have UK student loans of a similar amount to yours and have never mentioned them in Ireland nor seen them appear on my ICB report.
Glen in hindsight thought perhaps it was a mistake to inform KBC of my UK stent debt when I was applying for a credit card with them. Perhaps on all future credit/loan applications I should just not mention it? Are you still continuing to repay your student debts using a UK bank account? Some people have told me I was foolish to even tell the UK government that I was relocating to Ireland, but I was worried they would wonder why I had suddenly stopped my repayments and I wouldn't want to burn my bridges should I ever decide to move back.
 
I have UK student loans of a similar amount to yours and have never mentioned them in Ireland nor seen them appear on my ICB report.
Yes, they don't appear in any ROI credit report. The problem arises when the bank realises you've only been resident here for a short period, they may ask you to obtain your foreign credit report and provide it to them.

Every bank seems to have a different approach, and depending on what's being applied for. I've seen people in Ireland over 5 years being asked for a foreign credit check for mortgage applications in some cases.

Edit: It turns out that UK Student loans don't even appear on your UK credit check! It's normal for UK banks to request details separately for mortgage applications, but I'd need to check that works here.
 
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