How can I build up a credit record in the UK?

Q I'm a new expatriate from the US and would like advice on the best way to begin to build a positive credit record here in the UK. In the States, most consultants advise beginning with department store credit cards, but so far I've been rejected by a couple. Help?

KS

A I certainly wouldn't advise you to take out a store card in this country as they are prohibitively expensive - APRs of 30% and higher are not uncommon. Credit cards are far cheaper but your application will likely be turned down there, too, if you have no credit record to speak of.

For most people, one of the most important things to do to establish a credit record is to join the electoral register - but as you are not entitled to vote in the UK, this option is not open to you.

However, James Jones of credit reference agency Experian says there are still things you can do. "If you send us some other forms of documentation proving your name and address - such as utility bills or a council tax statement - we can add a note to your record where the electoral register entry would normally be," he says. "That will confirm to lenders that you are who you say you are and live where you say you live." You can find more details of how to do this through Experian's website.

Be aware, though, that because most UK lenders use some form of credit-scoring when approving applications and a note on your credit file will flag up a referral, any application you make for credit is likely to take longer than otherwise.

Jones says lenders might also be put off by your total lack of a payment history in the UK as it leaves something of a question mark over your ability to repay debt. So he suggests you open a bank account as soon as possible, particularly with an American bank that has a presence on both sides of the Atlantic. It may even be able to vouch for you if you have been a customer in the US.