It can sometimes be hard to start buiding up a good credit score. I recommended the Halifax Clarity Card to a young friend who was planning a trip abroad, as the card has no overseas transaction fees. However his application was declined, even though he has a current account with the Halifax into which his salary is paid.

I can’t think of a good reason for this. He has a reasonable salary and has been with his current employer for almost a year. This was his first credit card application. As far as I’m aware, he has no debts and his only lending to date was his Student Loan, which is now paid off in full.

At first I thought it must be because he’s moved home between various rental properties a number of times over the last few years. However after reading a bit on credit scoring it seems more likely that he doesn’t have a credit rating. The advice for that seems to be apply for a credit card, which is what he tried to do.

I read that the Aqua Reward Card is good for those with no credit history. It has no currency exchange fees for use abroad and you get 3% cashback up to a maximum of £100 a year.  However, I’m wondering if it’s a good idea for him to apply for another credit card, as I’ve also been told that too many credit card applications within a short period adversely affects your credit rating.

I’ve only once been declined a credit card. When our twin sons were babies, I tried to get a Mothercare store card which would’ve given me a discount on disposable nappies. I didn’t bother to look into the reason for this. So, my only experience in how to build a credit score is to say that it seemed to happen naturally for me.

What are your tips on how to build a credit score?

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