Lenders have shut up shop

[IFA]

Anthony is correct, the more actively used credit you have (so long as it's meticulously and correctly managed) the more likely you will be seen as a good risk.

I don't know how many times I have heard the comment - "But my credit score can't be low, I don't have any credit!"

A lack of credit in itself is an issue and first time buyers often suffer with this - if there's no information on your file by which a company can judge you then they are likely to be wary about lending you thousands of pounds as they are unable to assess your ability, willingness and reliability to pay.

Who would you rather lend a hundred pounds to: A close personal friend whom you have always known to be reliable and honest over a prolonged period of time or a new acquaintance whom you know little about?

[brian]

Indeed - that's precisely why, about a year or two before I knew I needed a mortgage, I took out a credit card and loan specifically to build up a credit rating.