A friend who is staying with us for a couple of nights has told me a tale that I find incredible. Some time ago he decided to apply for a credit card, his first ever. He eventually received a rejection, and telephoned the company to ask why he had been refused. He was told that they had checked his credit rating and found he didn’t have one, so he was classified as a ‘bad risk’. He explained that he wouldn’t have a rating because he never went into debt. Like me, John believes that if he hasn’t got the money, don’t buy.
The company persisted in seeing him as a bad risk, even when he told them that he owned two houses, a hotel and doesn’t owe anyone a penny. Eventually, he was offered a solution. Go out and buy something on credit, pay it off, and obtain a credit rating. He declined to accept their advice.
Boadicea's Chariot 
Tom, when I first returned home from overseas in retirement, I went into a mobile phone shop, with my mobile phone, already owned, and attempted to sign up for a contract.
No debts, no loans, no mortgage, so no contract available – No credit history! The kids thought it was vastly amusing that dad should retire as a bank CEO and not be able to take out a contract on a mobile phone! I found it less so, but it may amuse you!
This has been in place for at least 20 years to my knowledge.
Should he apply for a charge card, not a credit card, say American Express, he will probably do better, (maybe) Not a done deal though.
P.S. Having had a Barclaycard for forty years didn’t help, as I had never extended credit on it, paying it off in full every month…
I was given a secured credit card. The company decided they were going to process an on-time payment late since they couldn’t “get to it” any earlier. I told them to shove it and give me my money back as well as tell them that I would inform my bank about what had happened as I had taken a card with them on their recommendation.
Couldn’t he just pay using his debit card Tom? Why have a credit card if you have money in the bank? Just a thought.
it’s a mad world. I have similar with the company, no debts and no credit card for 15 years so we are on an keep your eye on list
You cannot rent a car, for example, without a credit card. Visa and Master Card wont guarantee your debt should you exceed the balance available in your account.
Val, he runs a business, a hotel, and thought a credit card could come in handy, but he has learned to live without.
Sipu, Tom. Even cash won’t be acceptable soon 🙂 We live in a mad mad world for sure.
The latest insanity is the British Bankers’ Association spokeswoman this morning telling Radio Four that they had plans to replace cheques with an alternative paper-based system. Duh?
Val, he ran a business. A credit card might have been useful if he had a short term cash-flow problem.
Yes that’s true Tom.
Reminds me of a similar story where a very elderly lady was asked to provide her passport for opening a bank account. She had never had one as she had never left the country, but this was not acceptable.
The UK banking system is a nightmare. I have an account there which I opened many years ago – I would not be able to do so now nor can I change it to one that would be more suitable to my changed circumstances.