Why cant my grandson get a credit card

[Amapolas]

Mu grandson is 24, has a first class honours degree, has been in full time employment for 2 years. In addition, he has had a Saturday job for 9 years. He lives at home with his parents, has no debts, never been overdrawn and has a bank account since he was 11. He has a debit card but has been refused credit cards by more than one bank. He was also recently refused a mobile phone contract even though he has had one for 4 years. It cant be his address because his other has several credit cards registered at the same address. The credit check agencies all say that there is no reason why he should be rejected, but nevertheless he has been. What can he do about it,as he needs a card to purchase flights and also stuff on ebay

[Oneeyedvic]

Firstly, he doesn't 'need' a card - he wants one. Both flights and purchases via paypal on ebay can be paid for by debit cards.

Lenders are getting increasingly careful with unsecured lending. This means that they will only lend to certain types of people - typically homeowners.

I would check to see if he is showing up on voters role - a lender will be reluctant to lend money if there is no trace of a person living there. Has he ordered a copy of his credit report? This is the first thing that he should do.

But please remember - credit is a privilege not a right - lenders are under no obligation to lend money or give credit cards out.

[jedimistress]

Maybe if he still lives with his parents he has not shown any capability to meet bills himself. Only my theory. Sometimes people can be too good with their credoit score and be refused a credit card as the companies are looking for non payers.

[Amapolas]

Thanks oneyedvic,I got a godd answer and a lesson in semantics thrown in!

[Amapolas]

Thanks oneyedvic,I got a good answer and a lesson in semantics thrown in!

[bednobs]

the problem is he is "untested" as it were. he hasn't had any debts before, so no lender will have any information on his willingness/ability to pay them back. On credit checks, they dont look at you graduate or employment status, just your previous ability to pay things back. One way round it might be to approach his bank for a credit card, cause they will look at his ******* and all. Even if the bank card has a big rate, he could use it for small things and pay it off at the end of the month, thus showing that he can manage credit, and making it easier for other lenders to trust him and offer him cards/ Ps i dont use my cc on ebay, but use my debit card. Ive booked flights on my debit card before too, over the internet, although i do know what you mean ... sometimes its more convienient to do it on credit

[bednobs]

oopsie that starred word is accounts! or it was meant to be anyway!

[Hammer]

It will be the lack of history. Same thing happened to me when I left uni. Nobody wants to try him out and see if he's any good at paying back his debts.

Definately try his existing bank - they can see how much he has coming in each month and that he doesn't take liberties with his overdraft. Maybe even take out a small loan wth them too just to build up a history.

[Reverandfunk]

years and years ago I was in the same boat, no debts no credit history and couldn't get tuppence. Roll on a few years loads of debts, credit card companies throwing credit at you, so I ran up 40K and paid nothing back and left the country. But back to your question, a debit card will do all of the things that a credit card will do to a great extent, so I'd stick with that!