Getting A Credit Rating.

[ummmm]

My 18 year old son applied for a phone contract but was turned down because he doesn't have a credit rating.

He has a full time job, a bank account with a debit card, he pays a phone contract by DD but it's not in his name. What can he do to get a credit rating if people won't give him credit because he hasn't got one?

[Retrochic]

Ummmm check this out with phone companies as he can get what you call a SIM only contract and pay monthly direct debit. He can keep the phone he has and having the direct debit will start growing his credit rating. Make sure he's on the Electoral Role. I had to do this when I moved here from Canada as I had no credit rating and was refused a phone contract and a credit card. He could also try applying for a credit card through Capital One as they tend to give out cards more freely than others, ask for the lowest amount possible and even offer to put a couple of hundred on it credit.

[ummmm]

He's tied in with a phone contract, it's just not in his name.

I hadn't thought about whether he's on the electoral role. He had a stint of living with his mate so maybe he's not. I suppose that could go against him.

My daughter is in a similar situation after coming back from Oz. She struggled to get a bank account.

[pretty_snowdrop]

Could he ask the bank to provide him with a small overdraft on the bank account? The problem with credit cards is that some banks use external companies ( MBNA being a favourite) and often they will not provide a credit card to anyone without a credit score. Whether he is on the electoral role is irrelevant, it is because he has no borrowing history ( or defaults).

[ummmm]

It's a bit of a pain isn't it?

All he wants is the phone contract in his name and not in someone elses. He's had a full time job for 2 years so you'd think his bank would be more obliging. He earns a decent wage as well, for an 18 year old.

[MargoTester]

Exactly the same happened to my son. I was advised by a colleague that he should get a store card (ie Debenhams) to use it and pay it off a couple of times. This he did and the next time he applied for a phone contract it went through strait away. This was a few years ago but it's worth a try.

[ummmm]

Good idea, Margo.

[MargoTester]

Sorry straight away

[pretty_snowdrop]

Be aware of randomly applying for credit cards/store cards in the hope that one of the companies will finally accept him. It puts 'searches' onto the credit file and if there are too may it will reduce his chances of getting unsecured borrowing even further.

[Retrochic]

pretty_snowdrop please do not give out incorrect info without first researching it. Read tip number 4....
http://www.moneysavingexpert.com/loans/credit-rating-credit-score#boost

[ummmm]

That could be it then.

[DTCwordfan]

will the bank give him a loan? - six monthly installments and then pay it off.

2ndly. The phone route helps as well.

[ummmm]

They wouldn't give him a credit card so I doubt they'll give him a loan.

I'll check the electoral role first and see if he's actually registered here. I have a feeling he isn't.

[DTCwordfan]

That's where the personal contact comes into play......depends on the flexibility the bank/investment manager is given as to a loan.

[RATTER15]

I have a neighbour that is most likely a millionaire a few times over, has substantial investment and owns house and businesses locally and very large and well known Golf Course.

He recently told me that he got turned down for a credit card as well because he has never used them and has no credit chain to check on, even turned down by his own bank. Absolute madness!!!

[ummmm]

It is madness. I used to get credit cards offered to me left, right and centre.

[-Talbot-]

Start with something cheap on the chucky. If he or any of the ummmm clan are planning on buying something let him try and get it from say curry's who are offering % interest at the mo. It's not curry's offering the finance and they will definitely submit an application for him. The company behind the interest free loan hope people don't pay up by the end of the term so they can add 30% interest.

This is the route I took some thirt...er twenty years ago when I was a yung un.

[RATTER15]

ummmm, that's the problem, they offer them to everybody, then you get turned down when you apply, they obviously don't do credit checks on everybody before sending out these offers.

[pretty_snowdrop]

That is technically not true Retrochic. It may be the policy of some lenders not to give credit to those not on the voters roll, however others do. Some of the UK's biggest banks do.

[loulou111]

Could it be the address where he lives?. If there are people who are not credit worthy and have bad debts bankrupsy etc that might have something to do with him being refused maybe?

[Canary42]

Contrary to what prettysnowdrop claims, being on the electoral roll DOES contribute towards credit rating points.