Student Credit Card / Credit Score

JackCu61 · 15 January 2018 at 10:36AM

Hi everyone,

This is my first post, so I hope I'm in the right place. Recently I watched one of Martin's programmes where he was talking about the importance of starting to build a credit score. My 19 year old son is in his second year of university and we thought it sensible after listening to the advice for him to get a student credit card. The plan is to buy his food and set up a direct debit to clear the entire balance every month. He set up a face to face meeting at his branch, went through the process and was promptly declined. No reason given. In a following letter, he was given no more information, but it was suggested he contact Experian to look at his score. This he did, and was amazed to find his score is 999. As someone with no history at all, I can't understand the score and, if true, why would he have been declined?

I would be most grateful if any forum members could suggest the next steps he might take.

Many thanks,

Jack.

Lokolo · 15 January 2018 at 1:37PM

He doesn't need a credit card or a credit score when he is 19.

Firstly, what bank is it with? Did he apply for a student credit card or a normal credit card (the latter is likely to be declined).

Is he in his overdraft with the same bank? (lots of students are)

The bank doesn't have to give any reason though. And the Experian scores are pretty meaningless. He should be able to make sure that his address details are all correct. For example, where his address is with his bank should also be where he is on electoral roll.

agrinnall · 15 January 2018 at 8:16PM

Rather than look at his score at Experian, which as stated is pretty much a made up number, he should look at his credit report (preferably with all 3 CRAs), which may contain something to explain a decline. Are you sure that this isn't what the letter suggested?

JackCu61 · 16 January 2018 at 4:21PM

Thanks for the reply.

The only reason we thought it sensible to apply was because Martin had a programme over the holidays where he was speaking to someone in their mid 20's who couldn't get a mortgage because they had no credit history. His advice was to get a credit card, set up a direct debit to pay off the full amount every month, and start to build up a score for when he DOES need to have one. It is with RBS and is a student credit card. To be eligible he had to convert his regular current account to a student account, which the bank did while he was there. He has no overdraft and has a savings account with the same bank branch. While he was also there, he changed his address to his term time address, at the suggestion of the bank. I think this might be the issue as he is on the electoral role at his home address. He is going to have another meeting to discuss that issue.

Thanks,

Jack.

JackCu61 · 16 January 2018 at 4:22PM

Thanks,

The letter specifically mentioned checking it with Experian. In the meantime he is going to check elsewhere.

Lokolo · 16 January 2018 at 4:33PM

OK just a few points from myself!

- Yes student credit card with a student current account, this is perfect. A normal credit card will be rejected majority of the time as he has no real income

- If he gets rejected, do not keep applying. Each request is then on his credit report. The more there are, the more likely a rejection will occur (makes you look desperate for credit)

- I got a mortgage 12 months after leaving university. I had a credit card for 2 years at this point (I did get one in my final year). Unless he is planning on buying straight after graduating it will hardly make a difference. Getting one after graduating, and getting a job, then using it for 12-18 months is perfect

- Keep all address's the same. Preferably his parents (your) address. It keeps things consistent. Make sure he is on electoral roll at home, not at university. Same for drivers licence, doctors, dentists. It just helps. When I was a student I moved 3 times in 3 years. You end up losing track, post gets delivered to old places etc.

If they rejected him after he changed his address then that was the worst thing to do. They would have run a search of that address.

Cyclizine · 17 January 2018 at 12:12AM

Lokolo wrote: »

OK just a few points from myself!
- Keep all address's the same. Preferably his parents (your) address. It keeps things consistent. Make sure he is on electoral roll at home, not at university. Same for drivers licence, doctors, dentists. It just helps. When I was a student I moved 3 times in 3 years. You end up losing track, post gets delivered to old places etc.

He should register where he spends most of his time: if he's at university for more than three months a year (I would guess he is!) he should be registered there. If he needs seen at home he can register as a TR.

Voyager2002 · 17 January 2018 at 10:40AM

JackCu61 wrote: »

Thanks,

The letter specifically mentioned checking it with Experian. In the meantime he is going to check elsewhere.

Futile to check elsewhere since Experian is the CRA the bank used. Anyway, he would know if he had any bad debts or adverse reports.

All he can do is ensure that he is on the electoral roll and perhaps get himself one of the 'poor credit risk' cards mentioned on this site -- and of course make sure that he pays all his bills regularly, including those for mobile 'phone use.

JackCu61 · 17 January 2018 at 12:40PM

Thanks to everyone for the replies. It would be useful to know if it was the address which caused the rejection, but it looks like they never tell you why. As Experian says he has a score of 999 (which he can't as far as I can tell) then it is a mystery why he was rejected. I'm now concerned that applying again will make things worse. Oh for the days of bank managers in branches who could make decisions. Not sure whether to just leqave it for a while, but thanks for all of the advice. Much appreciated.

Jack.

WibblyGirly · 17 January 2018 at 5:47PM

I'm a student. My credit card is with capital one and is a cash builder one for people who have poor credit. I pay it in full every month (When I remember to use it!). I had a part time job when I applied for it. Does your son work? If he has no income except student loans or what you give him then I doubt he'll be able to get a credit card. My limit is low, only £1200.

agrinnall · 17 January 2018 at 6:46PM

Voyager2002 wrote: »

Futile to check elsewhere since Experian is the CRA the bank used. Anyway, he would know if he had any bad debts or adverse reports.

By that reckoning there is never any point in checking what the CRAs hold because everybody must know everything anyway.

Of course, that isn't actually the case, they may hold data that's incorrect, or the person may have forgotten about something that happened several years ago. And if one CRA has some information that impacts on the ability to get credit then the others may have it too, or have something else.

Student Credit Card / Credit Score

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