Advice for someeone under 25

icklejulez

My boyfriend currently has a loan at around 14.9%! He's never reallly had credit problems only a sily mobile company that applied a default to him and then removed it(well put a comment on his credit file). I believe he will be able to get a much better rate as he has been in a stable job for around 3 years, has plenty of disposable income(lives with parents) and not really any bills. However he was told not to change till he was 25 as they would offer him a higher rate. Is this true or has he been had? Also he's not 25 till end of October so would it be worth him changing comapny and if so who would be likely to touch him. He currently earns around 15k a year.

CLAPTON

what exactly does his credit file say?

assuming thats ok why doesn't he simply apply for a loan and see what happens .. a couple of applications won't hurt his credit rating and if he can get a loan at a lower APR then he could clear the other loan.

icklejulez

Yes thats exactly wha i was thinking being a MSE'r however never having to worry about money before he's never realised how much extra he'll be paying by paying the higher APR. The reason im interested is because we are planning on taking on the mortgage on my house together in the next 3 months and it would be far better financially to improove those payments.

icklejulez

Oh and his credit file apparently is good however i havent seen it yet.

LilacPixie

hold on and look at the whole picture. He has a loan o/s at 14.9%. How long left to run?? how much o/s??

Mobile company applied a default then only added a comment to it so i presume the default now reads satisfied or settled and hasn't been totally removed. How long ago was this default??

Realistically considering the possible existance of a default and the current 'crunch' is getting a loan for a lower APR viable?? Even if the APR is significantly lower would that mean increasing the loan term??

He may have lots of disposable income now but if you are considering a joint mortgage in the next few months surely his bills will then increase so disposable income will go down. Food and fuel bills are only rising i'm afraid.

sdooley

If the loan is not so large he may be able to transfer it onto one of these life of balance credit cards at 5% or so. If it is larger it is likely to be harder.

Idiophreak

For what it's worth, I got offered a loan at 6.9% when I was 22 (three years back) - have never found my age to be an obstruction to getting credit...

icklejulez

Thanks for your advice he requested ihs credit file and has a good score, no sign of the default. His score is 768. He has the disposable income and we know getting a mortgage will reduce his spare cash but surely reducing a loan of £188 a month(found out its 22%) over 5 years to £140 a month(7.8%) over 5 years is a better option.

I just dont know whether dispite a good credit score and barely any outgoings he will be accepted given he lives at home with his parents? Anyway he applied to MoneyBack thorugh this website last night using moneysupermarket who vaguely reccomend a product using the detils about him and his credit history so fingers crossed.

icklejulez

Hi Im back again. My boyfriend wasnt accepted for a loan reccomended for him via moneysupermarket as his experian score was 784. They said he was just under the neccisary score. Looking on experian they group people into catagories and 784 is only fair. He needs to be in the good category we presume of 880+. How can a single 24 year old living with his parents, always making payments on time increase his score so he can change his loan over from £188 a month(22%) to around £140 a month(7.9%). His workmates on the same salary all have loans at good rates and yet he has no adverse credit. Anyone any tips?

Thankyou

CLAPTON

obviously he is on the electoral roll

how much is the loan for ?
much much any other debts?
how much does he earn?

icklejulez

He earns 14,800 has been there 3 years. He's on the electoral role has a CC for £400 and a lon for £5680 outstanding at 22%. We are not after more credit just trying to gethim on a better rate loan so we can pay it off far quicker and saving the extra 2k in interest.