Credit Rating: How it works and How to improve it discussion area

DCFC79

sarnie44 said:

Hi, my son has just turned 18 and wants to go travelling at the end of this year.  I would rather he took a credit card when he goes, how do we get his credit rating up so he will be approved for a decent card before then?  He already has 2 current accounts (one used for savings as it has a better interest rate), a mobile which he pays for out of his account and a debit card.
Thanks.

Whether he can go at end of the year will very much depend on how covid will affect entry requirements for the countries he wants to go to, he shouldn't get his hopes up.

[Deleted User]

His bank is probably the best bet though really should avoid using the card if at all possible, lot of foreign spending and running up charges/fees is not ideal

MissPixie2020

DCFC79 said:

sarnie44 said:

Hi, my son has just turned 18 and wants to go travelling at the end of this year.  I would rather he took a credit card when he goes, how do we get his credit rating up so he will be approved for a decent card before then?  He already has 2 current accounts (one used for savings as it has a better interest rate), a mobile which he pays for out of his account and a debit card.
Thanks.

Whether he can go at end of the year will very much depend on how covid will affect entry requirements for the countries he wants to go to, he shouldn't get his hopes up.

I want to go travelling too but it won't be possible for many years if ever. Track restrictions could be permanent. 

cymruchris

MissPixie2020 said:

DCFC79 said:

sarnie44 said:

Hi, my son has just turned 18 and wants to go travelling at the end of this year.  I would rather he took a credit card when he goes, how do we get his credit rating up so he will be approved for a decent card before then?  He already has 2 current accounts (one used for savings as it has a better interest rate), a mobile which he pays for out of his account and a debit card.
Thanks.

Whether he can go at end of the year will very much depend on how covid will affect entry requirements for the countries he wants to go to, he shouldn't get his hopes up.

I want to go travelling too but it won't be possible for many years if ever. Track restrictions could be permanent. 

It's possible but unlikely things will remain that extreme.

To the OP - if you want him to carry a credit card for emergency use - you could always add him as an additional cardholder on one of your lower limit accounts it you have one? Just a thought. (Although you'd be responsible for the debt - so depends on what kind of relationship you have with each other)

Jet32

Hi I’m looking for advice. I’m signed up to ClearScore so I get a monthly credit rating. In January I opened a joint bank account with some one who has a bad credit score. Our account has a positive balance and no overdraft was approved (so no debt) but my credit score has dropped over 80 points since I opened the account?!?! Does anyone know why?? Please help I want to apply for a mortgage next year but won’t be able to if my score keeps dropping!! 

[Deleted User]

Your score will drop randomly. It's not important and no mortgage lender will ever be interested in it.

Just ensure the data on ALL your files is correct. Being associated with someone means that lenders can view their history along with yours, so check the other person's too to make sure they're not financially incompetent.

dekkard

On the MSE Credit Club site, I clicked on the Loan eligibility tab.
No warning is given that doing this means loan companies will soft-search against your credit report. So I can see several searches from banks against me. I realise these don't impact my credit score but annoying nonetheless.
The kind of thing MSE campaign against in other orgs, yet they do it themselves!

Ebe_Scrooge

You're right, a soft search doesn't impact your credit score - even if it did, it would mean diddly-squat as your score is completely irrelevant.  Why is a soft search annoying?  No-one else will see it.  And anyway, how do you expect anyone to give you an indication of your eligibility without checking your credit file?

jonnybravo147

Hi, I pay my CCs in full by DD but sometimes I've spent less than the minimum repayment amount, eg. minimum amount is £25 but spent only £20. Do credit rating companies classify that as a minimum repayment and is that bad for my rating? Thanks!

NewLeaf1986

jonnybravo147 said:

Hi, I pay my CCs in full by DD but sometimes I've spent less than the minimum repayment amount, eg. minimum amount is £25 but spent only £20. Do credit rating companies classify that as a minimum repayment and is that bad for my rating? Thanks!

If you're clearing your balance in full it will be seen as exactly that, even if your statement balance falls below the £25 mark.