Advice needed please!

ferriswheeljunkie

Hi everyone,

Just wondered if anyone could shed some light or offer some advice on the following....

My boyfriend has never had any credit cards/loans or borrowed any money before (he's 27) and only has an overdraft of £750 which he doesn't use. Basically he doesn't owe anyone a penny. Last week he tried to order a new car on finance but was declined because of his credit rating (as he has never borrowed money he doesn't have one) and then this morning after a phonecall to his bank HSBC was told that his credit rating as far as his bank account was concerned was excellent but that the bank itself wouldn't be able to lend him any money. He is wanting to buy a 2nd hand car that costs £3500 but doesn't know where he can borrow the money from because no-one will lend it to him. He has a secure, permanent job and so would be able to easily afford the repayments. Does anyone know what he can do?

thriftymomma

The trouble with your boyf is that although he has no adverse credit history, he actually has a limited credit history, so the banks and other financial institutions do not know what sort of a risk he is. You need to get him a basic credit card, and or catalogue/mobile phone accounts to build up his credit file. After 6 months or a year, he should be in a much better place.

ferriswheeljunkie

Many thanks for your reply! He has had a mobile phone contract for about 8 years but apparently that doesn't count for much Its just very annoying to find this out now as we were planning on moving in together....my credit rating is fine but i just need to wait for him to get one aaaargh
:rotfl:

Chi_Chi_4

Hiya,

I'm not entirely knowledgable about this but I was also told to get (and use) a credit card to build up my credit history. I think you have to use it to show you are reliable in making repayments. Of course it will take a bit of time to build up a credit rating so I'm afraid I don't know what to recommend in the mean time but it will be useful for when you move in together.