Credit Check Trouble!

RyanArena

Hi all,

Here’s the deal:
I’m 18, I turned 18 in February & I’ve never borrowed any kind of money, or bought anything via any other avenue than cash (lived a sheltered life!).
I want to get a phone contract, a decent one. So I went online and ordered a nice new Blackberry Torch & sent off the order. Two days later I get and email saying:

‘Hi Mr Ryan
I’m sorry but you have failed our credit checking system, and we cannot complete your order.’

At first I was a bit worried thinking that meant I had a bad credit score, but it turns out I just don’t have one at all.

I was wondering if anyone had any advice in this situation?
Can I order the phone in my dad’s name, from my bank account, and change the name straight away?
Does anyone know the criteria I’d need to meet to pass the check? And whether I can achieve it fairly quickly?

I’ve called up 3 and they said to go into store but I can see it being the same story, but with a trip into town on top of it.

Thanks!
Ryan.

Eltocliousus

I'm in the exact same situation now, turned 18 a few months ago, currently studying medicine and living with parents, I've never borrowed any money, no debts or other "contract" services etc.

However I keep getting my credit check turned down, probably due to having no job. It's a pain seeing as I'll have no trouble paying the measly £25 a month for the Desire HD.

RyanArena

I'm doing an apprenticeship in IT & I get more than enough money a month to pay for the contract, and I've been doing that for the last 18 months, so it's a pretty secure deal.

grumbler

See Martin's guide: Credit Rating: How it works and how to improve it

Such small things like Electoral Roll can make a big difference.
Also, it is easier to start with a small easy credit, not a 'decent' mobile contract.
Apply for an agreed overdraft limit at your bank.
Make small purchases on store cards (or online varieties like littlewoods).
Take a simple sim only 1 month rolling contract.

marywooyeah

hi when I was 18 I got an argos card and that kickstarted my credit - maybe give that a try?
its dead annoying how they work the credit checks and stuff out, its like trying to get your first job but being knocked back for having no experience!
otherwise try going into store and take wage slips in with you.

RyanArena

Yes, when I spoke to my family & colleagues about it they said to get an overdraft and some storecards:- I’m going on holiday mid-June and need to get clothes anyway. So I think that’s the avenue I’ll go down.

Going back to my original post, is there a way where I can take out a contract from my bank account, in my dad’s name, then change it to my name?

PS. The swift reaction of this site’s dedicated faithfuls is always commendable!

Tar!
Ryan.

ilikewatch

Some, if not all mobile providers are able to offer a contract to someone who has failed a credit check if they pay a deposit - you normally need to do this in store though, so you will miss out on cashback / internet deals.
Some years ago I needed a Vodafone contract but failed the credit check, they took a £100 deposit, then credited this to my account after 6 months of up to date payments.

ilikewatch

RyanArena wrote: »

Going back to my original post, is there a way where I can take out a contract from my bank account, in my dad’s name, then change it to my name?

Not all mobile providers allow transfers of contracts, and those that do would still credit check you before transferring the contract to your name - you could possibly get your dad to order the phone now, but have the direct debit payments come from your bank account, then try to transfer the contract to your name in a few months when you've built up some credit history.

grumbler

ilikewatch wrote: »

...you could possibly get your dad to order the phone now, but have the direct debit payments come from your bank account, then try to transfer the contract to your name in a few months when you've built up some credit history.

This is probably not what you mean, but in the above scenario DDs don't help building credit history.

RyanArena

Yeah I’ve heard about that too but the guy on the phone didn’t offer it to me, he told me to get a low-end handset & work my way up in 18 months’ time (which defeats the object, as I only want a new phone because mine is poor and I need to send/receive emails on-the-go for work purposes).

I was afraid you’d say that, ha ha. The only worry with me getting it in dad’s name & my bank account, is that if ever there isn’t enough money in my bank to cover the cost, it would affect his credit score.

Does having an overdraft on my account build up credit, or do I actually have to go into my overdraft & then pay it back?

Thanks for your replies, guys!
Ryan.

ilikewatch

grumbler wrote: »

This is probably not what you mean, but in the above scenario DDs don't help building credit history.

Sorry - should have made that clearer, I meant building up a credit history via the other methods mentioned earlier.