need a little info please

meemo38

Not sure which forum to put this as its not really credit card or loans as such, so hope someone can help.
Basically my stepson has been using a basic account with santander, he has had his wage go in there for around 18 months-2 years now, he went to HSBC today to open another account but was refused...he was quite worried, i tried reassuring him that it is just because he has not got and never had any form of credit, he was told he could open a basic account as this didn't need a credit check...but he didn't open that as he wasn't to sure, anyway he popped into Burtons thinking if he got a card he could build his rating up, but again was declined...i told him he will need to stop trying as he will just have to many searches and that wont help.....so...should he wait perhaps 2 months then try something again...if so what's the best way to build his rating.....he needs it building as him and his girlfriend want to rent at the end of the year and most estate agents do credit checks.
He did pop into Santander and they have said they will up his account to another one and he can have the highest overdraft, so she said his report cant be that bad, so he is going to do this for now.
Thanks in advance

Eonel

Seems to me you are doing everything right.

Santander have upgraded him to a full account with overdraft. Given his failed attempt to apply for credit with Burtons, give it some time and then go back to Santander and talk to them about the possibility of a credit card.

( there should be no rush with this- he has a debit card and overdraft so should be good for the time being .....)

Enterprise_1701C

Just one note - tell him not to get a store card, they are normally extrememly expensive. He would be better to allow a little time and then, as Eonel says, apply for a CC through his bank. If he then pays the balance before the due date each month he can build up his rating without incurring interest charges. As said above though, managing the overdraft properly will help too.

Tixy

Has he looked at copies of his credit files? that is worth doing if he hasn't.

Is he on the electoral roll at his current address?

Santander will be basing their decision on his past history with them as well as (possibly) what is on his credit file, so if for example he wasn't on the electoral roll that probably wouldn't be as big an issue to them as it would be for other new potential lenders. Or it could be that santander searched a different credit reference agency to burton and hsbc, and that he has a problem on just one agency's report.

In terms of a rental agency doing a credit check - what they will check is only the public information. They cannot see a history of what credit accounts he has or has had and whether or not he pays on time.
All a rental agency can see is whether he is on the electoral roll and if he has any record of CCJs, an IVA or bankruptcy.

meemo38

Thankyou for the help, i will let him read your replies when he gets in from work, easiest for him will be to keep the santander for now with the overdraft.
Michelle