20 Years old and refused credit help!?

ralph234

I am 20 years old and have been refused credit around 5 times, maybe more.

I have a student overdraft and I am currently paying back tw loans but am also in full time employment due to the holidays.

My credit rating is really low and I am worried it is going to effect me in the future and I won't be able to get a mortgage etc.

How can I improve my credit rating and not ruin my life:(?

Ralph.

BugsyBrowne

Start off by asking your own bank if they say no forget the mainstream lenders go for cap1 classic or vanquis.

loony2012

ralph234 wrote: »

I am 20 years old and have been refused credit around 5 times, maybe more.

I have a student overdraft and I am currently paying back tw loans but am also in full time employment due to the holidays.

My credit rating is really low and I am worried it is going to effect me in the future and I won't be able to get a mortgage etc.

How can I improve my credit rating and not ruin my life:(?

Ralph.

Credit won't really affect your chance of a mortgage. As long as you pay back everything on time and wait it all out you will have a clean slate when enough time has past.

opinions4u

Get on the voters roll.

Pay all your bills on time.

Don't spend what you haven't got.

Stop applying for credit.

Then you'll find it much easier when you really need to raise funds.

but am also in full time employment due to the holidays

Which makes little sense.

trikidy

Get a phone contract.
Apply for a CC from capital one classic.

shop-to-drop

Are you a Uni student? What about a student loan?

Scarpacci

Stop worrying about your credit rating/report, for now at least. Two loans and a student overdraft? I think (outside of something like a mobile phone or utility account) that's really enough credit for now. You don't want to over-extend yourself, or that could well "ruin your life".

Five applications makes you look desperate for credit and is a gigantic red flag, especially when you already have an overdraft and two loans. Is there any reason why your credit rating is low (outside the five applications)? Are you managing to keep up with your current credit obligations? If not, you definitely don't want to be getting more credit.

Keep up the payments on your loans, don't get too deep into your overdraft and your credit report will be fine. You're building up a history already, so just make sure it's a good one.

ralph234

thanks for your advice guys.

So if I pay off all my credit in the next 3 months, will my credit score improve?

How long till the major flagging disappears?

Thanks so much for your help.

opinions4u

Feel free to press the <thanks> button.

What is showing as negative on your credit file?

Why do you need to borrow?

arcon5

Even with a perfect credit score, being just 20 years old with 2 loans and an overdraft having just left full time education may be enough to put a lot of lenders off.

They want to be sure you can afford the repayments in the long run, if your total credit versus your yearly income is high then they are unlikely to accept you.

Building up a good credit rating is a long term thing, 3 months may help but will not perform miracles.

Nor is a shattered credit rating necessarily the be and end all. Confidence can be restored over time, although interest rates may be higher it would be possible to come back from a bad rating and borrow again.

bouncydog1

Why are u continually applying for credit? You should try to build up a pot of savings with your own bank and ensure you have no debt. Don't make late payments and stop applying for credit. Disregard the rubbish about credit scores as every lender has their own internal scoring so the reference agencies cannot be relied on. When you come to apply for a mortgage the lender will want to see you living well within your means over a period of time and being able to save. That demonstrates being able to manage your money so being less likely to defaul on a loan.