How can I help my son's credit rating?

Chiggsy

Since leaving university my son has been self employed as a professional drum teacher and drummer. He is on the electoral role, earns regular and consistent money and has his accounts prepared professionally (first year this year) but he can't seem to get any type of credit. He can't get even the smallest overdraft allowance or even a telephone contract that was for just £15 a month! Drum lesson payments come in from various different students. he plays six nights a week and his playing payments come in from money given to him weekly by the band leader, all is declared for tax and other deductions.
Because he hasn't had any credit, he can't seem to get any and because he isn't formally paid by a recognised company the credit ratings people don't seem to regard him as earning any money, even though he is quite comfortably off.
He doesn't want a loan or any specific credit at the moment but wants to start building a good history so that he won't have problems in the future, plus in the modern world it is a pain when you can't even take out a phone contract.

Any ideas how he can improve his credit rating?

Chiggsy

bengalknights

He should try a creditcard off his own bank to start off with

Wywth

Chiggsy wrote: »

Since leaving university my son has been self employed as a professional drum teacher and drummer. He is on the electoral role, earns regular and consistent money and has his accounts prepared professionally (first year this year) but he can't seem to get any type of credit. He can't get even the smallest overdraft allowance or even a telephone contract that was for just £15 a month! Drum lesson payments come in from various different students. he plays six nights a week and his playing payments come in from money given to him weekly by the band leader, all is declared for tax and other deductions.
Because he hasn't had any credit, he can't seem to get any and because he isn't formally paid by a recognised company the credit ratings people don't seem to regard him as earning any money, even though he is quite comfortably off.
He doesn't want a loan or any specific credit at the moment but wants to start building a good history so that he won't have problems in the future, plus in the modern world it is a pain when you can't even take out a phone contract.

Any ideas how he can improve his credit rating?

Chiggsy

http://www.moneysavingexpert.com/loans/credit-rating-credit-score

podperson

He could start by getting a credit card - he may need to get one of the higher interest rates ones to start with - and then make regular purchases on it, eg get the supermarket shop on it or something, and pay it off in full each month.

paddyrg

Credit is available to people who can show they can handle it - that means probably starting with a small loan or card from their own banks which will start to build up a credit file. If it's all paid off on time etc, next time the rates are lower etc...