personal loans

325

Hi there, any advise very welcome. My son who is now 20 and been in a full time well paid job for nearly a year has been trying to build up a credit rating - as advised to do so by his bank Nat west. Unfortunately, this is proving very difficult, they won't allow him a credit card and he applied elsewhere with no luck. He has spoken to Experian and so far not found them particularly helpful. As his current car is on its way out he went to buy another car with intention of being able to get a car loan ....which has also been declined. Apart from moving a few times in recent years there appears to be no other reason Experian can give him for the declines on credit card application and personal loan. Can anyone suggest any advice for him please. My understanding of the situation now would be the more he applies for a loan, the worse it would look anyway? How do young people build a credit rating?

lippy1923

I would say stop applying for credit for at least 6 months as it looks desperate.

Later down the line apply for a sub-prime card, such as Vanquis which have horrible rates 30%+. Use the card only for essential purchases like food, petrol etc and pay off in full. After a year or so with good account behaviour he could then look to get a loan or possible 0% credit card.

For now, I suggest he save up his hard earned money and look at a decent cash ISA.

Can you lend him money if push comes to shove?

CLAPTON

what do his credit files actually show
do they show he is on the electoral roll

DCFC79

Can he not cycle to work ?

325

Thanks for these replies, we did advise him as per delaying applying for loans etc until he had been in his job for a year etc, which he has done. As per the electoral roll, I will just need to double check that ... had not considered that as being an issue

DCFC79

325 wrote: »

Thanks for these replies, we did advise him as per delaying applying for loans etc until he had been in his job for a year etc, which he has done. As per the electoral roll, I will just need to double check that ... had not considered that as being an issue

The lenders like to know the person is who he/she actually live, Joe bloggs could live in say Africa and apply for a loan, get the loan and have free money with not much the bank can do to retrieve the money.

opinions4u

Time in job.

Time at address.

Registered to vote at address.

Clean credit file - pays bills on time. Minimal search activity.

Longer timescales for the first two will give a chance. 12 months and 3 years are big trigger moments.