18 years old and curent account

The_Boss

Must admit that I was quite baffled by that advice too.

kylararlin

A little more information would be great, you say his credit rating is "fair", does it show that he is on the electoral roll? Does he have any accounts listed such as mobile phone etc? Is there any history at all of missed payments or pay day loans?

Lenders expect to see a limited profile for an 18 year old and will make certain allowances but at the bare minimum will be looking for voters roll and preferably an account, even if it is a mobile phone, that has been run well. As Therugelmir has asked, how long has your son been employed, this will also be taken into consideration.

The car itself will also be taken into account, at 18 I'd recommend as high a deposit as he can possibly manage and try to keep the monthly payments as low as possible- you have a much higher chance of being accepted around £100pm with a good deposit but no chance of a new car at £250pm with no credit history.

LIZZY71

Thanks for the advice, his name appears on the electoral role, he does not have a mobile contract, his contract has still a fair bit to go and is under my name and I cant afford to take another one on though he is thinking about buying out of it, he has been working for just over a year as a mechanic and will be fully qualified in a month with pay rise joining that, its just a real struggle to even upgarde his account from his cash plus, we have tried nationwide and they have said no , but he has been given a contact number to ring another department to see if they can help, and in answer to the question about a car its not to look cool in he needs it to get to work as he works 13 miles from home and its a must he does have some savings and will keep saving till he get enough. Just think its so unfair nowadays to even upgrade his account you have to have credit history but at 18 your not going to have that

The_Boss

LIZZY71 wrote: »

Just think its so unfair nowadays to even upgrade his account you have to have credit history but at 18 your not going to have that

It's not just 'thesedays' - same applied to me 15 years ago. I'd also be deeply concerned at extending credit facilities to the average 18 year old given there being no proof of them managing it responsibly.

Give it a bit of time and Halifax may upgrade him automatically and open doors to other options.

Cycrow

LIZZY71 wrote: »

Thanks for the advice, his name appears on the electoral role, he does not have a mobile contract, his contract has still a fair bit to go and is under my name and I cant afford to take another one on though he is thinking about buying out of it, he has been working for just over a year as a mechanic and will be fully qualified in a month with pay rise joining that, its just a real struggle to even upgarde his account from his cash plus, we have tried nationwide and they have said no , but he has been given a contact number to ring another department to see if they can help, and in answer to the question about a car its not to look cool in he needs it to get to work as he works 13 miles from home and its a must he does have some savings and will keep saving till he get enough. Just think its so unfair nowadays to even upgrade his account you have to have credit history but at 18 your not going to have that

you could transfer the mobile contract into his name. They will have to credit check him first, but mobile contracts can be easier to get for someone with no history.

That would at least put some history onto his credit report.

Is he still living at home ?
if so he wont have much outgoings and on a decent wage shouldn't take him too long to save up.
Assuming hes not long passed his test, it wont be wise to get a decent car anyways because the insurance would be too much.
most 18 year olds just drive around in old bangers.

Dont you have any money to help him out with a car to go with his savings.

A loan really isn't a good idea at his age

Experian_company_representative

A credit builder credit card is certainly one route to collecting some positive data. Getting one of these shouldn't be a problem because they are aimed at people with unimpressive credit histories. Encourage him to spend a small amount on one of these cards each month and then repay the balance in full at the end of the month. Not a bad habit to get into. Once he's built a decent credit history he could graduate to a card that pays him to use it!

James Jones

LIZZY71

We spoke to the mobile contract people last night and we get the same answer until he has a current account i.e. a visa debit card not electron he will fail the credit check, and the same goes for the builder credit cards we have looked at they want a current accoount (he only has a cash account with the halifax) which he cant get as he has no credit history, we are going to go into the banks at the weekend to see if we can make any further headway but everytime they do a credit check it brings his score down, have you any suggestions of which builder credit card people he should approach

Thrugelmir

Experian_company_representative wrote: »

A credit builder credit card is certainly one route to collecting some positive data. Getting one of these shouldn't be a problem because they are aimed at people with unimpressive credit histories. Encourage him to spend a small amount on one of these cards each month and then repay the balance in full at the end of the month. Not a bad habit to get into. Once he's built a decent credit history he could graduate to a card that pays him to use it!

James Jones

Credit card usage is the downfall of many young people. As too often there's a month where the balance goes unpaid. Thereafter the hamster wheel of revolving credit looms. As interest eats up more and more of the monthly repayment.

A far better way. Is to save with the same lender as operates the current account. Build an internal credit history rather than an external one. Far more valuable in the longer term.

Cycrow

LIZZY71 wrote: »

We spoke to the mobile contract people last night and we get the same answer until he has a current account i.e. a visa debit card not electron he will fail the credit check, and the same goes for the builder credit cards we have looked at they want a current accoount (he only has a cash account with the halifax) which he cant get as he has no credit history, we are going to go into the banks at the weekend to see if we can make any further headway but everytime they do a credit check it brings his score down, have you any suggestions of which builder credit card people he should approach

That does really suck.

But the bank must beable to authorise a current account, or how else do they expect young people to get any credit history.

You just need to go into the bank and try to talk to someone who knows how to help, i cant see why anyone would be rejected for a current account

nc123450

I had a similar problem with my daughter when she started a job and they wanted to pay direct into her bank . We managed to get a CoOp bank acount and they were very helpful. She just needed her passport, NI card and proof of address from her Ni card letter. She has now set up a mobile contrcat in her name too to start build her credit rating.
I still have not found someone to give her a credit card. I don't want her to use it much and pay it off each month as it improves your credit rating if it is paid off in full each month. one day she will want a loan or mortgage and she need a record. You are never to young to start