I have a low credit score.....like under 500 low

cabriolean

.....I figured I was at least in the top 60% because I've always been careful with money and always been the right side of 0 and never had a bounced or late payment......

I'm a 19 year old student, I have a few direct debits set up (bills, laptop insurance) none of which have ever bounced or anything like that, but I've never had any sort of loan, I've been with the same bank for almost four years (four years in February) and the balance (current account) has never fallen under £500 since it reached £500 ~3 years ago, I also have a savings account (opened at the same time) with ~£400 (started off with £250), it has had a few small, sporadic deposits over the years, but I've never taken from it, it's my fund of last resort, and I've promised myself not to touch it until I'm 25/applying for a mortgage or absolutely desperate.

I've also never had a phone contract or overdraft, or phased payments, I've always bought everything outright so I can see how much money I have, also if I don't have the money then, I don't want to rely on assumed future money...my grant has been late before, or sometimes an emergency or something pops up.

I have never had a credit card although last year I lost my debit card, but cancelled it within 5 minutes (literally, I keep it in my phone case, used it to pay, realised I didn't have it before I even left the shop when switching songs, cashier didn't have it, so I immediately moved away into the car park and called the bank).

My score is under 500. Is this a lack of credit history (parents pay my rent but I give them some money back from each grant instalment (landlord wants direct debit and it was due before my grant for the term arrived in my account and the difference between rent and what I give back is slightly lower than the expected parental contribution), combined with being a student, being young, having a low income from my grant (don't have a student loan coming from Guernsey) and only having lived in this house since September and something that will fix itself when I graduate and get a job?

Or is it due to losing my debit card, or something and won't fix itself without my help?:eek:

Tiglath

Sounds like lack of credit history to me as the primary factor. Are you on the electoral roll anywhere?

cabriolean

I am in Guernsey, but not in England, although I primarily use my card in England, so you think once, I graduate and get a job it'll just fix itself then?

19lottie82

It won't "fix itself" and has nothing to do with you losing your debit card.

As explained its down to you not having a credit history, so if you want to improve your score then you need to build one.

The best way to do this is make sure you are on the electoral register, or guernsey equivalent, also try getting a cost effective sim only deal for your mobile phone (30 days rolling contract deals are the best if you don't want to be trapped in a 12 month contract).

Also, apply for a credit card (try with your own bank) and use it for a small amount (£50?) and pay it off in FULL every month.

abby1234519

No it won't fix itself.

You don't have any credit to have a credit history.

You could always get a student credit card, use it for food etc

samtoby

A credit score means nothing - people who are bankrupt could have a score of 999 - its about having credit and paying it back on time - no credit = no history.

DCFC79

Its not due to losing your debit card.

cabriolean

Okay, looked at some credit cards and called 2 places, being a Guernsey resident rather than a UK one apparently isn't a selling point according to Katie at customer services. According to the credit card finder thing on moneysupermarket, I am eligible for 247 cards, the first 2 of which have a 7/10 chance of accepting me, which drops to 3/10 for the next most likely, then 2/10, then not rated for the majority.....

I think the best option for me is to apply for a store credit card and then pay it back and get rewards, then maybe apply for another store card in a couple of months so I don't dent my score. I'm careful with money, so will definitely manage to pay and get some nice rewards, I just always thought not using credit was good money management....

I barely use my phone, I use Skype to save money and go through an average of less than £5 a month, so a phone contract might not be worth it for me, but I'll look into it, especially if I can get some useful perks on a pretty cheap contract.

Thanks

jonesMUFCforever

If you are a student you may qualify for a student card with the major banks.
Anything else will probably be sub prime such as Aqua etc.

Be proud that you have never been in debt - when you start work you will have nothing to repay - there must be dozens of posts on here about people who have had free student overdrafts then graduate overdrafts then complaining that a bank has the temerity to start charging them interest on the amount owed!

cabriolean

jonesMUFCforever wrote: »

If you are a student you may qualify for a student card with the major banks.
Anything else will probably be sub prime such as Aqua etc.

Might try HSBC, I have accounts with them, might try switching my regular savings over to a student account and getting a student credit card on it....:beer:

Be proud that you have never been in debt - when you start work you will have nothing to repay - there must be dozens of posts on here about people who have had free student overdrafts then graduate overdrafts then complaining that a bank has the temerity to start charging them interest on the amount owed!

I know, it's just frustrating to know that while I've always tried so hard to make good financial decisions by budgeting etc. so I could avoid debt it actually lowered my credit score, when I always assumed I was helping it.:o

Will post again in a few months to show off my shiny new credit score (hoping to hit 500 soon )

The_Boss

cabriolean wrote: »

Will post again in a few months to show off my shiny new credit score (hoping to hit 500 soon )

What's the point? That credit 'score' means naff all now and will mean naff all then too. You might as well just show off a clean pair of pants in a few months.