Bad credit score in household

Nick23

I have a good credit rating but my son who lives with me is taking on a mobile contract that he can not pay for will this affect my credit rating when he fails to pay the bill?

National_Debtline

Hello there,

It should not affect your credit rating unless you have are 'financially associated' with him. These means that you have a joint financial product with him such as a loan or overdraft - as that would link you both. If you've never had such an association you'll be OK. A credit rating is on the individual rather than the address or the household.

We've some useful information on credit referencing, which you can find by clicking here.

Best wishes,

David @natdebtline

Hazzinho

No credit is against an individual not an address, you will only be impacted if you have joint accounts with him.

20aday

Out of interest, which handset has he got, and how long left does he have on the contract?

If he's unable to meet the monthly repayments on his mobile phone account how about suggesting he trades in the phone (assuming the handset cost outweighs the cost of repaying the contract early)?

I know that's what I'd do in his situation...

The_Boss

20aday wrote: »

Out of interest, which handset has he got, and how long left does he have on the contract?

If he's unable to meet the monthly repayments on his mobile phone account how about suggesting he trades in the phone (assuming the handset cost outweighs the cost of repaying the contract early)?

I know that's what I'd do in his situation...

Only thing that the OP needs to be aware of is that some networks ts&cs state that they own the phone until a certain period into the contract, so if he sells that and still defaults in the future it could make it worse.

Nick23

thanks for this would a children's account be included as 'financially associated'. That is still open and not closed down yet.

He has only just taken out the phone contract and we are not able to cancel the contract.

Tixy

No, a children's account wouldn't have a credit facility so would not create a financial association on your credit files.

You say he is 'taking on' an account - if he hasn't done so yet is there any chance you can persuade him not to (have you tried pointing out to him that if he defaults on the payments it could affect him for the next 6years, and make it difficult to get more 'useful' credit in the future (perhaps a loan for a car or a mortgage etc).