No credit rating

Not2LateChum

Hi - my daughter has just turned 18 and, in preparation for moving to Uni, wanted to have her own mobile phone account. Unfortunately she was turned down by the bank for, we think, having no credit rating. Assuming that is true, how does she get one? Someone told me that she needs to go overdrawn on her (newly opened) student bank account. If that is true, how long will it be before the bank will give her a credit rating? Any help would be great.
Thanks
Ian H

[Deleted User]

That's terrible advice.

She should look at getting a sub prime credit card, but she needs to use it responsibly - use regularly, pay off in full each month.

No one actually gives her a credit rating - she needs to build a history of credit usage.

HappyMJ

Not2LateChum wrote: »

Hi - my daughter has just turned 18 and, in preparation for moving to Uni, wanted to have her own mobile phone account. Unfortunately she was turned down by the bank for, we think, having no credit rating. Assuming that is true, how does she get one? Someone told me that she needs to go overdrawn on her (newly opened) student bank account. If that is true, how long will it be before the bank will give her a credit rating? Any help would be great.
Thanks
Ian H

Don't go overdrawn...there's no need to. Just wait and try another mobile phone provider. Try it without the phone just a SIM only contract.

Stevie_Palimo

The banks do not decide on phone contracts it is the networks decision alone, Could you not get one for her or failing this have a pay and go one ?


Going overdrawn would not bring a credit rating up either it will show as an action on the credit file, Basically I would suggest using an account and keeping it right with money in and out then re-apply in 6 months or so for the phone.

solentsusie

Is she registered on the electoral roll? This is essential if she wants to build a credit file and has no past credit history.


Also, rather than a sub prime credit card, has she applied for a student credit card with her student account provider? The APR rates on this will be much better than a sub prime if she doesn't pay off the full outstanding balance at any time. If she hasn't yet I am sure they will offer her one as soon as they see her student loans going into the account.


Might be worth getting her to sign up to Noddle and Clearscore just to see if anything at all comes up, such as being registered at your home address on the electoral roll etc.


If she does consider applying for a credit card then use the MSE eligibility checker to see her likelihood of acceptance.


Good luck.