How to get credit ?

Things.Past

My daughter has had a mobile phone for a few years now, originally via me as a guarantor, even though she was making the monthly payments. Now she has become of age and would like to take over the contract under her own name. Which we tried with Vodafone , Vodafone checks came back she couldn't as she had bad credit, she received a credit check / report from Experian which said she had no bad credit. Talking with a Vodafone chap in the shop, producing the report, he says it's most likely not bad credit, but most likely she has No credit. Even though she could show a bank statement with over £3000 in her account, it meant nothing.... So she thought she would try and build a credit, applied at her local bank for a credit card, again she was unable to do so, tried various methods to get something on a monthly payment to build her credit up, again she can't because she again has NO credit.

So my question is; How does one build there credit up, by which and what means ?..
Thanks..

matttye

Applying for an overdraft might help and it's quite likely her own bank will accept her for that.

She could also try applying for a bad credit credit card - have a look at the MSE guides on the subject.

Before doing anything she should check her credit files with the three agencies and see if there's anything on her files that isn't correct.

Paul_the_Painter

Also check that she is on the electoral roll, can she put any bills into her name? These days energy companies report to credit reference agencies, so if she is paying you rent, could she pay the electric/gas bill instead?
Try a sim only monthly contract, counts as a credit agreement, but very low risk for the phone company.

Things.Past

Thanks for the replies guys... Defiantly some things to work on.
As she had been paying the monthly contract from her own bank account, never missed a payment, statement shown to the assistant in the Vodafone shop, I would have thought that would have been seen as credit, albeit the contract was in my name..

[Deleted User]

Things.Past wrote: »

I would have thought that would have been seen as credit, albeit the contract was in my name..

Credit in your name will only impact you, not any other family members.

solentsusie

Definitely check that she is on the electoral roll as this can make a significant difference.


You also don't say whether she has a job with regular income or whether she is a student. Most creditors will want to know where her income is coming from to pay any debts she may incur.


It took my son quite a while after finishing university and getting his first job to get his bank to give him a small overdraft and then a credit card. They wanted to see regular income going into his account which is very reasonable.


Have you tried any of the other networks or is there a reason she wants to stay with Vodafone? Three was easier for my son to get a mobile phone contract.


Good luck.

kpearsoncj

try vanquis they helped me when no one else would started off at £150 so quite managable.

National_Debtline

This MSE guide on how to build credit history for young people and students might be useful:


www.moneysavingexpert.com/loans/build-credit-history?_ga=1.257749067.1138835774.1435305853


James
@natdebtline

chappers

To be honest phone companies aren't usually that strict, are you definitely sure her credit report shows her on the electoral roll.

Ben8282

If your daughter has just come of age she is unlikely to have any 'bad credit' as she should never have had any credit at all.
If the existing contract is several years old then she or rather you will be out of contract by now.
My advice would be to cancel contract and get SIM only contract for the existing phone. You will probably get more than double the minutes at less than half the current price as remember with your existing contract you are still paying for the phone which you have already paid for maybe many times over. Assuming she is now on electoral roll and can be identified I doubt this should be any real problem.
But that's not what she wants is it .... I imagine she went into the shop and tried to upgrade to some really expensive new phone with a hefty monthly payment which may well be why she got refused. As I said try elsewhere for a SIM only. She will then build up a payment history in her own name with the mobile phone company and hopefully in time be able to get the expensive phone that she wants.

solentsusie

I agree with Ben8282


Cancel the contract you have for her and get her on a SIM only contract so that she builds her credit rating. If she really wants a shiny new handset she has 3K in the bank so can afford to buy one outright. This is actually usually a better deal in the long run.


Good luck.