Just turned 18...how to start building a credit score

SpartanMissile

My son was 18 in October and I'd like him to start building a credit score. I have no idea where to begin as it sounds like Catch 22 - most of the things that would help him build a score, he needs one to get!

He has a bank account where his salary is paid into from his part time job but he has never needed an overdraft, he's registered to vote, and we've lived at this address for five years.

I'd like to transfer his mobile phone into his own name so that he can show he pats his bill every month (in reality I'd be putting that money into his account) but I understand that requires a credit check for that too.

Thoughts and advice very welcome.

Dobbibill

Well done on getting him on the ER. That's a good first step.
Give it time for this to filter through to the CRAs.

Yes, he will be credit checked for his mobile. The same happened to my DS, who failed the first check and was advised to try again in 6 months, which he then passed. Sometimes it's time and patience that's needed.

Is his bank account now a full current account?
Check his CR to see if it's reporting to them.

Maybe he could get a 2nd current account (this can be with the same bank) when he has the mobile bill to pay so there's 2 accounts plus a mobile contract being reported but not a lot else I can think of.

DCFC79

SpartanMissile wrote: »

My son was 18 in October and I'd like him to start building a credit score. I have no idea where to begin as it sounds like Catch 22 - most of the things that would help him build a score, he needs one to get!

He has a bank account where his salary is paid into from his part time job but he has never needed an overdraft, he's registered to vote, and we've lived at this address for five years.

I'd like to transfer his mobile phone into his own name so that he can show he pats his bill every month (in reality I'd be putting that money into his account) but I understand that requires a credit check for that too.

Thoughts and advice very welcome.

Remember its not a credit score your building but a credit history.

He will already have one, he just needs to keep his back account in the black.

The phone account will be a good idea in his name.

A credit card might be of use.

YorkshireBoy

Dobbibill wrote: »

Give it time for this to filter through to the CRAs.

At this time of year, that means waiting until late December/early January before making any credit applications...

http://www.experian.co.uk/consumer/questions/electoral-roll/electoral-roll-1.html

System

This is very poor advice - take out a second current account for no reason alone but to attempt to build a credit rating (which I doubt the product you are suggesting will be much help anyway)

If the OP's son is responsible enough then he can look at a modest overdraft limit on his exisiting account (a few hundred pounds) or a credit card with a similar credit limit.

If not, then just play it by ear - building a credit rating isn't THAT important!

Dobbibill wrote: »

Well done on getting him on the ER. That's a good first step. Give it time for this to filter through to the CRAs...Maybe he could get a 2nd current account (this can be with the same bank) when he has the mobile bill to pay so there's 2 accounts plus a mobile contract being reported but not a lot else I can think of.

sourcrates

Ugh my advice would be to avoid credit (cards especially), like the plague.

Its the start of a lifetime of borrowing, and paying off, borrowing again.

I always laugh at the term "using credit responsibly", if every one did that, this forum wouldn't exist for one thing.

Unfortunately the world we live in today expects us all to be slaves to the credit reference agencies, but there are ways of conforming without getting into thousands of pounds of debt, just make sure your son realizes this OP.

Dobbibill

Heng_Leng wrote: »

This is very poor advice - take out a second current account for no reason alone but to attempt to build a credit rating

Taking out a second current account as a bills account when he has a mobile bill to pay.

The envelope system of bills account and spending account helps many with managing finances.

anna_1977

EE transferred a mobile account from mine into my 18yr old daughters name easily. No questions about income;there is none, she's at uni.

We did it for the same reason as you, just to have something on the file to show she pays things regularly and on time