Will taking over a phone contract with bad payment history affect my credit score?

Dlxke

Hey all,

for the last 1 1/2 years, my mum has been paying my phone bill. However, she quite frequently pays late, and even so this month (which raised the question for me and made me curious about this).

She is leaving the country in about a month, so after this coming payment in a couple of days (which is already about 3 weeks overdue) we will transfer things over to my name, so I will continue to pay off the rest of my contract. My question is, having had a bad history with payments on this account due to my mum, will this affect my credit score once I take over the account even if I pay everything within the given timeframes going forward?

I currently have no credit score at all, a completely clean slate for me, so I really don't want this to taint my score even though it's nothing to do with me.

In case it's likely going to affect me, is there anything I can do to avoid this other than not taking over the contract, which I sort of have to do unfortunately?

Thanks for any advice in advance

[Deleted User]

You won't be able to transfer the contract. You will need to take out a new one in your name.

However, you could make payments on her contract.

Any new credit agreement will appear on your credit files (not score, which is fictional).

cjmillsnun

I'm actually tempted to say, get a new contract in your own name.

You can do it and keep the phone number by selling the phone on mazuma or somewhere like that and using the money (and perhaps a little more) to terminate the contract early.

At the same time, get a PAC - Porting Authorisation Code (this allows you to keep the number), you are then free to go and get a new contract and a new phone with the provider of your choice and once you give them the code, they'll transfer the old phone number over.

Be aware you'll be without a phone for a few days, but its not the end of the world, as you'll end up with a shiny new phone and no chance of transferring any late payments onto your credit file (although I don't think they'd go over anyway as they won't normally transfer accounts to someone else) and as a bonus also avoids a default on your mum's credit file in case she returns to the country within 6 years.

MEM62

Dlxke wrote: »

Hey all,

for the last 1 1/2 years, my mum has been paying my phone bill. However, she quite frequently pays late, and even so this month (which raised the question for me and made me curious about this).

She is leaving the country in about a month, so after this coming payment in a couple of days (which is already about 3 weeks overdue) we will transfer things over to my name, so I will continue to pay off the rest of my contract. My question is, having had a bad history with payments on this account due to my mum, will this affect my credit score once I take over the account even if I pay everything within the given timeframes going forward? As advised, you cannot transfer the contract. It will need to be cancelled and a new one taken in your name. The late payments against the old contract will have no impact on your credit standing.

I currently have no credit score at all, a completely clean slate for me, so I really don't want this to taint my score even though it's nothing to do with me. Nobody else has a credit 'score' either - other than the randomly generated and meaningless scores that the CRA's use to try and convince you that you need to subscribe to their services.

In case it's likely going to affect me, is there anything I can do to avoid this other than not taking over the contract, which I sort of have to do unfortunately? It won't.

Thanks for any advice in advance

Run your own finances responsibly and your credit worthiness will be fine. Accounts held by other people should not impact your standing unless you are financially linked. (ie Have a joint financial product such as a Bank Account or Mortgage)

sourcrates

The contract can be transferred to another name, I know Vodafone will do this, unsure of the other networks, but I suppose they have a similar process, that individual must pass a credit check with the network concerned though, and provide two forms of ID.

The process is not a simple one, and its much easier just to leave it in her name, but you take over the payment yourself.

I know this wont help with building up your own credit history, but if the account had arrears, and you have no credit history, its likely the network would want a deposit off you first, and that could be a few hundred pounds.