Building Credit rating for 19yo

Ant555

I am about to switch mobile networks for my son and daughter who are both away at Uni and was wondering if it would be a good idea for me to put the new SIM Only contract in their name against their own bank accounts to start to build a history that seems ever so important nowadays.

Assuming they pass the Vodafone/VOXI credit checks as Uni Students (maybe they will fall at the first hurdle) then I am interested in any opinions on doing this.

For info, the SIM only deal is £10/month - they have two bank accounts - a normal one and a student one. I would use the normal one as this is not likely to be overdrawn any time soon plus I will set up a monthly transfer of the £10/month anyway from me to them.

Is this a lot of hassle for not much gain vs the potential credit history issues for a missed payment for any reason?

Ebe_Scrooge

I don't see any issues with this. As a first attempt at getting any sort of credit, they are more likely to be accepted for something where they're only being extended £10 per month of credit than they would be if they were to apply for something like a credit card, where they would be given a few hundred pounds worth of credit. £10 a month may be small potatoes in the grand scheme of things, but it's certainly a very good starting point.

Oh, and just to pre-empt any questions a few weeks down the line - be prepared for their fictitious "credit score" to drop after they're given the contract. These scores always react negatively to ANY change in credit circumstances, good or bad, and have no bearing on their real credit history. Getting a mobile phone contract will have a small but beneficial effect on their true credit history.

[Deleted User]

You won't be able to open it in their names - they would need to apply for themselves.

And yes it will go towards building a credit history, not building the fairytale scores and ratings

DCFC79

Your son and daughter should be capable of doing it themselves, might be discounts on offer for being students.