Help credit for young people

Kas42

Hi

I am after some advice, my son is 21 and crashed his car on Monday the car is a write off but he cant be without one due to work. His credit score is 309 and has been refused for a loan.Im confused as how is he supposed to get his credit score up if he cant get credit? the only outgoing's he has is his car insurance. We are not in a position where we can help him as we are trying to pay our debts off.Is there anything else I can try???? sorry im clueless any advise would be greatly received TIA

DCFC79

Kas42 wrote: »

Hi

I am after some advice, my son is 21 and crashed his car on Monday the car is a write off but he cant be without one due to work. His credit [STRIKE]score is 309[/STRIKE]history isn't good and has been refused for a loan. Im confused as how is he supposed to get his credit [STRIKE]score[/STRIKE]history up if he cant get credit? the only outgoing's he has is his car insurance. We are not in a position where we can help him as we are trying to pay our debts off.Is there anything else I can try???? sorry im clueless any advise would be greatly received TIA

Credit scores aren't seen by lenders, credit history is whats important.


Whats on his report and not the score.


What savings has he got ?


Does he need 1 to get to work or go from site to site ?

foxy-stoat

Whats his annual salary and how much was he trying to get a loan for?

mcpitman

Was his car insured, surely that will pay out appropriately?


Then he only needs to bridge the gap between now and the insurance pay out? Would a money transfer CC bridge the gap (which can then be paid off when the insurance pay out comes through?


Are you sure the only credit he has is car insurance? What about mobile phone contract etc? Are all payments up to date and on time?


What does he earn, if his only outgoing is car insurance, what savings has he built up?


What salary does he earn, what sort of work is it and what loan size is he looking for?

yksi

If he has never had a credit card and doesn't have a mobile phone contract, you are probably finding out the hard way that he hasn't got much of a credit history - which is limiting his ability to get credit. We usually say that the numbers are a load of rubbish, but his number is fairly low and that's probably a reflection of the lack of credit history, that is, a missing pattern of good handling of bills and borrowing.

While it won't solve the dilemma of replacing the car, he should start with looking at the MSE Credit Club in here to see which credit cards he might be approved for (probably things like Aqua, Capital One and the like). Getting one of these small balance cards, using them each month and paying them off in full after the statement arrives, all work to show that he has a good grasp of finances. It takes time to build the history unfortunately and can't be done overnight.