how to get a credit history

wubbzy

my daughter has just turned 18 and wants to build her credit history, any advise on the best way to do this would be appreciated as it doesn't seem as easy as i though.

she works part time and earns just over £10,000 a year before any overtime
she has a help to buy isa she puts £100 a month in( this is her only standing order)
she has a savings account with about £1600 in
I pay her mobile phone contract, but after the next payment I plan to transfer it into her name and bank (this will be her only direct debit)

she wanted to get a credit card, she can use monthly and pay off in full, a soft check shows only 2 possibilities, marbles and vanquis, with an apr just under 60% she has applied and it says they need to check it further and it will take 7-10 days. I there anything else she can do, I have looked into loqbox but reviews are mixed, thank you

TadleyBaggie

Just transferring the mobile phone direct debit to your daughters bank account will not have any effect on her credit history, the account would have to be in her name. I doubt you can transfer an account, she would have to open her own account to get it reported to her credit file.

sourcrates

You can change names on a mobile contract, but the new customer must first pass a credit check, think chicken and egg here.
Some mobile provider`s have more lenient acceptance criteria than others, perhaps a sim only account in her name to start with, may be better.

The_Real_Cheddar_Bob

If you are not able to transfer the contract to your daughter name, see if you can take out a sim only, rolling 30 day and after three months upgrade it. 
You may want to explore opening a credit card, although, it is risky with an 18 year old, todays society, earn £1 spend £45. 

Utilities are credit file appropriate now, you could always put her name on your gas and electric account... 

wubbzy

TadleyBaggie said:

Just transferring the mobile phone direct debit to your daughters bank account will not have any effect on her credit history, the account would have to be in her name. I doubt you can transfer an account, she would have to open her own account to get it reported to her credit file.

The_Real_Cheddar_Bob said:

If you are not able to transfer the contract to your daughter name, see if you can take out a sim only, rolling 30 day and after three months upgrade it. 
You may want to explore opening a credit card, although, it is risky with an 18 year old, todays society, earn £1 spend £45. 

Utilities are credit file appropriate now, you could always put her name on your gas and electric account... 

that's what I actually meant sorry, I was just going with what they told in the 3 shop as her contract was only up 6 months ago so I said she should wait the 6 months and get her own and they said it was ok they could just change it into her name when she turned 18

The_Real_Cheddar_Bob

wubbzy said:

TadleyBaggie said:

Just transferring the mobile phone direct debit to your daughters bank account will not have any effect on her credit history, the account would have to be in her name. I doubt you can transfer an account, she would have to open her own account to get it reported to her credit file.

The_Real_Cheddar_Bob said:

If you are not able to transfer the contract to your daughter name, see if you can take out a sim only, rolling 30 day and after three months upgrade it. 
You may want to explore opening a credit card, although, it is risky with an 18 year old, todays society, earn £1 spend £45. 

Utilities are credit file appropriate now, you could always put her name on your gas and electric account... 

that's what I actually meant sorry, I was just going with what they told in the 3 shop as her contract was only up 6 months ago so I said she should wait the 6 months and get her own and they said it was ok they could just change it into her name when she turned 18

The sales person in the phone shop will tell you anything. From memory, unless this has changed, it isn't them that make the decision. 
Your daughter will be able to find a line of credit somewhere if it is required. 

[Deleted User]

The_Real_Cheddar_Bob said:

If you are not able to transfer the contract to your daughter name, see if you can take out a sim only, rolling 30 day and after three months upgrade it. 
You may want to explore opening a credit card, although, it is risky with an 18 year old, todays society, earn £1 spend £45. 

Utilities are credit file appropriate now, you could always put her name on your gas and electric account... 

Oh do stop with the patronising balderdash, plenty of people of all generations live like that - is an 18 year old today responsible for all the over-borrowing that helped caused the 2007/8 crash for example? Plenty of young people are perfectly responsible, plenty of old people are not. Lenders like a CC company will give a credit limit that they feel is reasonable for the person's ability to pay back e.g. a £200 cap one credit builder card

yksi

Make sure she's on the electoral roll.
Loqbox isn't awful for someone in this position. It's another piece of ongoing evidence that she can reliably pay off a "debt" and at the end she can take the money out.

Alex9384

I've used Loqbox in the past. It's fine.
It's definitely better than nothing for someone who is not eligible for other products yet.
Just bear in mind she will need to open some new account (offered to her by Loqbox) after 12 months if she wants to avoid £30 fee. This is not an issue though. I tell everyone to have at least 2 current accounts in 2 different banks.

PRAISETHESUN

I personally don't see the need to pay to improve your credit history - services such as Loqbox are a waste in my view since you can accomplish everything they offer by yourself. All she really needs is a sub-prime credit card - use it to make a few small purchases (stuff she'd normally buy anyway such as groceries/petrol/etc) and pay it off IN FULL every month. This way no interest is charged so the APR doesn't matter. Do this and over time (6-24 months from my experience) she will begin to be eligible for higher limits and more mainstream products. The sub-prime providers you've listed are fine - I'd make the application and if she gets declined wait 6 months and try again.

PaulW922

My partner has recently arrived into the UK with zero credit history. We were able to open a Three SIM only contract for him over the phone (just £6 a month) paying by direct debit from his new Lloyds account (also opened with zero credit history). I am an existing Three customer but his contract is in his name and is reporting to Experian etc. So, it should be possible for your daughter to do that too..