How to improve credit rating

Gej1967

Hi, my daughter is 21 and wants to borrow some money to help fund the purchase of a new car. Unfortunately she keeps getting declined for loans due to he credit score. We even tried out of curiosity applying for a credit card and that was also declined. The only direct debit she has is for gym membership and she has no other debts or cards. Her first car was bought cash. She has the salary to afford a loan but we don’t know how to boost her credit score, any ideas?

Ebe_Scrooge

She wasn't declined due to her score, since it's not seen or used by any lender.  It's more likely to be due to a very thin credit file, or affordability concerns, or a combination of the two.

A credit card is a simple way to build up a credit history, but this takes time.  With a thin credit file, it's worth approaching her own bank as, in the absence of any other data, they can at least see how she's been managing her money, and they know who she is.  Failing that, try one of the sub-prime cards.  They charge high APRs, but this doesn't matter as she'll be paying the balance in full every month, so won't be charged any interest.

But as I said, building up a credit history takes time.  In the meantime, she may just have to look for a cheaper car that can be bought for cash.  And then she can be saving up for her next car, thus avoiding the need for a loan at all :-) 

[Deleted User]

She doesn't need to boost her credit score. She needs to build some credit history. 

A sub prime credit card, one from her own bank, phone contracts, all help to build history. She also needs to make sure she;s on the ER.

She needs to stop applying for loans for a while, until she has some history behind her. Tell her to pay cash for her car for now.