Student credit card

oliel

Having just graduated part 2 architecture my dd is on 1 year placement then returns to uni to start part 2 for 2 years.  She is wanting to start building her credit score - she is currently paid fr th year for her placement and has part  time when she is at uni.   She plans to get a credit card and spend a little on it each month to improve her credit score - she has a student account with hsbc and also a monzo account - would she be likely to be accepted for a card?  I tried the use card eligibility but it said no - not sure why - she's very careful with money and manages it well but has never had a phone contract or anything like that - just paid student rent and various student accommodation.

lr1277

I see HSBC have a student credit card, so she could apply.

In terms of increasing her chance of being accepted:

She should apply from the address where she is on the electoral roll. I suppose it would help if both her current accounts were also registered at that address.

She could get a pay monthly SIM card.

Other things on my credit report are my power company contract and my water bill was on there when I paid for water. However if your dd is in shared accommodation, I suspect she won't want her name to be the only name on the bill incase her fellow residents refuse to pay their share.

Emmia

This isn't the answer you or she wants but she's got lots of time to "build her score", no need to get a card as a student. The fact the eligibility checkers are saying "no" is an indication not to apply.

Other than her student loans, what income does she actually have?

Other options are available, like having a mobile phone contract and paying that on time by direct debit each month - that's where I'd look to start "score building" (or more accurately, building her credit file, showing companies she's a good risk and will pay her debts).

WillPS

Emmia said:

This isn't the answer you or she wants but she's got lots of time to "build her score", no need to get a card as a student. The fact the eligibility checkers are saying "no" is an indication not to apply.

Other than her student loans, what income does she actually have?

Other options are available, like having a mobile phone contract and paying that on time by direct debit each month - that's where I'd look to start "score building" (or more accurately, building her credit file, showing companies she's a good risk and will pay her debts).

It's not our place to provide value judgments when none have been asked for.

OP and their daughter are both adults, and can make decisions for themselves individually about what is best for them to apply for or advise. A credit card is a perfectly reasonable thing for an adult to take to improve their credit worthiness - and there's good reason to believe it'd have a fair bit more impact than a mobile phone bill would.

The decision should ultimately be the would-be applicant's.

I took a credit card as a student and I've no doubt it improved my credit worthiness post graduation. 

Sarahspangles

oliel said:

Having just graduated part 2 architecture my dd is on 1 year placement then returns to uni to start part 2 for 2 years.  She is wanting to start building her credit score - she is currently paid fr th year for her placement and has part  time when she is at uni.   She plans to get a credit card and spend a little on it each month to improve her credit score - she has a student account with hsbc and also a monzo account - would she be likely to be accepted for a card?  I tried the use card eligibility but it said no - not sure why - she's very careful with money and manages it well but has never had a phone contract or anything like that - just paid student rent and various student accommodation.

My son was in a similar position in his placement year, he looked at Loqbox but in the end I think his own building society offered him a card. In his case, it wasn’t particularly his credit score he was concerned about, he wanted the consumer protection for purchases, and to have a card he could use online that wasn’t his main account. Loqbox would have been a stepping stone if that was all he could get.

I was pleased when he got his card as previously he had to ask us to purchase some items for him, to get the S75 cover, and then reimburse us. Considering he was an adult and earning around the UK average it was beginning to feel like a financial exclusion issue.

username

I would try her bank (HSBC) first if she has the student account with them, since they 'know' her better there is a chance they'll offer her a card. I recall in the dim and distant past I had a student account with Lloyds and they offered me a card, the limit was rubbish - about £1k but enabled me to borrow on it and pay off in full at the end of the month, to demonstrate I was a good risk and establish a borrowing/payment history.
This data is what they will look for in your credit file, ignore the numerical score number as they do not look at that, it is purely a gimmick to a degree.