Getting A Credit Rating.

[ummmm]

My 18 year old son applied for a phone contract but was turned down because he doesn't have a credit rating.

He has a full time job, a bank account with a debit card, he pays a phone contract by DD but it's not in his name. What can he do to get a credit rating if people won't give him credit because he hasn't got one?

[ladybirder]

Get a credit card. Use it. Pay it off in full every month.

[carrot99]

Hi Ummm, I have read that one way is to take out a credit card, maybe his bank does one, and then buy something for a smallish amount maybe a £100 or so and then he makes the regular small payments to pay it off. Then once he has a record of paying the regular amounts this gives him a credit rating. Obviously he would only want a low limit on the card as getting a credit card debt would not help!

[ummmm]

He's tried that and was declined. Obviously he has no debts whatsoever having never obtained credit.

It just seems daft.

[ladybirder]

Ummmm, my daughter did it with her own bank when she too was refused credit as always paid cash. Used the card for about 3 months, paid off every month, got a mortgage for a flat!

[Old_Geezer]

It is daft.
Computer says, "NO !"

[ladybirder]

Surely his own bank hasn't refused him?

[ummmm]

It was his own bank that declined him. Like OG says...the computer says NO.

He's actually really good with money and always pays his bills on pay day.

[Old_Geezer]

Maybe the bank doesn't do phone contracts ?

[jno]

would it help if he saw an actual human at his bank?

[Old_Geezer]

Gee this tale gets dafter by the moment.
Are all phone contact suppliers so strict ?

[ladybirder]

Wow. I'd change banks. A financial adviser told us that was the way to get a credit rating and it worked. Her bank agreed straight away. Correction: her Building Society. I think he should try another BS or bank.

[ummmm]

OG...the bank declined him a credit card that he only applied for to get a credit rating.

jno - I'll suggest that to him. I've also told him to stop applying as the rejections will show up on his credit file giving him an even worse score.

It was so much easier when I was younger.

[SirOracle]

Has your son checked his credit rating with eg Experion. I think you get this free for a limited number of requests.

There may be something lurking there that he doesn't know about .

[ummmm]

Maybe he should so that, LB.

[ummmm]

SirO....He's 18 and has never had credit before.

[SirOracle]

He should maybe still try Experion,even if only to eliminate anything nasty which may be on his record erroneously .

[ubasses]

Tell him to try Vanquis, it is a credit card for exactly his problem. Interest rate is extortionate but if he pays off in full every month there will not be a problem.
http://www.vanquis.co.uk/credit-building-credit-cards/?ref=GO_AT&aff=Credit-Profiles-Broad-+no_+credit_+credit_+card&_$ja=cgid:12282835598|tsid:38762|cid:128350478|lid:19779846601|nw:g|crid:60815043518|rnd:7879759397180001566|dvc:c|adp:1t1&gclid=CKnWwPOx_cICFSfItAodlBEAGQ

[ummmm]

Cheers everyone.

[ToraToraTora]

I agree there is something there preventing credit, he should be able to get a CC with a small limit from his own bank.My son is a student and the amount of credit card offers that come through the letter box is rediculous.

[ummmm]

He was actually told that it was because he hasn't got a credit score because he's never had credit.

I'll get him to go to the bank in person or try a different bank.

He's got his driving test soon. Hopefully getting an insurance policy will help.