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[Ain't Nobody Here 4]

I'm conscious that my boys (almost 18 and 20) have zero credit rating at present and wondered how best to help them change that.

 

Advice from MoneySavingExpert seems to be to get a credit card but I'm not sure that's a good idea. ES has a debit card which seems to work well for him.

 

Are there any other things that help? I thought having direct debits coming out of your current account regularly counted but can't find any confirmation of that online .

 

They both have mobile contracts but they're on an account in my name.

[Cinnamon 5]

I have been through this with my eldest,as I wanted her mobile phone to be in her name & Vodafone did a credit check which she failed.

 

When she joined her Uni a year ago,the bank offered her a credit card as part of the new Uni bank package....she wanted to refuse it,but the lady who dealt with the account change over explained that it was a good way (& maybe the only way) to get a positive credit rating.

She got it,she used it,she paid the credit off within a couple of days of spending it,did this for a few months & her credit rating is now good.

It is also a handy thing for students to have in case of emergencies...she is a sensible girl though & of course this makes a big difference!

 

Prior to this she had been a model banker in every way,she earned a good amount at Waitrose,had a couple of thousand in savings & never went overdrawn,but we had to take the plunge & get the credit card to get her any sort of credit rating.

Someone (UberEglu I think) couldn't even open an ISA for herself without a credit rating

[Olly 9]

Crazy isn't it ... saving money doesn't show that you are prudent, but borrowing it (and repaying) apparently does!

 

I grew up with an abiding fear of debt, and hate having to borrow anything other than the mortgage, but my niece tells me 'when you leave university with thousands of pounds of debt, what difference does a little more make?' and I can see her point.

[Geoid 32]

The best way is to get a credit card and set it up to pay off the maximum amount each month by direct debit. This way no interest is charged. Also, the bank should put a low limit on it too, mine has a limit of £500. With internet banking etc it is easy to check if there is enough cash in the current account to pay off the credit card too.

[Ain't Nobody Here 4]

Thanks Fred, that's what I'm thinking I need to do. If it's used just for, say, supermarket shopping, it should be easy to keep under control.

[ubereglu 0]

Someone (UberEglu I think) couldn't even open an ISA for herself without a credit rating

 

Actually, that wasn't the issue-it was trying to prove my identity which was the pain, as I do not have a passport or a driver license or have a job...therefore I didn't (and still don't) even have an up to date PAYE notification. Banks very much see you as guilty until proven innocent.

[Ain't Nobody Here 4]

I did read, while researching this, that not being on the Electoral Roll can harm your rating so it's worth getting your teenagers to do that!

[Geoid 32]

Someone (UberEglu I think) couldn't even open an ISA for herself without a credit rating

 

Actually, that wasn't the issue-it was trying to prove my identity which was the pain, as I do not have a passport or a driver license or have a job...therefore I didn't (and still don't) even have an up to date PAYE notification. Banks very much see you as guilty until proven innocent.

Why not get a passport, or driving licence?

[gongladosh 0]

...or a contract mobile phone!

[Ain't Nobody Here 4]

...or a contract mobile phone!

If Ubereglu doesn't have a credit rating, she won't be allowed to!

[bronze 0]

I ssume because gttig a passport is expnsive and a drivig lcense even more so.

 

Uber - I feel for you as I suffered exactly the same problem. I seem to remember a provisional driving licnese is cheaper though and official enough that most places accept it

[surfer_chicken 0]

I seem to remember a provisional driving licnese is cheaper though and official enough that most places accept it

 

A provisional driving licence is cheaper, it's about £50, but it only lasts for two years unless you go through the process of learning to drive and passing your test (and of course there are additional costs in doing that). A passport is around £80 but should last you ten years, so it's cheaper in the long run.

 

I'm about to go to uni so I'll keep an eye on this thread. I like to think I'm sensible with my money, I've always got at least £100 in my current accounts and I refused an overdraft on both of them as I hate the idea of getting overdrawn and being charged by accident. I really don't want to get a credit card, but I was planning on getting a phone contract in September. What other things do you need a good credit rating for?

[Ain't Nobody Here 4]

From reading up about this, it seems that banks, lenders, mobile providers, landlords, prospective employers all might look at your credit rating so it's worth actively trying to get it up a bit before you might need most of these things.

[bronze 0]

Sorry must apologis for my temperetal keyboard. I have got fed up of having to correct every 3rd letter

[Ain't Nobody Here 4]

I never even noticed . Proves that theory that you don't need all the letters of words to be able to read them .

[Geoid 32]

I seem to remember a provisional driving licnese is cheaper though and official enough that most places accept it

 

A provisional driving licence is cheaper, it's about £50, but it only lasts for two years unless you go through the process of learning to drive and passing your test (and of course there are additional costs in doing that). A passport is around £80 but should last you ten years, so it's cheaper in the long run.?

 

Your provisional licence doesn't last for only 2 years, it lasts for 10 years. It is also an acceptable form of ID everywhere.

[Ain't Nobody Here 4]

That's a relief, ES is about to start driving lessons and got his provisional over 2 years ago .

[surfer_chicken 0]

Your provisional licence doesn't last for only 2 years, it lasts for 10 years. It is also an acceptable form of ID everywhere.

 

Oops, my bad It's what I was always told

[Geoid 32]

Your provisional licence doesn't last for only 2 years, it lasts for 10 years. It is also an acceptable form of ID everywhere.

 

Oops, my bad It's what I was always told

If you look on the front of it, under section 4b, that is the expiry date.