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Building a Good Credit Rating


GlasweJen
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How do you actually do this? I'm at a loss to see how I can get myself a decent credit score because being a student makes me a huge risk for some reason. I have student loans that aren't due to be paid back for a good while long time and an overdraft. My statements from experian report nothing bad at all since i had the inaccuracies from O2 removed. I've never missed a payment on the bills, bank charges are few and far between and yet I can't seem to get any credit cards no matter what the APR, not even one of those 39.9% ones.

 

I'm not looking for money to go and spend without consequence but I've read that you need to prove you're good with credit to build a good score so that you don't end up with a mortgage that's all interest. How can I do this if I can't get a credit card? I'm on the electoral role for this house. I applied when I was still at work and I'm still looking.

Any posts submitted here on the Consumer Action Group under the user name GlasweJen may not necessarily be the view of the poster, CAG or indeed any normal person.

 

I've become addicted to green blobs (I have 2 now) so feel free to tip my scales if I ever make sense.;-)

 

 

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Hello there I think I can be of some help here. There is no such thing as a 'bad' credit rating, what happens is each company has a certain criteria for thier products. I think of it in terms of insurance, if you're not in that companies profile then they quote accordingly and so you don't go with them.

 

You say there was nothing bad on your credit file which would be my first thought. That's a plus.

 

However what would be useful to know is what is actually on there? You're on the electoral role and that is a plus but, apart from your student loans and overdraft have you had any credit?

 

Not having a payment history can stop you from getting credit and in fact it happens to lots of young people. If you are organised and your only goal is to improve your credit score then you could take out one of those cards and pay it off in full each month. I say this with hesitation though as one oversight and you'll be paying that huge level of interest.

 

That's all I can say generally without more specific info like who do you live with? How thoroughly have you checked your credit report? Were there any associostions on there? Family members or people you have lived with?

 

Oh and who do you bank with?

 

Does the statement that you can only get offered the 39.9% credit cards mean you have done a lot of applications? If so this could be the reason, the lender cannot see whether the application was successful but they can see that Mr X has applied to five credit card/loan companies in the last however long.

The views I express here are mere speculation based on my experience. I am not qualified nor insured to give legal advice and any action you take will be at your own risk.

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I live with 3 flatmates, we're private tenants in a nice area in Edinburgh, lived here for over a year and we're signed into a tenancy agreement until late next year.

 

I have the overdraft on the credit file but not the student loans as I haven't started paying those back. I've only applied for 2 credit cards both with high interest as I figured those would be the easiest to get. The credit file has a record from O2 who I had a contract with for 12 months with minor problems towards the end but that's all been tidied up and everything is good as far as the report needs now. I have a phone contract with Orange have had it for a year now with no late payments and my account usually ends up in credit. I have a gym membership always paid on time and that's it really. I've only ever had one loan from the credit union when I was 18 and that's all paid back and everything was settled.

 

As far as I know everything on the file was good, no associations as I'm only 21, single and my family all have a different surname so they never link us. I bank with the Halifax, I have a current account, a student current account (with overdraft), a ISA account and my first account which is very basic but I keep it for the chequing facilities.

Any posts submitted here on the Consumer Action Group under the user name GlasweJen may not necessarily be the view of the poster, CAG or indeed any normal person.

 

I've become addicted to green blobs (I have 2 now) so feel free to tip my scales if I ever make sense.;-)

 

 

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  • 2 weeks later...

"I've only applied for 2 credit cards both with high interest as I figured those would be the easiest to get."

 

This is not neccesarily so, every company has customers they target. If a company with one of those high APR cards thinks they won;t make money out of you they won't give you one.

 

You've said as far as I know, when was the last time you have checked your credit report? If O2 have put something on there and marked it as settled that could be your problem right there.

 

I don't know Halifax's particular policies BUT I do know that banks who target students are gambling that, if you have you bank account with them, you will go to them for insurance, savings, mortgage etc. Therefore I can't see the harm in Applying to Halifax. Yes they know you're a student, HSBC gave me a Gold card with an eventual limit of £10,000 when I was a student. I've since cut the limit down and keep it in case of emergencies my fighting fund cant handle.

 

All this is merely my opinin, bits of info I've picked up at work and online. Is there any particular reason why you didn't apply to Halifax? I would say the fact you have an account with them would go in your favour, especially as they want to keep your customer.

 

Those high APR cards you mention, I believe, tend to offer people low limits as they target those people who they think will use the card and pay it off but take some time to do so.

 

The overdraft isn't such a problem as long as you've stayed within your limit, that would go against you as I'm sure most banks would take into account the conduct of any accounts you have with them.

The views I express here are mere speculation based on my experience. I am not qualified nor insured to give legal advice and any action you take will be at your own risk.

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No the O2 thing was a mess up and it's all clear now i.e it was completely removed from the credit report. I was told by halifax that I did not need a credit card because I have the overdraft, problem is that I don't need more money just to prove that I can handle it when other people give me money. I've never went over my overdraft limit :D

Any posts submitted here on the Consumer Action Group under the user name GlasweJen may not necessarily be the view of the poster, CAG or indeed any normal person.

 

I've become addicted to green blobs (I have 2 now) so feel free to tip my scales if I ever make sense.;-)

 

 

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