I have tried to open a Student Account and have been unable to do so because of my bad credit rating. The only contract I have ever had is one with Virgin mobile where I fell behind with payments and now owe them £229. I'm going to pay back Virgin in due course however when will my credit rating be ok again so I can open a student account and receive an overdraft? Thanks guys
i believe your credit ratings gets reset every 5 years or something like that ...
failing that pay off the arrears immediatly that should help then get one of those credit building credit cards like capital one, just having it improves your credit rating but itll take time...
It was probably falling behind in the payments for that which declined you. Because it will pretty much be the only thing on their system. A similar thing happened to my dad with Vodafone. He was declined a contract based on credit and then about 2 weeks later HSBC withdrew his overdraft and absolutely screwed him over for fees which he has taken up with the FSA now... This is because other companies which review or look at your file will see "failed searches" for credit, which is where other companies have turned you down for whatever reason.
Yeah like others have said. Register to vote in order to improve their knowledge of you. Also you can look at getting a "credit building" credit card. But be careful how you spend on it... As you have already failed to pay on some monthly payments of your phone contract. Only spend on it what you KNOW you will be able to repay at the end of the month. Follow that steady for a couple of months or for however long and then your credit rating should improve.
Last edited by MehMachine; 06-05-2012 at 17:19.
My advise is simply do not get the overdraft, instead budget and get a job.
An overdraft may be interest free but it is still an overdraft which you eventually have to pay for and while most people have no problem paying a £500 overdraft, they will inevitably take out the full amount at some point.
Simply get a part-time job and save for what you wish to buy.
Here are the nine steps you can take to speedy credit repair:
1. Get a credit card if you don't have one
2. Add an installment loan to the mix
3. Pay down your credit cards
4. Use your cards lightly
5. Check your limits
6. Dust off an old card
7. Get some goodwill
8. Dispute old negatives
9. Blitz significant errors