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PostPosted: Fri Nov 08, 2013 1:44 pm 
Karma Queen / Cake Meisterin
Karma Queen / Cake Meisterin
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Joined: Thu Jul 27, 2006 10:02 pm
Posts: 6737
Location: North Yorkshire
My son wants to buy a car on finance, he does have a credit card, he got it to have some credit history that was positive, he was told by his bank that because he had no history of having credit he'd have to have a higher interest on 39% at first, he pays it in full every month by direct debit. He applied for a loan at Tesco Bank and has been refused yet other than the card he has never borrowed anything from anyone, not even us. My hubby and I are more likely to win the lottery, we don't play, than get finance.

Is my son been blacklisted because of us and can he disown us if he is?

Alison


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PostPosted: Fri Nov 08, 2013 2:03 pm 
Retro Guru

Joined: Mon Feb 11, 2008 9:42 am
Posts: 2386
If he lives at the same address, yes, it will affect him.

No, he can't disown you, its down to the address.
My brother had credit issues when his lodger went bankrupt........ Same address obviously...


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PostPosted: Fri Nov 08, 2013 2:10 pm 
MacRetro rider
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Joined: Fri Mar 09, 2007 2:11 pm
Posts: 8700
Location: DUNDEE
I'm surprised his own bank is that harsh - 39% interest! Is that on the loan or the credit card?


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PostPosted: Fri Nov 08, 2013 2:12 pm 
Karma Queen / Cake Meisterin
Karma Queen / Cake Meisterin
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Joined: Thu Jul 27, 2006 10:02 pm
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Location: North Yorkshire
The Ken wrote:
I'm surprised his own bank is that harsh - 39% interest! Is that on the loan or the credit card?


No, he has no loan, it's the credit card, but as he's paying it off in full by direct debit each month he's not charged any interest.

Alison


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PostPosted: Fri Nov 08, 2013 2:39 pm 
Retro Guru

Joined: Mon Feb 11, 2008 9:42 am
Posts: 2386
39% APR isn't *that* high in the grand scheme of things. Especially for a first time credit card with an address that has issues. It'll come down fairly quickly once he gets his own credit history, i doubt it'll get down to "ordinary" credit card rates until he moves.


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PostPosted: Fri Nov 08, 2013 2:42 pm 
MacRetro rider
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Joined: Fri Mar 09, 2007 2:11 pm
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Location: DUNDEE
His bank is probably the best place for a loan then, I would expect it to be up at 12-15% APR though, or buy from a dealer and get hire purchase, check the rates though as they never advertise APR only AER which is very different but always sounds better.


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PostPosted: Sat Nov 09, 2013 10:03 am 
retrobike rider / Gold Trader
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Joined: Thu Jul 09, 2009 2:12 pm
Posts: 3050
Location: Yateley, Hants.
If he want's to build credit history the other good thing to have is a contract mobile phone, that I was told along with what he is doing with his credit card are the best things for building it. If he want's a car a finance agreement may be easier to get as it is secured against the car, at the moment he has no assets to secure any loan against (the difference between a secured and unsecured loan is a court case to stake a claim on your assets such as house).

Carl.


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PostPosted: Sat Nov 09, 2013 1:17 pm 
Old School Grand Master

Joined: Tue Oct 09, 2007 1:55 pm
Posts: 8222
Location: New Forest, UK
If he is paying it off every month then he won't be paying any of that interest anyway.


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PostPosted: Sat Nov 09, 2013 1:57 pm 
retrobike rider
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Joined: Fri Aug 08, 2008 2:36 pm
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Location: Yorkshire, England
If he misses a payment, gets charged a bit of interest on the card then he'll be in a better state as the credit company can make money from him ... maybe lol.


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PostPosted: Thu Nov 14, 2013 2:14 am 
Old School Grand Master
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Joined: Sun Sep 05, 2010 1:10 am
Posts: 4756
Location: Heathfield, East Sussex
No, other people living at the same address with poor credit rating does NOT affect your own; it used to once upon a time but hasn't done so for years...

...join Experian to find out how bad your credit rating is, and why, and how to improve it.


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