Does your credit history effect your children's

Alison · Nov 8, 2013

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

mattr · Nov 8, 2013

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...

The Ken · Nov 8, 2013

I'm surprised his own bank is that harsh - 39% interest! Is that on the loan or the credit card?

Alison · Nov 8, 2013

The Ken":2fzxac89 said:
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

mattr · Nov 8, 2013

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.

The Ken · Nov 8, 2013

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.

drcarlos · Nov 9, 2013

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.

hamster · Nov 9, 2013

If he is paying it off every month then he won't be paying any of that interest anyway.

FluffyChicken · Nov 9, 2013

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.

We_are_Stevo · Nov 14, 2013

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.

Does your credit history effect your children's

Alison

mattr

Old School Grand Master

The Ken

Alison

mattr

Old School Grand Master

The Ken

drcarlos

hamster

Retro Wizard

FluffyChicken

We_are_Stevo

Old School Grand Master

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