OK, So my credit rating is down the pan and I'm only 19

[Kardashian]

WARNING: LONG, LONG POST!

Good Morning All

Right then, I'll start at the deep end.

When I was 15/16 I **stupidly** took out 2 mobile phone contracts, and lied about my date of birth.

Yes, I hold my hands up - I AM AN IDIOT.

Now then. I paid the bills for a while, then stopped. I started to get letters from debt collection agencies, asking for money. About £200 and £300, respectivley.

I sent letters and copies of my birth certificate to these companies, as they said if I could provide proof I lied about my age - the accounts would legally have to be closed - as Orange should NEVER have provided me with the contracts, since they are meant to do a credit check.

I did feel bad - I'd lied, commited fraud.

But, that was that.

When I turned 18, I got a T-Mobile contract - all totally legit - and still have it running now. I'm about 6 months past 19.

Despite the fact I got the T-Mobile contract (its one of those 1-month contracts, not a 12, 18 etc) I still couldn't get a credit card with a £200 limit.

I wanted it for security and emergency purposes whilst travelling Australia.

I got denied. On about 4. Some were for bankrupt people, which had like 39% interest!

So clearly, my credit rating is buggered.

Before I left the UK, I made sure that I got letters in writing, from Orange and the debt collecting agencies that I didn't have to pay anything.

I also paid £2 for a copy of my credit file - which came back blank.

But still, no credit - on anything. I can't even get a £20 overdraft.

While I was away, my Dad decided to go snooping through my things and basically re-opened my Orange account - and started paying it behind my back.

Now, my Dad, despite having money - is by far from being a good, realiable payer.

So, I've come home, and now found my accounts re-opened, and one owing £150 and the other owing £100.

He's also missed a few payments on them - which affects me further.

I ALREADY HAD LETTERS SAYING THE ACCOUNTS WERE CLOSED!

________________

So, fast forward to today, and I tried applying for a Virgin Credit Card - simply, out of interest.

And, I got declined at my address (where I live with my Dad - I have a bank account registered there)

So, I tried my Mums (again, I have an account there).

When it came to my Mums, they said they'd consider me, and needed to call them.

They said it was declined based on some mobile phone contracts, linked to another address - where I live with my Dad!

So, my questions for today, are:

1. How did the people from Virgin credit cards link me to my other address? I wasn't trying to be fraudlent - just curious
2. Secondly, he was really nice, he said I wasn't registered with the Voting System and this helps with credit scoring. Should I register at Mums (no previous bills etc) or my Dads (were the contract hell started)
3. He said Equifax said I defaulted on £319 and £229 to Orange PLC - something which no one has told me before. He said the reason MY credit report came back blank is because its from Experian - NOT Equifax - where my current defaults are being held. But, the bills aren't that much now my Dad has re-opened them and lowered them to £100 and £150. How can I update that?
4. If I pay both of the remaining bills off [at the end of this month] - does that mean I can get credit?
5. Should I remove all current traces of myself from my Dads address - register for voting at my Mums, and only use the bank account I have there, after paying off this £100 and £150?
6. If I send the letters I have from Orange and the debt companies saying I don't have to pay, to Equifax and Experian - can they undo whats currently showing on my account?
7. Is being linked to my Father, at his address, making my bad credit worse? He has a CCJ.
8. Did my Dad worsen my credit by re-opening my debts after they were 'written off'?
9. Worst case scenario, I pay off the £250 total, register for voting at either Mums or Dads - how long will it be before I'm considered 'safe'?
10. Can someone suggest a way to rectify this hell? I want to sort it out, forget whats happenned, and move on the best, quickest way possible. I've grown up and realised I did a stupid thing

I understand what I've done wrong.

I just want to know that I *can* go out and get a credit card if I need too, or when I go to Uni next September, I *can* get the overdraft I'll need.

At the minute I just feel I've screwed my whole life up for £500. I mean, I know people who've gone bankrupt over like £50,000 debts and *still* managed to get Porche's on credit and all this crap. I can't even get a £200 credit card.

I really appreciate any help with this issue.

Thanks Guys and sorry for keeping you.

 

[tersono]

Firstly, don't panic. It is entirely possible to overcome bad credit provided you take your time and don't default on any further debts. Your problems will start to disappear from your credit record after 5 years anyhow, which will help, but continually applying for credit cards while you have no chance of getting them will have an adverse effect, as those applications will appear on your record.

Being registered to vote at an address with no previous credit problems will help, yes, but isn't a complete solution - it's just one step on the way. You're going to have to be patient. I'd suggest moving your bank account, but you'd best leave it a couple of years first.

I know it's a pain, but I'd recommend managing without credit for at least 3 years and keep your finances straight during that time. Move your bank account to another bank in maybe 18 months to two years, and then in 3 or 4 years time, try again with credit. Start small - often catalogue companies are the most likely to grant credit as they're desperate for business. Spend a little money that way and pay up promptly. Gradually from that point your credit will start to improve and your bank may allow you a small overdraft. Try not to use it - or if you do, make sure that it is cleared each month. That's the point where getting a credit card becomes viable.

 

[Kardashian]

tersono, Thanks so much for you're reply.

Well, I've just come back from travelling - so I'm not starting to work until the end of this month.

What about if I:

1. Change my name (No, I'm not joking - just my surname. It's different from everyone else's anyway)
2. Register for voting at my Mums
3. Open a bank account there
4. KEEP my T-Mobile bill sent to my Dads, and just pay it off with my Debit card?

Honestly, I just want to pay the money and move on.

I'm going to Canada for 9 months at Xmas, and unless something pops up, I'll be back for Uni September 2009. I'll *need* an overdraft for Uni. I'm planning on working too but out of all my friends, ONE doesn't have an overdraft, and his parents live in a £4M house, sooo...

PS: Things will START to dissappear after 5 years?

 

[liketom]

5 years or 7 depending who you talk to

but if you want to build up your credit after this period go for a high intrest rate credit card from either capital one or halifax

 

[Kardashian]

5 years or 7 depending who you talk to

So even if I pay them off, I'm stuffed for up to 7 years?

Great.

No Uni until I'm 26.

And, I can't even get a 39% credit interest one, now.

 

[liketom]

5 years or 7 depending who you talk to

So even if I pay them off, I'm stuffed for up to 7 years?

Great.

No Uni until I'm 26.

And, I can't even get a 39% credit interest one, now.

i think the way it works is -

pay off money - then apply for credit rebuild cards .

wait 5-7 years for debt to be wiped off then apply for credit rebuild card

 

[Lunja]

Moneysavingexpert.co.uk might be worth a look.

One page in particular: http://www.moneysavingexpert.com/banking/credit-rating-credit-score should give good advice about how to rebuild your score.

And just out of interest, where are you heading to in Canada?

 

[liketom]

Moneysavingexpert.co.uk might be worth a look.

One page in particular: http://www.moneysavingexpert.com/banking/credit-rating-credit-score should give good advice about how to rebuild your score.

yep excellent advice , that website is always a good read for saving money on stuff

Ohh Lunja , another Lincoln member a? guessing your at the Uni

 

[keysersoze]

I've read that applying for credit cards can actually hurt your credit rating, especially if you apply for a lot of cards at the same time. I am no expert, but if you google 'applying for credit cards hurts rating' you will get results that explain this. The recommendation is to hold off a couple months between applying-- so don't go out carpet bomb-applying!!

 

[Lunja]

yep excellent advice , that website is always a good read for saving money on stuff

Ohh Lunja , another Lincoln member a? guessing your at the Uni

Not anymore - graduated last September You're not studying Media Prod by anychance? Seems everyone was at Lincoln...

 

[GoCubsGo]

In the US there is nothing you can do short of committing serious fraud (ID Theft) to overcome your credit woes. More importantly, at 19 if you think changing your name should be included in the solution to your problems then I believe you need to experience this a bit more and learn from it. It's kind of time to grow up. Admitting all of your mistakes doesn't mean you've learned from them as you are clearly listing a few ideas that you hope will let you overcome your issues (using a new address, new name).
Frankly you need to close those Orange accounts and give instructions in writing and over the phone to the carriers that the accounts aren't to be re-opened. You have the letters and as far as it would go in the US a creditor would have to rectify the situation by wiping your credit of any good or bad ratings resulting from their negligence and close the accounts. You'll also most likely never get an Orange account again, just a heads up.

Second to that you need to stop applying for credit at any address.

Third, they will always link your names back to you. There are ways to link people to every piece of personal information they have. There are even great computer applications that will do link analysis for companies to detect participating parties in fraud. So yeah, it's possible you'll never escape this.

The years of fun you had, the lying for a cell phone, committing an act of fraud so that at 15 you could have a cell phone has now caught up with you. People are saying 7 years. That's in the US. I thought in the UK it sort of always stays with you but I could be wrong.

You need to seek the advice of a credit counselor so that you can at least understand how to overcome your bad credit and start to rebuild new debt/credit. But you're going to have to pay for it...in all honesty.

 

[j26]

1. Tidy up your accounts. From what you say, they're all over the place.
2. Start a savings plan. It doesn't matter how small it is, but if you can show that you're capable of making a regular payment without skipping months here and there, it builds your credibility substantially.
3. Stop applying for credit cards for a while. You're just building up a record of being declined.
4. Join a Credit Union. They don't look so hard at credit rating - all you have to do is build up a history of regularly saving with them, and then after a certain time you can borrow a multiple of what you have deposited (my credit union allows me to borrow 4 times what I have saved without even looking at my credit rating).

You can still get loans with a less than perfect credit rating, but you need to show that you are taking the steps to sort things out.

 

[Queso]

Man, what a mess!

From the sound of things you really shouldn't go for a credit card, it would be better to organise a soft overdraft limit on your current account for those times that you do need cash and use your debit card in those emergency situations. After a couple of years should you still want the credit card go back to your bank and talk to them about one of their cards. By that point they will have a much better idea as to your reliability than other companies out there. If you're at university at that stage they will also take your likely future income into account for the decision. But you absolutely must stop applying left, right and centre for any possible card deal out there. That is just making things worse.

 

[BlakTornado]

But you absolutely must stop applying left, right and centre for any possible card deal out there. That is just making things worse.

Yep.

If you keep trying to get more credit cards, you'll end up with MORE debt and find yourself in an even deeper hole.

It's best to try and just work to pay of any debts you have now, then save up for the things you want to buy. It's not ideal but it's better than being in debt.

 

[Consultant]

5 years or 7 depending who you talk to

So even if I pay them off, I'm stuffed for up to 7 years?

Great.

No Uni until I'm 26.

And, I can't even get a 39% credit interest one, now.

Yup. You are at fault.

Change address or name won't help, as they keep track of who you are.

You need to have a job with steady pay, have money in bank account, pay taxes, etc.

 

[Sun Baked]

Can always get rid of the debit card completely, and go to the bank every time you need to make a purchase.

Trust me, this will make a lot of items you'd normally just purchase -- simply not worth the effort.

---

There should also be some reloadable credit cards, for those times you must use a credit card.

Don't know how easy they are to get reloaded there where you will be, but in the US we can reload them at the coinstar machines and many drugstores.

Sure might cost you $5 for every $500 added to the card, but that is a lot less than carrying a balance on the card.

 

[jonbravo77]

Just to add, every time you apply for a credit card or anything credit related your credit score goes down further. Any time there is a query of your credit your score will go down further.

Peace

 

[Kardashian]

WOW! I love you guys, thanks for taking the time to read that.

For those of you who enjoyed telling me "Yes, its your fault" - I know that, I repeated it many a time. Stop trying to be superior and have a dig.

Also, if you'd read the post - you'd see that the aim of this thread is not to actually get credit cards to have and use a credit card - it was an experiment, to see if I even COULD - incase I ever wanted one.

The rest of you, thanks.

I'm starting work at the end of the month after arriving back in the UK.

I'll pay off all the debts in full, then.

From there, I'm going to register on the Electoral Roll, either at Dads or Mums. I'm not sure - but from what many of you have said - it won't make a difference, they'll still link me as being Joe Bloggs who took out contracts aged 15 and used to live at XXXX.

From there, I won't try and even apply for anything until I'm 21/22 - but my question is, and my only real concern:

What about uni? Will I still get a uni loan and overdraft? All this over £500 seems INSANE - I know I've dun wrong but, sheesh!

Thanks guys, really

If you're at university at that stage they will also take your likely future income into account for the decision. But you absolutely must stop applying left, right and centre for any possible card deal out there. That is just making things worse.

Honestly, I was only applying to see whether I would even get accepted. Just to see how much I had damaged myself.

I won't even get that 'soft' overdraft. The bank wouldn't even give me a Visa Debit card - I had to have Visa Electron.

Is it all because of the 2 contracts? Or does being financially linked to my Father and his bad history, make it worse for me?

My only worry on earth it - will I still get uni loans/overdraft?

I really hope I haven't screwed up my life over a mobile phone.

4. Join a Credit Union. They don't look so hard at credit rating - all you have to do is build up a history of regularly saving with them, and then after a certain time you can borrow a multiple of what you have deposited (my credit union allows me to borrow 4 times what I have saved without even looking at my credit rating).

You can still get loans with a less than perfect credit rating, but you need to show that you are taking the steps to sort things out.

Thank you very much for that excellent advice.

How would I go about doing such a thing?

Honestly, thank you.

 

[Queso]

What about uni? Will I still get a uni loan and overdraft? All this over £500 seems INSANE - I know I've dun wrong but, sheesh!

As in my previous post, the best thing you can do is build a relationship with your bank. They have the ability to bypass the entire credit check thing, but before they'll do that they need to have an idea of who you are and more importantly what your spending habits are. Banks are also very sympathetic to students when it comes to overdrafts, but normally only if you've been with them a while. Keep them onside and they'll see you through Uni.

And don't panic. This can be overcome, but it's going to take a bit of willpower and time to do it.

 

[Kardashian]

The years of fun you had, the lying for a cell phone, committing an act of fraud so that at 15 you could have a cell phone has now caught up with you. People are saying 7 years. That's in the US. I thought in the UK it sort of always stays with you but I could be wrong. .

Firstly, whilst I appreciate your reply, there really is no need whatsoever to be as harsh as that post sounded.

It wasn't 'years of fun' as you call it - it was a moment of stupidity. Yes, I am to blame. I was an immature, spoiled bratt, but at the same time - they should never have accepted me.

But you're going to have to pay for it...in all honesty.

Not during any part of this thread have I said I refuse to pay.

 

[j26]

Thank you very much for that excellent advice.

How would I go about doing such a thing?

Honestly, thank you.

Loads of useful info about credit unions generally here. You might have to hunt about for a local one to your area.

 

[Kardashian]

As in my previous post, the best thing you can do is build a relationship with your bank. They have the ability to bypass the entire credit check thing, but before they'll do that they need to have an idea of who you are and more importantly what your spending habits are. Banks are also very sympathetic to students when it comes to overdrafts, but normally only if you've been with them a while. Keep them onside and they'll see you through Uni.

And don't panic. This can be overcome, but it's going to take a bit of willpower and time to do it.

Honest to God, I think I love you!

So basically, if I keep my account in good check, don't apply for anything, and pay this £250 off ASAP - when I apply a year down the line, it should look OK?

I could save all my letters, as proof that I made an effort to pay, and get a new credit report, which shows I paid everything off.

If push came to shove, maybe one of my parents could be Guarantor. Or my Grandad, he's a Lord - they might like that LOL

 

[arkitect]

I'm going to register on the Electoral Roll, either at Dads or Mums. I'm not sure - but from what many of you have said - it won't make a difference

Choose the address with the "better" postcode… like insurance quotes credit agencies prefer "safer" postcodes.

Such is life…
Good luck!

EDIT:

Or my Grandad, he's a Lord - they might like that

Well in that case either address might be OK…

 

[LeahM]

My honest advice to you is to seek out a credit counsellor. Because people on here are from all over the world so what they might be suggesting could be for a different area and the laws/regulations/etc could be different for your specific area and a credit counsellor will know exactly how to help you.

My first thought was, when you had a credit check, you said there was nothing on it. So, I know you can't apply for credit if you haven't shown your responsible. Eg, starting a bank account and maintaining it, or finishing up your contract.


Good luck and I hope you talk to a credit counsellor

 

[tersono]

tersono, Thanks so much for you're reply.

Well, I've just come back from travelling - so I'm not starting to work until the end of this month.
snip
PS: Things will START to dissappear after 5 years?

You're welcome - actually there's a lot of good advice in this thread - use your common sense and I've a feeling you'll get through this without too many problems.

Your big advantage is that you still have a debit card. Get your debts cleared and keep your finances clean and tidy, and you could well get through it faster than I've suggested. Someone close to me (I'm in the UK btw) has gone through this, and yes, 5-7 years is about the average, but given the relatively low amount of debt in your case, you may be able to get there rather quicker than that - provided you clear your debts as fast as you can and have a sympathetic bank (you need to show them you can handle your finances first, though).

Good luck!