building credit rating with bank acc?

Question

I am 18 & I want to build a credit rating 4 a mortgage. I am a student and am not working.
I have a full bank acc with an overdraft facility but I never go into the red, is this helping my credit score?
Can I improve my rating any other way without a credit card?

Answer 1

Hi i worked in the bank for 10 years a few years ago, and my advice to you is this, if you have an overdraft facility and use it or not is irrelivant it is if you stay in your limit that counts, reg credits into the acount and reg debits out of the acount help your credit scoring, having a phone, home telephone helps, renting for six months minimum or paying out a sum the same size as the going rent is brill as it shows you can afford to buy or rent, you would have to be in reg employment for six months to show you are reliable and can afford a mortgage, credit cards do help even if you do not use them as they build up you credit history, basically you just have to show you can live within your means and can afford to pay mortgage or rent, that you have reg income and are resposible. i would apply for a credit card and a store card aswell to help your credit rating but apply for the mortg after a min of six months, as a student there is no hope of getting a mortgage unless you have a regular income, dont forget if you can prove you can pay rent bills etc for six months to the equivalent of a mortgage payment and a secure reg income then they have no worries, good luck

Answer 2

Just having a bank account does nothing for your credit score. Credit score depends upon the issuance of credit and then the proper use of it. Take a look at myfico.com to see the various factors in a credit score.

If you are really trying to create a history, but are afraid of having issues with credit cards, talk to your bank about a small installment loan. Make sure they report to the credit bureaus. This will start your credit history. MAKE SURE YOU PAY IT BACK TIMELY!!

(Now, the only way your bank account can affect you is negatively if you overdraft and don't pay it back; possibly bank will report you but you aren't in that situation.)

Answer 3

the fact is that nobody will lend you any kind of large ammount unless they can see that you have a record of paying back previous debts on time.

just get a credit card, buy your weekly shopping with it then transfer from your bank to the card account the money you spent when you get home.

This will take advantage of the 0% interest on purchases most cards give you if you pay back before your statement arrives.

You may also want to use your overdraft and pay it back at the end of the month/week. even if you just take the money out and keep hold of it in a box for a few days before returning it to the bank account. anything that shows the bank that you have money coming in and don't mind using it to pay off your bills.

paying monthly on your car insurance could help too as this goes on your record.

Answer 4

Yes, having a joint bank account would constitute a financial relationship. You are 'associated' with anyone with whom you have a joint account. When two people apply for a joint account (e.g. joint mortgage or loan) the lender will perform a joint credit search with one or more of the credit reference agencies. This joint search will normally create a financial association between the two applicants on the database of any credit reference agency used. This association will link the credit files of those individuals in the future. A transient association is a relationship between two or more applicants that does not indicate a permanent financial association, such as two or more students applying to rent a television or a fridge together.

Answer 5

Just another little tip from my friend who works in a bank.
When you withdraw from a cash machine take out extra cash
say £50, then deposit it back into your account. Do this often and
it will give your credit rating a boost.
Your account will show money coming in.
Also, writing cheques out as well will boost your credit.

Answer 6

The line of credit/ overdraft should be reporting to your credit reports, so as long as you manage it well, it is helping you build your credit rating. My overdraft line shows up on my credit reports.

Answer 7

Bank account with overdraft (if attached to a savings account) is doing nothing for your credit

Answer 8

get a job