Building a credit rating?

DA-LION-619

DA-LION-619

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I'm 18 & looking for ways to build my credit rating, my major problem is that I don't have a job. I have a bank account & the closest thing I have to a retail account is a Clicks clubcard.

Any accounts I can open to aid in my credit rating, I'd like to have a solid rating by the time I finish university.
 
DA-LION-619 said:
I'm 18 & looking for ways to build my credit rating, my major problem is that I don't have a job. I have a bank account & the closest thing I have to a retail account is a Clicks clubcard.

Any accounts I can open to aid in my credit rating, I'd like to have a solid rating by the time I finish university.
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Problem is, without an income, you can't get credit.

Wait until you get a job. You COULD ask your parents to put 10 grand in your account every month, do that for 3 months get the statements and then you can maybe get credit. You still have no payslip or proof of that income though, so unless you're prepared to be dodgy about it I doubt you can get accounts open.
 
Cellphone, Clothing accounts (from your favourite department store) (you don't have to spend much ... just make sure that everything is on time and by the book).

That's the way for a student.

Future creditors will acknowledge this and you shouldn't have a problem.

EDIT: Just don't expect to buy a house with a 100% loan within a couple of months after graduating.
 
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You can open an Edgars (clothing store) account. Put a mate with a mature voice as a reference, and say you earn R3000.

What I did.
 
If you don't have an income how you going to pay debt? Make sure debt doesn't make your rating WORSE as you can get caught out quickly with buying on credit. You don't realise how much you've spent until payback time.
 
I help people sort out the technology in their lives part time, towers, laptops, networking... You get the picture its not a lot & its not formal but I'm not looking to spend but rather build up my credit limit etc.
 
As a student , you can apply for a student credit card at your bank , it Has Very low credit limit , but it does built up your credit record.
 
Credit risk isn't measured by how many accounts you have, or credit cards you have.

Credit risk is measured by:
- how many times you change banks
- how many times you change address
- whether you have judgements against you

Depending on what you are buying, they might also look at the nature of your work and how often you change jobs.
 
I think any credit account, will want proof of income - otherwise how would you pay it back.
 
ABSA has a student credit card. R200 limit, but it wil help your credit record
 
Go open an Edgars account and tell them you get a 1000 bucks allowance per month. Then just pay it on time every month.

Why do you worry about this now though?
 
YingYang said:
Go open an Edgars account and tell them you get a 1000 bucks allowance per month. Then just pay it on time every month.

Why do you worry about this now though?
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Yeah don't stress it doesn't take very long to build a credit history. Few of months with a credit card and some accounts and you set.
 
Ive never understood this credit history.
 
no one understands how it really works. i applied for Cellphone contract and earn enough i think honestly but because no credit record = no contract....

my advice- open edgars or Woolies account, thats what i did few weeks back. make credit pay back and make payments then after 6months shows you good and go wild lol...
 
RiaX said:
Ive never understood this credit history.
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It's BS. People think they don't get credit because they don't have a credit history. They don't get credit because they don't have a financial history. If you have a regular income, no other debts, savings then it shows you can afford payments. Young people generally don't get credit because they don't have an established job history. This risk is mitigated depending on the type of job and whether its one of the preferred professions.

People with too many credit cards are a bad risk because it indicates they are struggling and are juggling debts.

In the UK, one if the major factors is the number if different addresses in the last 5 years. Also in the UK it's almost impossible to get credit if you aren't on the electoral roll.

I don't think this is used in SA, though.
 
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YingYang said:
Go open an Edgars account and tell them you get a 1000 bucks allowance per month. Then just pay it on time every month.

Why do you worry about this now though?
Click to expand...

^this but rather pay it early. Buy something you would have bought cash on your account and then pay it in a few days later. You will normally get listed as a good payer for doing that rather than having a neutral rating.
 
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