Credit History

[africaking]

I have recently been refused a student loan due to the fact that I do not have enough credit history, I have had my account for over 7 years and money has been put into the account on a weekly basis, apparently for me to build up my credit I need to either (a) have a credit card, which I don't want and (b) have had a loan previously.  So basicly I can't get a loan because I havn't got enough credit history, but I can't build up my credit history because I can't get a loan. It's a viscious circle, how do these people's minds work? What can I do about this situation?

[Loosehead]

your bank should give you a credit card. Use it for your shopping each month for a year and pay it off each month. This way you will pay no interest and you will create a credit record. At the moment you are an unknown quantity.

[Oneeyedvic]

Is this a government loan or a commercial bank loan for students? Is suspect the latter.

Have you tried other banks. Students are sought after as peeople once they have an account they are happy with will raraly change banks as they are 'lazy'. This means that if a bankcan catch students, in a few years they may get mortgages etc which is where the real money is.

I would try going to the other banks (take along your last 6 months bank statements and at least 2 forms of suitable id) They will be able to tell you if they can open you up a loan account.

[Hammer]

Your own bank should offer you credit if you've behaved yourself in the past. Take a credit card or small loan with them and pay it back religiously, that should help build up your history.

[morg_monster]

that seems insane! I have friends who had never had a credit card at age 18 and still had no problems with getting a student loan (from the Student Loans Company)  is that who you are getting yours from?  Are you 18? maybe the rules are different if you are older.