Broadband contract credit check for students
- Do students need to pass a credit check to get a broadband contract?
- Information on broadband contract credit checks for students
Information about broadband contract credit checks for students
The vast majority of broadband providers will require you to pass a credit check as part of the student broadband contract application process.
So to maximise your chances of passing the broadband credit check it is in your interests to ensure that you are as credit worthy as possible before you go ahead and apply for a broadband contract.
Of course no broadband (or mobile phone) provider will give you details of the exact requirements to pass a credit check because that would mean the system could be gamed by applicants, but there are a variety of measures that can be taken to give yourself the best chance of passing the credit check.
Find out your credit score
As a student starting out in life it is unlikely that you will have had the chance to build up a credit profile. Credit scoring agencies such as Experian and Equifax use your data to build up a credit profile and it is the credit profile data that will go in large part towards deciding whether a company will give you credit.
The good thing is that you are perfectly entitled to request a copy of your credit profile from any of the credit scoring agencies. There may be a small cost to obtain your credit profile (or there may be deals available so that you can claim cashback on the credit score purchase) but it is a price worth paying because you will see the data that is currently being held about you which is being used to score your credit profile. You will receive an overall credit score which will indicate the health of your credit profile.
What is held in a credit report?
So you have applied for a copy of your report, but what information is held in your credit report?
- Your name along with your past and current address details (and the details of your partner if applicable)
- Electoral roll details
- CCJs (county court judgements
- The full financial details (usually last 6 years) of any active, settled, or defaulted credit payments
- Credit checks that have been made
A credit report is a relatively simplistic document, it doesn’t include half the information that many people believe it does. You will not find the following information in a personal credit report –
- Any criminal record
- Medical records
- Personal savings
- Student loans
- As long as the application has been made as an individual there will be no family details included
Improve your credit score
It is important to re-iterate that before you apply for credit in the form of a broadband contract that you are confident that you will pass the credit check. Failing a credit check can potentially have a negative effect on your credit score, thus making subsequent attempts more difficult.
Ironically, the typical student will have a relatively low credit score (through no fault of their own). The reason for this is that most students will be young people that have not had the chance to build up a record of credit over the years. If there is no sign of credit having been taken, then companies have no benchmark to determine whether you would likely default or pay all your credit contract payments. This can seem incredibly unfair to be effectively penalised for being financially responsible in not taking out loans or credit, but companies want to minimise their levels of credit risk so building up a credit score is important.
There can be major reasons why a credit score is low such as having defaulted on payment, but there are sometimes very small, easily rectified reasons which when updated can make a big difference.
The following are areas to look into in order to create a healthy credit profile –
- Ensure that your full name, past and present contact details and the applicable dates of residence are 100% correct.
- It is helpful to make sure that a landline is listed against your address (in addition to a mobile). Having a landline (if you have one) would signify that you’re a permanent resident and is a record that can be easily tied to an address.
- Make sure that your name is listed on the electoral register. This is one of the main reasons why credit checks are failed, yet it is easy to do and free of charge.
- Ensure that bills are paid and paid within the terms of any contract i.e. on time!
- There can be a circumstance where an applicant can have too much credit available. If many credit cards are listed even if the balances are not high it can mean that there is a lot of potential credit available which if taken could potentially lead to financial difficulty, which may in turn mean credit contract may not be paid. Thus exposing the broadband company to the potential of defaulted payments.
- Multiple attempts to pass a credit check can negatively affect a credit score so if you happen to fail a credit check don’t keep trying to pass another attempt. First attempt to find out why you may have failed, fix the problem and then you would be in a better position to try again.
Search for a student broadband contract
After having checked your credit score and satisfying yourself that your credit profile is in good shape you may want to take a look at one of the dedicated student broadband deals on offer.
We feature student broadband deals from the main providers. Most student contracts will be over the course of 9 months so you aren’t tied into a 12 months contract. Why pay for those extra 3 months at the end of the university year when you may not even be at university?
There are alternatively 1 month rolling broadband contracts if you want the ultimate in flexibility, but do bear in mind that you sometimes pay a monthly premium when compared to a longer contract term.