Students and graduates need to keep a good credit history
(05 February 2008)

Graduates who miss payments are more likely to be affected by it as their credit history is so small, say experts.

Young people, including students and graduates, should check their credit history and avoid making any errors as it may be more visible, according to Equifax.

Neil Munroe, external affairs director at Equifax, said: "Younger people are probably going to start life with what we call a 'thin file'; they're not going to have a lot of information on there, because they haven't had the time or experience to build up a credit file."

He went on to say that most students coming out of university will only have one or two credit histories and a poor rating in one will influence a creditor's decision.

The expert warned that graduates looking to get a mortgage, or just rent a property, will be subject to credit checking.

Figures from Equifax show that a current student who leaves university after three years could have debts of between £39,000 and £45,000.