Getting a bank account for a Slovenian National

bankersmug

My girlfriend of nearly 2 years is Slovenian (an EU country BTW) and is earning wages doing promotion work for various agencies. The income is intermittent but averaged over a year equates to a livable income.

We tried to get a basic bank account via Nationwide; they turn her away (not even politely) as if she's a second class citizen; the fact is she works here, pays national insurance and tax. It seems incredibly unfair that she can't enjoy the basics of a standard current account.

With my recommendation, my bank Lloyds TSB have given her a basic bank account. This means she can only use Lloyds cashpoints - and there's no chequebook or internet banking. A start at least.

I've also managed to get her on as a second cardholder on my morgan stanley mastercard - so at least if she's ever stuck somewhere she can get cash in an emergency.

I have also got her onto the electoral roll as I'm told this is very important with regards to credit worthiness.

Basically, I want to try and get her a) a proper current account with a card accepted in all or most UK cash machines, and maybe even a chequebook.

b) to start to build some sort of credit status so that she could, say, get a mobile phone contract.

Any advice here would be gratefully received.

grumbler

Nationality doesn't matter.
What really matters is residency. If she is a UK resident and can prove her address, she can apply for an account with another bank. When information from the electoral roll appears on her credit files, she can try applying even for a full current account. However, even some basic accounts come with Visa Electron or Solo/Maestro cards:

http://www.fsa.gov.uk/consumer/pdfs/bank_account.pdf

If the bank she has an account with refuses to give her a credit card, she can try applying for some specialised card: Capital One Classic Card, Vanquis, Aquacard, Barclaycard initial. However, even store cards and mobile phone contracts can help with building some credit history ...

Secret_Wookie

HSBC offer a special current account service for people new to the country that might help.

http://www.hsbc.co.uk/1/2/personal/current-accounts/passport

Kilty_2

bankersmug wrote:

This means she can only use Lloyds cashpoints -

Probably doesn't help much, but the card will work in any cash machine in the UK, at any bank, since it will use the LINK network

jonesMUFCforever

Kilty wrote:

Probably doesn't help much, but the card will work in any cash machine in the UK, at any bank, since it will use the LINK network

Basic or cash accounts at LTSB only issue cards that work in a LTSB machine.

bankersmug

Thanks folks. What I really can't fathom is why Nationwide wouldn't offer a basic bank account. They have nothing to lose.

She doesn't want credit; just somewhere to get her salary paid into, and to withdraw cash from UK cashpoints. A debit card would be considered a luxury.

It sounds like HSBC are really switched on to this kind of thing and are definitely worth approaching, although the £50 joining fee is off-putting.

grumbler

bankersmug wrote:

...She doesn't want credit; just somewhere to get her salary paid into, and to withdraw cash from UK cashpoints. A debit card would be considered a luxury.

Without credit she will never have any credit history. Her credit files will be empty and she will stuck with some particular bank waiting years until they will do her a favour by upgrading a basic account to a normal current account. AFAIK basic current accounts are not reported to CRAs ...

bankersmug

grumbler wrote:

Without credit she will never have any credit history. Her credit files will be empty and she will stuck with some particular bank waiting years until they will do her a favour by upgrading a basic account to a normal current account. AFAIK basic current accounts are not reported to CRAs ...

What I meant was from a banks point of view she is not looking to borrow anything so why shy away from a potentially profitable customer when the risk is so low for them?

I fully take your point about credit in general though. If she gets a credit card and doesn't use it, does that work for or against or does it make no difference?

grumbler

bankersmug wrote:

What I meant was from a banks point of view she is not looking to borrow anything so why shy away from a potentially profitable customer when the risk is so low for them?

Well, normal current account comes with a cheque book and overdraft facility (authorised and unauthorised). I wouldn't say that the risk is so low ...

If she gets a credit card and doesn't use it, does that work for or against

For

or does it make no difference?

Regardless of she using the CC (properly) or not using it at all, the corresponding record in the credit files would be the same.

johnmoney05

She can try to get a current account at Barclays. Go to their branch. I remember my first current account was with Barclays. And I got it the second month I arrived this country. Now I have more than 15 current/saving accounts.

bankersmug

Can I just say a big thank you for all your posts on this matter.

I will report back on our findings as there must be thousands in a similar position who are basically coming here, not scrounging but earning wages and paying taxes yet are being denied very basic current account banking so that they can be paid and get general access to their earnings.