New to Credit

Scubagenie

Hi everyone, new to the forum.
I have never had credit, very old fashioned i suppose but i have never needed it.
My wages have always been payed into my girlfriends account and we have lived like this for over 10 years. [I work away]
I never vote, never borrow and i don't have any debt.

Cut a long story short we have two little ones now and my Girlfriend only works part time-making me the bread winner.
In the next year or two we would like to buy a house but on paper i don't really exist as far as credit is concerned-so i need to open my self a bank account and build some sort of credit up.

We had the idea of just having a joint bank account in her name but from what i have read i don't think this will do us any favors.

Could anyone advise me on what to do-best bank to go and see [because i have no credit history]
I have done a search and have found lots of people offering accounts for people with 'bad' or 'no' credit but they want to take £12 a month for this service which i find a bit crazy because i am very good with money and have no debt.

At a guess most banks will give me a basic account-so is this the best way to go for a while-have my wages paid into it for a year or so then apply for a current account?

I would love to know if there is a bank account out that would be kind to me rather than penalize me for having no credit history.
Ideally i would like to pay the bills with a direct debit card too...

any help would be great

SG

DrSyn

Scubagenie wrote: »

At a guess most banks will give me a basic account-so is this the best way to go for a while-have my wages paid into it for a year or so then apply for a current account?

SG

I agree, given what you have written in this post. What you need to think about is which bank to go with. As this will be your first bank account you will want to aviod hassel & have good customer service. I limit myself to these points:

1. Avoid Santander. You only need to do a search on this forum to to see problems people say they have had with them.

2. Consider the "Co-op Bank" for your account. This bank & First Direct always come in the top two positions in the customer satisfaction polls. While the Co-op has few branches, you can run it via the Post Office Counter.

3. The Post Office do a leaflet which gives details of the other banks you can use at Post Office Counters. You can also find it at

www.postoffice.co.uk

Scubagenie

Would you i advise i open a basic bank account or do you think i will get a current account?
Ideally i would like some direct debits to come out of the account now that i am paying for most of the bills?

older.wiser_2

well i was in a similar situation no bank account or credit card for over 8 yrs so i applied for the cashminder account which i did get. this is only a basic bank account. At the same time i applied for the natwest basic account they replied saying they needed extra information and that i could either go into the branch or send proofs in the post. I chose to go into my local branch they couldn't find my application so i had to do it again in branch. When they asked why i only wanted a basic account i explained the situation and she came back 5 minutes later with a full current bank account. it was called natwest current account plus but its since changed name. whether they will give you a bank account i'm not sure but its worth a try. with some basic accounts they will never be upgraded to a full current account even after years of good history. no harm in trying but its your decison.

Scubagenie

Thanks for your reply
What do you think to these accounts offering people with 'bad' or 'no' credit what appears to be a debit visa/mastercard for £10 a month like a [My Cash plus] account or something?

The above is one example-but i have seen a few offers like this.

If i open one of these accounts will this build up my credit score over time to get a normal Visa debit current account [if all fails]

Like i say i have no electoral information
Never voted
Never borrowed
Never had a bank account

I think my chances are slim to get a Current account in this day and age but like you say it's worth trying anyway...

Svenena

Don't waste your money on account you have to pay for. A basic account would be better, but it's worth trying for a normal current account first, as you don't have any adverse credit, just lacking in history - this will be the same as many 18 year olds opening their first accounts, who still manage to get a full current account. Plus you have nothing to lose by trying - if you don't succeed on the current account, try next for a basic one.

If you pop into a branch with enough ID, you'll find out within a few minutes whether you've been approved.

DrSyn

1. Do not waist your money paying for an account!

2. You can try to get a current account staight away. It will depend on the banks attiude to you. Take plenty of ID with you.

3. I understand some Basic Bank Accounts do allow you to set up "direct debts". The Co-op Bank I mentioned yesterday you consider, has a Basic Account called "Cash Minder".

4. Whatever you decide to do, I suggest you read the artical on this site at
www.moneysavingexpert.com/banking/basic-bank-accounts

Best of luck!

older.wiser_2

I agree with both drsyn and sven don't bother with paying for the account option why bother when you should be able to get a basic account. Your only problem might be if you've never registered on the electoral register. you will have to give proof of ID passport driving license etc and a proof of address but if you have papers within the last year from NI or other government offices then that should be overcome i'd say go for a full bank account it will only be one search which won't trash your credit file even if you are refused.

I'd get myself on the voters register as soon as possible as that will increase your chances with getting credit in the longterm.

Scubagenie

Thanks for your advise everyone, i like the look of both the Co-op and Barclays...

Just another thing?

When they say you need to bring proof of address and ID-does this mean i need a bill from my address?

Big Problem again-we rent and all the bills are in the Girlfriends name.

Obviously i have a Passport-Driver Licence-NI Card-Birth Certificate etc.

any ideas???

older.wiser_2

passport will do for verification but they will need something with your current address especially if your not on the electoral register. I don't believe theres a way around this. Your best bet is to get on the register asap.

lee20010

older.wiser wrote: »

passport will do for verification but they will need something with your current address especially if your not on the electoral register. I don't believe theres a way around this. Your best bet is to get on the register asap.

Getting a provisional would be quicker, I registered on may 10th...and I wont appear on my credit file until end of the month...