Problem - No credit history

risteard_2

Hi. I would if someone could offer advice please?

I recently tried to apply for a Post Office standard current account; no overdraft of loans, just a place to save money. They have just rejected me based on information held by Experian.

Six months ago I checked my credit information with Experian, Equifax and CallCredit. All three came up as blank pieces of paper in terms of the data held on me. I have no history at all. The reason for this is for the past 12 years (or longer), a family member has taken care of all my bills, food, etc. I haven't needed money.

I read that I shouldn't apply again for another account until I've resolved whatever is wrong as that could have a further detrimental effect.

I phoned my parents' building society today (Nationwide) and asked if they would allow a person to open a savings account if their parents acted as guarantors and the building society said they don't do guarantor accounts and they'd still need to run a credit check on me, even if my parents added my name to their account.

In the past, I saved at a credit union but I've just moved to the sticks and the nearest credit union is in a library about 1 hour 30 minutes drive away and is only open on Fridays, every two weeks, between 2 and 4pm. :eek: I'm looking for a way to bank that gives me easier access.

I have some money to spend (and also annoyingly, cheques to cash). Is the solution to borrow money and repay on time to give myself a credit history? If so, how do I borrow if I can't successfully pass a credit check?

I hope someone can explain and empower me to resolve these difficulties. Thank you very much.

Risteard.

Tixy

Do you not have any bank account at all at the moment?
If not then I'd start by opening a basic current account for future use.

In terms of savings accounts, they don't need a guarantor as you cannot get in to debt with them, but they do need to be able to verify your identity, and the most common way to do this is to check with the credit reference agencies to see if you are on the electoral roll.
Are you on the electoral roll?

risteard_2

Hi Tixy, thanks for replying.

No, I don't have any bank accounts at present.

I don't think I can open a basic current account as that's really what the Post Office account was. I didn't apply for any overdraft facility or loans. Just a plain account to put money in and they rejected me.

I'm not on the electoral roll yet as I've just moved house. Do you think being on the electoral roll will resolve this problem completely? Or do you think I need to do something else to give me some credit history?

Thanks for your time.

Tixy

Being on the electoral roll should make it much easier to get a basic current account (although strictly speaking you should be able to get one without being on the electoral roll providing you take along other id)

This has a list of basic bank accounts on the market https://www.moneyadviceservice.org.uk/files/final-basic-bank-accounts---december-2011.pdf. Co-op cashminder and Barclays cash card basic are reportedly the easiest to get (according to this http://www.moneysavingexpert.com/banking/basic-bank-accounts)

risteard_2

Thanks Tixy. You know what? I think getting on the electoral roll and applying for that Barclays account will do the trick. I'm going to give it a shot. Thanks a million.

Candyapple

Don't forget, even if you apply to be on the electoral roll, it may take up to 3 months or possibly longer for the information to be updated and reflected on your credit reference files so don't apply for anything until you have copies of all 3 of your files and the information is showing as you being on the ER.

richx45

I found that going to your local coucil & getting a letter from them confirming your on the elec.roll (even if only just / isn't showing up yet) with them speeds things up when applying for bank bits!

duchy

Wrong thread

risteard_2

Hmmm. On second thoughts I don't think I could wait 3 months to be updated on the electoral roll. This could be a problem for me. I need to cash cheques now. I think the only alternative is to open a credit union account.

I phoned Barclays regarding their basic account and they can't say either way if someone not on the electoral roll will or won't get approved for an account. However, I saw on my Google searches this morning that someone not on the electoral roll who had no debts/CCJs on their credit history got rejected for the Co-Op account (the Co-Op account that is the equivalent of this Barclays account). So, it doesn't look good.

Does anyone know if two failed bank account applications on a credit search would have a negative impact? Or could I get away with trying without doing too much damage to myself?

Alternatively, if anyone knows another way to build some credit history, I'd be pleased to hear about it.

Thanks.

bargainbetty

You need to go into the branch and specifically apply for the basic bank account with no credit facilities - you should be able to get one.

Once you have that, you will be able to have income going in and out of it, which will start to demonstrate some money management. You can then apply to your bank to upgrade you to a standard account. However, you must specify the basic one, or they tend to just put in the regular application and you will get rejected again.

Try Nationwide - I had a huge issue with Halifax and they applied a default to my account in error. Nationwide let me move to a basic account while it all got sorted, and were brilliant.

risteard_2

bargainbetty wrote: »

You need to go into the branch and specifically apply for the basic bank account with no credit facilities - you should be able to get one.

Thanks Betty. Keep in mind that the Post Office rejected me when applying for their basic account that offers no credit facilities, no overdraft, no loans etc.

I'll think about it anyway. Thanks.