uk citizen but not lived in uk

sean9461

Hi im very confused on what i need to do to get my finance on track at the moment and could use some advise on what to do.

I have a valid uk passport and am by all means a uk citizen and was born in the uk.

however in my early teens i moved to the states with my parents and lived with them, i didnt need anything in my name as they paid for everything i needed. I have now moved back to the uk on my own but have found that i cannot open any bank accounts with just a passport. Banks like halifax do a credit check however i have no previous address in the uk and no credit for them to trace back on.

I am now 22 with no bank account (in the states i didnt need a bank account as, i guess i was a bit spoilt and wishing now i wasnt due to the hassle but they paid everything for me)

So i have a NI number, and a valid uk passport.

No utility bills, no former letters to any addresses
how can i open my first bank account and start getting my finances built?

Sorry if this is not enough information as im very confused on how the system works so if any more information is needed please ask

Thanks in advance for any help

Tixy

To get a normal UK current account you will be credit checked and will likely need to be able to provide 3 years of UK address history.

You should be able to get a basic bank account, these are not subject to a credit check (although they may perform a search of the credit reference agencies for identity check purposes).

You need to specifically ask the bank for a basic bank account. Barclays card account and Co-op cashminder are the easiest to get.
You don't need to be on the electoral roll to get a basic bank account, but it can be easier if you are, so if you haven't done already then get on the electoral roll asap.

You may find this useful - it gives details as to what counts as valid ID for identity purposes.
https://www.moneyadviceservice.org.uk/files/final-basic-bank-accounts---december-2011.pdf

sean9461

how will they check my credit file for identity purposes though? as far as im aware i wont have a credit file will i not?

Tixy

If a person is on the electoral roll that shows on their credit file (though there is a few week delay between applying to be on the roll and it showing on your credit file).
Banks will often check the electoral roll status as part of an identity check - which may be useful if you are struggling to prove your UK address to them.

Where are you living in the UK? Have you received any letters to that address (aside from personal letters)

Candyapple

First you'll need to get on the electoral roll:
http://local.direct.gov.uk/LDGRedirect/index.jsp?LGIL=0&LGSL=364

Then wait 3 months and apply for copies of your credit reports:
http://www.experian.co.uk/downloads/consumer/Stat-App-Form.pdf
http://www.equifax.co.uk/efx_pdf/CreditReportApplicationForm.pdf
https://www.noddle.co.uk/

Noddle (Call Credit) is free, the other 2 you'll need to pay £2 each for.

Then apply for a basic bank account:
http://www.moneysavingexpert.com/banking/basic-bank-accounts

How are you paying for your rent/bills etc?

sean9461

at the moment im living with another family member (my grandparents) until i get sorted and my parents are loaning me money via western union. which i can pickup in cash.

I'll apply for the electoral roll now but i dont understand all this.

how will the electoral roll go onto my credit report and how will it link to the bank search. Do the credit agencies use my national insurance number and do i then give the bank my national insurance number on application for the link?

by living with my grandparents i dont get any bills etc, however i found when trying to apply to rent somewhere i cannot rent anywhere at the moment as i do not pass reference checks.

Candyapple

The electoral roll goes on your credit report as showing that you are eligible to vote and it's also an indicator of verification of your address and the longer you are on it, it shows lenders stability. Most lenders will reject you if you are not on the electoral roll.

When the bank does a credit search on you it is checking your files electronically with the credit reference agencies so whatever data is on there, the bank will have access to.

Your NI number has nothing to do with your credit files and you'd only use this when you get a job for tax purposes. It's basically the US equivalent of a social security number.

sean9461

ok so if i get on the electoral roll now and get a basic account in 3 months. How long would it take me to look stable to a lender so that i can get basic things like phone contracts, gas electricity contracts, and eventually a car on finance for work? are we talking years and years?

Tixy

Realistically it could take you 3 years or so to build up a good credit history. Especially as you have not been resident in the UK.

Its a gradual thing and you'll gradually be able to get accepted for more things as potential lenders can see you building up evidence of stability and repaying commitments on time.

A basic bank account is the first step. After running that for a few months you might then look to see if you can get a sim only phone contract (these are relatively low risk to the phone company so relatively easy to get), or a subprime credit card (which you use for a couple of purchases each month and ideally repay in full each month).

sean9461

Are there any guides I could follow to build credit rating in this way as fast as possible?

Thanks

Tixy

You might find this worth a read
http://www.moneysavingexpert.com/loans/credit-rating-credit-score