Can't open basic bank account

addwbkdag

Hi, I'm only 21 years old however when i was 18 I had a HSBC account and went into overdraft of £20 which would increase by £5 a day and left this for 3 months, My bank account was closed shortly after this. Since then, I have applied for numerous bank accounts - each over a prolonged period of time as I'm aware too many hard checks will impact your score. All of my applications have been declined, the thing that I dont understand is why the basic bank accounts are also being declined now as far as I'm aware these are usually used by people who are bankrupt, I didn't think that my situation was as bad as being bankrupt. I dont know what to do, I have an account with Monzo but they have a limit of £1000 every 180 days - this is a problem for me, as I would like to put cash into my card.
I was just wondering if anyone could shed any light onto why I'm constantly being declined for even a basic bank account.

Also, I took out a loan which I have been unable to pay back until now, and for the past 3 months it has been in default - I have only just paid this off now. Maybe this is the reason why? But it still doesn't make sense to me.

Thank you !

Ben8282

Doesn't make sense to me either.

How did you manage to get a loan when you are being declined for even a basic bank account?
And you got your Monzo account.

foxtrotoscar_2

It makes perfect sense...why would any Bank want you on their books with your history?

boo_star

foxtrotoscar wrote: »

It makes perfect sense...why would any Bank want you on their books with your history?

Because they have to offer at least basic bank account facilities to people nowadays?

I suspect the OP will have to apply in-branch and they should be offered a basic account when they fail the credit check for a full-fat one.

K80_Black

Often a condition of a basic bank account is that you cannot have any current accounts. Monzo is a current account, which may be the reason you're being declined.

Also, the limit is just for paying in cash, to my understanding - is there a reason you're handling so much cash? Very few jobs are paid this way. If that is the case, do you mostly shop online or other places you can't just spend your cash? Is there no way you could receive this money by bank transfer?

Although they won't have usually have written anything in stone, you will find many banks will have questions if you regularly show up to deposit bundles of cash.

EarthBoy

boo_star wrote: »

Because they have to offer at least basic bank account facilities to people nowadays?.

They don't have to offer you one if you've already got one, even if it's with a different bank.

K80_Black wrote: »

Often a condition of a basic bank account is that you cannot have any current accounts. Monzo is a current account, which may be the reason you're being declined..

Exactly this. You've already got a current account with Monzo, so another bank can turn you away if they wish.

If you pay cash in regularly try applying for a Starling Bank account, they offer free cash deposits at the post office. Monzo charge for depositing cash.

penners324

You already have a current account why do you want a basic account as well?
£1000 is quite a lot of cash to handle in 6 months.

SnowTiger

addwbkdag wrote: »

I have an account with Monzo but they have a limit of £1000 every 180 days - this is a problem for me, as I would like to put cash into my card.

Monzo is a bank, so you do have a bank account.

To get around Monzo's cash pay-in limit you could open a savings account elsewhere, such as a building society or bank, to pay your cash in to, then transfer it to your Monzo account.

Many savings account offer online access. Savings accounts seem to be quite easy to open, requiring little more than an ID check.

An Instant Saver account with the Post Office might be a good option. You can pay in cash at any Post Office, you get an ATM card for withdrawals and, according to the online blurb, you can withdraw money online. I guess that means you can transfer it to a bank account such as Monzo.

addwbkdag

I got 2 different loans, both for £200. This was after I was declined for the basic accounts.

addwbkdag

I applied for the basic bank accounts before Monzo
I recently tried applying for the starling bank account and was declined

addwbkdag

Ahh thank you, I will look into this