What is the difference between basic and current account

Ycartune

What is the difference between a basic bank account and current account for a person who has very low credit score and how do I build my score

cymruchris

Exact features will differ depending on the bank - but generally the basic account will never qualify for an overdraft facility, and will only have basic feature such as a debit card without contactless. 

You’ll be looking to build up your positive history rather than your score. To do this make sure you’re on the electoral roll, keep your basic bank account in good order, potentially get a sim only contrast, and after several months you may find you qualify for a sub prime credit card. 

Your positive history will build monty by month - but it’s a marathon - not a sprint. 

Ycartune

cymruchris said:

Exact features will differ depending on the bank - but generally the basic account will never qualify for an overdraft facility, and will only have basic feature such as a debit card without contactless. 

You’ll be looking to build up your positive history rather than your score. To do this make sure you’re on the electoral roll, keep your basic bank account in good order, potentially get a sim only contrast, and after several months you may find you qualify for a sub prime credit card. 

Your positive history will build monty by month - but it’s a marathon - not a sprint. 

Thanks for your reply Also, How long do I need to use a basic bank account until I can open a normal current bank account 

cymruchris

Ycartune said:

cymruchris said:

Exact features will differ depending on the bank - but generally the basic account will never qualify for an overdraft facility, and will only have basic feature such as a debit card without contactless. 

You’ll be looking to build up your positive history rather than your score. To do this make sure you’re on the electoral roll, keep your basic bank account in good order, potentially get a sim only contrast, and after several months you may find you qualify for a sub prime credit card. 

Your positive history will build monty by month - but it’s a marathon - not a sprint. 

Thanks for your reply Also, How long do I need to use a basic bank account until I can open a normal current bank account 

There's no fixed time - it depends on your own financial circumstances. If you have had a bankruptcy, got some CCJ's or just have absolutely no history at all as you're just turning 18 can all impact the length of time it takes to get better financial products.

Are you recovering from some financial challenges? Or are you new to the world of banking and credit (ie 18 or thereabouts)?

Gerry1

https://www.moneysavingexpert.com/banking/basic-bank-accounts/

Dobbibill

Hi Ycartune, 

I have moved your thread to the Budgeting & Bank Accounts Board where it is better suited. 
This will help future forum users with a similar question too.

Thanks 
Dobbi

Ycartune

cymruchris said:

Ycartune said:

cymruchris said:

Exact features will differ depending on the bank - but generally the basic account will never qualify for an overdraft facility, and will only have basic feature such as a debit card without contactless. 

You’ll be looking to build up your positive history rather than your score. To do this make sure you’re on the electoral roll, keep your basic bank account in good order, potentially get a sim only contrast, and after several months you may find you qualify for a sub prime credit card. 

Your positive history will build monty by month - but it’s a marathon - not a sprint. 

Thanks for your reply Also, How long do I need to use a basic bank account until I can open a normal current bank account 

There's no fixed time - it depends on your own financial circumstances. If you have had a bankruptcy, got some CCJ's or just have absolutely no history at all as you're just turning 18 can all impact the length of time it takes to get better financial products.

Are you recovering from some financial challenges? Or are you new to the world of banking and credit (ie 18 or thereabouts)?

Thanks for you reply I’m still 17 rn and i am turning 18 soon I had a cifas marker (now its removed) and I’m worried it’s affected my credit score so what account is best basic or current account to start with 

Daliah

Once you are 18, and your CIFAS marker is gone, you may well qualify for a proper current account.

Most banks only offer you to apply for a proper current account, and might offer you a basic account if you fail their credit check. Note that it is THEIR credit check, not some credit score a credit reference agency uses. The only exception are Nationwide who allow you to apply for their FlexBasic directly.

If you have a smartphone and photo ID , both highly recommended, you can also apply at digital-only banks, which are Chase, Starling and Monzo. Neither of them carry out a hard credit search at application time (they will do one if you apply for an overdraft where offered). AFAIK, only Monzo report to credit reference agencies, so the others are no help with building a credit reference history (often referred to as “credit score”). You really need a credit card for this - one that is paid off in full every month, see the information about credit cards.

Nationwide FlexBasic and the three digital only banks all give you contactless cards. Chase also pay you 1% cashback for a year on most day-to-day spending.

Whatever you do, don’t do again what landed you with a CIFAS marker. Avoid crypto, only use your account for personal banking (not business), and don’t ever “help” anybody by passing their money through your account.

Ycartune

Daliah said:

Once you are 18, and your CIFAS marker is gone, you may well qualify for a proper current account.

Most banks only offer you to apply for a proper current account, and might offer you a basic account if you fail their credit check. Note that it is THEIR credit check, not some credit score a credit reference agency uses. The only exception are Nationwide who allow you to apply for their FlexBasic directly.

If you have a smartphone and photo ID , both highly recommended, you can also apply at digital-only banks, which are Chase, Starling and Monzo. Neither of them carry out a hard credit search at application time (they will do one if you apply for an overdraft where offered). AFAIK, only Monzo report to credit reference agencies, so the others are no help with building a credit reference history (often referred to as “credit score”). You really need a credit card for this - one that is paid off in full every month, see the information about credit cards.

Nationwide FlexBasic and the three digital only banks all give you contactless cards. Chase also pay you 1% cashback for a year on most day-to-day spending.

Whatever you do, don’t do again what landed you with a CIFAS marker. Avoid crypto, only use your account for personal banking (not business), and don’t ever “help” anybody by passing their money through your account.

Thanks for you reply, also what is the best basic bank account you recommend for a 17 year old to start building credit score and alter move to a current account when 18

cymruchris

You don't build a credit score as I've previously mentioned - you build a positive credit history. The score is only ever seen by you - no bank - no building society - no insurance company - nobody will ever see that score except you. It's a marketing gimmick. 

If you are confident that the CIFAS marker has been removed - and there are no other negatives on your history file - then there should be nothing stopping you from applying with any bank, as you'll be in the same position as pretty much every other 17 year old.

If your previous issue was with a particular bank, then don't apply for that bank or any other bank within their group. So for example, if your previous problem was with Lloyds bank - you wouldn't apply for Halifax or Bank of Scotland either - as they're all the same company.

Daliah

Ycartune said:

Thanks for you reply, also what is the best basic bank account you recommend for a 17 year old to start building credit score and alter move to a current account when 18

There's a large choice of youth bank accounts https://www.which.co.uk/money/banking/bank-accounts/best-childrens-bank-accounts-arspc9p7mk0y

Minor usually do not have a credit history; https://www.experian.com/blogs/ask-experian/how-a-minor-may-have-a-credit-report/