Current Account/Credit Search?

rach83

This may sound a bit dumb but when opening a new current account do they do a credit search on you? To open a current account would you have to score quite well?

grumbler

Yes, full-scale (not basic) current account offers you credit facilities: overdraft, chequebook. As a result, banks usually do a credit search on application.

boots_2

What current accounts are there for under 21's under £1000pm non-students?

grumbler

boots wrote:

What current accounts are there for under 21's under £1000pm non-students?

Welcome!
It is very difficult to answer to your queation. I think, all banks and BSs have some kind of current accont(s) that meets your requirements.

boots_2

Thanks for newbie welcome! It took ages of surfing to find very little. LloydsTSB seem to be best so far(under 19's - what happens when you are 20?) Seems you have to be 21 before banks/BS's are interested.

grumbler

boots wrote:

It took ages of surfing to find very little.

There are a lot of articles on the main part of this site:
Articles

LloydsTSB seem to be best so far(under 19's - what happens when you are 20?) Seems you have to be 21 before banks/BS's are interested.

Are you under 21 or under 19? Yes, usually banks have special more basic accounts for under-19. Lloyds TSB Classic & Classic Plus accounts are available for over-18s. AFAIK this Classic accont does not have any requirements on monthly pay-in.

boots_2

Ah! If only I was 21 again. Query was for my GRANDaughter because I have more time. I have A&L Premier which is first class. It appears that generally if you are under 21 and only receive £800pm, Banks/BS's interest rates are peanuts. They should be encouraging them to handle their financial affairs responsibly. Yes I avidly read Martins letters and chatlines and watched it grow over the years. Thanks.

grumbler

boots wrote:

... It appears that generally if you are under 21 and only receive £800pm...

In this situation it is worth using other criteria than interest rate when chosing current account. There is no need to keep all money on a current accoun. All banks/BSs have internet-based saving accounts with decent interest rates that can be used for savings excess money.

virgin_moneysaver

boots wrote:

Ah! If only I was 21 again. Query was for my GRANDaughter because I have more time. I have A&L Premier which is first class. It appears that generally if you are under 21 and only receive £800pm, Banks/BS's interest rates are peanuts. They should be encouraging them to handle their financial affairs responsibly. Yes I avidly read Martins letters and chatlines and watched it grow over the years. Thanks.

if it's any help my son has a Card Plus acc with Natwest - int rate between 3% & 4% (I think!) servicecard (maestro/cirrus etc) cheque book over 16 years old & allows direct debits BUT no overdrafts allowed - at age 20 this converts to a standard current account, when you can apply for an overdraft if you wish

boots_2

wrote:

Thanks I'll investigate that. Natwest usually has bad press but perhaps this is ok. Can I introduce my Grandaughter?!!

nmacaulay

hi, i have an overdraft with halifax its at £1500 at the moment but as i have recently started a new job i am planning to pay this off at £100 pcm (plus a little more if i can), my patner & i are thinking about buying a property in 18 months time (so we have enough time to save for a deposit). As i was a student for 3 years i dont have great credit rating thats why i want to pay off my overdraft but i keep hearing that i should get a credit card in order to get a credit rating. Ive never had a credit card nor do i want 1 - what should i do?