Challenger Banks

senior_surfergirl

Hi everyone,
Long time reader, first time posting.
Just wondered if anyone could offer any clarity on requirements to open an account with the challenger banks?
Adult son (early 30's still at home), currently unemployed due to long term health conditions.
Regular benefit payment into current account, for which he has a debit and credit card. Always pays his statement in full each month. Has a good credit record according to Experian and he doesn't want to spoil that.
Main question if anyone can help. Is the fact that he is unemployed automatically going to go against him and therefore put a mark on his credit file which he would sooner avoid. He is sensible with his money but likes the real time operation of the app based banks.
Basically would he be wasteing his time?
Thank you for reading and any feedback you can provide.

WillPS

Nothing to fear from an application for a new current account. Starling, Monzo and Chase won't even make a hard search unless you apply for an overdraft.

Being unemployed is not a blocker in and of itself for most accounts. Poor credit history can be but that doesn't sound like an issue.

Certainly wouldn't be a waste of time.

senior_surfergirl

WillPS said:

Nothing to fear from an application for a new current account. Starling, Monzo and Chase won't even make a hard search unless you apply for an overdraft.

Being unemployed is not a blocker in and of itself for most accounts. Poor credit history can be but that doesn't sound like an issue.

Certainly wouldn't be a waste of time.

Thank you so much for taking the time to reply WillPS and the information you have provided.
Will pass on everything you have said.
Thank you again.

GreenScepter

I've been unemployed for a while and found this hasn't been a barrier for most banks, both physical and app based. I've opened about 10 or so accounts over the last 6 months (I've been making use of various cashback and bank switch offers) and all had zero issues despite being unemployed.

Only account that I got declined was NatWest's reward account about a year ago, which might have been due to being unemployed since it has a minimum monthly deposit requirement that's less than my monthly income (Even though I'd still be able to meet this by moving some money in and out.)

Unless your Son was going to apply for something over the next few months that would be more dependent on his credit report like a new credit card or loan, I'd say go for it. The best way to see what these different banks are like is to just open an account and see for yourself what it's like. Just don't do what I did and swap everything over without trying out the account first, or you may end up with a worse experience than your current bank.

Rob5342

He might as well just try. Modern banks make it very easy, you can be up and running in ten minutes, so even if they say no you've barely wasted any time.