Help, How does a 19 Year old with no Credit history, get a bank account.

bumblelion04

My nephew is 19 years old and has never had a bank account or any sort of credit (not sure why his parents never got him one as a child but that's another story!). He has applied for a standard bank account (Lloyds) as needs one to pay his wages when he gets a job (until now he has been in full time education) or short term his Universal credit into. Lloyds have refused him an account as they say that he does not pass the credit check as he does not appear on any of the credit agency files. I've added him to the electoral role (as his parents have never done it as they are not on it themselves !!!) but any idea what other steps we can take. I've looked at doing a credit card eligibility test for bad credit rebuilding credit cards and they all say not eligible which is probably a combination of lack of income and this credit issue. The bank doesn't want to help and said go to Experian and I can't get a straight answer out of them. When I try to get a credit report it says one doesn't exist. Has anyone overcome this? got any advice? 

born_again

He should still be able to get a basic bank account via them (see link below)

Getting a monthly mobile sim only contract will help to build credit history.


https://www.lloydsbank.com/current-accounts/all-accounts/basic-account.html

Mark_d

I would try with a modern bank, such as Monzo or Starling.   I think they'd place less importance on a full credit check if you're not asking for an overdraft facility

Zinger549

Have you tried one of the app only banks (Monzo, Starling ect)

Rob5342

How on earth can anyone get to 19 without having a bank account or being on the electoral roll? My daughter had a current account at 13 and we put her on the electoral roll.when she was 16.

I'd try a modern bank like Monzo or Starling, they don't worry about credit history as much if you don't want an overdraft. The bank will need to do some sort of identity check on him, does he have a driving license or passport? Being on the electoral roll will help but it may take a while to filter through to the credit reference agencies.

xylophone

As a matter of interest, what happened to his CTF?

https://www.gov.uk/child-trust-funds/find-a-child-trust-fund

TheBanker

I think the problem is likely to be that, if he's not on the electoral roll, and doesn't have any other accounts, then as far as the bank's ID checks are concerned he doesn't exist. 

He should still be able to open a bank account, but will need to use physical ID and may need to do this in a branch. And he may initially be limited to a basic account. Does he have any standard ID e.g. passport or driving license? I'm assuming he won't have any utility bills but he might have something from HMRC or a Universal Credit letter which can act as proof of address.

I am surprised Lloyds did not offer this as an alternative when he applied for a standard account. Here are some other suggestions: https://www.moneysavingexpert.com/banking/basic-bank-accounts/

Once his details filter through to the credit reference agencies, then he'll have more options.

friolento

Well done  for helping your nephew 👏. 

Does he have photo ID - passport, driving license, or at least a provisional driving licence? It’s essential he has this, not just for banking purposes. 

The modern banks - Starling, Monzo, Chase, Kroo - all want to see photo ID as part of the application.

We also have elections coming up, and ID is needed for those. Hopefully he will make use of his right to vote, now that he is on the ER.

GrubbyGirl_2

If he doesn't have photo ID he can get a voter authority certificate here  Just need a recent photo and his National Insurance number. 

https://www.gov.uk/apply-for-photo-id-voter-authority-certificate

Good job he has someone looking after his interests as his parents haven't done a great job preparing him for adulthood.

bumblelion04

@Rob5342 - He has mild special needs (ADHD and Autism) and is gifted unfortunately with having divorced parents who are too self absorbed and preoccupied with their own lives, fighting between themselves and blaming each other to have sorted this out. 

Thank you for all the other suggestions. I will try Monzo etc and also follow up with his mother about where his child trust fund was set up and see if we can go down that avenue. 

400ixl

If the digital native ones won't work, then maybe someone like Nationwide who deal with student accounts a lot.