Is this enough? - PLEASE HELP - Close to breakdown

[BeyondAnxious]

Hi all,

New to this and have posted on a forum as a last resort and because I have nowhere else to turn - so please be understanding.

I am currently 25 and living at home with my parents. I pay a contribution to the household to my parents of x every month but my name is not on any bills.

Apart from my savings account, the only CURRENT account I have is a Santander Everyday Current Account which was, I believe, a Youth/Child account when I was under 18 as I had a part time Job then, so would have needed an account for my salary to be paid into of course.

My assumption Is that this was automatically upgraded to an adult Everyday Current Account when I turned 18 as this is the account I currently have and the bank says that this is what it does in these situations.

My question? When I leave home, I would like to open a second current account to separate my bills/everyday spending into two accounts as this is the only way my brain can manage budgeting - so I get paid, pay the bill amount into the bills account and they will go out as and when they need to, and my money in the spending account is mine to use for the rest of the month until I get paid again and the cycle restarts.

So what is the problem, then? The issue is that when you need to open a new standard current account, whether or not you ask for an overdraft, (which I do not intend to do BTW), the bank must complete a hard credit check. The issue with that is that I do not have any credit history as I have never had and do not want a credit card, no bills are in my name, my phone is paid outright instead of on a contract, and I do not have a car due to dyspraxia (so no finance there).

The only reason I currently have a standard current account is because my youth account was automatically upgraded to an adult one once an age was reached (I presume 18) WITHOUT any credit checks done, as per the bank's policy. It would appear that in order to open any additional current accounts, you need to pass a credit check but as I have no credit history I fear I would not do this and therefore not be able to open one.

HOWEVER, and this is where I am pinning all my hopes and more, I AM registered on the electoral roll and have been for some years. Online searching on money/other forums has been extremely unclear on this, however there were a few hints that suggested simply being on the electoral roll could be enough to open a standard everyday (NOT A BASIC) current account? Is this true? Especially as I would not be wanting an overdraft, but not sure if this would be relevant as the hard credit check is completed regardless? The forums were suggesting that being registered means that my name and address could be confirmed and this also adds points on to your score?

So even though I have no history persay, I am registered on the electoral roll and if that added a few extra points on as well, even though I have no actual credit 'activity', surely that would be enough for me to simply open an everyday current account?

Please, someone, reassure me that this is true and I can do this because as you can tell, my future state of mind for money management depends on this and living with serious GAD I really, really need this.

Please, someone, make my day.

Thank you so much x

My (young adult) kids have cheerfully opened Starling accounts with bugger all credit history. I think you're catastrophising.

Have you been into a bank to ask? They do want your custom.

You work so can show an income, if that's not enough, for the short term couldn't you open a savings account linked to your current account and use that as a pot for anything not bill related? Within a year of living alone you'd have loads of credit to show, council tax, utilities, broadband etc.
Also I don't think it's that strict for basic current accounts, you wouldn't get an overdraft but that's not an issue.
When DH moved in with me, it was my flat, my mortgage, my name on all the bills, his car was owned outright and he paid tax and insurance annually. He didn't seem to have any issue getting bank accounts or a mortgage eventually for that matter.
Why don't you apply for something like starling or Monzo you can split an individual account into different pots. Other than being refused the account which will have no long term impact, you've got nothing to lose.

I have never had a credit card or brought anything on finance so have an average credit score but still got approved for a mortgage and was able to open bank accounts. Am sure u will be fine xx

I think you should be fine. But why not get a sim only contract to build up some credit history which you will need to buy a house etc. I pay £10pm for a sim only contact so not expensive.

Try opening a Monzo account.

You are overthinking this. Just go and open an account now.

'also I don't think it's that strict for basic current accounts'.

that's the issue here, I can't have a basic current account because they must be your ONLY current account so contradicts what I am trying to do here

and they'll just let me have one, despite everything I have said? A normal current account, not a basic one? You know that for sure?

Yes of course you can just open an account. You're on the electoral role and have a steady income. Presumably no loan defaults. You could open one online in the next half an hour.

I’d definitely recommend Starling bank. You can money pots in there too.
When my last phone contract was up I didn’t upgrade, didn’t need a new phone and trying to be more green. Hence I have no debt. Decided to upgrade but my provider doesn’t d a credit check and refused me.
I’m going to pay my car insurance on finance next time, if I can, to improve credit rating.
Can you get a credit builder credit card, buy something every month, a usual purchase - bus tickets for example, - and pay it off the next day?

If you’re this worried OP just check your credit score, takes a few minutes and then you will know exactly what to expect

Ds 18 opened a savings account online in minutes. He has no loans or credit history. He has a current account with Lloyds and just added a savings account. It was not difficult, i think he did it through his banking app.

Also credit scores although have some input in that you don’t want defaults etc. on them are not as big a deal as they are in the USA. So if you’ve been consuming any American media around accounts and credit scores that might not be quite right compared to the uk. However if you’re really worried go into a branch and discuss with them. Otherwise just try opening one. I love my chase account, opened recently. I get paid into my TSB and then fun money into chase to keep it separate.

I came from overseas and opened a current account with zero UK history. Why not just try to do it? If it doesn't work for some reason (highly doubt that), you would be able to find out what needs to be in place.

When any young adult opens their first current account, most of them will be living at home, and hardly any of them will have a credit history. You don't have to worry about that at all.

Just ask Santander for another account. My youngest did that recently with no problem.

I said basic meaning ordinary, so no overdraft/credit function/airmiles etc attached

Have a word with Santander first. In my experience they will open a new account for existing customers without extensive hoop jumping.

Have you checked what your credit score actually is? For example on Experian?

OP, you can have as many current accounts as you want.

Also, how come you don't have a monthly phone bill for usage?

Yes! The credit check will be to ensure you are who say you are by cross referencing your ID.

I cam remember what bank you said you were with but mine I can apply for current and savings accts online.

Starling, apply online now, I have two current accounts.

even though it is a hard credit check they are doing? They are just checking for ID? Wouldn't they want more from a hard check?

We have one CURRENT account and separate bill payment and instant saver accounts with the same bank (Bank of Scotland).

The bill payment account is not a current account, it doesn’t have a debit card, or require a minimum deposit each month, only allows SO, DD and transfers in/out.

Ask your bank what they have.