Why do I need a credit history to open an account in UK

Question

I'm from somewhere in EU and I've recently landed a job in london.

I was trying to open a bank account here, but I found it extremely difficoult as it appear that to have a bank account here in some banks, you need to have a credit history, but to have a credit history you need to have a bank account.

This seems a chicken-egg problem and I found this confusing and annoying. I mean, I don't want to borrow money, I just want to put MY money in the bank and maybe spend a bit of it.

Now the question is, how come some bank, will allow you to open an account and others won't?

Also, the bank that allowed me to open the account, doesn't allow me to wire transfer (my) money to another (UK) account, and claims that ll the bank have the same policy for "cash accounts", is that true, I mean, is there an actual law that for some reason donesn't allow you to transfer your funds? Why?

Answer 1

have a bank account here, you need to have a credit history,

That is wrong, whoever informed you that. You don't need a credit history to open a bank account. Some banks allow you to open no frills accounts without a credit history. I myself opened an account, with Barclays, with my NI card, job contract and probably my passport too and I amn't from the EU.

Also, the bank that allowed me to open the account, doesn't allow me to wire transfer (my) money to another (UK) account, and claims that ll the bank have the same policy for "cash accounts", is that true, I mean, is there an actual law that for some reason donesn't allow you to transfer your funds? Why?

Did you read the T&Cs. Chances are that other the account is with a different bank. And it always is fishy, atleast for banks because of heightened money laundering regulations, for people opening accounts and starting to transfer money to accounts with other banks. After you have banked with them for certain time, you can ask them to upgrade you to a current account which allow these services. Secondly because it might be a no frills account and they aren't allowed to charge fees, they might disallow transfers to other banks. And banks generally don't charge fees for no frills accounts so certain services are disallowed, which cost them money.

NB:- I have had a cash account for 4-5 years with Barclays and I used to transfer money to other banks, but I probably never tried transferring money just after opening an account.