home
in

Refused a bank account for failing credit check but I have an excellent rating!?

Last post Fri, Feb 15 2008, 7:00 PM by axisme. 15 replies.
Page 1 of 2 (16 items)   1 2 Next >
Sort Posts: Previous Next
  •  Fri, Feb 15 2008, 7:00 PM

    Re: Refused a bank account for failing credit check but I have an excellent rating!?

    Hi,

    It might be worth contacting Barclays. I opened a current account with them in January and my credit score was low (lived over seas for awhile). They accepted my application and the friendly branch manager even upgraded me to a Visa Connect instead of the Eelectron.

    Highly recommended!

    • Post Points: 5
  •  Sun, Feb 10 2008, 11:56 PM

    Re: Refused a bank account for failing credit check but I have an excellent rating!?

    prosperusmaximus:

    It depends. Even a basic bank account (no overdraft, no guarantee facilities, no chequebook) will require a credit check as part of the identification process. Even if there are credit rating problems it can often still offer such an account; the fact that his present bank are refusing any kind of facility suggests, given a clean credit check, that internal records maybe at fault.

    To be offered nothing at all would lead me to agree with what you have posted.

    There are a lot of points when a bank offers a new service internal with the computer system, sometimes not even the adviser you see know what makes a yes or a no !

    Did you check your credit report to see if there where any markers showing on there ??

    • Post Points: 20
  •  Wed, Jan 16 2008, 9:48 PM

    Re: Refused a bank account for failing credit check but I have an excellent rating!?

    It depends. Even a basic bank account (no overdraft, no guarantee facilities, no chequebook) will require a credit check as part of the identification process. Even if there are credit rating problems it can often still offer such an account; the fact that his present bank are refusing any kind of facility suggests, given a clean credit check, that internal records maybe at fault.

    rjm says he even tried at hsbc which maybe down to liabilities versus income but his own bank should know better because it should know more. In the old days of course, if you could provide a guarantor this wouldn't be a problem but those days have gone

    • Post Points: 20
  •  Wed, Jan 16 2008, 8:26 PM

    Re: Refused a bank account for failing credit check but I have an excellent rating!?

    Are you asking for a bank account or a bank account with a debit card? If you try another bank or building society you are likely to find that you can have a bank account (without credit/bebit card and without overdraft) just for producing the correct ID.
    • Post Points: 20
  •  Wed, Jan 16 2008, 7:31 PM

    Re: Refused a bank account for failing credit check but I have an excellent rating!?

    I'm stumped. As the account you are trying to open is with your usual bank the problem to me, despite them saying it was the credit check, could lie with the bank's own internal records. I recall a former customer of mine (and I ddin't work for Lloyds) who came into the bank when she discovered her direct debits had been cancelled and her card retained by the ATM.

    Some digging around led to the discovery that she had been referred to the bank's debt management department even though she had nigh on £30k with the bank. A quick check with them showed that due to a keying-in error by the department her account at my branch had been transferred instead of the correct account. Although there is an 8-digit difference between each account number, they can be transposed.

    Get Lloyds to check into this because if, as you say, your credit history shows nothing it could be an internal error.

    • Post Points: 5
  •  Wed, Jan 16 2008, 5:42 PM

    Re: Refused a bank account for failing credit check but I have an excellent rating!?

    To answer your points:

    1. I have no balances on any credit cards and only have one active one at the moment. Thinking about it I think i have only had 4 since I was 18.

    2. I have never incurred a chare on my bank account but once I did incur a late payment change on a CC (I subsequently set up a DD).

    3. I am not changing banks, I am actually trying to open a joint account with my girlfriend. When we tried to open it they said yes to her but no to me - as such the 'joint' account is currently in her name and i am trying to be added to it. Additionally, they were happy to add an overdraft for her after 6 months.

    4. I take your point about too many credit enquiries, but I would say that things like a mortgage and a student loan are par for the course for someone my age so this still seems a bit tenuous. I have another meeting with LTSB (who currently hold our 'joint' account') on Saturday and I will try to get more information out of them. The irony is that regardless of whether they give me access to the account r not, I will still be paying into it so to them it should make no difference what so ever. TBH I don't even wan a debit card since it's just for bills etc which are all direct debited.

    Thanks for your help so far.

    • Post Points: 20
  •  Wed, Jan 16 2008, 4:24 PM

    Re: Refused a bank account for failing credit check but I have an excellent rating!?

    Whether or not you were seeking an overdraft on the account, a credit check would still be performed as an identity measure. You say you have a good salary but you also state that you have a mortgage, the balance of your student loan and have had 5 credit cards in the past although you don't state if they still have balances on them. The very fact you've had 5 credit cards in the last seven years (since you were 18) may make them wary; even in the age of balance transfers, that is quite a lot.

    When you were a student (or even afterwards) did you incur charges on your account for exceeding overdrafts or for insufficient funds to cover direct debits, etc? I assume you are changing banks; did you provide statements as proof of identity/address and if you had charges, were these listed on them? Bank staff are trained to spot these and will determine the kind of account offered, if indeed, any.

    Even if you have no charges, the fact you've had substantial credit checks in the last few years (mortgage enquiry, credit cards, etc) maybe self-defeating. Too many enquiries on your credit file can be as bad as poor results from it. And sometimes, the very fact you are changing banks can raise eyebrows. As someone who worked for a high street bank the phrase 'poor service' from their old bank often translated into 'I was getting charges'. Charges do not endear a potential customer to their prospective bankers.

    What the bank may also have looked at is your liabilities against your income to service those liabilities. Banks think ahead and although you don't want an overdraft today you may require one in the future and that has made them wary. At the very least though they should have offered you a basic bank account, although there is no legal compulsion for them to do.

    And that's the crux of the matter. As stated elsewhere, the Martin Lewis's of this world have made banks more cautious about who they do business with. There is no legal obligation for them to take your business and they are becoming more and more fussy about what business they take on. I think many people will begin to find themselves in your situation in the future.

    • Post Points: 20
  •  Tue, Jan 15 2008, 7:36 PM

    Re: Refused a bank account for failing credit check but I have an excellent rating!?

    It sounds that way - although there may be more to it. I have a similar problem (see recent post under current accounts) - can't even get a current account from the same high street bank that have supplied my mortgage...

    • Post Points: 5
  •  Tue, Jan 15 2008, 2:12 PM

    Re: Refused a bank account for failing credit check but I have an excellent rating!?

    So is it just that I have too good a credit rating and that's why I cant get a credit card or a bank account?
    • Post Points: 35
  •  Tue, Jan 15 2008, 12:49 PM

    Re: Refused a bank account for failing credit check but I have an excellent rating!?

    It looks like that it is a score out of 500 (not 1000)
    • Post Points: 5
  •  Mon, Jan 14 2008, 9:32 PM

    Re: Refused a bank account for failing credit check but I have an excellent rating!?

    Equifax rate you as follows:

    <299 is Very Poor

    300 - 349 is Poor

    350 - 399 is Fair

    400 - 474 is Good, and

    475+ is Excellent.

    Other companies may have a different scale but I have not got my credit score from elsewhere so I wouldn't know. There is an article in the observer which references the Equifax credit scale:

    http://observer.guardian.co.uk/cash/story/0,,2200518,00.html

    Does anyone have any constructive ideas?

    Thanks

    • Post Points: 20
  •  Mon, Jan 14 2008, 5:16 PM

    Re: Refused a bank account for failing credit check but I have an excellent rating!?

    Hi,

    I don't think 475 counts as an excellent score! As far as I know it goes up to 1000 - I was overseas for 10 years and left no accounts open here; when I got back it was like starting over with getting a credit profile.

    I started with around the same score as you and it has taken me 1 year to get up to 800+. I managed to get an HSBC account only because I had an offshore account with them and no credit card company wanted to know apart from Capital One. They gave me £200 limit I suppose to see how I fared!

    Also got a Littlewoods account and kept buying a few things and paying it back over a couple of months to build up my credit profile again.

    Its a bit of a pain, especially my South African wife (I'm british) who came with me was offered a £500 Mastercard at the same time we opened current accounts - I couldn't get one - and seems to have gone straight in at 800 credit score!!?? How it works is a bit of a mystery...

    Good luck anyway

    Mark

    • Post Points: 20
  •  Mon, Jan 14 2008, 4:56 PM

    Re: Refused a bank account for failing credit check but I have an excellent rating!?

    Yes you can get a basic credi report for £2 but because this has been going on for so long I decided to invest in as much detail as I could get. I would have viewed it as money well spent if it had have shed any light.

    To answer the other reply, my circumstances are pretty good I'd say:

    Age 25, I have a mortgage (and never missed a payment obviously), a good salary and have been in the same job for more than 3 years (since graduating), have only ever had one bank account (for 21 years), and only have part oif my student loan left to pay. I have also had 5 credit cards in the past, all with no missed payments.

    The bank account I was applying for didn't have an overraft so I fail to see what risk I am perceived as being. I was also told explicitly by LTSB that it was my credit check that was the problem but they couldn't give me more details.

    As a side issue, I was thinking of applying for a car loan soon (maybe around £4000 with a £2000 deposit), do you think I will have trouble getting a decent rate or a loan at all?

    Thanks for the replies so far, if anyone else has any input it's be greatly appreciated.

    • Post Points: 35
  •  Mon, Jan 14 2008, 3:33 PM

    Re: Refused a bank account for failing credit check but I have an excellent rating!?

    I thought a credit score was out of 1000.? Why did you pay so much when you can get a report for just £2.
    • Post Points: 20
  •  Mon, Jan 14 2008, 3:21 PM

    Re: Refused a bank account for failing credit check but I have an excellent rating!?

    It is always sad to read these postings as there is so much more to an application than just the credit reference agencies.

    Your prime score issues will be based on:

    Age, domestic circumstances (rented, living with parents etc), salary, length of time with employer, location, personal status, length of time with bank/building society, number of existing loans, current credit outstanding

    This is not exhaustive but in some cases the banks/societies don't even get as far as a credit check if their own internal score systems fail at the first hurdle.

    As far as the bank account question is concerned, you can only blame the Martin Lewis' of this world for the banks tightening up their customer profiles. Today is the day when the law courts will decide if the principal of bank charges is legal in the UK. The UK has a policy of 'free banking' which may end very shortly and will probably end up with many people having to pay for a banking service. I hope that this will not happen, but somehow, the banks have to make up their losses due to the financially negligent amongst us who insist on living beyond their means.

    SHARK!

    • Post Points: 20
Page 1 of 2 (16 items)   1 2 Next >