Forum

Bank Account..
 

Hi all,

I applied for a couple of bank accounts 1 with smile , 1 with co op where I currently hold 2 banks and CC with and they have come back declined?!

How can they decline if I already bank with co op they said based on my credit score.

I'm 21 years old I have had a contract phone for 9 years and never missed a payment also have a £15000 car which was on finance !!

How can I be being declined for bank accounts?!

Something strange going on surely?

Thanks

How did you sign up for a phone contract at 12?

You were probably declined because there is too much activity on your credit report - suggest you get a copy and go from therer

No, sorry totally misunderstood I was trying to say that I have had a phone contract for a long time.

Could that be why they decline? How long should you leave it between opening accounts?

You are better off opening basic accounts - try Halifax or Nat West. Still get a copy of your credit report though - preferably before opening any more accounts

:ranger:

I only ever open basic ones all bog standard?!

What do I need to look for on my credit report?

Called up Coop told me I probably got declined because of the amount of accounts being opened in a short amount of time..

Opening bog standard current accounts doesnt affect credit rating does it? Apparently it does due to the fact it is a 'credit facility' e.g. overdrafts etc

Credit scores are based on many factors, not just the fact that you have existing credit but also how you service that debt and your ability to support payments for further credit advances.

Opening many bank accounts in a short space of time does not in itself directly effect your credit score but do record searches on your report. A standard current account will record a full credit search but basic accounts only generate generic ID searches.

Too many too quickly will probably make a lender/bank think that you are in or heading towards financial problems or worse that you are up to no good.

Any account once opened will normally show on your credit file so if you have numerous accounts across a number of banks then they are going to look at that a bit sceptically.

The fact of opening bank accounts in a short time frame has been mentioned. It's never been a reasonable practice.

Whe you get a moment look over the moneysavingsexpert forum

Credit Rating: How it works and how to improve it...

It's free and chocka of worthwhile advice:peace:

Ok so how am I supposed to create more accounts if I cant open more bank accounts?

How long do you leave it before you open new accounts or whats the gap between opening bank 1 and bank 2?

That really depends on your personal circumstances and of course how good/bad your credit report actually is.

No one can actually answer the question for you specifically as to timescales

Check to see if you are using your exisiting banks to their optimum usuage.

As GrannyT said dont do anything until you check your credit report. :juggle:

As well as getting a copy of your credit file you should also apply for your actual credit score which is not contained in the credit file itself.

If you use creditexpert.co.uk there is a free 30 day trial to access your credit file but you do have to give them card details but can cancel before the 30 days are up.

For your credit score you need to pay £5.95.

That in conjunction with the credit file will give you a clearer idea as to what a lender is looking at.

BTW if you are stealthing it is worth the £60 a year for Credit Expert's services to be able to see your report anytime and be advised immediately of any changes to your file.

So what other banks only open accounts based on 'ID Searches' ?

Is it just Natwest and Halifax?

smile wont even touch me, I have 2 accounts with coop and even they declined! Think ive tried too many too soon.

Current account = Credit search

Basic account = ID search

True for all banks

I think your problem is that you are applying for standard current accounts and not basic accounts, otherwise known as Cardcash/Easycash accounts.

These provide the basic banking facilities which normally include DD facility, whereas standard current accounts usually offer more e.g cheque books and OD facilities.

As far as I know Smile do not offer a basic account and as Smile and Co-Op are the same bank would explain why both turned you down

The thing is yes with Santander and Halifax yes I have cheque books etc so these are CURRENT accounts. However, when I go to sign up for EASYCASH with Halifax you cant if you already have a CURRENT account, so now im screwed as I dont know where I can get an EASYCASH/BASIC account?

What else could I apply for then with Co-op etc as they dont have any other bank accounts that I can apply for that use 'ID SEARCHES'

I think if you look back through all your old posts several banks have been mentioned to you.

I think you need to reign your horses in a good bit and take things at a more sedate pace or you are going to come unstuck, BIG style.

If you have several accounts already running whats the hurry to open more?

Ever heard the expression, more speed, less haste?

P.S. If you'd opened the right type of account in the first instance then you would have been able to open more i.e. Easycash then 'upgrade' to standard current, bank happy, and they normally let you leave the Easycash account open.

Im not being funny, but it seems you 'know it all', so for people like me asking questions seems to be a crime.

Yes I know all the bank accounts that have been mentioned but in these posts they mention coop etc... they dont have such a thing as a basic account they are CURRENT accounts!

You're saying to me to open BASIC accounts when in fact you cant if you already hold current accounts with that bank.. and I can't open any more CURRENT accounts because of the problem mentioned with being DECLINED.
So what youre advising is to SHUT all current accounts and go back and open basic accounts?

Check out some of the non-status banking threads. You really do need to start thinking outside of the box. All of the problems you are talking about are solvable but no one is going to spoon feed you on an open forum.

Go to the top of the page, left hand side and use that search box

Oh, and I suggest you change your attitude when people are trying to help you. Sharing knowledge is voluntary not compulsary

:ranger:

Oh dont worry my attitude is fine and I appreciate help but when someone starts giving attitude it tends to change the way I start posting towards them.

See my edited post above.

Where did I say anything about closing accounts? That would just make the whole thing worse.

You also need to understand banking terminology when they are trying to 'sell' you an account. They may class a basic account as 'current' but it's not.

Perhaps you need to read the account features/benefits before you open any, this will tell you what is basic and whats not.

If I appear to know it all it's because I research, investigate, compare and then check I'm doing/getting the right thing before I do it.

P.S. Dont mistake sound advice for attitude, it's not, it's just that, sound advice.

@hdavey10- Have you lost any accounts? Why the need to open so many accounts so quickly?

If you have sufficient pp/ebay accounts for now, hold fire opening more bank accounts. Wait a few months and then try again.

If you're 21, with a 15 grand car purchased on finance, you're credit score ain't going to be great.

Also as GT says, there are several other options available to those that are unable to open regular accounts with the high street banks.

Ebayorbust - No I haven't lost any but have just been trying to get some accounts made so I can start selling more across more accounts.

I think its been my fault, I thought a CURRENT account was a BASIC account or im not understanding the terminology.

Tbh, I really need for someone to let me know what is the BASIC account at certain banks as once you have current accounts open you cant open EASYCASH at Halifax for instance.

So im still none the wiser on which basic accounts to open as Im worried its going to be a current account then another mark on a credit report..

Try nurturing the accounts you already have, it will be more beneficial in the long run than opening new account after new account.

Too many balls in the air at one time and you will lose sight of one and then they all come tumbling down. Even the best jugglers drop them sometimes.

Not being funny or giving you attitude, if you don't understand something then read about it until you do.

Can't understand Halifax having this policy. I have a Santander current account. I went into my local branch and opened two basic accounts without any issue.

Basic account: Like a current account but No overdraft, no cheque book. Usually just a cash card & same crappy current account interest rate.

A lot of these "basic" accounts aren't advertised online but are available in branch on asking.

Banks would much rather sell you all singing, all dancing current accounts with a monthly fee for AA membership, travel insurance and all the rest of the crap that they are promoting.

If you are set on trying to get more accounts, go into branch and TALK to them. Far better face to face than the "anonymity" of an online application.

Please read thro' this URL.
Forget about new bank accounts until you give yourself a chance to understand the different
terms. It's laid out simply. There's also a page there that has a listof all the banks & types of accounts.(Or was in January)

Money Saving Expert: Credit Cards, Shopping, Bank Charges, Cheap Flights and more

Since you are aiming for bigger things get your banking under control:peace:

That'll be MoneySavingExpert.com Forums GB :shhh:

The link doesnt work but have been looking through the BASIC BANK ACCOUNTS
Listed the banks I can get the real basic bog standard account and will go with that that accept DD.

http://www.moneyadviceservice.org.uk...k_accounts.pdf

Last piece of advice.

DONT go applying for any new accounts for at least 3 months

Why? because you've just had 2 banks turn you down. Any more searches on your credit file, even generic ID checks are going to have other banks giving you the same answer

So don't even apply for a basic account because that will get turned down aswell, even if its not a credit related search?

Yes, good advice.
:FF:

Exactly.

Even though it's not a credit application you have had way too many searches of any kind on your credit file recently.

Please read my previous post in this thread regarding how banks view this type of activity.

Niceone guys! Thanks for all the help.

Out of interest in the few months im going to leave it will my credit get 'better' as such or am I just leaving it so that the banks dont get suspicious?

Also, I never knew having my car on part finance that it would make me have a bad credit rating? Thought it actually boosted it.

Thanks

Will it improve your credit rating?

If all things remain equal, marginally I would guess, as long as you maintain regular payments.

Will the banks be less suspicious?

Probably no as you have made several applications for bank accounts this year.

Is your car giving you a bad credit rating?

No, not directly but at 21 with £15k debt on a car plus any other 'borrowing you may have, that includes phone contracts by the way, is not a big plus as far as a bank is concerned.

Once the car finance is paid off, credit score goes up.

Existing debt is taken into account when applying for further credit. There's a limit on the amount of unsecured debt you can have and lenders look at "affordability".

NoneOther / Ebayorbust - How many ACTIVE ebay accounts do you have then that are actively selling with bank attached...

Think what im trying to ask is how many BASIC accounts would you apply for in a year.. only reason is if my ebay's go down do I close existing bank account and then try to reopen another?

You really need to read and take on board what people are trying to tell you.

CLOSING ACCOUNTS TO OPEN NEW ONES IS EVEN WORSE.

How many active accounts I or anyone else has is not relevant to your situation and thats what you really need to try and understand above all else.

I am taking it on board what 'people' are telling me, the question I am asking is what is the plan of action when an account goes down I obviously wouldnt need that bank account anymore and can't put it onto a new PP, so thats the question above.. didn't think it was that hard to understand to be honest.

Thanks

Man! I give up. There's a limit to how many ways you can say the same thing.

Good luck whatever you decide to do.