Current account applications' affect on my credit report

sultanoflondon · 27 June 2017 at 1:50PM

Hi all,

I made a few current account and savings account applications within the space of a couple of days and some of them have been rejected. After two applications to different banks had been accepted on one day, I continued applying for more current accounts and then I started getting rejections. I got one rejection from Co-Op Bank (by email, about ten minutes after applying) and one from Santander, immediately after applying, on their webpage. I then got a rejection from M&S, a day after applying.

Does anyone know the reason for these rejections? I think that a large number of applications made in a short period of time caused the rejections, but correct me if I'm wrong. After asking all of the banks individually on why I was rejected, all they could tell me is that I failed the credit agency reference.

If anyone could shed any light on this, that would be very helpful.

What I plan on doing is to reapply for the banks from which I received rejections in about a month's time. Also, I will probably do a maximum of one application per week. Anybody have any advice on this strategy?

Thank you in advance!

P.S. I did not apply for any overdrafts, from any banks.

Candyapple · 27 June 2017 at 2:10PM

sultanoflondon wrote: »

What I plan on doing is to reapply for the banks from which I received rejections in about a month's time. Also, I will probably do a maximum of one application per week. Anybody have any advice on this strategy?

Worst possible thing you could do. You've been rejected for a reason, better to find out the underlying cause before you go adding more wasted hard searches to your files.

First you need to check your files to see what's on there. The free versions to check your credit files are below:
Experian: https://www.moneysavingexpert.com/creditclub
Equifax: https://www.clearscore.com
Call Credit: https://www.noddle.co.uk

How many hard searches have you made in the last 12 months?

Savings accounts don't incur a hard search.

[Deleted User] · 27 June 2017 at 2:11PM

Multiple applications.

Leave it for three months or so, then do no more than a couple more. One a week is way too many.

sultanoflondon · 27 June 2017 at 2:20PM

Candyapple wrote: »

Worst possible thing you could do. You've been rejected for a reason, better to find out the underlying cause before you go adding more wasted hard searches to your files.

First you need to check your files to see what's on there. The free versions to check your credit files are below:
Experian: https://www.moneysavingexpert.com/creditclub
Equifax: https://www.clearscore.com
Call Credit: https://www.noddle.co.uk

How many hard searches have you made in the last 12 months?

Savings accounts don't incur a hard search.

Thank you for your reply!

So I shouldn't be rejected on the basis of credit agency references for savings accounts applications?

Number of hard searches in the last 12 months is between 5 and 7 I think.

As I am a full time student looking for a job, I have no income that I can declare in current account applications. I get some money from my parents and I use some of my savings when necessary, to supplement my everyday spending. I declare income on current account applications as 0 per month. For this reason, I cannot use the MSE Experian credit report checker as I have to have a minimum income of £10,000 to use ti. I tried signing up earlier.

How about if I apply to different current accounts at different banks in about a month's time? They will not see that I have made applications again to the same bank then?

Deleted_User wrote: »

Multiple applications.

Leave it for three months or so, then do no more than a couple more. One a week is way too many.

Leave it for 3 months? Isn't that a bit too long? Surely one per month is okay?

Also, are frequent hard searches damaging to my credit report? In that case, this is likely what caused my rejections.

Candyapple · 27 June 2017 at 2:37PM

If you are a full-time student this will also be another factor as to why you are being rejected. Both Co-op and Santander offer student accounts and will most likely have rejected you because you should have been applying for those accounts instead. M&S bank are pretty fussy and I'm guessing again your student status/no income would have hindered your application.

No you won't have been rejected due to savings accounts as they are definitely not reported to the credit reference agencies and do not incur a hard search.

Yes frequent hard searches impact your file greatly because it makes you appear desperate to lenders. In fact I would go as far as saying you shouldn't be making anymore applications until 6 months+ or ideally, 1 year has passed.

If you are applying for these bank accounts due to the cash incentives, you need to find a job first and then try applying in 6 months time.

Ben8282 · 28 June 2017 at 5:02AM

Aside from the multiple credit searches, another factor could well be the number of current accounts being applied for. Normal people simply do not have a need for so many current accounts. Yes, I know you are doing it for the switching bonus or the interest or whatever, but banks want current account customers who are actually going to use the current accounts as current accounts in the normal sense.

Current account applications' affect on my credit report

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