Why credit check for current account?

SkidSolo

I've just tried to open the regular saver account with Alliance and Leicester because it offers 10% etc..

I phoned up and was told a credit check would be done but it wasn't explained "just what we do".

I have a poor rating due to an IVA which is now clear and now I'm wanting to make some decent savings as I need to get a 15% deposit just for a mortgage.

I am wanting to save! with my money! why the credit check?! I've sorted myself out but I'm still swimming against the tide here.

Any info on this? Cheers.
rgds
SS

Mike_St_Helens

Hi there, I used to work for a bank, the reason is you cant have a savings account if you are a bankrupt ( i know you are not ) and for fruad ID.... they still have to check this but you would 99% still be approved for it.

MD

Floss

I've opened this account & I have a 4yr old CCJ on my record - they let me have one, so give it a go. It may just be the identity check version, rather than a full credit score, as they aren't offering you any credit with it.

Thriftylady

Some banks are strict about not even giving savings accounts to those with poor credit ratings because of how their own internal systems work. e.g. you might have a savings account for 2 years and they would then automatically consider you for a current account, because according to their own 'internal' credit scoring, you look like an excellent prospect. Since you would then have the potential to have a cheque book, go overdrawn etc. to prevent this happening, they would prevent you having the savings account in the first place....