Nationwide's refused me a current account on grounds of credit! Why?!

klowne

Just went to open a NationWide current account so I can take money out abroad for free and was refused on grounds of my credit score.

I don't know why I have a low score:
I'm a student, just finished my 2nd year of a four-year degree from a pretty prestigious place that will make a hell of a lot money. I have a 4000 per year loan and I get full fees paid and government HE grant, as well as money from the university bringing my yearly income to 7500 (it's a nice setup I know, the HE finance system seems to have been custom built for me but please don't worry about that at the moment).

Regarding credit, I have no credit card and have never taken out any loans (other than student), I have a current account at halifax with a 100 overdraft which I use but have never gone over the limit. No criminal record.

The only thing I can think of is my family. People in my immediate family have a pretty low credit rating and we're very low-income, living in council housing. Do they base it on this?

Arghh please help. Is it worthwhile me trying to find out my credit rating from the companies to make sure there isn't something wrong on there?

Tim

Bernard_Coleslaw

I don't think it will be your family's credit history - unless you have a formal association with any of them (which would be unlikely in your case) then the Nationwide will not have looked at their details when assessing your case.

It may simply be the case that you just don't have much of a credit history. Of course, that could be viewed as a good thing, but it also means you have little 'track record' when it comes to using credit.

If it's any use, I think Nationwide also do a cashcard account (not credit scored) where the card allows you fee-free ATM withdrawals abroad. No doubt someone will correct me if that's not the case.

grumbler

Bernard_Coleslaw wrote:

...No doubt someone will correct me if that's not the case.

This is correct, but AFAIK they offer the cash card automatically to those rejected for a debit card. I think the best thing to do in this situation is to ask what CRA they used, order the credit file, check it and then appeal (in writing) to NW. I remember many posts here reporting that apeals were successful.

See NationWide will not accept me with further link inside

impy78

klowne wrote:

I have no credit card and have never taken out any loans (other than student), I have a current account at halifax with a 100 overdraft which I use but have never gone over the limit. No criminal record.

This will be the reason why. It makes no sense, I agree, but because you do not have any credit in your name, this is probably why.

M_Thomson

klowne wrote:

Just went to open a NationWide current account so I can take money out abroad for free and was refused on grounds of my credit score.

I don't know why I have a low score:
I'm a student, just finished my 2nd year of a four-year degree from a pretty prestigious place that will make a hell of a lot money. I have a 4000 per year loan and I get full fees paid and government HE grant, as well as money from the university bringing my yearly income to 7500 (it's a nice setup I know, the HE finance system seems to have been custom built for me but please don't worry about that at the moment).

Regarding credit, I have no credit card and have never taken out any loans (other than student), I have a current account at halifax with a 100 overdraft which I use but have never gone over the limit. No criminal record.

The only thing I can think of is my family. People in my immediate family have a pretty low credit rating and we're very low-income, living in council housing. Do they base it on this?

Arghh please help. Is it worthwhile me trying to find out my credit rating from the companies to make sure there isn't something wrong on there?

Tim

Nobody will ever know what the reason is for refusal 100% when it comes to credit scoring. The banks will never reveal how they score accounts due for commercial and fraud reasons. Don't take it personally, every bank sets requirements for acceptance, and you obviously didn't meet Nationwide's on this occasion. It doesn't mean that other banks will refuse you.

EllieB_2

OK what most people don't realise is that when it comes to banks what we are dealing with is Topsy Turvy Land. Sounds silly but it is true. For example: what for you is a "good" credit score eg no debt no credit card etc for the bank is bad - no propensity to borrow, ie possiblility of profit- small. Likewise for you capacity to repay loan = good. for the bank -= bad - profits are achieved from bad debt charges etc. Unfortunately times have changed - banks now want bad debt - not so bad customers can't repay but just bad enough to reap charges - call me cycnical -you bet! Truth is banks just don't want "good" customers anymore - cos they just don't make them any money.

kenshaz

EllieB wrote:

OK what most people don't realise is that when it comes to banks what we are dealing with is Topsy Turvy Land. Sounds silly but it is true. For example: what for you is a "good" credit score eg no debt no credit card etc for the bank is bad - no propensity to borrow, ie possiblility of profit- small. Likewise for you capacity to repay loan = good. for the bank -= bad - profits are achieved from bad debt charges etc. Unfortunately times have changed - banks now want bad debt - not so bad customers can't repay but just bad enough to reap charges - call me cycnical -you bet! Truth is banks just don't want "good" customers anymore - cos they just don't make them any money.

But the systems are not sophisticated enough to detect Tarts,who move and duck and dive,building a credit record ,but not going into default :money:

klowne

thanks everyone. i might try writing a letter of appeal, i'm not sure. it's funny though because hsbc and natwest are paying students to open accounts with them but i guess different banks have different views on life.

Voyager2002

You can find out your credit score for free from ZOPA (search this site for details) but it is probable that the problem is that you have changed address in the last couple of years. Anyway, are you sure you are on the electoral register?

M_Thomson

Voyager2002 wrote:

You can find out your credit score for free from ZOPA (search this site for details) but it is probable that the problem is that you have changed address in the last couple of years. Anyway, are you sure you are on the electoral register?

This is a generic score though. Each bank will score differently when you apply for a product.

klowne

went in today to try and open a simple account and the lady said that 2 days ago (when i first tried) they had incorrectly refused a load of people accounts and they needed to check with their head office whether i was one of them. i'm going away tomorrow so it'll be 2 weeks for me to find out! good news though i suppose:)