Declined for a current account application

Glasserton

Apologies if a thread like this has been posted before
I currently bank with HBOS and have done for 25 years. I have grown to despise them for a variety of reasons therefore have been looking for another provider. I recently applied to First Direct for a basic current account which was subsequently declined. I called them and the CSR agreed that it sounded unusual and agreed to look into it, which he never did. I thought I may have made a mistake on the application and didnt pursue the matter.
I waited a couple of months to apply to another bank (whom I actually work for) who also declined my application, I conveyed my information verbally so know that I didnt make a mistake. They refused to give me information on why I was declined.
I know criteria has been tightened but I believed I was in good financial shape and:

-Earn above average
-Hold decent level of savings
-Registered to vote
-Have never missed a mortgage payment and actually overpay
-Recently paid off a 5 year personal loan
-Do not have a credit card
-Never had a CCJ or anything like that
-As at January 2010 I had an Experian Credit Score of 999 which I think is the highest it can be
-Have lived at my current address for over 4 years
-Have not applied for credit products in the last 18 months


I am worried that multiple applications will impact my score but more worried that I have to stay with a bank I dont like for reasons I dont understand. Is there anyway I can find out why I have been rejected in order to try and rectify it?
thanks

willisland

Hi,

This is a bit disconcerting as I am also looking to open up an account (with HSBC or A&L) to switch banks. However, I have debts to 3 cards (1 defaulted and the others within limits) but I'm within my overdraft with the bank I want to switch from!

Recently I was declined a loan from my bank and elsewhere so would this affect my application for new bank account?

I'm meeting most of that criteria you have, but I would certainly like to know why your being refused a bank account even from the place you work!

Good luck,

Will

paulmcerlean

Have you checked your reports from Equifax and call credit too? Something does not tally up. You have the ideal sounding credit file from what you say and even though they do not have to accept you - there is certainly no reason why they should not based on the above.

Unless there is an anomaly on your other files...

ShaneUK

Which credit agency do your work use? (Ie the 2nd bank that "rejected" you.) That is the one you need to get a copy of your credit file from.

It all sounds very bizarre though to me.

Glasserton

thanks for the replies

I think my employer uses Equifax although I thought my Experian credit score would provide a rough indication of my credit worthiness. I also want to apply for a credit card for major purchases (as I lost money on a recent Globespan booking) but worried that if I cant even get current account I have no chance with a credit card.

I know banks dont advise why they refuse, maybe its a profitability thing and they only want customers that they think they can make money from?

noah271007

Perhaps they (FD) feel you are not the type of customer for them?

They must tell you why you have been declined. They cannot just say no.

onlypaddy

noah271007 wrote: »

Perhaps they (FD) feel you are not the type of customer for them?

They must tell you why you have been declined. They cannot just say no.

they dont have to tell you. and if you ask they will just say failed credit score, the standard spiel...

paulmcerlean

Your Experian score (which by the way is meaningless as banks and lenders dont use it) is not going to give you an indication of how your equifax file looks. This is why you need to look at all three files when declined for a product; as often there can be missing info, specific info on one that does not appear on the other, hence why declines happen.