Why can't I get a full Current Account with RBS?

EltonJohnFan

Hi all,

I've been meaning to ask this for a while actually but I've just never got round to it due to other things. I've had an RBS/Natwest Basic Account for many, many years now and in that time I've always wondered why I've never had the option of upgrading to a full Current Account or even the option of having an overdraft or chequebook. I don't have a credit history and I don't have any debt either, lived very much an old fashioned lifestyle in that I save, don't but what I can't pay for in cash and have never ever had credit or debt of any kind. I have a stable, and fairly high income and even though I was recently made redundant (which has momentarily affected my income) I'm still very much in the black and continue to build up my money. I can't understand how all my peers have full Current Accounts with overdrafts etc and yet when I last applied for one last year (at my banks insistence) I was turned down and they said that if I wanted to appeal the decision I was more than welcome to do so but that they couldn't understand WHY I was refused by the computer because their internal rating system gave me a score of 4 and that I was thought of as a very good customer... maybe they just told me this to make me feel better?

I was really annoyed because they told me a record would be kept of me being declined for this account. I'm puzzled why I'm stuck with the most basic of accounts they have and it makes me feel like I'm not really valued as a customer because as I say I've banked with them for many years, have a good amount of money with them and generally have a good relationship minus a few hiccups here and there along the way. I don't know if I'm destined to have the basic "Key Account" all of my life but it just seems somewhat puzzling to me that I've occasionally been asked to upgrade but when I do it never goes through... what's going on? I've done an Experian credit check and just as I expected my report is almost bare, only really has my electoral information and all the other standard things because there's nothing on my credit section other than my RBS Key Account and Virgin Media services and in the credit searches box there is only the one search that's been done and that was for the account I applied for and was declined.

jen245

It could be your lack of credit history that's the problem, although if you run your accounts well, it's odd that they haven't allowed you a current account, even if it's without an overdraft. I'm guessing if they have done an external credit check, that's counted against you as you have no credit accounts to give you a decent score.

EltonJohnFan

jen245 wrote: »

It could be your lack of credit history that's the problem, although if you run your accounts well, it's odd that they haven't allowed you a current account, even if it's without an overdraft. I'm guessing if they have done an external credit check, that's counted against you as you have no credit accounts to give you a decent score.

Hi,

Thank you for clearing this up for me. I know this probably sounds silly but I never realised not having a credit score could be thought of as a bad thing because I was always brought up to believe that you should stay away from credit/debt and only buy what you can afford. I paid for one of those credit reports that Experian offer and it said my credit score is 999 so I don't know what the problem is. The report said that there are absolutely no negative factors affecting me and as I've lived at this adress for a long time and I'm on the electoral role too that those factors should count as very big positives.

knightfox

I am with RBS so have been talking to them a little bit over the past month. I have both current and the Key account. Everyone at the bank sees a key account as a normal current account. So dont worry their. Cheques are going anyway. Overdrafts are going really because of the economy. You have lived this way for so long, why the need to change.

Are you being declined at the first stage or during the AVN checks.

When did you last apply?

Have you tried for a credit card?

jen245

Don't ever pay for credit score from any of the credit reference agencies. It meaningless as all banks have different scoring criteria for different products. Banks like you to have at least some kind of credit account that is managed well. Someone who has never had credit is a high risk, as they haven't demonstrated that they are able to handle credit, which could be why you are being declined

EltonJohnFan

knightfox wrote: »

I am with RBS so have been talking to them a little bit over the past month. I have both current and the Key account. Everyone at the bank sees a key account as a normal current account. So dont worry their. Cheques are going anyway. Overdrafts are going really because of the economy. You have lived this way for so long, why the need to change.

Are you being declined at the first stage or during the AVN checks.

When did you last apply?

Have you tried for a credit card?

Hi,

Thank you for really putting my mind at rest, is it actually that I'm just being pressurised with sales talk into opening accounts with added "benefits" that I'll never really need or use? As you say I'm very happy with the account I have but it does annoy me a little to see my family and friends with gold bank cards and overdrafts etc and yet here I am and I'm stuck with a basic card and a basic account. The last time I was invited to a financial review the manager said I had been selected for a "better" bank account and then preceded to go through the application with me and everything went fine until she called me a few days later saying that the accout couldn't be opened but that I was more than welcome to make the appeal. I've never had a credit card and because of the way I was brought up I don't want one, this is a personal thing and I can't change the way I think.

EltonJohnFan

jen245 wrote: »

Don't ever pay for credit score from any of the credit reference agencies. It meaningless as all banks have different scoring criteria for different products. Banks like you to have at least some kind of credit account that is managed well. Someone who has never had credit is a high risk, as they haven't demonstrated that they are able to handle credit, which could be why you are being declined

Hi again,

Thank you for this. That's just the thing though, the bank has clearly seen just how well I've managed my account over the years and I can't understand why this doesn't count for anything because I'm on very good terms with all the staff and apart from a few incidents I've thoroughly enjoyed my banking experience with RBS. I was told by a close friend to try a different bank because when I'm in work I have an above average salary passing through my bank account every month and even at this moment in time I still have £800 or so passing through my account which isn't a small amount in anybodys book.

jen245

It's worth a try with another bank. When you opened your lloyds tsb account, did they offer you anything other than the cash account?

EltonJohnFan

jen245 wrote: »

It's worth a try with another bank. When you opened your lloyds tsb account, did they offer you anything other than the cash account?

Hi again,

The lady dealing with me said she thought it was very unusual for me to be applying for their most basic account as she said I was almost certainly entitled to something much better after I told her about my circumstances/savings etc. I mentioned that I'd only ever had a basic account with my current bank and she then enquired about whether I was a debtor and had serious financial problems which was a bit embarassing but I said no, not at all. I hope you can understand that because of what happened with my bank yesterday I was just really desperate to set up another account as quickly as possible as I was adamant that I was closing my RBS account and never having any dealings with them again. I've had time to think about things and the bank does seem genuinely sorry for the mistake which I accept but I still intend to go ahead and use the Cash Account I opened with Lloyds, couldn't believe just how quick this account was opened (10 minutes, literally) and the woman made me promise that I'd apply for an upgrade, how would I do that? I'm not sure what she means but I'm maybe better just waiting until I receive my card and everything as she said something about following the online steps. Thank you for your help.

knightfox

EltonJohnFan wrote: »

Thank you for really putting my mind at rest, is it actually that I'm just being pressurised with sales talk into opening accounts with added "benefits" that I'll never really need or use?

The last time I was invited to a financial review the manager said I had been selected for a "better" bank account and then preceded to go through the application with me and everything went fine until she called me a few days later saying that the accout couldn't be opened but that I was more than welcome to make the appeal. I've never had a credit card and because of the way I was brought up I don't want one, this is a personal thing and I can't change the way I think.

Well as you say they like to push their accounts with benefits. All banks do this, even HSBC. But some banks like HSBC wont open an account for anyone that wont put in £500 a month.

There is never a "better" bank account with a bank. The only mean better for the bank.

Maybe you should just go for a credit card, see what happens. These days people need credit cards for the credit history, it shows to banks you are a good payer.

knightfox

I would apply online again with RBS & see what happens. It wont do any harm, all you might need to do is send in some forms.