Holding a bank account for x many years (credit related)

4$£&*(£$&*(!

Some organisations ask how long you have held your current bank account, particularly in relation to mortgages and credit cards. I haven't been able to find much information on this, but given I changed my bank account this year from another which I had held for 10 years, how long do organisations usually consider a 'good' length of time for a person to hold a bank account?

I remember getting a mortgage some years ago and I had held my account for two years but the lender said that wasn't long enough so I didn't measure up, I told them I held a previous account for several years prior and would they be willing to add the years together; when they did I was then permitted the mortgage.

I am only asking as I want to get rid of my Smile account as their customer service is shocking these days, the account is empty but I don't want an unused account sat there either.

4$£&*(£$&*(!

No takers folks?

chexum

To be honest, I'm a bit baffled that previously they considered holding an account for "only" two years is a problem.

The possible thresholds I've seen to judge stability (address, and account) are:
- 6 months, when applications are considered too fresh
- 18 months, when generally an account is considered stable
- 2 years, some cards/banks only need this long address history
- 3 years, the usual time (but just a guideline) to consider some "ordinarily" resident if moved around countries
- 6 years, the age when debts become statute barred, and the length of time

From your explanation, the safe period must be either: 3 years to make sure you can safely be considered resident - this is also how long account conduct is reported to CRAs. Or it could be 6 years so there should be no "previous" bank popping up chasing an old debt, so anyone following you on the track of the present current account would have been able to find you.

4$£&*(£$&*(!

Thanks that is useful. Just something else then, I have recently opened a credit card with a better provider and I decided to use my old bank account sort code and account number when they asked for these details as it was still open and has far more historical info than my recent bank account.

How long do credit cards generally require a person to have held their most recent bank account for without it causing problems?

In honesty this is probably hypothetical more than anything as I do not intend to open any accounts etc. but I would be interested to know as I don't want another account sat open doing nothing am I causing problems for myself by closing my old account too early?

rockitup

CitySlicker wrote: »

I am only asking as I want to get rid of my Smile account as their customer service is shocking these days, the account is empty but I don't want an unused account sat there either.

Hi City Slicker,

Could I ask what sort of problems you have had with Smile customer service, was it a one-off or lots of problems. I have accounts there but not used them much in last 2 years.

They did however vastly reduce my credit card limit just coz I retired early.

Thanks

4$£&*(£$&*(!

They are a nightmare, it is either laziness or incompetence. It pains me to say that as I was loyal with Smile since the very first year they opened. My problems all started since August this year. Everything I could do myself, and everything automated, worked absolutely fine. Every time I had to get human intervention their end there was a problem.

First it was not setting up my Smile credit card to be taken out of a different bank account, then when they did they set it up wrongly and it bounced back, then they applied late paying charges after promising they wouldn't as it was their fault, then they put a late payment marker on my credit file which I had to get removed. When I called about the marker I was put through to debt management and the chap I was connected to said he had no idea why I was with him as he only deals with people who have problems paying and the first person should have resolved the issue not transfer me.

I had children's accounts with The Co-Op Bank which were being moved, they told me all different things about when I would get the interest on this from within 24 hours credited to my Smile account after their closure, then that became two working days, then five working days, then a cheque would be sent, then I couldn't have the money as it is only a small amount of interest. They finally sorted it after I demanded a manager intervenes following over 10 phone calls.

Then my credit card was credited with a refund by someone else so I said I want this money in my bank account, Smile paid it into one of the CLOSED children's accounts.

Co-Op Bank then tried to mis-sell a product to my partner. I saw red and put all of this in writing to the executive office demanding £75 for the trouble they caused me, the literally dozens of phone calls I had to make, the fact that every single time without fail they got things wrong the first time and I had to make at least two follow-up calls to resolve problems.

The irony is the executive office took pity and decided I should have £100 - they even got this wrong, paying £10 in my account which I queried where was this credit from as I wasn't expecting the £10 to be told sorry, I will get the remaining £90 credited within 24 hours.

Incidentally it concerns me the secure messages I sent about the £10 credit have been strangely deleted without my permission; all other secure messages are still there, which only leads me to draw the conclusion someone has tried to cover their tracks as it took me three attempts to get a proper reply.

I never thought I would say this, having been so loyal for so many years, but I cannot see me going back to Smile again. Their rates are poor, I get better rewards elsewhere, their daily banking is average at best and thinking back 10 years it was groundbreaking however their competition has changed and Smile look the same today offering the same online banking experience as they did 10 years ago.

The whole customer service experience since August, and to get so many things wrong so many times, being offered so many chances to correct them and not doing so is just taking the biscuit.

masonic

These sorts of questions asked when applying for credit can open a can of worms and I object to answering them. For example, if you switch your current account to a new bank do you have to start from scratch again or should the history at the previous bank be included?
How about if you switch over to a different type of current account within the same bank?
Or it is just the number of years you have continuously held a current account?
Does it have to be your main account, or can it be an account you opened as a teenager that you don't use but never got around to closing?
What if you have just moved your current account to the bank you are now applying to for credit - could switching your current account actually prevent you from subsequently switching your mortgage/loans to the same bank?

In the past I've always had an old A&L account to fall back on, but this year I closed that and I've interpreted the question quite literally and said I held my current account for less than a year. I've applied for some other current accounts and a credit card and haven't had a problem so far.