First Direct - More lax than people think?

izools

Was just wondering as two people I know have recently been approved for a FD account, with Overdraft & Credit card.

One of them had seven credit searches in the prior six months and had been declined for several credit cards and in the end resorted to Black Horse for a loan which was granted at 23.9% suggesting they have lackluster credit - also have total credit limits adding up to about 80% of their gross annual income.

FD happily gave them a 1st account and £1,500 CC limit.

Other person being my OH who had 10 credit searches in the prior six months, moved twice in the last three years, and was declined even for a sub prime loan, and has an outstanding default for nearly a grand to O2 from 2007.

FD happily gave him a 1st account and £2,500 CC limit.

Eh?

I think I'll try my hand in May

That would be the icing on the cake... giving a discharged bankrupt one of the most saught after accounts in the country :cool: But then again if I closed my HSBC current a/c I'd loose the interest earned YTD on my regular saver. Hmm.

We'll see.

ironlady2022

Very surprised. But I thought a discharged bankrupt still have to wait the 6 years before they can get a mainstream account unless FD offer a basic account?

izools

mayling03 wrote: »

Very surprised. But I thought a discharged bankrupt still have to wait the 6 years before they can get a mainstream account unless FD offer a basic account?

No not atall. HSBC provided me with an Advance account & £1,000 overdraft last October. I reduced the overdraft by half as that's rediculous.

This come after having run a Lloyds TSB Classic Plus account since 6 months after discharge.

Basic accounts are targeted more toward customers / applicants who have unresolved adverse credit - i.e. those that have outstanding defaults, accounts currently in arrears, CCJs yet to be paid off, etc. Or those that have finished dealing with all their prior debts but are yet to have built up a positive history since then showing they can now handle accounts responsibly.

In my case, I ran a Provident loan throughout the year of bankruptcy so that I had 12 months recent positive history, ready to help me out the moment I was discharged. I then ran a Vanquis card for six months after which Lloyds TSB seemed happy to provide me with a full current account. After having held the LTSB account for 18 months they offered me a £3,000 OD. Mental.

My credit file shows the Bankruptcy as being discharged and all associated debts as being satisfied, along with three years since then of a variety of accounts having been run flawlessly. This, in a lot of cases, is a more preferable profile for a creditor to see than someone who's never been bankrupt but has accuonts that are currently in arrears etc.

EDIT: If you check Halifax's website and go to apply for a current account you can see that they expect applicants to wait for three years from the date of their bankruptcy or insolvency before applying for a mainstream account. As usual, mileage vaies - but it is possible to get mainstream current accounts, albeit without credit facilities, right after discharge, so long as the rest of the applicants profile is impeccable.

foolishboy

izools wrote: »

No not atall. HSBC provided me with an Advance account & £1,000 overdraft last October. I reduced the overdraft by half as that's rediculous.

This come after having run a Lloyds TSB Classic Plus account since 6 months after discharge.

Basic accounts are targeted more toward customers / applicants who have unresolved adverse credit - i.e. those that have outstanding defaults, accounts currently in arrears, CCJs yet to be paid off, etc. Or those that have finished dealing with all their prior debts but are yet to have built up a positive history since then showing they can now handle accounts responsibly.

In my case, I ran a Provident loan throughout the year of bankruptcy so that I had 12 months recent positive history, ready to help me out the moment I was discharged. I then ran a Vanquis card for six months after which Lloyds TSB seemed happy to provide me with a full current account. After having held the LTSB account for 18 months they offered me a £3,000 OD. Mental.

My credit file shows the Bankruptcy as being discharged and all associated debts as being satisfied, along with three years since then of a variety of accounts having been run flawlessly. This, in a lot of cases, is a more preferable profile for a creditor to see than someone who's never been bankrupt but has accuonts that are currently in arrears etc.

EDIT: If you check Halifax's website and go to apply for a current account you can see that they expect applicants to wait for three years from the date of their bankruptcy or insolvency before applying for a mainstream account. As usual, mileage vaies - but it is possible to get mainstream current accounts, albeit without credit facilities, right after discharge, so long as the rest of the applicants profile is impeccable.

IZ .. when were you made BR? My 3 year anniversary is due in April so will be looking for a 'proper' current account shortly.

My details:

BR April 2008, discharged April 2009
Capital one card for 11 months, Barclays basic account for nearly 2 years, 2 x Three rolling mobile contracts, a legitimately satisfied HP agreement for a car and a ton of satisfied defaults as a result of BR, all dated < BR date - most of them late 2007.

Cheers,
FB

izools

My three year anniversary is this month actually :beer:

I think you should be a shoe-in for a full current account if you apply in April, so long as you've not applied elsewhere much recently. Credit searches really hurt your score when prior adverse data is present.

Good luck come April! :beer:

TheEffect

I got an account when I was 19 with a £250 overdraft, with not much on my credit file and quite a few credit searches. I'm 20 now and a student, yet I still use the account as my main account. FD wont give me any more credit though.