credit rating after bankruptcy

jimbo8888

I was declared bankrupt at the beginning of 2005 but was discharged in November that year. I have had a Natwest step account for the past 4 years and my income is paid into this account regularly and all my direct debits are paid through it and I have always had a good balance in it.
Natwest rang me last asking if I would like to move up from the step account into a current account, They knew my situation and after a credit check, they said they could offer me a Gold Advantage account.
They said that my step account does nothing help my credit rating and it was a good idea to help my credit rating by opening the Gold Advantage account.
They want £12.50 a month for the Gold account and offer all the benefits. I do not need the any of the benefits and I'm reluctant to pay the fees. They also try to sell me other products while I was there eg, savings account and insurances etc.
I wanted a credit card to help my credit rating but as it was a Saturday the manager said I would have to apply during the week and could not guarantee I would get one.
They said to open a Gold account for 3 months then cancel it Just to get me out of the step account
Can someone tell me if this is a good idea
is this true or are they just selling me something I don't need

Thank you in advance
Jim

Ineedaname

They are just selling you something you don't need. Stick to your guns and go with what you know you need, a standard current account.

Did you clean up your credit files at any time?

jimbo8888

Many thanks Ineedaname
Since my bankruptcy I haven't done anything, I had quite a bad time with it losing my home and my marriage.
I just put my head down and got a job to get back on my feet again
This is all very alien to me, I don't even know where to start, The banks have said that the bankruptcy stays on my credit history for 6 years and at the time Natwest were the only bank that would give me a account for my salary to be paid in.
I've heard that it's best not to apply for too many bank accounts or credit cards as if it's rejected it shows up on my credit scoring and could affect future applications.
Can you tell me is my credit history clean now ?
What is the best step for me to take now ? I have always been wary about applying for my credit history with Exquifax as I won't know what to do with it.
Natwest were on a hard sell after trying to get me to sign to this gold account, they saw my balance and want me to open a saving account and move over half of my balance into it.
Do you know if it's true that my step account with them is not taken into consideration with my credit scoring,

Thanks

Ineedaname

Click on the blue text in my first post, that will take you to the clean up thread which will tell you all you need to know about cleaning up your credit files. You need to get reports from all 3 of the credit reference agencies and work through them as in the thread.

You'll also be able to see on your reports if your step account is listed or not, if it is then it is relevant in helping you to rebuild your credit score, if not then it doesn't count towards the score.

I would go back to NatWest and ask to speak to the manager. Inform him that his staff were trying to sell you an inappropriate account for your needs, i.e. you don't need the extra benefits the Gold account provides, and did not listen to you, the customer, regarding your banking requirements. Managers don't like to be told their staff are making mistakes like this so you should get the account you want and need from such a meeting.

jimbo8888

Many Thanks Ineedaname
you have been a great help, I will see the bank tomorrow,

fiveyearplan

I don't see the point in paying for a current account. I used to pay £15 a month for mine and never used any of the 'benefits' that came with it. Think about it - thats £180 per year. I could pay have my water bill for that or most of my car insurance etc.

WLITC

fiveyearplan wrote: »

I don't see the point in paying for a current account. I used to pay £15 a month for mine and never used any of the 'benefits' that came with it. Think about it - thats £180 per year. I could pay have my water bill for that or most of my car insurance etc.

I think they can be useful, it really depends on whether you'd normally use the extra services. Before BR I had an paid account and got good value from it, mine gave me mobile insurance, annual travel insurance and AA Breakdown cover all of which I found very useful and used .. but if you don't need any of these its probably a bit pointless.

jimbo8888

Your right fiveyearplan
they offer me a cheque book, but no-one accepts cheques now, insurance for my mobile but my currant household insurance covers it, travel insurance but I don't do a lot of oversea travel (maybe 0nce a year) and loads of other insurance things from companies Natwest own.
I'm really annoyed that all they wanted me to do is sign up for this Gold account and then try and flog a saving account and never looked at my needs.
Alarm bells should have rang when she said "Oh you can cancel it after 3 months"

Thanks guys

Ineedaname

She just wanted her commission and I would guess that's only paid out once you have had the account open for 3 months. Definitely complain to the manager as that's not appropriate in any way at all.

ZBI

Hi Jimbo...

I used to work as a bank cashier and therefore know how they generally operate.

It is all about SALES!!! Each financial product (i.e credit card or fee incurring current account) they sell brings in value to the branch and earns that particular employee a commission. This varies for each product - so they tend to focus on whatever product is worth the most value at that particular point.

I have personally experienced staff mis-selling products just to earn commission or hit their sales targets!

A Gold Account WILL NOT make any difference to your credit files! It may however improve your profile within Natwest/RBS Group but I can not say that for sure.

You will also get CREDIT CHECKED again when they process your account upgrade - so it may indeed get rejected anyhow! This may not have been mentioned to you as it could potentially deter you from applying!

BOTTOM LINE - use your own judgement and do not trust any false statement you may be given. Only upgrade your account if the additional facilities you receive will benefit you - otherwise do not waste your money!

All the best!

jimbo8888

Many thanks Guys
I have just spoke to the main Natwest Branch on the phone and they have said the cashier has mis-sold me the Gold account
and the Gold account is no different to a normal currant account for credit rating
If I don't need all the benefits from the Gold account then a currant account is fine.
They said to go into any branch and cancel the gold account and be downgraded to a normal account.
I have up to 60 days to cancel it and they will not charge me for the gold account, if they do, they will give back any charges.
I am still very angry that I was mis-lead and will file a complaint,
Thank god there's a forum like this for us to check this kind of advise, as I would have just believed her and paid the monthly fee
Once again guys many thanks