I'm too good with money and have no credit history / Halifax just refused me !!

lanstrom

I make a point of never borrowing money and I have no credit cards, but despite having a full time job, a healthy savings and ISA savings the Halifax have just REFUSED me a current account.

I have NEVER been refused anything financial before so this has come as a bit of a shock !

What do I do now ? Am I best to go take out a credit card with my current bank and then overspend on it ??

Thanks.

KnightSmile

Its a good idea to get a CC to build up a credit rating. you dont have to pay interest just pay for something you would noramlly purchase with the credit card and pay off the balance in full each month. that way you are building up a credit rating and not spending anything extra.

I know what you mean that actually you seem like a brilliant person to lend to but banks see you as an unknown quantity.

Thrugelmir

lanstrom wrote: »

I make a point of never borrowing money and I have no credit cards, but despite having a full time job, a healthy savings and ISA savings the Halifax have just REFUSED me a current account.

Then you won't be a profitable customer for them.

Current accounts cost banks money.

Suggest you open an ISA or product with them first.

lanstrom

Thrugelmir wrote: »

Then you won't be a profitable customer for them.

Current accounts cost banks money.

Suggest you open an ISA or product with them first.

I have already opened the ISA with them (and also a Web saver). The ISA transfer form was also filled in and taken to the branch with me today. After them declining to open me a current account I told them I was taking the ISA form back with me. Without the Reward 0.2% extra bonus it makes their ISA look a bit flimsy at 3.0% (there are better rates around).

Thrugelmir

lanstrom wrote: »

I have already opened the ISA with them (and also a Web saver). The ISA transfer form was also filled in and taken to the branch with me today. After them declining to open me a current account I told them I was taking the ISA form back with me. Without the Reward 0.2% extra bonus it makes their ISA look a bit flimsy at 3.0% (there are better rates around).

Then could be down the fact that they have to reduce number of current account customers. As required by the EU.

Try a non Lloyds Bank bank group instead.

MoneySaverLog

Are you on the electoral role, have you got hold of your credit report to see what is on there? That's where I would start.

Did they give any explanation for the reason why they declined your account?

opinions4u

Did you say you wanted to transfer your existing current account to them?

Yes = profit potential
No = cost potential

lanstrom

MoneySaverLog wrote: »

Are you on the electoral role, have you got hold of your credit report to see what is on there? That's where I would start.

Did they give any explanation for the reason why they declined your account?

Yes I am on the electoral roll and she asked me that too.

She did say that I could appeal the decision but if the don't want my money then I don't see why I should spend my time having to proove to them that I am worthy of giving it to them !

lanstrom

opinions4u wrote: »

Did you say you wanted to transfer your existing current account to them?

Yes = profit potential
No = cost potential

Yes I wanted to transfer my :-
Barclays current account
Barclays joint current account
Barclays junior saver
Egg online account
Lloyds TSB ISA account

By changing both my current accounts to them I would have benefitted by getting £5 in each account each month + another 0.2% on the other accounts.

I had already opened the ISA and web saver online and had to verify my ID before I could credit them but after being declined for a current account I am not going to bother with them (will close them).

jalexa

lanstrom wrote: »

Halifax have just REFUSED me a current account.

These things sometimes happen for no obvious reason but I personally dismiss the "bank apologist" replies as being unlikely.

Clearly if you already have other Halifax products it would be a stupid decison because the consequential outcome is obvious.

I suggest a c*ck-up (an inadvertant process error) rather than conspiracy.

First however some questions. Was it an automated decline online or were you in branch? Which particular current account were you applying for and do you meet any funding requirements specified in the account information? In the same vein, you did indicate in the funding box, a funding method that would show the application in a good light.

One or other of the "apologist arguments" suggested you might not be a profitable prospect. Well once you have sorted out your full service current account with another bank, stuff Halifax by applying for their Basic Bank Account. You have not mentioned any reason to be declined for that and *that* is an account which certainly won't make Halifax any money.

And it is well worth having anyway just for cash purposes and/or the Electron card.

On a totally serious note, if you are prepared to give Halifax another chance, and you didn't previousy, apply in branch. Of course they may take the opportunity to try to upsell you a fee-earning account. Up to you how you deal with that.


Later edit:

I remembered something that happened to me a few years ago. I wanted to upgrade my Lloyds TSB Cashplus (or Cashpoint?) account to a full service current account. I was declined like you for no obvious reason. I wasn't satisfied with the explanation from the branch manager so made a £10 Subject Access Request including using the form of words regarding automated decison logic from the Information Commissioners website. In due course I got a huge bundle of papers (all for £10!) including a sheet covering the decision logic. The funding entry (£0) was not the salary funding amount I had specified in the application. It is clear why the application was declined on the basis of the figures. Except the figures were wrong.

Oh, I also had significant savings with Lloyds TSB, soon removed. I have kept the Cashplus (Cashpoint?) account and use it for ATM deposits and cash. Basically a great limited account which I doubt makes Lloyds TSB any money. Their loss.

Thrugelmir

jalexa wrote: »

One or other of the "apologist arguments" suggested you might not be a profitable prospect.

Free current account banking is a very British model. Now that cross selling of products i.e. PPI has been blown away. The provisions made by the banks this year show the true extent of the profitability of selling same. So then leads to the days of fee free banking becoming increasingly numbered.