opening a bank account/credit

atendoftether

I have a default with a credit card - now satisfied but will remain on my credit file for a further 4 years. I am going through the ombudsman procedure regarding this default - ongoing.

I have no other debts, loans, mortgage etc, owe nothing to anyone. But I can't get credit. I have very recently applied for a current bank account in order to open a euro account. My current provide doesn't offer this service. The bank has come back saying I have to refer to experian for an explanation as the bank says it is they who have refused the application - can they do this? And why have I been turned down for a standard account. I have the money in my other account.

Very disheartened. I know lots of people who even have been declared bankrupt get mortgages, bank accounts, credit etc.
Any advice please.

MoneySaverLog

Because the default is showing on your credit file, you'll find it difficult to get any credit / bank account other than a basic account / sub prime mortgage / vanquis card with that on your credit file.

Don't matter if it is settled or not.

NeverEnough

Experian doesn't "refuse" an application for credit - your bank does, based on information it obtained from Experian. Experian isn't a bank and doesn't lend money, they just provide information to their customers, ie the banks and finance houses. The failure to obtain credit is likely due to the default, settled ot not. It will be all but impossible to get credit until this drops off your file after 6 years.

izools

My flatmate was approved for a full bank account with Lloyts TSB in February despite having two defaults, one settled the other not, and one other account a month overdue at the time.

it is possible, it is the bigger picture that counts. One settled default against an otherwise full and positive long history of clean repayments with a variety of accounts, along side stable residence at a job and address for several years, won't matter as much as one settled default against an otherwise patchy or thin on the ground credit file with unstable residence or work history.

MoneySaverLog

Lloyds use internal and external data to score you. If you apply for a overdraft, credit card, loan, mortgage or any credit they will not accept you as they will contact a CRA for your external score. You can have a satisified default and still have a brilliant internal score with Lloyds TSB and get accepted for new bank accounts, and upgrades, with them though.