Credit check for bank accounts

WLITC

When banks do a credit check for bank accounts, does it have the same negative effect on your credit file as say a credit card or loan search/application?

A_Flock_Of_Sheep

Because Equifax, Call Credit and Experian fool banks into thinking that doing so is really great whilst bagging said companies container ship loads of cash by allowing banks to subscribe to their woderful systems and the fees they charge us by allowing us to see our file. They also pass the buck when data is wrong; because everything their "subscribers" put on credit files is always correct because they say so (even if it is wrong) -

Seems like a good thing to have invented for making money really. Wish I had though of it.

To answer the last part - it can have a negative effect I think.

tagq2

If it's not considered a credit account (e.g. savings account or some basic current accounts) or is an application to some of the less well-known banks which don't report then the search won't show up to anyone except you (being just an AML check) and will have no effect.

If it's a search visible to future prospective lenders then it's up to them how to regard it. I imagine its greatest impact will be on further near-future current account applications.

samjef11_2

tagq2 wrote: »

If it's not considered a credit account (e.g. savings account or some basic current accounts) or is an application to some of the less well-known banks which don't report then the search won't show up to anyone except you (being just an AML check) and will have no effect.

If it's a search visible to future prospective lenders then it's up to them how to regard it. I imagine its greatest impact will be on further near-future current account applications.

Well if would affect your credit rating/file if you make too many applications in a short space of time.

WLITC

samjef11 wrote: »

Well if would affect your credit rating/file if you make too many applications in a short space of time.

Well thats what I'm worried about. If I did make multiples applications how long before those search no longer have a negative impact?

samjef11_2

WLITC wrote: »

Well thats what I'm worried about. If I did make multiples applications how long before those search no longer have a negative impact?

I found this at http://www.thinkmoney.com/loans/are-loans-available-at-the-moment-0-4501.htm
copied and pasted from the site above.

Be patient

Dont apply for several loans at once. Too many applications in a short space of time might make some lenders suspicious. If you`re rejected a few times, it`s best to wait at least six months before applying again

tagq2

WLITC wrote: »

Well thats what I'm worried about. If I did make multiples applications how long before those search no longer have a negative impact?

It's up to the lender (assuming you're not waiting years for them to drop off). What is your goal?

adindas

The terrible thing is that
- They are making money by selling our data
- They make mistake recording our data, we need to pay in order to correct the mistake they have made. Thya have been a lot of instances been reported in this forum about the inaccurate of their records and many innocent people suffer as the result of mistake they have made.
- We need to pay to see our own data

In my opinion this is fundamentally wrong ...

A_Flock_Of_Sheep wrote: »

Because Equifax, Call Credit and Experian fool banks into thinking that doing so is really great whilst bagging said companies container ship loads of cash by allowing banks to subscribe to their woderful systems and the fees they charge us by allowing us to see our file. They also pass the buck when data is wrong; because everything their "subscribers" put on credit files is always correct because they say so (even if it is wrong) -

Seems like a good thing to have invented for making money really. Wish I had though of it.

To answer the last part - it can have a negative effect I think.

Experian_company_representative

If the bank is carrying out a credit check - which will usually happen if the current account comes with an overdraft facility - then yes a credit-application search footprint will be registered. While these aren't inherently negative, a lot in a short space of time can show a hunger for new credit and is often indicative of higher risk (of default).

CRAs provide a useful go-between in the provision of credit. Without the data-sharing services we provide the credit industry would still be in the dark ages. It costs money to collect, secure, maintain and control access to the data, so it's entirely reasonable for a charge to be made at the point the data is accessed.

If you check your credit report and spot a discrepancy, it will be investigated and corrected for free. That is the law. We also put all new data through strict quality control checks.

James Jones

callum9999

Experian_company_representative wrote: »

If the bank is carrying out a credit check - which will usually happen if the current account comes with an overdraft facility - then yes a credit-application search footprint will be registered. While these aren't inherently negative, a lot in a short space of time can show a hunger for new credit and is often indicative of higher risk (of default).

CRAs provide a useful go-between in the provision of credit. Without the data-sharing services we provide the credit industry would still be in the dark ages. It costs money to collect, secure, maintain and control access to the data, so it's entirely reasonable for a charge to be made at the point the data is accessed.

If you check your credit report and spot a discrepancy, it will be investigated and corrected for free. That is the law. We also put all new data through strict quality control checks.

James Jones

I think the point they are making is that most people won't be able to see their credit report to check whether there is a mistake or not without having to pay for it.

adindas

That is the point.
You will only know when your banks or financial institutions are telling you when you apply for credit cards, Mortgages, bank Accounts with overdraft facilities, etc or you want to pay at least £2 per report. Many CRAs will be holding their own data so say for the big three players three of them will be £6. Mohtly subscription will cost £6.99.

Another thing is to correct the mistake that they have made is not a straight forward process. Phone call, time, mail, etc. The cost need to be bear by person. You are very lucky if you manage to solve it just by one letter or one phone call. You are very lucky if you could manage to to solve it by 30 Minutes phone call.

US have used a better approach as it is free to see your own data. I could not name ny other business model which is making money by selling other people data (arguably). Or more seriously people need to pay hard cash, time just to correct the mistakes that have been made by other parties.

Why does a person need to pay for the mistake that have been made by other parties? This is in form of hard cash, time, efforts, etc

Why does a person need to pay to see his own data or who is spying him (arguably)?

The problem here is something to do with power between the bank and Individual. People who need credit have been left no other option other than to pay for this? Whether he agrees or not …..

It is commonly believed that when Power has got involved in decision making than people should not expect that the system is fair.

I wish CRAs here in the UK were more creative in making money such as from advertisements or asking the banks or other parties who need the data rather than asking the people who eventually own the data (arguably) to pay for it to maintain their business.

Here the example of how CRAs are doing business:
http://www.dooyoo.co.uk/discussion/experian/1204492/

callum9999 wrote: »

I think the point they are making is that most people won't be able to see their credit report to check whether there is a mistake or not without having to pay for it.