Will a savings account application pick up my default ?

Dannydebt

I have a default on my credit file which drops off at theend of next month, I want to open a savings account with the bank of Scotland online,I also want after the default drops of next month to open a bank of Scotland currentaccount.

Will I be credit checked for the savings account which will record thedefault so when I apply after the default drops off for the current account Iwill get rejected because they will know I had a default even thought I wouldhave one when I apply for the current account (If that makes sense ?).

My credit report is 100% except for the default, no latepayments, perfectly run credit card, mobile phone and other current account(With LTSB).

I only ask this as Lloyds has CPD, and now they are the samegroup they probably use the same system, so I don’t want to be blacklisted forever !

shedhead55

I could be wrong but I would have thought any check with credit ref agencies in respect of a savings account would be purely to verify ID and would not pick up your financial history. Even if your previous default was noticed I very much doubt the bank themselves would record it for future reference, indeed if they did they would be bound by the same data protection legislation as the CRA's.

Even in the unlikely event that the bank were aware of a single 6+ year old default it is my view that it would be unlikely to jeopardise your application for a current account, at the end of day the banks want your business both as a current account customer and as an investor.

InsideInsurance

If it is a normal savings account then I'd agree that a credit check is purely for identity and CIFAS loadings.

There are some savings accounts that do allow you to use it almost like a current account. Whilst these officially dont support overdrafts there is a possibility you can get overdrawn/ have to have payments declined. I suspect (but dont know) that if it is this class of savings account they may be a little more prudent over who they accept. Even still a default 5 years and 11 months ago is not going to be as relevant as how other lenders are treating you (and you them) more recently

exel1966

You'll be ID checked only for Anti-Money Laundering reasons.

AppleMatt

As others have said, they will access your records for identify and anti-laundering checks, not for credit status. Even if they do record the default, it should disappear on their monthly updates from the references agencies once it drops off.

Go for it, you'll be fine

chanz4

rbs will be fine even with the default, if settled. so ok for a current account