3 years after BR and still I can't get a decent bank account

BRB-79

Thanks for reading this far!

My situation:

I went voluntary BR in September 2009, discharged April 2010. I recently got my discharge certificate for £70 and began tidying up my file.

I have a vanquis gold credit card at the moment, paid in full for a year, and my score on Experian was roughly 430 2 months ago. I wrote off to Egg and got the last creditor still reporting bad debt to show it as satisfied, and since then my score has gone to 915.

I thought this was a decent place to be at so I looked at the Nationwide Flex Direct account as its currently paying good interest on plus balances and I needed one if I wanted to also get a cash ISA with them. I spoke to them on the phone and explained my situation, and the guy was pretty sure that I'd be accepted, especially as I have a credit card now too. He said to apply online and if it didn't go through, there was a basic account I could go for instead. Pretty much the same as the Co-Op Cashminder I already have.

I applied and then got an acceptance pending further checks. Today I found out it has been denied.

Is it worth going to a branch and showing them my discharge certificate? I wanted to get this year's ISA allowance, and transfer over 2 other older ISAs totalling up to about £16k plus around £10k in a savings account. Would knowing that make a difference?

I'm really fortunate that I have had a lot of good fortune with the whole BR process until now, I have a decent job and finally was managing to stash some money each month rather than living beyond my means. After 3 years of being extremely careful and doing things right, I would have thought this would represent a low risk to the banks. I also found out that Nationwide are only supposed to use Experian for credit checks so I'm confused at to whether there's any more I can do; given that I have already tidied up my file with them.

Any advice would be appreciated. Has anyone else managed to get a Flex Direct account post-BR with them ?

MY alternative is that I have half of my savings with ING who have now become Barclays Direct. Do I apply for an ISA with Barclays, then let that stew for a while before asking them for a normal account?

Thanks

skylight

You normally have to wait until the BR falls off your credit file before you can get a proper account again.

A few have managed to get one before then, but they are the lucky ones!

Have a look elsewhere for an ISA that doesn't have a bank account as a requirement. Your idea of going with Barclays and then asking for an account is a good one. KNowing whether it will work or not is a bit like the length of string question.

JustinCredibleGillespie

The flex direct account is hard to get.

If you have had any satisfied or settled defaults on your credit report in the last 12 months then it will be declined. Ive also cleaned up my credit files. I was discharged in September 2012, I applied and was accepted for a Vanquis in November and then I got myself a mobile phone contract (Feb) and a Capital one, I have also just been approved for an Aqua credit card (April), I need that one the most as I buy my fuel in the south of Ireland and there is no charge but when I applied to Nationwide for the standard flex account I was declined and I only read through the terms afterwards which states that any defaults settled within the last year would still go against you.

And I was also very lucky that Bankruptcy does not show on my credit files due to an address error which cannot be corrected (I wont moan about it as it makes life alot easier for me) Nationwide are just very strict.

JCG

xx

chunx

Good luck in finding an account. I agree with Starlight in that you will need to wait for the bankruptcy to fall off your file.

This has been confirmed to me by both the Co-op and Barclays.

However, Barclays did say that if I ran both a Cash Bank Account and a Savers 12 month account, there may be a possibility of an upgrade.

How much of that is true, I can't say but I would think the principle of building a good history with a bank, can only be promising ather than negative.

Fingers crossed for you.

BRB-79

Well thanks to all for such quick replies.

I suspected I might be getting my hopes up a little too quickly, especially after I saw such a big increase in my credit score on Experian. I don't really need any of this right now but one day sooner or later I will want a mortgage again and I'm trying to establish a good history in the meantime.

That and the fact that Co-Op don't look to be in too good a shape at the moment got me thinking about moving to another bank.

I think I'll go and do the ISA and basic account with Barclays - as you say it won't hurt and they might look favourably on it in a year or 2.

Either way it doesn't look like the negative decision was too personal to me - everyone gets the same treatment more or less after BR.

NekoZombie

Hi there - I know that I can only share my experience but here it is: I went BR March 2007. I was discharged Jan 2008 (ED). I got a NEXT account within one year of dscharge, as well as a Vanquis card. I held the Vanquis card for two years, regularly being upgraded until i was given a Vanquis Gold credit card. In Jan 2011 I applied for a tesco credit card, and got a credit card with £3,000 limit and 15 months interest free. In August 2011 I also applied for a Santander current account, and was given a current accountm cheque book and OD of £500. I HATED Santander with a passion bc of their ridiculously long internet usernames etc, and I ended up closing the account less than a year after opening it.

Scroll forward another year, and I go into Co-op to see about upgrading my basic account (which I have now held with them for nearly six years) I sat through 1.5 hours of banking sales, talking about a tonne of different products that may be suitable, after which I decided on the Co-op current account with linked saving account. The application was accepted in the bank, but the next morning I got a call saying it had been rejected. When I asked why, I was told that 'adverse information on my credit file meant that it was illegal for them to give me an account'. I promptly opened another account with Santander; I've got their 123 account. My point is, you CAN get a current account before your six years are up, but not with co-op or anywhere where you may have held a basic account. I'm the proof, and I'm sure there are other long time members of this forum who were also able to open current accounts before BR fell off their credit records.

Shame on co-op though, I was shocked to be told such tripe from a company I'd previously had nothing but high regard for. Turns out that having a basic account with them means nothing...in effect a current account with them is a newapplication, not an upgrade. In my rejection letter, they even sent me details of a co-op cashminder! LOL!!

JustinCredibleGillespie

Great post NekoZombie

JCG

xx

fiveyearplan

I haven't even tried to open a new bank account - or any credit application since my BR. Experian credit score doesn't mean anything so I wouldn't even bother to look at it. What is important though is your credit file is all correct and updated.

Thankfully my BR falls off my credit files in 10 1/2 months! It's the final countdown for me. I don't really see that I will be trying to upgrade my bank accounts. I have a basic accout with the Coop, a joint Halifax basic account, YBS internet saver and managed to keep my pre BR business account.

I will apply for a credit card, not for spending but for ease of booking in to hotels when travelling (I believe it is a requirement in most hotels in the USA to book in with a credit card and also to hire a car). Other than that I am quite happy as I am.

BRB-79

JustinCredibleGillespie wrote: »

Great post NekoZombie

JCG

xx

Thanks! There is hope. I just don't want to keep having searches done on my file with the applications. The score dropped about 50 points for me to 860 when Nationwide did their checks. D'oh!

worked_hard_for_the_money

Hi BRB-79,

Just wanted to say I'm with a credit union and got 3% dividends on my savings .. could be worth checking out ones in your area.

lindsaygalaxy

I am 5 years br this summer, though I still have a few bits to clear up on my credit file. I have a gold Vanquis credit card. I have tried nationwide and halifax for basic bank accounts. Both declined. Natwest said they could give me a basic account (i have had an instant savings account with them for 3 years now) but would need the discharge certificate that I havent got yet.