I've got the basic bank account blues....

butch_dingle_2

I really am at the end of my tether....

For the past 4 years myself and my partner have managed by on basic bank accounts. This was due to financial problems in the dim and distant past, mostly being related to being self employed. We had a load of defaults and the credit report didnt look pretty.

Now we are in the position where there is one default left on my credit file from 5 years ago. It was long since settled, but still it sits there like a great boil on my bum !

As far as I can see, this default is preventing us from being treated as "normal" by any bank in the UK. Over the last year we have applied to them all, only to be rejected one by one.

Our profiles are good apart from this one problem - joint income of 90K per year, savings accounts with nearly 20K in them, no debts (apart from a car lease), mortgage of around 120K on a house valued at 250K.

But still, we are not to be trusted with a piece of plastic with "Switch" or "visa debit" written on it, but only one which says "Solo". The same card my 16 year old nephew has, who earns 20 quid a week on a paper round.

I am really looking for any ideas that you may have. Currently we have a "step" account with the natwest, which we have had for 3 years. Never once has it been overdrawn, never missed any payments. I calculated that we have paid in over the past 3 years around 200K to this account, and earned around 30 quid in interest. And everytime I go into the branch to the customer services desk to ask about an upgrade i get told "the computer says no".

as I say, I am really looking for an idea from somewhere that might help us get a more "normal" bank account. There just doesnt seem to be any logic to their decision - for example Bank of Scotland turned me down flat - 2 months before it, they were happy to lend me 25K to lease a mercedes thru their Capital Bank subsiduary.....

(looking for the bashing head against brick wall smiley)....

inmypocketnottheirs

butch_dingle wrote: »

I really am at the end of my tether....

For the past 4 years myself and my partner have managed by on basic bank accounts. This was due to financial problems in the dim and distant past, mostly being related to being self employed. We had a load of defaults and the credit report didnt look pretty.

Now we are in the position where there is one default left on my credit file from 5 years ago. It was long since settled, but still it sits there like a great boil on my bum !

As far as I can see, this default is preventing us from being treated as "normal" by any bank in the UK. Over the last year we have applied to them all, only to be rejected one by one.

Our profiles are good apart from this one problem - joint income of 90K per year, savings accounts with nearly 20K in them, no debts (apart from a car lease), mortgage of around 120K on a house valued at 250K.

But still, we are not to be trusted with a piece of plastic with "Switch" or "visa debit" written on it, but only one which says "Solo". The same card my 16 year old nephew has, who earns 20 quid a week on a paper round.

I am really looking for any ideas that you may have. Currently we have a "step" account with the natwest, which we have had for 3 years. Never once has it been overdrawn, never missed any payments. I calculated that we have paid in over the past 3 years around 200K to this account, and earned around 30 quid in interest. And everytime I go into the branch to the customer services desk to ask about an upgrade i get told "the computer says no".

as I say, I am really looking for an idea from somewhere that might help us get a more "normal" bank account. There just doesnt seem to be any logic to their decision - for example Bank of Scotland turned me down flat - 2 months before it, they were happy to lend me 25K to lease a mercedes thru their Capital Bank subsiduary.....

(looking for the bashing head against brick wall smiley)....

Hi there. You are not alone! Suffered the same sort of problems under the same sort of circumstances, have the same sort of income and a similar amount of equity in property. Yet the 'system' can not seem to judge individuals, and just lumps the masses all together with a one size fits all approach towards credit profiling.

What I have managed to do (still with one default left on my file that does not expire until 06/08) is get a Barclaycard Initial, Capital One card and the dreaded Vanquis. These are all paid off in full 80% of the time and 20% left outstanding when not cleared. The cards are then cleared in full the next month. This is so the CC co's can see an outstanding balance, and gain a small amount amount of interest.... just to prevent the reduction of credit limit because the card is not used or not conducted properly.

Earlier this year, I got a citibank account (thanks to recommendations on this site), was given a debit/cash/£100 guarantee card. About a month ago, applied for a £500 overdraft and after a little haggling was approved.

Also I have a couple of o2 contract mobile phones. I also took a Martin Dawes rental agreement (one that then can be settled after 12 months interest free). All this credit and contracts/rental shows on my credit file.

Gradually I have been able to claw my way back from 'financial exclusion'. I travel on business throughout the UK, Europe, US and Far East, and it is imperative to have several lines of credit, Visa, Mastercard, Debit cards etc available for booking flights, car hire and hotels.

So, there is light at the end of the tunnel, just try some of the 'sub prime' cards above, keep the cards under control, have a contract mobile, in fact anything that goes on to your credit file will help build a better picture. Then once the defaults are off, you will not be in the wilderness any longer.

Best of luck!:beer:

thesaint

I believe the OP is trying to get a 'normal' bank account, not a credit card.

inmypocketnottheirs

thesaint wrote: »

I believe the OP is trying to get a 'normal' bank account, not a credit card.

Well then, anything that shows a positive footprint on their credit file will be of benefit. I managed to obtain a 'proper' bank account through my actions above. Therefore it is quite likely the OP will find my experience relevant and possibly beneficial.

jonesMUFCforever

You may just have to wait for 6 years and one month until it drops off your credit file.

frepol

I would be in the same position as you. Alliance and Leicester have upgraded my account to a Premier Direct Account from a standard current account. Told me that it was due to a good salary going in and impeccable account management. You have to ask though - it won't happen automatically. Hope this helps anybody

jla

butch_dingle wrote: »

I really am at the end of my tether....

For the past 4 years myself and my partner have managed by on basic bank accounts. This was due to financial problems in the dim and distant past, mostly being related to being self employed. We had a load of defaults and the credit report didnt look pretty.

Now we are in the position where there is one default left on my credit file from 5 years ago. It was long since settled, but still it sits there like a great boil on my bum !

As far as I can see, this default is preventing us from being treated as "normal" by any bank in the UK. Over the last year we have applied to them all, only to be rejected one by one.

Our profiles are good apart from this one problem - joint income of 90K per year, savings accounts with nearly 20K in them, no debts (apart from a car lease), mortgage of around 120K on a house valued at 250K.

But still, we are not to be trusted with a piece of plastic with "Switch" or "visa debit" written on it, but only one which says "Solo". The same card my 16 year old nephew has, who earns 20 quid a week on a paper round.

I am really looking for any ideas that you may have. Currently we have a "step" account with the natwest, which we have had for 3 years. Never once has it been overdrawn, never missed any payments. I calculated that we have paid in over the past 3 years around 200K to this account, and earned around 30 quid in interest. And everytime I go into the branch to the customer services desk to ask about an upgrade i get told "the computer says no".

as I say, I am really looking for an idea from somewhere that might help us get a more "normal" bank account. There just doesnt seem to be any logic to their decision - for example Bank of Scotland turned me down flat - 2 months before it, they were happy to lend me 25K to lease a mercedes thru their Capital Bank subsiduary.....

(looking for the bashing head against brick wall smiley)....

hi,please try alliance and leicester direct account,online application.i have defaults ect and could not even get a basic account.
they also give a quick decision.lots on here have got it recently with problems in the past,some even got o/d.
i had to appeal and got it with visa debit card and cheque book.the account is fine in my view.

goodluck.

newlywed

I have bad credit rating and got an A&L Premier direct account. I applied online but requested no overdraft and no credit card. I also stated that my wages would go into the account each month.

They approved me and gave me a cheque book and visa debit card - not electron.

I agree, try A&L

Fedz

You've gone this far doing well with your basic bank account, only that short distance to go and it'll be wiped off and you'll have a clean file again

It must be hard waiting for that last one but,in all honesty their's nothing you can do but, wait.

You could appeal the banks decision but, that's your choice.

Try to avoid applying so frequently as this can and does reflect badly on your credit file through recent searches and refusals.

It is fair to say some banks will give you a full current account/cheque book/guarantee card/overdraft but, which one's is a lottery.

Others have posted here what they have done to gain a full current account but, this is not indicative of your future acceptance - use only as a guide.

Just remember: it can do more harm than good making repeated applications as each one shows on your credit file.

Good luck and hope this helps.

Homework

We have heard some really good things about Clydesdale Bank/Yorkshire Bank and when we opened our Clydesdale Bank Account the person told us we could ask for a review once we had established a pattern of banking with them and they would look at the conduct of the account in any decision to upgrade.

In the meantime we have a Maestro card (switch) which we can use everywhere and are being treated like human beings again. HBOS told us that they would not upgrade us until all the money we owed was repaid even though the income we were paying in and the conduct of the account was such that we would have qualified for their advertised accounts with lots of benefits. We can prove our payments to creditors and did not want overdraft/credit card facilities, just a card that could be used at the railway station or at late night garages without running about looking for a atm.

I think it is really important though, if you were to change account, that you keep your Natwest Account too as I have read on this site that having a length of time with a bank is important in applying for other financial products. Perhaps someone else can confirm this last point please.

butch_dingle_2

thanks to everyone for their replies...Its good to know that there are lots of people in the same boat.

Interestingly enough I had already decided to appeal the A&L option, so that is in the pipeline - I wrote them a letter asking them if they honestly believed that a default on my credit file from 5 years ago was indicative of my current financial position. I have also sent bank and mortgage statements to give them a clearer picture.

Common sense would suggest that they might just relent, but we know that these things arent down to common sense. Banks no longer like people to make decisions contrary to what their computer has said, because it means that their computer system has failed. So its easier to get the human to agree with the computer system.

anyway, fingers crossed we will see what happens.