REDIRECT: Basic account effect on good credit rating

ma5k

This is a duplicate posting from the Credit File board as it also relates to Basic Accounts & could be of interest to members looking in this forum who might otherwise miss it, but please only post any replies to the original post:

forums.moneysavingexpert.com/showthread.php?t=4844447

I'm an inexperienced MSE forum user only trying to be helpful, so please excuse if inapropriate!!

Thanks
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Original post:

I am fortunate enough to have an excellent credit rating, which I naturally wish to preserve.

I am thinking of opening a Basic Bank Account (prob Barclays), in addition to other current accounts I hold. My reason for this would be online security (I currently only use a credit card online for protection, but now wish to transfer cash, link to PayPal etc & do not want to give account details of an account that would be a problem if it were compromised).

My concern is that if I open such an account will it raise questions on my credit files due to the inconsistency with my current top rating?

I've searched online but cannot find a definitive answer from a genuine expert.

Thanks

noh

I have seen no evidence that suggests holding a basic bank account would damage a credit rating.
I have a basic account in addition to 13 or so normal current accounts.
The basic account, Halifax Easycash, does not appear to be reported to the credit agencies.

ma5k

noh wrote: »

I have seen no evidence that suggests holding a basic bank account would damage a credit rating.
I have a basic account in addition to 13 or so normal current accounts.
The basic account, Halifax Easycash, does not appear to be reported to the credit agencies.

Thanks - that's reassuring!

heloid

Basic accounts have no credit so they wouldn't be on your credit file with agencies. Only your bank might care, but probably not because these accounts are zero risk to them.

stclair

heloid wrote: »

Basic accounts have no credit so they wouldn't be on your credit file with agencies. Only your bank might care, but probably not because these accounts are zero risk to them.

Most basic bank accounts report to credit reference agencies now a days.

However a lender can not determind what the account type is when searching their credit file.

ma5k

stclair wrote: »

Most basic bank accounts report to credit reference agencies now a days.

However a lender can not determind what the account type is when searching their credit file.

Thanks for the useful info!

ma5k

Update:

I talked to the manager at one of the banks I hold a current account with today. Initially she queried my wish to open such an account, but then agreed it was most suitable for my intended needs.

She said that a full credit search is always conducted when opening an account & this would be recorded on my file, but that if I proceeded it would not then show the basic account type. She did warn me however that it would have an adverse effect when being assessed internally by that bank, & so strongly advised me to open one only with a bank I did not use for anything else.

Hope this is useful if anyone else is in a similar situation

PaulW922

Just to confirm what the posters above have said - a basic bank account, including a Halifax Easycash account WILL be reported back to the CRAs. They will show as a current account. Your file will not reflect the account type. So, provided you manage your finances within it well, it can only have a positive affect on your credit rating.

It is interesting to note the comment about it having an adverse impact internally. However I wonder how bad that will actually be..?

noh

My Halifax Easycash account does not show on any credit reference agency reports.

jonesMUFCforever

OP why not open a free current account which does not have the stigma of a basic account?

ma5k

jonesMUFCforever wrote: »

OP why not open a free current account which does not have the stigma of a basic account?

I was looking for damage limitation in the event of online fraud.