Current account and credit check

Liorules

Hi guys, after reading through the forum, I've decided to make my money work hard thus opened few current account. Firstly I wanted to know is that I have opened a LLoyds online yesterday and want to open another one. But I'm guessing I would have to go down the bank but would they do credit check again for the second one?

Secondly I wanted to know about meeting the minimum amount of £1k in the account. What would be the best way? Have extra 1k go around monthly or set the S.O. on all accounts on same date but this way would I lose interest?

Your reply is much appreciated, thanks.

uknick

The Lloyds website says you can do it all on line. But, I tried that and got nowhere. I popped into the branch and spent about 5 minutes setting them up.

I have the £1k go round the three accounts via standing order, which go out on 21, 22 and 23 of each month. Yes, I do lose a couple of days interest, but its peanuts. But, I've got £5k in each account so don't drop below the 3% rate.

Archi_Bald

A full credit check takes place every time you apply for a current account, or for an increase in your overdraft limit.

stclair

Archi_Bald wrote: »

A full credit check takes place every time you apply for a current account, or for an increase in your overdraft limit.

I have two current accounts with Lloyds opened at different times.

My second current account application was not credit scored.

I have also increased my overdraft on several occasions and the increase was not credit scored either.

Archi_Bald

The Lloyds online application form, for both new and existing customers, states:

Please be aware that we will refer your details to a credit reference agency, where your credit worthiness will be scored as part of the application process.

Gromitt

stclair wrote: »

My second current account application was not credit scored.

I have also increased my overdraft on several occasions and the increase was not credit scored either.

Oh, it was It might not have been recorded on the credit report you viewed, but it was surely scored.

Liorules: The easiest way is to simply visit the bank and open 3 accounts there and then. As for the funding, you'll be wanting to check the accounts for possible fraud anyway, so whilst you are in online banking, transfer 1 -> 2 -> 3 -> 1 and you are done. 2 minutes tops. No need for SOs.

stclair

Gromitt wrote: »

Oh, it was It might not have been recorded on the credit report you viewed, but it was surely scored.

Liorules: The easiest way is to simply visit the bank and open 3 accounts there and then. As for the funding, you'll be wanting to check the accounts for possible fraud anyway, so whilst you are in online banking, transfer 1 -> 2 -> 3 -> 1 and you are done. 2 minutes tops. No need for SOs.

Any checks with the credit reference agencies should be recorded on the applicants credit file. My credit files are checked all the time and nothing was ever recorded.

However if the decision is based on internal scoring then that is another cattle of fish.

My credit files are checked all the time and nothing was ever recorded.

stclair

Archi_Bald wrote: »

The Lloyds online application form, for both new and existing customers, states:

I an assuming in my circumstances they only used internal data and did not refer to the credit reference agencies for more information.

Archi_Bald

It would be quite weird if a bank would not want to know about an applicant's most current total credit status before they approve them for what is effectively credit, regardless of whether the application involves an overdraft limit or not.

stclair

Archi_Bald wrote: »

It would be quite weird if a bank would not want to know about an applicant's most current total credit status before they approve them for what is effectively credit, regardless of whether the application involves an overdraft limit or not.

Lloyds must be weird then as my overdraft was increased in stages over a period of time from 300 to 3000 and not one external credit search took place. The only credit search that took place was for the initial £300 overdraft limit after that nothing!

Hominu

stclair wrote: »

Lloyds must be weird then as my overdraft was increased in stages over a period of time from 300 to 3000 and not one external credit search took place. The only credit search that took place was for the initial £300 overdraft limit after that nothing!

Don't banks get a credit report "feed" from the main providers such as Experian and Equifax? So they don't need to run a full credit search each time, just run it once and then combine the feed with internal scoring. They'll only need to run a new full credit check if you want something substantial such as going from a £3K overdraft to a 30K loan or a 200K mortgage.