second current acc application refused by own bank

piggles1

Hi all, I have another question to see if anyone has any suggestions:

I have a current account that i've had for over 10 years and it's never been overdrawn.

i also have a DMP that i've been paying for about 5 years.

what i wanted to do was remove a small amount of savings from my current account and put them in another account with the same bank.

i called the bank and said can i have a savings account, and was advised to just add another current account and i could do it online.

i decided to do this, logged in and added another account, went through the application (it already had half the details filled in because i was logged in so it knew who i was) and submitted it.

the reply came back with a refusal. it looks like a standard reply, suggesting i check my credit report before applying for credit again, and i can disagree ask for it to be reassessed if i submit 3 months bank statements. i wasn't applying for credit, just somewhere to put some savings, although the account i think comes with a £500 overdraft as standard.

now i'm worried about my current account. can they decide they don't want me banking with them and close the account? their T&C only say they can close it if you go bankrupt.

if i hadn't made the application nothing would have happened, but now i have a little marker with my bank that says 'bad credit'.

shall i send them a message to contest the decision and suggest they look at my current account and see that it runs fine and has some spare in it?

or ask them if my current account is still ok?

or do nothing and leave my savings in my current account?

the reason i need the savings by the way is because i'm housed inappropriately and need a moving fund. otherwise i'd pay some extra towards my debts but i can't do that just at the moment.

any advice appreciated.

thanks

CherlokHomes

It could be your internal rating with your bank the reason you've been turned down but this don't stop you applying elsewhere.

piggles1

CherlokHomes wrote: »

It could be your internal rating with your bank the reason you've been turned down but this don't stop you applying elsewhere.

thanks, i think it's more likely my credit rating since the reply says they used experian and suggested i check my credit rating before i apply for credit again. so now i'm worried about my current account and not sure what to do.

Archi_Bald

which bank?

what information is on your CRA files?

btw, it you are applying for a current account, you are applying for credit even if you do not apply for an overdraft. In any standard current account, you have the option to use an unauthorised overdraft, which in effect is credit.

piggles1

Archi_Bald wrote: »

which bank?

what information is on your CRA files?

btw, it you are applying for a current account, you are applying for credit even if you do not apply for an overdraft. In any standard current account, you have the option to use an unauthorised overdraft, which in effect is credit.

oh i see. i didn't realise that. it's the coop. i've not changed yet.

my credit file probably says 3 bad debts (on the DMP), two paid off debts. or it might say default on a debt because one of them, although they've accepted the DMP amount, still send me arrears letters. i'm not surprised i have bad credit.

but the application i did seemed to treat me as a potential customer with no connection to them. it was signed off thank you for your interest in the coop. yeh, i already bank with them!

i could contest the decision and send them 3 months bank statements from themselves, sent to me for my account with themselves, to prove i have a successful bank account with them? and then explain what i'm trying to do.

will they do anything to my current account or will they still allow me to keep it? i'm worried they'll try and close it now they think i have bad credit.

Archi_Bald

Your existing account is almost certainly not affected by the failed application - just don't wake sleeping dogs by trying to get a second account with reference to the first.

Get your credit file from noddle.com and have a look at what's on there. If you have defaults, you are unlikely to get another current account elsewhere either.

You should be able to get a savings account though, and with faster payment you can probably shift money as you need. Or may be get a savings account with an ATM card.

piggles1

Archi_Bald wrote: »

Your existing account is almost certainly not affected by the failed application - just don't wake sleeping dogs by trying to get a second account with reference to the first.

but that's exactly what i did. signed into my current account and applied for another current account, it recognised me and had the details filled in. this is what i'm worried about, will it affect my current account now they've refused me a 2nd one?

Archi_Bald wrote: »

Get your credit file from noddle.com and have a look at what's on there. If you have defaults, you are unlikely to get another current account elsewhere either.

You should be able to get a savings account though, and with faster payment you can probably shift money as you need. Or may be get a savings account with an ATM card.

thanks for that, and noddle are genuinely free? i've checked my credit report before and it's not that good. but i might need to look it up again in the future

i'm not that bothered about banking elsewhere, i was just trying to make things look easy in my current bank. i might as well leave it all as it is, if my current bank don't suddenly think me not a good customer, despite me always being in credit with them.

Archi_Bald

noddle has a free and a chargeable version. Only use the free one. Ignore when they say you will benefit from paying them. You won't. But the free version is pretty decent.