Turned Down For FD Account!?

BookerTee

Made an application online to switch to First Direct but when I got to the end of the application it said they were unable to offer me an account at this time!

I was rather shocked I have never been turned down for anything, loans, cards, insurance, accounts, nothing.

Waited for the letter to arrive explaining why, which arrived today, I was turned down due to credit score apparently.

I opened a Noodle account last month (because its free) which doesnt give a detailed score but shows it as 5/5 with no markers in any of the sections, as I expected.

Anyone else experienced similar just for a "bank account"!

colsten

The Noddle score is meaningless, all providers do their own credit scoring. May be they are of the view that you already have enough credit or enough accounts, or you don't have enough income for their their taste. They are known to be quite picky. You could appeal and see whether that gives a different result.

MABLE

Consider yourself lucky. Used FD years ago and would never, never, never go back.

BookerTee

Not sure why the noodle score would be meaningless?
I thought credit scoring comes from the 3 credit reference agencies who basically have the same information (assuming its correct) which the banks use.

I could understand that I may not have enough credit history as I dont borrow much now but I regularly use credit cards.

I have not had any problem opening several other accounts recently so why would FD be sooo picky. I am basically putting money with them!!

Their letter says their scoring is confidential and wont discuss any of it. This sounds like a good excuse to block applications without question...

Thrugelmir

BookerTee wrote: »

I have not had any problem opening several other accounts recently so why would FD be sooo picky.

Because you've several other accounts recently so unlikely to be a profitable customer to do with business with. There's no right to open an account with FD.

"Just for a bank account" - which cost money to run and administer. Days of free current account banking are numbered.

YorkshireBoy

BookerTee wrote: »

I have not had any problem opening several other accounts recently so why would FD be sooo picky.

Maybe they think this one is one "account" too many (when the number is put into their credit scoring model)?

I am basically putting money with them!!

No more than a paltry £300 required for their regular saver surely? Anything more would be pointless as they're not competitive on anything else are they?

katejo

MABLE wrote: »

Consider yourself lucky. Used FD years ago and would never, never, never go back.

Why? Have never had a problem and have been with them for many years

colsten

BookerTee wrote: »

Not sure why the noodle score would be meaningless?

All scores that credit agencies calculate are being ignored by the banks and building societies.They all have their own way of scoring because it is them who assume the credit risk, not the credit agencies.

The only people who tell you that credit agency scores are meaningful or important are credit agencies.

PS. it's Noddle, not Noodle

BookerTee

YorkshireBoy wrote: »

Maybe they think this one is one "account" too many (when the number is put into their credit scoring model)?No more than a paltry £300 required for their regular saver surely? Anything more would be pointless as they're not competitive on anything else are they?

I accept there is no 'right' to an FD account, however it is mildly offensive to be turned down as a 'bad risk'

The reason for posting is that many people here have multiple accounts and switching for the bonus is very popular (how many are now looking to move their Lloyds accounts?). So I would have expected FD to be refusing a lot of people accounts if its filtering savvy investors

My intention was to open a regular saver as well so I would be a committed investor.

BookerTee

colsten wrote: »

All scores that credit agencies calculate are being ignored by the banks and building societies.They all have their own way of scoring because it is them who assume the credit risk, not the credit agencies.

The only people who tell you that credit agency scores are meaningful or important are credit agencies.

PS. it's Noddle, not Noodle

It is Noddle yes, I didnt notice!

Ok, I thought they used the credit agencies.
I have never tried to looked up my credit score before as I didnt see any value in doing so, I guess I was right.

However my point still stands that I dont see my position any different to others if FD a filtering multiple account holders as bad customers to have as they are too smart!

SuperAllyB

I got rejected recently too, and AFAIK my only "negative" was too many recently opened current a/cs. The bit that got me was saying they would send a letter to explain why but the only bit that got me was sending a letter of explanation that really didn't explain anything. Their prerogative I suppose.