Got a budget, it's working, now sorting out accounts - applying for new accounts help

wiggly

Hiya

So, after the BRILLIANT recommendation of YNAB, I now have a budget, not only that but this month I nearly got to the end of the month before using the next pay cheque. I mean, that's not as good as it sounds - I get paid on 26th but without fail I used to always run out of money with a week to go and have to put food and petrol on credit. This month I've spent £20 more than I should before the 1st. The difference is amazing.

Anyway, I've been tidying up my accounts and now have one that is just used for DDs (Santander 123 which gives me cash back - not loads tbh but £5 is still £5), and I have my own account too for my own spending. I opened a new CC (low fee and 0%) and transferred all the outstanding debt to it (with a repayment plan already budgeted) to clear it off in a year.

However, I just applied for the First Direct account to become our fuel and food account that is shared between me and my OH. It was refused. I'm guessing because of so many applications in a short time?

I was wondering how long I need to leave it now before I can apply for anything else? I want to have a card for shared stuff and my card for my own stuff. It helps mentally with the budget. We have a !!!!!! old cardcash account with the halifax that I've just requested a new pin for so we're not stuffed but I would like something that actually works rather than is so old and crap (it doesn't have interest at all etc).

So what timescale should I be leaving before trying again? I'm happy to close the cardcash, I've just closed 2 CCs down (£0 balance), I've cleared off another card (Tesco clubcard points card which I use for big purchases) and have 0'd my next card. But I can see that my credit report (experian) is just littered with applications from recently.

All advice would be greatly appreciated tbh. I don't want to !!!! up my credit rating history (which is excellent). Thanks

:beer:

FireWyrm

TSB pays interest if you pay in at least £500 a month - you can do this by 'riding' money around the accounts on the first of the month. Plus, they have a pretty blue card that stands out. First Direct are notoriously picky so I wouldnt take it personally.

wiggly

Oh are they? So do you think I could do the TSB one this week without it being a problem? (I've just been looking at that account after getting the MSE email this morning!)

Should I ring them to apply rather than online? I don't want another failed check on my report.

SeduLOUs

Santander 1-2-3 pays 1% on £1000, 2% on £2000 and 3% on £3000. Unless you've got more than their cap of £20k it's a good little interest earning account, and much less hassle than running two accounts so I'm currently using at my main and only account.

I run my account to almost empty every month as I'm paying down debt aswell, but the interest is calculated daily so it still adds up. Last month I got £9.21 in cashback and interest. :j

YNAB can get confusing with multiple accounts. The software doesn't care where your money actually is, it only matters what is available in your category balances, so you shouldn't need to be keeping money in a separate account as long as it is budgeted properly.

I'd probably opt for applying for the Santander 1-2-3 credit card in a few months if you can, and then use it for all your fuel and shopping spends to earn cashback on those aswell - keep the money available in your categories on YNAB and pay the bill in full every month to avoid any interest charges.

FireWyrm

wiggly wrote: »

Oh are they? So do you think I could do the TSB one this week without it being a problem? (I've just been looking at that account after getting the MSE email this morning!)

Should I ring them to apply rather than online? I don't want another failed check on my report.

I honestly have no clue, but I think it is probably better to speak to an advisor and ask that question. Alternatively, make do with your cash account for a few months and then try TSB again. Is there any chance Halifax can upgrade you?

rockm87

I recently applied for both first direct and 123 Santander and got turned down. They may be looked for similar criteria.

My 'credit rating' is fair. but both experian and the banks wont tell me why I was refused accounts.

wiggly

I have considered the 123 CC but tbh, I just don't want a CC. Whilst I think I'm OK with money now, I really don't want to put myself in a position of being able to rack up debt again.

It's not so much for YNAB purposes but I want my own account for my money (not answerable to anyone) and a joint account for our household spend (or at least an account with 2 cards). That way if it's not there it's not there.

I'm going to use the cardcash account this month and go from there. Savings really is just a pipedream anyway so I'm in no rush tbh. I just wondered if there was a period that should be left between applications.

Also this is the first time I've ever EVER been turned down and it's royally hacked me off :mad: so I just don't want it to happen again.

SeduLOUs

wiggly wrote: »

I have considered the 123 CC but tbh, I just don't want a CC. Whilst I think I'm OK with money now, I really don't want to put myself in a position of being able to rack up debt again.

It's not so much for YNAB purposes but I want my own account for my money (not answerable to anyone) and a joint account for our household spend (or at least an account with 2 cards). That way if it's not there it's not there.

I'm going to use the cardcash account this month and go from there. Savings really is just a pipedream anyway so I'm in no rush tbh. I just wondered if there was a period that should be left between applications.

Also this is the first time I've ever EVER been turned down and it's royally hacked me off :mad: so I just don't want it to happen again.

Makes sense re the CC. There's cashback to be earned but a lot more to be lost if the temptation is a bit too much. I'm in a similar boat but have learned the hard lesson and am learning the ways of using credit cards to my advantage instead of my detriment.

I have some 'personal' money, as does my OH. I just have a separate basic Santander account as it's not substantial enough to be earning me interest anyway and it makes it really simple to transfer money on phone app/web. As soon as it moves to personal accounts, I just record it to a 'personal spends' category on YNAB in full, and then I know I can do what I want with it (as can he) and not have to record individual transactions beyond that point.

Don't stress about being turned down. It's more than likely a combination of applying too quickly and having so many accounts open at once. You can understand it might look a bit fishy to be applying for what is meant to be a 'main' current account when you've literally just opened one already. Give it three months to let the dust settle and for the closed CCs to update on your file and then try again.