What credit score is ideal to open a bank account?

michele.gomes002

This particular question has really been getting to me lately.
Im a student about to start on my third year but recently got a part time job at a bank (Metro Bank, if it helps) which also means I have to open an account with them as part of my contract.

This idea scares me a little as I only have a credit score of 817 (Fair) according to experian.com. This is for 2 reasons: My Santander account is on an agreed over draft, and (2) I am not making regular payments, however I have not gone beyond my agreed overdraft. I obviously don't make regular payments because Im a student and haven't started working yet. Once I do start working and start university at the end of September I will pay it off completely.

Now the question is, will this be a problem when trying to open an account with Metro Bank? All I know is that you need a "decent" credit score to open a regular account in most banks but no one has defined "decent" I really want some answers before attempting to open my account. This is really important to me as I need this account for my job!

Any suggestions, opinions or anything will be appreciated thanks!

RichL74

Paging Mr Boss, paging Mr Boss... Your help is required in the Credit File department.

MABLE

Never a boss about when you need one!!

Fruit_and_Nut_Case

I'll make a start by posting The Boss's signature field.

You don't have a "credit score". They do not exist. The number you are referring to is a a random number produced by the credit reference agency using incomplete data to make money out of you.

Different lenders score applications for different financial products differently so there is no 'catch all' score that determines your credit worthiness. Lenders use data from your credit file and also data from your application form that is NOT recorded on your credit file, such as your salary (a key driver), when assessing your application. Different lenders have different criteria, another reason a "credit score" means nothing -data that is considered good for one lender may be considered bad for another. Or vice versa.

Fruit_and_Nut_Case

Since you already have the job, my suspicion is that you have already been credit-checked.

michele.gomes002

Well they did a vetting check on me, but I do need to open an account. At the moment, they are doing full background checks on me (Criminal, education, credit...etc.) before I start. It seems a little weird that they'd give you the job before all this but I did have to sign and a complete a crap load of forms for them to do it. It would be a shame after all this opening a simple bank account is what would ruin it all.

Fruit_and_Nut_Case wrote: »

Since you already have the job, my suspicion is that you have already been credit-checked.

michele.gomes002

Yes, I am fully aware of this thus why I gave details about my overdraft etc etc incase that would make a difference to me wanting to open another account. You know incase they are like oh you have an overdraft somewhere else thats kinda dodgy, even though I'm a student and its agreed etc. Banks do do credit checks I guess I just needed clarification on whether a "fair" credit or what experian says is a "fair" credit would cut it. Ive already been explained that a bank may see see my credit report as completely different to the next as it all depends on what they are looking for. I guess I just wanted more clarification or even peace of mind

Fruit_and_Nut_Case wrote: »

I'll make a start by posting The Boss's signature field.

You don't have a "credit score". They do not exist. The number you are referring to is a a random number produced by the credit reference agency using incomplete data to make money out of you.

Different lenders score applications for different financial products differently so there is no 'catch all' score that determines your credit worthiness. Lenders use data from your credit file and also data from your application form that is NOT recorded on your credit file, such as your salary (a key driver), when assessing your application. Different lenders have different criteria, another reason a "credit score" means nothing -data that is considered good for one lender may be considered bad for another. Or vice versa.

The_Boss

RichL74 wrote: »

Paging Mr Boss, paging Mr Boss... Your help is required in the Credit File department.

Late lunch break today

Oh dear, not another thread about "my credit score is blah blah blah". The score means diddly squat - it is a made up number etc etc

The_Boss

michele.gomes002 wrote: »

I guess I just needed clarification on whether a "fair" credit or what experian says is a "fair" credit would cut it

If you understand the whole CRA credit scores meaning nothing issue, then I don't get why you've needed to ask this question as there is no answer to it? Different banks will assess applicants differently.

pheonix254

There is no ideal credit score to open a bank account. If you are opening a bank account that requires a credit check (and not all bank accounts require this) then you'll either pass that check and an account will be opened, or you'll fail and it won't.

An arbitrary number from experian means nothing. Metro are a new bank, and their staff are generally young without much history to go on. Besides, you can have have an abysmal credit history and still be able to open a current account - what they're unlikely to give you is access to credit (like an overdraft, for instance).

I'd say it's a non issue. It's a bank account, not a loan, credit card or a mortgage. Requirements in terms of credit history are about as low as it is possible to be. Unless you're telling me you've already managed to default or have a CCJ, you're pretty much not going to have any problem.

And once you've opened the account, set up some standing orders to switch funds between that and your santander account. Santander don't like accounts with no funds going in (I too have had letters threatening me with CRA reports if I don't start servicing a Santander overdraft) But it's a binary question - has money been paid in this month? Yes or no. If no, then you risk getting adverse credit history recorded with a CRA. If yes, then nothing happens. So set up a standing order to switch some money (even if it's £5, though I'd do it with more (say £100) if you can afford it) into Santander every month, and it doesn't matter if you then set up another SO with Santander to take the money out to the original account again the following day. That way you avoid future credit problems caused by you breaching terms with your student account. It doesn't matter that you don't have any income - it's still expected that you will recieve a credit to your account once a month.

Hope this helps.

michele.gomes002

Because obviously when anyone does a credit check on you they are looking at something. Not so much focused on the actual score. Im more focussed on my actual situation. So the real question would be - Can I open account when I have a student account with an overdraft and is currently using that overdraft? Ive had this account for years and never really had to open any account so I don't know whether this would be an issue. I think I only mentioned the credit thing because its obviously recorded in my credit report and the bank I want to open an account with will see this.

The_Boss wrote: »

If you understand the whole CRA credit scores meaning nothing issue, then I don't get why you've needed to ask this question as there is no answer to it? Different banks will assess applicants differently.