Declined Santander graduate account

Birdbrain1

Today I went to Santander to set up a graduate account. However when they got to the end of the application they told me I had been declined although couldn't say why. I checked my credit rating on experian about two weeks ago which was really good. I've never been late for paying for bills or gone over my agreed overdraft so I have no idea why it was refused. I've currently got a student account with coop which I've nearly gone full into my overdraft but not over, could that effect the application? Many thanks, I'm feeling very stressed, only 22 so don't want a bad record already!

Steve_xx

Birdbrain1 wrote: »

Today I went to Santander to set up a graduate account. However when they got to the end of the application they told me I had been declined although couldn't say why. I checked my credit rating on experian about two weeks ago which was really good. I've never been late for paying for bills or gone over my agreed overdraft so I have no idea why it was refused. I've currently got a student account with coop which I've nearly gone full into my overdraft but not over, could that effect the application? Many thanks, I'm feeling very stressed, only 22 so don't want a bad record already!

You wont have a "bad" record just for applying for an account. But I can't say why you've been refused one if, as you say, you have a really good record.

Birdbrain1

Does anyone know how I can find out the reason for the refusal?

Ed-1

Birdbrain1 wrote: »

Today I went to Santander to set up a graduate account. However when they got to the end of the application they told me I had been declined although couldn't say why. I checked my credit rating on experian about two weeks ago which was really good. I've never been late for paying for bills or gone over my agreed overdraft so I have no idea why it was refused. I've currently got a student account with coop which I've nearly gone full into my overdraft but not over, could that effect the application? Many thanks, I'm feeling very stressed, only 22 so don't want a bad record already!

"To enjoy the benefits of our 1|2|3 Graduate Current Account, you'll either need to be working or have a confirmed job offer." Have you?

The Co-op overdraft will almost certainly have contributed to you being declined as it will show up on your credit file as a 0% overdraft and the overdrawn balance will also show. It's quite unusual for a bank system to accept an application for another 0% overdraft if it picks up on the fact you already have one and worse, that you're using it. You'd need to try and 'switch' it into a graduate account that will give you the same or similar level of overdraft - see http://www.moneysavingexpert.com/students/graduate-bank-accounts. As part of the switch, your Co-op account would be closed and you'd need to repay the Co-op overdraft (so make sure you agree an overdraft limit with your new bank first).

grumbler

Ed-1 wrote: »

...It's quite unusual for a bank system to accept an application for another 0% overdraft if it picks up on the fact you already have one and worse, that you're using it. ....

The OP was refused the account, not just overdraft.

Ed-1

grumbler wrote: »

The OP was refused the account, not just overdraft.

But often (from experience) with these accounts, the overdraft comes guaranteed with the account - you can't have one without the other. If the system detects that its not willing to accept the overdraft it'll decline the account altogether.

Birdbrain1

Ed-1 wrote: »

"To enjoy the benefits of our 1|2|3 Graduate Current Account, you'll either need to be working or have a confirmed job offer." Have you?.

Yeah I have a confirmed offer. Well the santander account has up to £2000 overdraft which is the same as my coop so I figured it would be okay to transfer the coop overdraft to the Santander one, which may have been naive of me, is that not the case?

grumbler

Ed-1 wrote: »

But often (from experience) with these accounts, the overdraft comes guaranteed with the account - you can't have one without the other. If the system detects that its not willing to accept the overdraft it'll decline the account altogether.

Don't know about graduate accounts, but I recall someone complaining here recently about having been refused an overdraft with a student account.

Ed-1

Birdbrain1 wrote: »

Yeah I have a confirmed offer. Well the santander account has up to £2000 overdraft which is the same as my coop so I figured it would be okay to transfer the coop overdraft to the Santander one, which may have been naive of me, is that not the case?

Santander don't allow 'transfers/switches' to their graduate account from a previous student account held with another bank so the application has to be for a new graduate account from scratch. The system will have picked up on your existing overdraft and decided not to offer you another one (and with it the account). It didn't know you wanted to have that overdraft instead of your old one so if you want a Graduate Account with Santander and have enough money to pay off your Co-op overdraft (which I'd guess is doubtful if you are using it) then you could repay it, close the Co-op one (waiting for it to drop off your credit file) and then apply again with Santander. But, alternatively, you can consider other banks' Graduate Accounts who may be willing to switch your existing student account and overdraft into their graduate account.

Ed-1

grumbler wrote: »

Don't know about graduate account, but I recall someone complaining here recently about having been refused an overdraft with a student account.

Some banks will accept the account without an overdraft, others won't. From experience, with some banks you can upgrade an existing current account to a Student Account/Graduate Account without an overdraft but if you apply for a new account it'll base the decision on whether it'll give you an overdraft.

Birdbrain1

Ed-1 wrote: »

Santander don't allow 'transfers/switches' to their graduate account from a previous student account held with another bank so the application has to be for a new graduate account from scratch. The system will have picked up on your existing overdraft and decided not to offer you another one (and with it the account). It didn't know you wanted to have that overdraft instead of your old one so if you want a Graduate Account with Santander and have enough money to pay off your Co-op overdraft (which I'd guess is doubtful if you are using it) then you could repay it, close the Co-op one (waiting for it to drop off your credit file) and then apply again with Santander. But, alternatively, you can consider other banks' Graduate Accounts who may be willing to switch your existing student account and overdraft into their graduate account.

Hmm okay, that just puts me in a sticky situation where I have a overdraft to pay back in one year (with coop) which won't be physically possible but I'm going to find it difficult to find an account who will transfer the overdraft in order to give me more time to pay it back. Great...