Credit Scoring Policy First Direct

Harold_Lethcroft

Hi


I recently made an application to First Direct to register a First Current Account and a Regular Saver's Account but I was rejected due to their Credit Scoring process which is commercially confidential and they have said that they reserve the right not to divulge the criteria for having an account with them.


The exact wording was: "Your request wasn't successful because it didn't achieve the required credit score".


I haven't yet been told why but I was also rejected for a very similar account with M&S.


I am a student and have never taken out a loan other than with Student Finance England and I should therefore have no credit score.


I'm hoping I don't need to pay a credit agency to obtain an incomplete credit score but if anybody has any further suggestions or explanations, they would be very much appreciated.


Thanks in advance.

iAMaLONDONER

Harold_Lethcroft wrote: »

Hi


I recently made an application to First Direct to register a First Current Account and a Regular Saver's Account but I was rejected due to their Credit Scoring process which is commercially confidential and they have said that they reserve the right not to divulge the criteria for having an account with them.


The exact wording was: "Your request wasn't successful because it didn't achieve the required credit score".


I haven't yet been told why but I was also rejected for a very similar account with M&S.


I am a student and have never taken out a loan other than with Student Finance England and I should therefore have no credit score.


I'm hoping I don't need to pay a credit agency to obtain an incomplete credit score but if anybody has any further suggestions or explanations, they would be very much appreciated.


Thanks in advance.

Use Noddle to view your credit report for free.
It's rather hard to get credit if you've never borrowed before (student loans don't count...yet)


You don't have a credit score as each potential creditor assesses your credit report differently.


Also First Direct and American Express generally only deal with people who have brilliant credit histories - i.e always paying their bills(credit, Contract mobile, etc) on time.

Tixy

The score they are referring to is their internal credit score for you based on the info you provided and the statutory data on one (or more) of your credit reference agency files.

Any score you paid to see with the credit reference agencies wouldn't be relevant.

Worth getting a copy of your credit file from at least noddle (free). If you do decide to order your reports from experian and or equifax just get the £2 statutory report.

But you may well have been declined due to lack of credit history.

You say you haven't had any loans - have you had any credit accounts at all? (credit cards/mobile phone contracts/bank accounts with overdraft etc)

leeroy2009

fd possibly are quite strict as they guarantee a £250 overdraft on account opening (they gave me double that though)


if you have no credit history you have slim chance of getting an account with fd


m&s, fd are part of the hsbc group, you wont be getting a current account / credit account with this group at this moment in time, the 2 declines (m&s and fd prove this)

leeroy2009

and if you want a credit "score" etc then I suggest you start with a credit builder credit card, pay it off in full each month, 6/12 months down the line you may find the hsbc group will do business with you


also and very importantly, are you on the electoral register?

[Deleted User]

Might be worth getting yourself a SIM only mobile contract too if you're currently on PAYG - they can help build credit ratings.

Candyapple

First Direct require you to pay in a minimum monthly salary of £1,500 (possibly dropped to £1k now but it was £1,500 when I took it out years ago) and if you're a student, that's probably the reason why you didn't qualify.

As someone mentioned before, M&S and FD are usually for people who have excellent credit ratings.

KyleM

This isn't necessarily correct at all. I'm in Sixth Form, and turned 18 about four months ago. I don't have a career or Job, although I do have about £10k in Savings, from a maturity of a C.T Fund. I didn't declare my savings to F.D, other than I get about £20 or so per month in Interest.

I successfully opened a First Direct First Account and Regular Saver, no problems. I also upgraded my HSBC account to Advance, and got a M&S Account. These were all approved within seconds of application. I checked my file with Noddle, and Experian, and all I can see is a HSBC account that started report only once I turned 18.

I think their is more to this, than described. Unless, HSBC are using Internal Risk Scores across their brands or I've been very lucky (I don't think so - since I have opened accounts elsewhere for higher % no problem).

Harold_Lethcroft

I will try Noddler but I'm going to clarify first with my local council my residence details because I am not sure exactly what I have declared to the council.


It seems likely that my rejection was due to their internal system (possibly my low income) and not my credit score. Nevertheless I am tempted to build up a credit score with a credit card because I am on a phone contract with EE but I had the same problem so I had to pay more money upfront and less on a monthly basis which doesn't concern me because I don't have cash flow problems but that could change in the future. I will check with my current bank if I have ever exceeded my overdraft but I am quite sure that has never happened.


Thank you anyway for your suggestions, your collective input has been very constructive.