Upgrading bank account

samaryd

Hi all


Would appreciate advice.


I switched to a basic bank account 3.5 years ago when, for health reasons, I got to a point where I couldn't repay my credit card/loan debt.


This week ago I made the final repayment and all my debts are now gone. There have been no missed payments or defaults in the last 3 years and, having learned my lesson the very hard way, I no longer want an overdraft. I've never got into problems with my basic account in terms of not having money for direct debts etc.


I am not dissatisfied with Nationwide (with whom I have my basic account) but it would be nice to have an account where I a) earn a bit of interest and b) have the chance to use my debit card abroad or get cashback etc. Does anyone have any advice on how I might get past the credit check issue with obtaining a 'regular' bank account, given that I don't want the overdraft/credit facility? I pay in nearly £3,000 a month and would want to transfer all my direct debits etc.


I do plan to open an instant access savings account too, before I get used to having debt-repayment money to spend!


Thanks for any/all advice.

Vortigern

Defaults take 6 years to drop off your credit file so you may still have difficulty opening an account with another bank.

Why not ask Nationwide (since they know you) if you can change to a FlexDirect current account, which will earn you a bit of interest.

dr_adidas01

samaryd wrote: »

Hi all


Would appreciate advice.


I switched to a basic bank account 3.5 years ago when, for health reasons, I got to a point where I couldn't repay my credit card/loan debt.


This week ago I made the final repayment and all my debts are now gone. There have been no missed payments or defaults in the last 3 years and, having learned my lesson the very hard way, I no longer want an overdraft. I've never got into problems with my basic account in terms of not having money for direct debts etc.


I am not dissatisfied with Nationwide (with whom I have my basic account) but it would be nice to have an account where I a) earn a bit of interest and b) have the chance to use my debit card abroad or get cashback etc. Does anyone have any advice on how I might get past the credit check issue with obtaining a 'regular' bank account, given that I don't want the overdraft/credit facility? I pay in nearly £3,000 a month and would want to transfer all my direct debits etc.


I do plan to open an instant access savings account too, before I get used to having debt-repayment money to spend!


Thanks for any/all advice.

What kind of basic account do you have with Nationwide?

Is it their Flexaccount with a blue visa debit card or their cash card account with either the purple or red visa debit card?

You could give nationwide a call to see if they can upgrade you to a flexdirect which will give you 5% interest for the first 12 months, or if you want to pay £10 a month a flexplus account with added benefits and 3% interest on balances upto £2500.

If your able why not see if you can open a Santander 123 account as this will give you interest on your money and also cashback on your utility direct debits.

samaryd

dr_adidas01 wrote: »

What kind of basic account do you have with Nationwide?

Is it their Flexaccount with a blue visa debit card or their cash card account with either the purple or red visa debit card?

You could give nationwide a call to see if they can upgrade you to a flexdirect which will give you 5% interest for the first 12 months, or if you want to pay £10 a month a flexplus account with added benefits and 3% interest on balances upto £2500.

If your able why not see if you can open a Santander 123 account as this will give you interest on your money and also cashback on your utility direct debits.

I have the cash card account with the purple debit card. When I log on to my account online I'm always asked if I want to upgrade my account but, when I try online, am told 'we are unable to help you at this time'. No idea if this is because of my financial position or an error on their system but I've always assumed the former!

dr_adidas01

samaryd wrote: »

I have the cash card account with the purple debit card. When I log on to my account online I'm always asked if I want to upgrade my account but, when I try online, am told 'we are unable to help you at this time'. No idea if this is because of my financial position or an error on their system but I've always assumed the former!

Ah for some reason they can't upgrade cash card accounts, have you tried applying for a new account via online banking. It will either let you open one or give you a message sating sorry we cannot offer you an account at this time.

solentsusie

I opened a FlexDirect account with Nationwide with a number of defaults on my file. Rather than try and upgrade why don't you just apply for another separate account?

grumbler

samaryd wrote: »

...I no longer want an overdraft.
...
Does anyone have any advice on how I might get past the credit check issue with obtaining a 'regular' bank account, given that I don't want the overdraft/credit facility?

In reality, this doesn't make any difference.
Even if you don't have an agreed overdraft, with any advanced account you can get overdrawn.

If you apply for another Nationwide account, get referred by some other customer to get £50 both if you get accepted.

http://www.nationwide.co.uk/products/current-accounts/landing-page/recommend-a-friend

help4help2013

you might be best just waiting for another year keeping your credit file clear then trying again when i used to work for a debt management company we seen this a lot and evey time you apply for credit / bank accounts etc etc and get refuse it can effect your credit score too

grumbler

help4help2013 wrote: »

you might be best just waiting for another year keeping your credit file clear then trying again when i used to work for a debt management company we seen this a lot and evey time you apply for credit / bank accounts etc etc and get refuse it can effect your credit score too

The effect doesn't last more then 6 months.
Why wait for a year then instead of trying now, then, possibly, again in 6 months?

solentsusie

help4help2013 wrote: »

you might be best just waiting for another year keeping your credit file clear then trying again when i used to work for a debt management company we seen this a lot and evey time you apply for credit / bank accounts etc etc and get refuse it can effect your credit score too

From my own personal experience Nationwide gave me a FlexDirect account with a full contactless visa card with, at the time, 5 defaults on file. I did not have an account with them and was immediately accepted. This was about 18 months ago.

I have just upgraded my RBS and NatWest accounts to full contactless card accounts with 3 defaults still on file.

Yet last September Barclays would only offer me a Basic account, but now this month I have opened a Barclaycard account.

It goes without saying that it will depend on your personal circumstances but some companies are obviously less fussy than others. I can't get a Halifax account at the moment but I am happy with the customer service I get with all of the above so no complaints.

I would recommend trying for the FlexDirect account and get someone to recommend you for the £50. Just make sure you keep your accounts in good order and I am sure you will get there in the end.

Good luck.

samaryd

Thanks, everyone, for responses. I made an appointment to go in and talk to my branch's personal banking manager. He told me they couldn't offer me any other product at the moment - not because they do a credit check but because they assess you based on the way you use your account. Because they saw a number of payments going out to credit cards and a loan company (although only a loan in the last 6 months) they gave me the lowest 'rating' they had. To be honest, I'm not really sure this is fair - you could legitimately have a loan without it being a problem and I've never once had a problem with standing orders/DDs being rejected due to lack of funds or similar. But anyway, no joy. I may try another provider - just reading the website to get some recommendations!


Thanks again.