No Credit History

imper

I wanted to open a current account with Metro Bank, primarily because of their free to use (in Europe) debit card, a perk that I used to enjoy with Nationwide who I've been with for 30 years, but was surprised that they wanted to run a credit check (shows how out of touch I am). I've never had or wanted a credit card, an overdraft (I'm allowed one), a loan, a mortgage, or bought anything on credit, so I basically don't have any record of paying back credit because I've never had any. But I don't want any credit now either, i was going to put a decent amount in the current account and take out a fixed term bond as well as a gesture of goodwill. I am a homeowner, with substantial savings, but I have a minimal income, and I've spent much of the last 15 years abroad (I had dropped off the electoral roll as well, I've just re-registered). I assume that I would have a pretty lousy (or blank) credit file, but I don't know, I tried to run a check on Noddle and they said that they couldn't verify my indentity (perhaps because I haven't been re-entered on the electoral roll yet, or perhaps because I only have a debit card not a credit card). Any comments/advice would be welcome.

Tixy

Not being on the electoral roll may well be the reason that you couldn't get your noddle report, an alternative is to order a postal version of your credit report from any/all of the 3 agencies.

Your existing bank account may appear with at least one of the credit reference agencies, although obviously won't show as a use of credit.

If you have a mobile phone or utility accounts in your name then they may appear on your credit file.

Did you go through with the metro application and get declined? or did you stop the application when you saw about a credit check?

Ideally I would wait until you are back on the electoral roll and this is showing with the credit reference agencies (this can take up to a couple of months). Then try applying for the new bank account.

imper

I was kind of expecting to get re-entered on the electoral roll quickly as they are saying that you can register up to the 20th April for the election on 7th May, but anyway I'm going abroad next week, and wanted the debit card in time for that. I could get a Travelex passport card, but I'm not sure if the benefit of free withdrawls will be outweighed by poor exchange rate compared to my Nationwide card (wrong thread, I know).

I didn't go through with the application because they rejected my utility bill as proof of address because it was missing my initial (I'll get it amended, but this will take time). I've used it before and never noticed, but all other bills are in my flatemate's name and I don't have a mobile phone account; my passport and Nationwide statement were both fine.

I asked the customer assistant if the credit check would be able to see my Nationwide accounts (current and savings) and they didn't know, they said that they would just get a yes or no reply from Equifax with no explanation. I also suggested that they check the Land Registry for proof of address, but they said that they weren't allowed to access that database.

What concerns me most is that with no history of ever having repaid credit I might be rejected for a current account, even though I don't want credit on it anyway. I did have boiler cover for several years that was always paid on time, but I cancelled it last year when I bought a new boiler with 7 years warranty. Also my service charge payments have often been technically late/in arrears because they've failed to notify me promptly of increases/adjustments; but always fully paid at the end of the year. I have no idea what will show up on a credit check.

Tixy

The electoral roll rolling register is updated monthly, but it typically takes another month or so for the updates to be sent to and uploaded with the credit reference agencies.

imper

Thanks Tixy, As you suggested, I'll try again in a couple of months. I'd still like to know what they are looking for in a credit check, as I am not asking for a credit card or overdraft facility. If Metro Bank only receive a yes/no answer from Equifax, rather than my full credit file (whatever that might contain), then presumably they have given Equifax a set list of criteria, and if one of those is a history of repaying credit then I have no chance anyway.

National_Debtline

Hi Imper

This MSE article gives a good explanation of credit scoring and how to improve your rating generally.

I appreciate that it’s mainly aimed at people who do actually want to take out credit but it might be useful.

http://www.moneysavingexpert.com/loans/credit-rating-credit-score?&_ga=1.28900284.1431643695.1421326736#boost

James
@natdebtline

imper

Yeah I had looked at the first half of the article '10 things you need to know about credit ratings', and it was point 2 that motivared me to start this thread; "While a poor credit history counts against you, so does having little credit history as it makes predictions less certain.", I have NO credit history. I've just noticed under point 5 that savings accounts won't appear on my credit file either, which unfortunately is bad for me. However the real issue I suspect might be point 3 "Will you make the lender money", which on the face of it I wouldn't. I own my flat and don't need a loan, and really just want the free ATM withdrawls in Europe; thats why I said that I wanted to open a fixed rate bond as well, so that they could make some money out of my custom. I don't think that there's much point trying to build up my credit rating until I can find out what it is like to start with. Perhaps it would be worth my while trying to open a Virgin Essentials account which doesn't require monthly payments in or DDs, and if I bung 100k in there at least it will be visible unlike my savings accounts, and earn some interest to boot. As its a very basic account perhaps they don't require much of a credit rating; any ideas?

imper

So as far as I understand it savings accounts don't show up on your credit file, but there seem to be differing opinions as to what shows up from current accounts. Any ideas, re: turnover, average balance, overdrawn, etc?

YorkshireBoy

imper wrote: »

So as far as I understand it savings accounts don't show up on your credit file, but there seem to be differing opinions as to what shows up from current accounts. Any ideas, re: turnover, average balance, overdrawn, etc?

There's a section in here re current accounts...

http://www.experian.co.uk/downloads/consumer/experian-YCRE.pdf

Also, you may wish to google:

Experian CII

Experian CATO

Thrugelmir

imper wrote: »

I was kind of expecting to get re-entered on the electoral roll quickly as they are saying that you can register up to the 20th April for the election on 7th May, but anyway I'm going abroad next week, and wanted the debit card in time for that.

Electoral roll registration doesn't provide an immediate answer. As it's the length of time that you've been been registered that matters. Electoral roll history ties together everything related to you. Without it there will be elements of doubt.

GingerBob_3

imper wrote: »

So as far as I understand it savings accounts don't show up on your credit file, but there seem to be differing opinions as to what shows up from current accounts. Any ideas, re: turnover, average balance, overdrawn, etc?

The CRAs use current account turnover to determine if your declared income is what you say it is. They don't tell you about this data they hold on you, and neither do the banks. The information is not part of a credit report. When signing up for a current account were you forced to agree that the bank could supply this information? I don't know because I haven't applied for a current account in years.

Current account turnover is a highly inaccurate method of determining if stated income is correct, but the likes of Experian push it as though it's a critical component of customer assessment.

Experian have stated publicly, in the form of one of the Experian reps on this site, that they would like to get a fuller picture of people's finances. Essentially they won't be happy until they have a complete dossier of everything about you, financially speaking (and a lot more).