Is a cash account detrimental to my credit rating?

jameschristianmartin13

Hello,

I have a full current account with NatWest and a cash card account with Lloyds. I wish to keep both as I just use Lloyds to take care of my direct debits etc and have whatever I have left over from my wages in NatWest to spend on going out, fuel, groceries etc. I did have a few credit card defaults a few years ago with Capital One so my credit rating is poor, but I am rebuilding it. I do have a new capital one account now which is always kept in good order.

However, Lloyds still won't let me upgrade my cash account to a full current account, for the last two years they've just kept saying "try again in a couple of months".

I was wondering, does a cash card account look bad on a credit file? Does it show that at some point I've not been offered a full current account for whatever reason and in turn put other lenders/providers off.

I'm wondering if I close my cash account will that improve my credit rating? Because surely it looks better on your credit file to just have a full current account and not a basic cash account?

James

Paul_1977

The only thing that will show up on your credit file is a credit check, if, when you tried to upgrade, they did a credit check.

As far as I know nothing will appear on your file to indicate you have tried to upgrade and failed, apart from the above.

I started out with a basic cash account, this was later upgraded to a full account, however on my credit rating it just appears as a bank account, and shows nothing about it being a basic or full account.

I don't think it will look bad at all, if you keep it in good standing, they will upgrade you in the end, if not go somewhere else.

jameschristianmartin13

Thank you for your reply, I don't think they've done a search. But I just wondered if on the credit report they'd think "oh he's got a cash card account, I wonder why he's not been accepted for a full account" and then that'd look bad on my file.

DCFC79

It wont affect your credit rating as lenders don't see it.

YorkshireBoy

jameschristianmartin13 wrote: »

...I just wondered if on the credit report they'd think "oh he's got a cash card account, I wonder why he's not been accepted for a full account" and then that'd look bad on my file.

The 'type' of current account isn't shown on your report.


Why not order a copy yourself and confirm?

10pence

Credit score mean nothing as financial institutions don't see them, all they're interested in is your financial history conduct: paying bills on times, late/missed payments have a detrimental affect and so does lots of searches on sort time frame.

It is also worth noting that financial institutions will have their own internal 'score card', so when looking to upgrade, get a new facility not only will they probably credit check but also compare you to that score card.