Co-op says basic account shows as negative on credit file?!

chuckley

I got a call from Co-op asking if I'd like to upgrade my basic account to a free current account.

I asked why as it's not my everyday account and she said it's because it's shown on your credit file as 'basic' and lenders know this means 'debt problems'.

Is this true? I haven't looked at my reports in a couple of months but I don't even recall seeing this on there any way.

I managed to get a sub-prime credit card recently, so it's not like I can't get credit.

But I only use this account for Paypal transfers so don't really want to get rid of it, unless it's actually detrimental like she says?

stclair

The account type is not seen by the company searching your credit file it will just say current account.

HelpfulTips

It actually shows slightly more on your credit file than the above post suggests.
The credit report seen by a lender is mich different to what you see, but they will know whether your account is a basic account, or a full current account.
It doesn't necessarily affect you in a negative way, when your credit searched it is down to the lender to make their own judgements, they may see it as indicating debt problems, but it could be that you have little history and only wanted a basic account.
I wouldn't worry, when you apply for credit, you will be fairly scored based on the information available, so as long as you manage your finances and accounts well, it doesn't really make too much difference on the type of accounts - although this isn't in all circumstances, for example short term loans will certainly appear as a worry whereas a regular loan wouldn't

stclair

HelpfulTips wrote: »

It actually shows slightly more on your credit file than the above post suggests.
The credit report seen by a lender is mich different to what you see, but they will know whether your account is a basic account, or a full current account.
It doesn't necessarily affect you in a negative way, when your credit searched it is down to the lender to make their own judgements, they may see it as indicating debt problems, but it could be that you have little history and only wanted a basic account.
I wouldn't worry, when you apply for credit, you will be fairly scored based on the information available, so as long as you manage your finances and accounts well, it doesn't really make too much difference on the type of accounts - although this isn't in all circumstances, for example short term loans will certainly appear as a worry whereas a regular loan wouldn't

I have to say without sounding rude the first part of your post is total non sense the lender does not see what the account type is I use Experian and equifax every day in my job. Plus lenders dont see much more than you can see your self.

molerat

How would they know it is a basic account - assume an account without an overdraft is basic ? I have 8 current accounts and only one has an overdraft.

chuckley

HelpfulTips wrote: »

It actually shows slightly more on your credit file than the above post suggests.

That is actually disturbing. So effectively what we see is just a summary whereas they can see the exact account type? Thank god I've never paid for a credit report!!!

On another note I've just realised my 'salary' account is also basic, but it's changed to RBS Scotland so I don't know if that makes a difference.

So using this logic I'll be sub prime forever because my accounts are basic with zero overdrafts?

They all offer exactly what I need, so I really don't want to change anything unless I have to.