Santander 123 Current Account Rejected

SaveForTheWin

Hello. I'm absolutely gutted. I really wanted a Santander 123 current account but they rejected my application via email within 1 minute of me applying (email said they "carefully considered my application" !?)

They said they used Experian as a credit check so I registered for the free report. My score is 999 out of 999! I don't understand why they rejected me? I have thousands sitting in my current account ready to transfer over.

Not sure if these extra details are relevant:

I have one credit card only, it's got a £6K limit, I've had it for years. There is currently £50 on it, I pay it off every month. I don't really use it much or need it. Should I get rid of it? Is it damaging my application?

I just changed mortgage provider, this is coming up as the only negative on my credit report "You have opened 1 new credit account in the last 6 months". And I also changed my energy provider last week which involved a credit check.

What can I do to get the 123 account? I'm really upset by this, my current bank HSBC pays hardly any interest at all and now I feel trapped. I'm terrified of applying for anything else in case I get a bad marks for too many credit applications.

But all the more confusing I don't even want any credit! I didn't apply for an overdraft with Santander I just wanted the current account.

[Deleted User]

Your score is irrelevant. No one sees it but you. And it would mean nothing even if they could.

Equally, no one sees the savings you have.

You should be using your card regularly and paying off in full each month. It sounds as if you have limited history.

Try again in a few months.

SaveForTheWin

Thank you. I'm still really confused though, what exactly is a limited history? I've been using that credit card and paying it off for about 10 years. Admittedly I've never got anywhere close to the 6K limit but spending that much would be madness

I really want to get rid off it but you are saying that the best thing to do if I want the 123 current account for saving is to use my credit card more?

[Deleted User]

Lenders want to see regular, responsible credit usage. Using a card each month and paying in full is the best way of demonstrating this, as it doesn't cost you anything and gives you additional benefits, such as Section 75 protection.

SaveForTheWin

OK, I couldn't afford to wait months to reapply stuck on low interest so I tried for a Lloyds current account instead - they gave it to me with no problems.

Now I am even more confused than before. What possible problem could Santander have had with my application? They don't want my money for some reason?

john1002

No they don't want your customer profile were Lloyds do, nobody will ever know why Lloyds do and Santander don't, it's a pain but these boards are loaded with people in similar positions.

Be glad you got a good interest paying account and don't look back.

John

Kim_13

Banks do this sometimes for some reason. They may be more likely to accept you for the 123 in future if you are already a customer, so I'd open a savings account with them (it's not credit, so the only search will be an ID check which won't harm anything.) The interest isn't great, but if you have some money earning nothing, it's a start and an added bonus while you build up a relationship with Santander.

Were you a customer of Abbey National? That's internal to Santander, so if you missed payments/had an unarranged overdraft, they may be wary of you.

Make sure you get the Club Lloyds monthly saver in addition to the account itself - it also pays 4%.

I would leave it for 6 months and then try again.