TSB Classic Plus application declined, even though I didn't request an overdraft

PeacefulWaters

also opened a Halifax Help to Buy ISA, so that could make my credit history poorer at this moment

This shouldn't cause a footprint on your credit file.

adindas

elpaw wrote: »

I was advised on MSE that if I was going to use it as a savings account (I found out about this account on the 'savings' MSE page) ...

This is quite interesting finding as it is actually against the bank own interest to use the current account as a saving account, because it is highly likely a high interest current account is a subsidize profuct if everyone is using it a a saving account.

Would you please post the link about this??

When a person apply for a current account there is normally a question asking him, what the a/c will be used . One of the choice is "to be used as saving".

Is there any evidence that choosing answer "to be used a saving a/c " rather than chosing answer" using it for daily use for spending" will increase people chance of getting accepted ??

Any evidence, personal experience, link to reliable & authoritative source will be very much appreciated …

masonic

adindas wrote: »

Is there any evidence that choosing answer "to be used a saving a/c " rather than chosing answer" using it for daily use for spending" will increase people chance of getting accepted ??

I've opened dozens of accounts of this type and I'm always honest when I answer the question about what I intend to use the account for (i.e. savings), and I've yet to have an application rejected.

jacques21

There must have been a mass of declined applications yesterday, I also had an email turning me down for this one! As far as I can remember, I said I would use the account for paying bills and I did ask for a small overdraft.


I went to Martin's piece about credit scores and he makes the point there that banks may turn down an account application if they don't see that they can make much money in future out of this customer. in my case, I don't need a mortgage and I don't have any debt so maybe they just thought I would not be of much value to them. that's what I'm assuming, anyway. Back to the drawing board!

Thrugelmir

adindas wrote: »

This is quite interesting finding as it is actually against the bank own interest to use the current account as a saving account, because it is highly likely a high interest current account is a subsidize profuct if everyone is using it a a saving account.

Nothing subsidised. Banks lend money on a leveraged basis. Banks are / were after the retail deposits.

pantaiema

Check your credit file. If nothing serious against you. Then the plausible explanation is that your case is decided by
- a risk averse, might be inexperience staffs working in the banks.

The good example is the bank customer service. It is not uncommon and have been a few cases reported on this forum where few of them are giving a wrong advice, answers to people regarding their own products.

If this is the case you might try to appeal. But unless you have a very good reason to be accepted (e.g very profitable customer, etc.) There is more change it will declined again for obvious reason. They do not want to look bad as an institution as internal disagreement among staffs are not good for an the institution as a whole.

Other thing you could do is go apply somewhere else and apply within a few months to TSB again if you are lucky you might not get the same person decide your old case and therefore could be successful.

elpaw wrote: »

I applied for the TSB Classic Plus account a few days ago, but was declined today. I didn't request an overdraft, because I'm only interested in being in credit and earning the 5% interest, and getting access to the 5% regular saver.

Is it worth contacting them about why I was declined? I've recently (past two weeks) been accepted for a new Virgin Money credit card, and also opened a Halifax Help to Buy ISA, so that could make my credit history poorer at this moment. However I didn't think this would matter if I'm not applying for an overdraft.

Also where is good to put a couple of grand of savings at the moment, given that this declined application has gone on my credit history file? Can I still open savings accounts without them checking my file? A shame that nowhere offers as good a deal as TSB

Rich2808

This account is clearly a loss leader for TSB - they are literally throwing money ago you via the three 5 per cent benefits. They are paying me about £15 a month in interest and cashback - and I have no other products with them.

starM

I think TSB are more strict than Halifax or Lloyds. I know someone who applied for TSB and got declined. Soon after he applied for Halifax reward and Club Lloyds and both were accepted.

diamonds

starM wrote: »

I think TSB are more strict than Halifax or Lloyds. I know someone who applied for TSB and got declined. Soon after he applied for Halifax reward and Club Lloyds and both were accepted.

Since TSB left Lloyds Banking Group its new owner Sabadell Spain has changed the new account application threshold/s.

I now can be logged in to online banking can no longer apply for certain products and must go through a whole new application like a new customer, thus my previous internal well run accounts means very little to Sabadell as it did with LBG.



http://www.tsb.co.uk/sabadell-information/
"We’re still called TSB, we’ll look the same, our mission’s the same, *and we’ll support you in the same way*"


^Not exactly truthful.

anoncol

masonic wrote: »

I've opened dozens of accounts of this type and I'm always honest when I answer the question about what I intend to use the account for (i.e. savings), and I've yet to have an application rejected.

Neither have i. The last one being santander, and it was described as housekeeping i think in the dropdown.