Nationwide - 'Basic Current Account'

[Deleted User]

New Nationwide FlexBasic account T&Cs (effective October I think) state that they will be reporting the FlexBasic as a 'basic current account' rather than just a 'current account' to 'at least one CRA'.

Nice of them to tell us this..... however, my 2 FlexBasic accounts are already reported as Basic Current Account at Equifax.

Clearscore, last updated 30/7th, just lists them as current account - not sure if that's just a display thing.

Not sure when Equifax started reporting. In March 2016, both accounts were reported as 'Current Accounts' to Equifax (I had a free trial then which shows both reporting like any other).

I'm closing them both as if lenders do start using 'Basic Current Account' that obviously suggests you can't be trusted. With full accounts elsewhere, there's no need to keep them and take the risk.

Just a warning for anyone that's either using them for the 'green zeros' or has other accounts elsewhere they can move to.


N/Wide new T&Cs also say you will only be allowed 1 FlexBasic account, and they can close it if they think you have an account elsewhere which has all the same features..... anyone would think they'd written them about me :rotfl: :rotfl: :rotfl:

Mollie_Guinness15

Which account do you recommend? I've recently switched to Nationwide from Barclays.

battyboimatt

Equifax does indeed display it as a Nationwide Basic Bank Account on my credit report it also does for the Co-operative one as well.

TheGardener

I applied online for a Nationwide flexdirect (make sure to select £0 on the overdraft limit request) and got it no problem. I applied at the same time for a flexclusive regular saver - also accepted. Not out of my 6 years yet. I didn't consider a basic with them as I already had one with another high street bank. However, its interesting that basics are being reported as such. I'm sure there are lots of non-BR's who have them just for things like internet purchases - I know several colleagues who do. Do you think it might damage their credit history?

[Deleted User]

I think it's too early to say, but my thoughts are that if it didn't make a difference, why would the CRAs invent a tag for basic bank account? And why would Nationwide bother to now report under this tag (and with this, incur the cost of writing to all customers). They have combined other T&C changes, but they could have implemented them without writing

At my work we often have to write to all customers - black and white letters for < 10,000 customers = over £2,000. Nationwide send a pretty colour leaflet and probably have more than that, if I worked for their Finance dept, I'd be telling them to pack it in unless they really need to!

I've complained to Nationwide that they've made the changes live already and not given me a chance to close the account, and said I want to close the account, and have the title amended back to Bank Account at the CRAs as I never agreed to the changes, otherwise I'm going to the FOS.

It's *probably* not going to be a make or break, but I'd be very very wary of keeping a live account that is marked as basic if you want to try and get credit elsewhere.

It's well reported that some places (Lloyds & HBOS I believe) will automatically decline you for credit if you have a basic account with them. They could easily apply that policy to any basic accounts found on the credit search (and that would cover closed accounts within 6 years, hence why I'm kicking off!).

Latest T&Cs on N/Wide website don't mention anything about it, and confirm that 2 months notice needs to be given BEFORE changes are made! http://www.nationwide.co.uk/~/media/MainSite/documents/products/current-accounts/flexbasic/flexbasic-terms-conditions.pdf

As for the best, that's hard now, as until these recent antics, I rated N/Wide ahead of Barclays (Decent online service & contactless card), I even switched to them from Barclays.

I guess I'm lucky I still have 'full' accounts. Hopefully all basic accounts don't go this way as Co-Op have already started too!

In terms of is it worth changing.... it's a hard one if you're going to need to apply elsewhere - you then have to weigh up the effect of an application for another account, another new product on your report, and how closing a product you've not held for long (since FlexBasic has only been available for 9 months) will make you look

A4445

It says basic bank account on my credit file...I've not had any issues barclaycard, next and shop direct have given credit accounts.

Brandnewstart79

Hi there I've just been discharged and I've got a Flexbasic account so should i think about changing mine?

Mollie_Guinness15

I used to be with Barclays and they said they wouldn't upgrade my account anyway until the 6 years are up. I've decided to stick with Nationwide, purely because they're convenient, and the service and account features for a basic account are good - you get contactless and apple pay, and the new improved mobile app is pretty good.

A4445

The basic bank account on credit file doesn't seem to make any difference been accepted for a normal card and I only have basic accounts.

[Deleted User]

Those first 3 are all sub-prime so limited whether they'd take any notice anyway - although as you say you have also got a normal card today.

It might well be nothing - but the CRAs would only bother changing the tagging of something, and going through the process of updating previous records, the lender informing customers of a change in T&Cs etc (or not, in N/Wide's case!) where there is some kind of commercial reason to do so - I'm certain someone somewhere must be factoring it into lending decisions, or will begin to do so once the data becomes more mainstream.

Similar to the Rent payments going on credit reports - once that launches, it will take a while before lenders incorporate that into their scorecards and run statistical tests etc.

Nationwide are still investigating my complaint about the 2 accounts changing to say Basic before I had a chance to consent to it - will see what they have to say. If it meant nothing, I'm sure they'd have quite quickly (and happily) told me to quieten down and closed it as a complaint without merit.

As for Barclays - they do upgrade before the 6 years are up. It's all done on internal scoring. You just need money going through it, no bounced items etc, and nothing 'dodgy' on the statements - gambling (no matter how small) & payday loans are 2 that come to mind.

I applied for a full account at Barclays about 3 weeks ago, eventually they sent me a decline letter but a form to apply for a basic account based on the credit/fraud search they've already carried out (basic accounts aren't credit scored anyway, just fraud checks).

I've opened one and am going to fund it, as they review after 12 months. A full Barclays account in a year would be useful (even if I am hit with 'Basic Bank Account' at CRA in the meantime, but hopefully not lol!).