Refused for current account with Halifax

missbunbury

I have had an Easycash account with Halifax for about twelve years. At the time I opened the account my credit was not good. Since then my circumstances have changed significantly and my credit file is now pretty flawless, no defaults, no late payments, the only debt isa mortgage, I have a single Next account which is paid off in full each month. Weirdly, the MSE money club thinks I am using a high percentage of the credit available to me, but that's not the actual issue.

My Halifax account has a Visa Electron card. Lately I have been thinking I would like to have a contactless card, which isn't offered on my account. So I applied for Halifax's standard current account but I was declined. There's no record on my credit file of them having made a search so I assume they've rejected me on some other grounds. My own personal income isn't massively high (about £10k p.a. in total) but total household income is around £60k p.a. My husband has a Halifax current account (one of the fee paying ones I think) and we are already financially associated via the joint mortgage.

I am considering two options now and looking for advice. First, I could simply apply for a current account with a different provider, maybe Nationwide since I think they're meant to be good. Second, I could get my husband to add me to his account, essentially making it a joint account so I get a card for that. We've never done this as it's more convenient to have two different accounts, his is used for bills whilst mine is just spending money for me.

We are also looking to remortgage in the next year so if having the Easycash account is hurting my credit file then maybe I should get my own current account? I don't actually need an overdraft facility at all, but I don't pay in quite enough each month to meet the requirements for some of the accounts "with benefits", my total going in per month is £800. Of course, I could manipulate this figure easily enough by adding £200 of my own each month from another account, is this a good idea? Am I likely to get a better account if I commit to the £1k per month that a lot of them seem to want?

Dobbibill

If you are already financially linked via the mortgage with your OH then it makes sense to add you to that account.....1 fee = 2 people benefit for the same cost as 1 person benefiting.

YorkshireBoy

Were any of your past problems with Bank of Scotland or LloydsTSB (as they were back then)?

Have you viewed your credit reports from the Credit Reference Agencies and checked they're accurate?

Assuming all is OK with the above you could appeal the Halifax decision.

missbunbury

The thing putting me off just going on husband's account is mainly that it's convenient to have two different accounts, for example I've bought him a Christmas present this week, if I'd used a joint account he would immediately see what it was!

My credit report is all up to date and accurate now although I have had to have Virgin Media remove an incorrectly recorded default which came to light when I checked Experian following the rejection. They have done so (and rightly because there never was any default or missed payment, her!) and the change has been made, so I may just ask Halifax to reconsider on this basis, but as I say there was no recorded credit search from them prior to the rejection.

Yes actually, my historical problem debt was with Lloyds, but it's all been paid off for a long time and doesn't show on my credit file any longer, is it possible that internal processes would show this and cause a rejection automatically? As I say, the debt was paid in full long ago although it did at one point become defaulted (this would have been in 2008 with the debt also paid off that year.)

Dobbibill

If it was recently the Virgin Media errors were removed it could be that combined with their internal information, the monthly update they send/receive from the CRAs was enough to make the decision to decline the current account.

If this was recent then time may well heal the damage.

premierfella

If it was me, unless I was going to appeal the decision (i.e. you really wanted to stay with Halifax), I would instantly be looking at a different current account provider.

There are plenty out there and Halifax have already shown that your long period of being a customer with them counted for ziltch in their internal scoring when you wanted to open a standard current account first time around. I'd be wanting to try someone else's credit scoring system as if you have a clean credit file now you really shouldn't be having any issue based on the facts presented.

missbunbury

premierfella yes I do kind of feel like that, it's a bit of a slap in the face when I've only ever been a good customer for them. Having said that, I guess from their point of view I'm not much of a profit-generator since i don't owe them anything. This request for a current account was intended to be the first step in a plan which would have culminated in hopefully re-mortgaging with them, since we're currently with a different company and our fixed rate is running out we were hoping that as customers already it might help us get a good rate but it would appear they think I'm basically worthless. Sad for them cos of course they'd have made thousands of pounds from a mortgage!

Doctor_Duke

missbunbury wrote: »

This request for a current account was intended to be the first step in a plan which would have culminated in hopefully re-mortgaging with them, since we're currently with a different company and our fixed rate is running out we were hoping that as customers already it might help us get a good rate but it would appear they think I'm basically worthless. Sad for them cos of course they'd have made thousands of pounds from a mortgage!

I wouldn't worry about getting a remortgage with Halifax. They are not the most competitive, HSBC beat them for example. My remortgages have always been with banks I don't use as my main account. They normally ask you for three months bank statements whoever you bank with. At the time you are ready a Mortgage Broker would be a good bet to assist.

starM

OP how did you apply for the account - was it in branch?

It may be the system just looked Halifax internal score and score received from CRA and declined your application.

You can try applying through Halifax website. That will be a proper credit search and it will tell you immiduately if your application approved.

missbunbury

starM I did it online via my internet banking, it was offered as an upgrade so I clicked on that then two days later got an email saying I couldn't have it with no particularly clear reason given.

starM

missbunbury wrote: »

starM I did it online via my internet banking, it was offered as an upgrade so I clicked on that then two days later got an email saying I couldn't have it with no particularly clear reason given.

Try https://www.halifax.co.uk/bankaccounts/current-accounts/reward-current-account/ Apply for new account.

It wont be an upgrade - it will be fresh account with new sort code and account number. It will carry out a full credit search. You might get accepted through this route.