Definition of a credit account.

Shakin_Steve

We recently opened a Tesco current account and, as is the way, our imaginary credit score went down and the report said this was because of opening a new credit account. There is no overdraft facility, so how is it a credit account? We have an overdraft facility on our Barclays account of £5000, plus £500 'emergency borrowing. This shows up as available credit on the report, but there's nothing on the Tesco account.
So.......where's the credit?

agrinnall

Just because it doesn't have an arranged overdraft facility doesn't mean it won't go into an unarranged one if you happen to spend more than is available and Tesco allow it to go through. I think all current accounts apart from Basic accounts would be treated in this way.

GingerBob_3

Shakin_Steve wrote: »

We recently opened a Tesco current account and, as is the way, our imaginary credit score went down and the report said this was because of opening a new credit account. There is no overdraft facility, so how is it a credit account? We have an overdraft facility on our Barclays account of £5000, plus £500 'emergency borrowing. This shows up as available credit on the report, but there's nothing on the Tesco account.
So.......where's the credit?

The cynic in me says this is a ruse on the part of banks and their co-conspirators the CRAs to collect ever more information about people. Such accounts are not credit accounts - but - perhaps they might become one under certain circumstances. That would be the time to start reporting them.

Shakin_Steve

agrinnall wrote: »

Just because it doesn't have an arranged overdraft facility doesn't mean it won't go into an unarranged one if you happen to spend more than is available and Tesco allow it to go through. I think all current accounts apart from Basic accounts would be treated in this way.

Very iffy.......

agrinnall

Shakin_Steve wrote: »

Very iffy.......

If you don't want to be credit checked, open a Basic bank account, nothing iffy about it at all.

GingerBob_3

Presumably the OP wanted a current account that pays interest, so a basic bank account wouldn't be any use.

JuicyJesus

GingerBob wrote: »

Presumably the OP wanted a current account that pays interest, so a basic bank account wouldn't be any use.

Well then they have to open a current account with the possibility of going overdrawn.


Them's the breaks.

joujou

In my view there is a lot of abuse of the hard search queries. This is an example.

Some energy providoers (e.g. Eon) will do a hard search for setting up direct debit (yup). !!!! them.

GingerBob_3

JuicyJesus wrote: »

Well then they have to open a current account with the possibility of going overdrawn.


Them's the breaks.

Yes, the banks really do take the urine, don't they.

JuicyJesus

GingerBob wrote: »

Yes, the banks really do take the urine, don't they.

Not especially. BBAs make no money and the customers that have them tend to have no money and are therefore unprofitable. It stands to reason they don't especially want to reward people for having them by paying interest on them.

If it's such a good and sustainable idea, maybe you should do it.

mwarby

agrinnall wrote: »

If you don't want to be credit checked, open a Basic bank account, nothing iffy about it at all.

Many such accounts credit check you now, to exclude those who could get a none basic one(ie is your score low enough)