Approved for a credit card, turned down for bank account

camaj

I successfully applied for a credit card recently and I decided to try to apply for a bank account with Nationwide. A few years ago I was rejected by Halifax but since then I've been living at my new address for a few years and I'm on the electoral roll. In short my credit report should be a lot better

However I was turned down by Nationwide too and I'm a little perplexed. After all I'm potentially a risk to a credit card company yet not to a bank. I specifically asked for no overdraft in the application.

Can anyone think why? The only thing I can think of is they don't think they'll make money from me, clearly the credit card company would be. I'm not sure if they think that because of my credit file or that I'm on a low income, although I can't recall if they asked for my earnings during the application.

Stevie_Palimo

You would have needed an income listed on the cc application form, As for the bank if you do not have an account get a basic one and most banks that see you handling that account okay will then go on to offer an upgraded account.

As for why there is no point wondering about this one as it like asking how many cows are living on the planet, No need to know due to it not changing owt.

Anthorn

camaj wrote: »

I successfully applied for a credit card recently and I decided to try to apply for a bank account with Nationwide. A few years ago I was rejected by Halifax but since then I've been living at my new address for a few years and I'm on the electoral roll. In short my credit report should be a lot better

However I was turned down by Nationwide too and I'm a little perplexed. After all I'm potentially a risk to a credit card company yet not to a bank. I specifically asked for no overdraft in the application.

Can anyone think why? The only thing I can think of is they don't think they'll make money from me, clearly the credit card company would be. I'm not sure if they think that because of my credit file or that I'm on a low income, although I can't recall if they asked for my earnings during the application.

Look at the credit history on all three CRAs and see if there has been a credit search. If not your application failed at the initial application form stage in which case consider what you are putting on the application form.

You cannot fail to get a bank account because everyone can get at least a basic bank account.

sourcrates

Full information guide on basic bank accounts here :

http://www.moneysavingexpert.com/banking/basic-bank-accounts

Chappaz

camaj wrote: »

I successfully applied for a credit card recently and I decided to try to apply for a bank account with Nationwide. A few years ago I was rejected by Halifax but since then I've been living at my new address for a few years and I'm on the electoral roll. In short my credit report should be a lot better

Living in a house for a while and being on the electoral roll is going to do very little to your credit file. You won't build any history with that. It's a relatively minor point overall.

If you've had a bad credit file previously, then you need at least a year or two of positive credit history with credit cards and other types of credit. Successfully applying for a credit card recently will achieve nothing. In fact, it's more likely to make your credit worthiness decline slightly because you have a recent hard search on your file. To start building it, you need to use the card month after month long-term.

It's unusual to be rejected for a bank account though, unless your credit history is truly horrendous (defaults, CCJs, bankruptcy etc). Pretty much anyone can open an account with a bank, even if it's just a basic one.

adindas

camaj wrote: »

Can anyone think why? The only thing I can think of is they don't think they'll make money from me, clearly the credit card company would be. I'm not sure if they think that because of my credit file or that I'm on a low income, although I can't recall if they asked for my earnings during the application.

If you have a good credit record no defaults, late payment, CCJ and the like it could be one of the explanation.

Other reason is generic one which applies to any application in any industry. There are several different types of people making decision on the bank where you are filing up your application. There are newbies, lazy people, very risk averse people, etc. If your application is refereed and not it is not decided by a robot, then you might be one of the unlucky one who get your case decided by one type of these people.

camaj

No need to know due to it not changing owt

If I knew it would be a help. If they turned me down because of low income I can wait until I'm earning more. If they turned me down because of a thin credit file I can wait until I've got a better recor

Chappaz wrote: »

It's unusual to be rejected for a bank account though, unless your credit history is truly horrendous (defaults, CCJs, bankruptcy etc). Pretty much anyone can open an account with a bank, even if it's just a basic one.

Well true, my problem isn't opening any account though, it's opening this account. All the top accounts in the MSE saving article require a credit check

If you've had a bad credit file previously, then you need at least a year or two of positive credit history with credit cards and other types of credit. Successfully applying for a credit card recently will achieve nothing. In fact, it's more likely to make your credit worthiness decline slightly because you have a recent hard search on your file.

My credit report is fine now, probably not in my previous application a few years ago. No CCJs, any more. Maybe a lack of repayment history due to a lack of loans. I could see why a lender might be cautious but I'm wondering what a bank is looking for.

adindas

Chappaz wrote: »

It's unusual to be rejected for a bank account though, unless your credit history is truly horrendous (defaults, CCJs, bankruptcy etc). Pretty much anyone can open an account with a bank, even if it's just a basic one.

Do you haw any evidence of this ? link ??

I have got rejected for a bank account a few times. I do not have bad credit history.

sultanabran

When I was looking to switch bank accounts last summer, I was turned down for a Santander 123 account. No blemishes on any of my credit files and I have a Santander mortgage so had a relationship with them already. I put it down to saying on the application that I wasn't going to pay my salary into it.