Would having a bank account closed look worse than having a credit card/loan default?

trilon

I have been in a DMP with Stepchange since July 2015, starting with a balance of around £19,000, that I've currently reduced to £12,300. Some of the accounts have defaulted (although not all), but Halifax continued to agree to 6 month temporary limits on my two overdrafts. On one of the overdrafts this arrangement has come to an end and I've spoken to them tonight and they said that the account is in the process of being closed and passed to their recoveries department (my DMP payments were all up to date however).

I know that my credit rating is already low (much to be expected from being on a DMP), but I'm concerned as I recently got a job working in Insurance that requires a relatively clean credit check. I was honest on my background checks (they did a credit check and criminal record check) that asked about Bankruptcy/IVAs/CCJs etc however, would having a bank account closed look worse on a credit check than the previous defaults I had around a year ago that were for credit cards and loans?

Thanks for your help.

StopIt

No, a defaulted Overdraft is the same as any other default. No more, or no less impact.


A default is a method of closing an account, it just means it has been closed due to a breach of the contract, rather than closed by the customer via settling a credit account or switching banks.