Basic bank accounts affecting your credit rating?

Suzy1050

So I’m looking to open a basic bank account either with the Co-op or Virgin for one reason or another. I understand the criteria for the card but had one vital question before I apply; does having the ‘basic’ account affect my credit rating?

I ask as I’m looking to remortgage my home in a couple of months and obviously want to have my credit rating as good as possible. I guess what I’m thinking is I will hand over my statements to the financial advisor and they will see it is a basic bank account. Is this something that could be frowned upon by the lender even if my credit rating is good enough for the mortgage or is it all above board, because at the end of the day it is just a debit account and can’t incur any debt.

Any advice is welcome!

[Deleted User]

If it helps, the Co-operative statements say 'Cashminder account' not basic account.

sourcrates

The type of account you hold is not a matter of public record, nor is it distinguishable from any other type of account by anyone reading your credit file or looking at your bank statements.

Also ignore credit ratings, it’s credit history that counts.

bazzyb

The bank account will show on your credit file so will affect your 'rating' in that respect. I can't see how it would make any difference one way or the other with regards to a decision regarding a remortgage. If you have some other negatives on your credit history then you could always run the question by a mortgage broker to see what they think and if it is likely to swing a 'borderline' decision.

bazzyb

sourcrates wrote: »

The type of account you hold is not a matter of public record, nor is it distinguishable from any other type of account by anyone reading your credit file or looking at your bank statements.

A basic bank account will show as a basic bank account on a credit file. Also the type of bank account is usually shown on a bank statement (assuming an actual statement rather than, for example, a print of transactions).

That said, I doubt it will make a difference to any lending decision whatsoever. So long as it is in the right name and right address that is the main concern.

Suzy1050

Thanks, all very helpful!

sourcrates

bazzyb wrote: »

A basic bank account will show as a basic bank account on a credit file. Also the type of bank account is usually shown on a bank statement (assuming an actual statement rather than, for example, a print of transactions).

That said, I doubt it will make a difference to any lending decision whatsoever. So long as it is in the right name and right address that is the main concern.

That is incorrect.

Just gives the banks name, nothing else, I have one so I know.

bazzyb

sourcrates wrote: »

That is incorrect.

Just gives the banks name, nothing else, I have one so I know.

I said usually, not always.

For example, Nationwide shows 'Flex Basic Account' on the statement; Co-op shows 'Cashminder Account'; Natwest shows 'Foundation Account' on the statement - so it is obvious that it is a basic account, should anybody be particularly interested in knowing.

Granted, not all banks will show the account type on the statement - but the majority do so.