Cash account being reported on credit file

AgentJR

Hi

I recently opened a basic cash account with Santander. This came with a pre-paid type of debit card. No overdraft or any type of credit and no credit agreements etc.

Both accounts (the cash account and prepay debit card account) have appeared on my credit report and had a detrimental effect on my credit score, showing a total of 8 credit agreements, 2 of which are these.

I queried this with both the credit defence agency and Santander who state that it is correct under some 2014 Steering Committee Reciprocity (SCOR) Directive.

I don’t understand how they can do this when my accounts are not credit related and have no credit agreements in place, yet are being reported a credit agreement accounts?

Any advice would be appreciated please.

Thanks in advance.

[Deleted User]

I wouldn't worry about it. It will do no harm to your credit file and the score is made up.

cjmillsnun

As zx81 says, ignore the score. Lenders don't see it. So effectively it is made up.

[Deleted User]

Why would it not be reported?

It would have also been mentioned in the T's and C's that you agreed with upon opening the account as well.

What are you worried about and why does it matter if they report them to a credit agency?

How does this affect you?

sourcrates

All bank accounts are recorded on your credit file.

Normal current accounts show a snapshot of your balance at a particular point in time, during the previous month, whilst basic accounts always have a balance of zero recorded to show no credit is been used.

molerat

The only balance a current account will show is a debit balance if in overdraft. All mine show a £0 balance and only the one with the overdraft shows an available balance and the credit limit.

tenchy

Just wondering why the type of account described by the OP, which has no credit facility and cannot go into debit, should be reported to the credit reference bureaus? What purpose does it serve to do so?

[Deleted User]

To show that you have a bank account with a debit card and you are financially responsible

tenchy

!!! wrote: »

To show that you have a bank account with a debit card and you are financially responsible

And how precisely does it show that, then? Given that just about anyone can get this type of account and as pointed out, by its nature it can't have a negative balance. There's some other reason for this reporting.

[Deleted User]

Probably to also show you have a financial association/connection with a bank or building society.

I don't see what the big deal is

molerat

Any change to your credit report, good or bad, seems to have a detrimental effect on the score. Once you start getting green ticks against that account your random score will increase. More importantly those green ticks will increase your "good credit" standing.