Basic bank accounts-Need credit checks????

poormanuk

Hello there,

I have just asked my bank (Natwest) about a basic bank account for a friend. My friend has poor credit hostory and needs to change banks as Co-op has closed the nearest branch.

Natwest stated that ALL new accounts are credit checked, even if people know they have bad credit. Surely this is wrong? If someone wants a basic account, they should not have to go through the process of being denied an account rather than just applying for the one they know they can get? Surely this credit check would raise flags to other lenders etc and make credit worse? Seem perverse to me.

Is this just banks in general fobbing off customers to circumvent having to offer a foundation/basic account?

Keep smiling

Phil

bengalknights

Yes they are still credit and ID checked however as they are basic there is a higher approval rate.

maxximus75

For a basic account I think with most banks you apply for a normal account and if you don't pass their internal scoring process then they will offer you a basic account?

Dobbibill

This may help
https://www.moneysavingexpert.com/banking/basic-bank-accounts/

Westie983

Hi

If your friend doesn!!!8217;t want to have a credit check done you could always open up a card based savings account which could be what they are wanting as no credit checks done apart from ID and address verification.

You don!!!8217;t mention why your friend wants an account but if it is to receive wages or regular income and not for direct debits then this could be a alternative option.

Westie983

poormanuk

Surely if someone has a bad credit score and they know it, then changing account would flag up as poor credit? This potentially worsens the credit score by the banks actions which really is not good business practice to create problems ?

mije1983

poormanuk wrote: »

Surely if someone has a bad credit score and they know it, then changing account would flag up as poor credit? This potentially worsens the credit score by the banks actions which really is not good business practice to create problems ?

The score means nothing. Nobody sees it apart from you/your friend. The banks look at credit history, and have no interest if your score is 0 or 1000000000.

As long as you/your friend aren't making endless other applications for credit (which would be a red flag to lenders), then one search for a new basic account isn't going to send the banks running for the hills. After all, basic accounts are pretty much designed for people with a poor credit history.

Anthorn

poormanuk wrote: »

Hello there,

I have just asked my bank (Natwest) about a basic bank account for a friend. My friend has poor credit hostory and needs to change banks as Co-op has closed the nearest branch.

Natwest stated that ALL new accounts are credit checked, even if people know they have bad credit. Surely this is wrong? If someone wants a basic account, they should not have to go through the process of being denied an account rather than just applying for the one they know they can get? Surely this credit check would raise flags to other lenders etc and make credit worse? Seem perverse to me.

Is this just banks in general fobbing off customers to circumvent having to offer a foundation/basic account?

Keep smiling

Phil

According to threads I've replied in this is something of a bone of contention on MSE Forums. The consensus appears to be that no you don't get credit checked when you apply for a basic bank account because there is no credit involved. But they do credit check don't they? The other bone of contention is overdrafts and overdraft fees on basic bank accounts

Overall, you give permission to be credit checked when you apply and since overdraft fees are in the terms and conditions you also accept that too when you apply. Basically, advertising blurb to the contrary is meaningless!

venomx

When i signed up for barclays online they accepted me and sent me my card etc in 3 working days, i have a poor credit history from years back when i was irresponsible

Monzo offer current accounts and just do a " Soft " credit check

OceanSound

Monese also only does a 'soft' search.