Opening New Bank Account

lindabea

When opening a new current account without overdraft, does a bank do a full hard credit check or do they only need to do an ID check only. I'm asking because I applied for new current account and I told them that I don't need an overdraft and they told me that they will only do an ID check. I have since looked at my credit file and sure enough, a full credit check was made by the bank. What's even more misleading, my credit file shows that I have applied for a credit in the last 6 months with the same bank I have the current account. I don't think there's any fraud or anyone pretending to be me.

eskbanker

Banks will carry out a credit check even though you're not looking for an arranged overdraft, because there still exists the possibility that you'd go into an unarranged overdraft, unless it's a basic account.

Which bank and account was it? If they explicitly told you during application that they wouldn't conduct a credit check then I can see why you'd be unhappy if this was inaccurate advice....

[Deleted User]

What does the search actually show as on your files?

lindabea

Thank you for your reply. The bank is Metro. So do they treat a current account as a credit account? My credit file shows it as an application for credit in the last 6 months. I know it's regarding this current account, as I have not made any other applications. In fact, my problem is that my credit file is very 'thin'; I use one credit card which I applied for pre-1975. In all this time, I never defaulted on a payment and always paid my balance in full every month. So I was very surprised not to see my credit card history on my credit file. I rang Barclaycard and I was told that because my account was opened pre 1975, they're not able to send any details to credit ref agencies. So, apparently my credit rating is very poor - just as well I don't need any CC. However, this thing with Metro does annoy me. I will take it up with them - probably will be given more misleading info

lindabea

!!! wrote: »

What does the search actually show as on your files?

It shows 2 entries both made on the same day I opened the account

1 CREDIT APPLICATION

2 ID Check to comply with ML Regs

YorkshireBoy

lindabea wrote: »

I rang Barclaycard and I was told that because my account was opened pre 1975, they're not able to send any details to credit ref agencies.

The cut-off year was 1998.

There are two reasons they could send 'positive' data, even with your pre-1998 account opening date:

1. If you breach your account T&Cs, and
2. If they tell you (via a notice of variation) that they will start to do so.

lindabea

YorkshireBoy wrote: »

The cut-off year was 1998.

There are two reasons they could send 'positive' data, even with your pre-1998 account opening date:

1. If you breach your account T&Cs, and
2. If they tell you (via a notice of variation) that they will start to do so.

Do I have the right to ask them to start sending data? Or don't I have any such rights. I don't see any reason to close the account just to apply for a new one,