First Direct current account application declined

badger09

Elika0215 wrote: »

OK - The savings account was displayed on the report but without an amount.

Obviously, I just don't tick all the boxes which is one of those things I guess. Shame really as I don't even want an overdraft or any kind of debt. Ho-hum.

Thanks for feedback and thoughts.

Are you sure the savings account isn't just shown as an AML ID (Money laundering/identity check)?

In relation to the current account application, you would need to check credit files for both yourself & the joint applicant. I assume you do know the implications of joint accounts:cool:

Finally, as others have said FD (& HSBC) are known to be choosy.

Elika0215

badger09 wrote: »

Are you sure the savings account isn't just shown as an AML ID (Money laundering/identity check)?

In relation to the current account application, you would need to check credit files for both yourself & the joint applicant. I assume you do know the implications of joint accounts:cool:

Finally, as others have said FD (& HSBC) are known to be choosy.

Thank you.

I'm not sure, no. Just looking at the report again and it doesn't say why they check that savings account but it's all flagged in green - which means all good (rather than amber/red).

Oh, I don't know the implications of a current account - do you mean if the couple divorce or separate?

colsten

Elika0215 wrote: »

Just looking at the report again

What about the report of the other applicant?

muhandis

FD are fussy, every few years I try opening an account for the cashback and get rejected. In that time I've maintained a good credit history, obtained a mortgage, umpteen 0% credit cards, switched many current accounts from across the whole range of banks (including their sister bank HSBC) but FD has without fail always rejected my application. I must be on attempt 5 or 6 by now!

Why? Who knows. I haven't given up though, will try again in a few months

Elika0215 wrote: »

Long story short, I'm trying to sort out my finances and help someone else too.

Problem is an application for a First Direct joint account has been declined and while I know that nobody can give me an full explanation, some opinions would be welcome.

A little info;

- No debts other than this months credit card spend (used for cashback). Card ALWAYS paid in full. One payment missed the deadline by a few days in 2017 due to an oversight.

- All other bills always paid in full and on time (inc historically)

- Have never been overdrawn

- No odd activity such as hefty cash deposits/withdrawals or gambling, overseas transactions. Just normal day-to-day stuff.

- Savings (not tied up) of £80k and mortgage outstanding of £46k

- Net income is pretty much equal to net outgoings

Only things I can think of that may have a negative impact are:

- Just under two weeks ago, bought a car for around £15,500 which was £13,500 cash and £1,500 VW finance loan. I chose the loan so we could benefit from two years free services and intend to pay it off in full within two weeks.

- One of the joint account holders (the first applicant) is employed but the other is unemployed due to disabilities.

- The savings was a recent inheritance so those funds have only been in the account for a month or so

Does anything stand out (I know it's an opinion only) that is the cause of the declined application? If so, any way to fix it or a process that I could follow to find out more?

Oh, and I did talk to First Direct but understandably, they couldn't give me any more information.

Thanks as always.

Elika0215

colsten wrote: »

What about the report of the other applicant?

Thanks for the suggestion.

I've provided them with a link so hopefully we'll get the results soon. I can't imagine that they'd be a problem but who knows, right?!

If anything comes up, I'll post on here.

I've kind of reached the, is this just too much hassle and try elsewhere, point.

eskbanker

Elika0215 wrote: »

the report

Elika0215 wrote: »

the report

Elika0215 wrote: »

the report

Not sure if the use of the singular is significant but just to be clear I was suggesting getting reports from each of the three CRAs - the data on them should be much the same but it's not unknown for there to be differences as they're maintained independently by three separate companies.

Experian is the biggest, followed by Equifax/Clearscore and then TransUnion/Callcredit/Noddle, further details in the article linked previously....

Elika0215

eskbanker wrote: »

Not sure if the use of the singular is significant but just to be clear I was suggesting getting reports from each of the three CRAs - the data on them should be much the same but it's not unknown for there to be differences as they're maintained independently by three separate companies.

Experian is the biggest, followed by Equifax/Clearscore and then TransUnion/Callcredit/Noddle, further details in the article linked previously....

You're right and the advice was appreciated. I've kind of lost momentum after the first check (Equifax) which I shouldn't really as it's always good to check (especially as I hadn't in the past).

I'll do it this weekend (promise!) and let you know if anything is red flagged. Again, thank you.

Emily_Joy

Elika0215 wrote: »

- Net income is pretty much equal to net outgoings

My guess this is it. Or the fact that the other one is disabled.

My account application included a lengthy conversation (over the phone) about my daily commute to work. It appears they like "reasonable" people who are not likely to cause them any trouble.

badger09

Elika0215 wrote: »

Thank you.

I'm not sure, no. Just looking at the report again and it doesn't say why they check that savings account but it's all flagged in green - which means all good (rather than amber/red).

Oh, I don't know the implications of a current account - do you mean if the couple divorce or separate?

One of the implications of a joint current account is that you create a financial link. This means that if one has bad credit history, it can impact on the other. Also, if one runs up an overdraft, the other is equally responsible for repaying it.

This might not be an issue for you and whoever you're considering as a joint account holder, but you should both be aware of it.