Nationwide Flex bank account, no overdraft requested- hard credit search?

jmb1

Hi all. I am applying for a new bank account with Nationwide. I don't need an overdraft and hoped therefore they wouldn't need to perform a hard search. But I'm at the end of the application and it states "By clicking 'Finish application', you're agreeing that we can run a hard credit check using the information you’ve given us. This will leave a record on your credit file that other lenders can see, and might affect your ability to get credit elsewhere for a short time."

Can anyone confirm this is definitely true? I don't really want a hard search on my account as I am soon going to apply for a personal loan and don't want to risk that being rejected because they see a recent hard search (albeit just for a new bank account).

[Deleted User]

My understanding is that a hard search is always carried out when opening a bank account.

jmb1

Ok, will this hard search affect any subsequent applications? I have excellent credit score so dont have a fear of that, just dont want as i say to potentially hamper any future loan application because of it.

jmb1

Got on to Nationwide via online chat, who say as im only applying for an account with no overdraft and thus no credit, it is just a soft search

Daliah

Even if they did do a hard search, it wouldn't matter if it is just an occasional one.

[Deleted User]

I based my response on my own personal experience opening a basic bank account with Barclays.  Basic accounts have no overdraft facilities but I still have a hard search on all 3 CRA's for this.  Presumably Nationwide must operate differently.

wiseonesomeofthetime

I have never had an overdraft.

When I opened my Nationwide Flex account, there was a hard search.

[Deleted User]

jmb1 said:

Got on to Nationwide via online chat, who say as im only applying for an account with no overdraft and thus no credit, it is just a soft search

That would likely be incorrect - bank/building societies will usually require a full credit check.

The debit card that comes with the FlexAccount will work offline (where required). It therefore may allow the account to go slightly overdrawn on occasion as the bank cannot decline and has to honour those offline transactions. 

jmb1

Ok so then it begs the question, on the assumption it leaves a hard search, will it cause problems when applying for a loan later down the line given my very good credit score?

I think ultimately probably not worth the risk changing bank at this stage though.

General_Grant

How many other new current accounts have you tried to open this year?
How many new credit cards have you applied for this year?
How many mortgages have you applied for/ported this year?

If none, then don't worry.
If lots, then wait a bit before applying for a loan.

One or two hard searches are unlikely to affect a decision about a loan.

kaMelo

jmb1 said:

Ok so then it begs the question, on the assumption it leaves a hard search, will it cause problems when applying for a loan later down the line given my very good credit score?

I think ultimately probably not worth the risk changing bank at this stage though.

Don't place any weight on your "very good credit score" If the credit reference agencies were lenders then things would be different but they're not, as it is the only person who sees your score is you so don't pay much attention to it.

All financial institutions base lending decisions on a variety of factors including the information contained within your credit file. Firstly make sure it's accurate, then as long as you are on the electoral role, have no missed payments and are not planning on taking out a mortgage in the near future a few hard searches are neither here nor there.
For reference I have probably had around six or seven hard searches on a rolling twelve month basis for the last few years and never had an issue.

Don't let a hard search put you off a switch offer.