Student bank account

banana387

I applied for a student bank account because I'm going to university in September and my application got rejected, however it was accepted at nationwide.
I haven't had a credit card before and so I'm not sure why I was rejected. I did open a new current account shortly before this might be why.

My question is will the rejection appear on my credit report? What would be the best way to use my student account so that I can get a credit card eventually?

[Deleted User]

Decisions don't appear on your files, only searches.

Stay out of your overdraft, keep your ER up to date. In due course, try a subprime lender for a credit card, but don't worry if you can't get one for a while.

And if you do get one, make sure you know how to use it 

banana387

Thanks. Does using the card for day to day purchases affect my credit report?

[Deleted User]

Lenders will report your balance and payment on a monthly basis. You'll want to show that you clear it in full each month.

banana387

I have another bank account elsewhere with 1% cashback, would you say it would be more beneficial to use my nationwide card regularly instead with regards to my credit report?

[Deleted User]

If it's a debit card, it doesn't matter. Your current account will just show as zero each month, as long as you don't use your overdraft.

If one card gives you cashback and one doesn't, use the one with the cashback.

Ebe_Scrooge

banana387 said:

I have another bank account elsewhere with 1% cashback, would you say it would be more beneficial to use my nationwide card regularly instead with regards to my credit report?

You keep referring to your credit report - what is your ultimate aim here?

If you're wanting to build up a good credit history with a view to obtaining a mainstream credit card, loan or mortgage in the future, then you need to show a history of responsible borrowing and repayment.  The usual way of doing this is to apply for a sub-prime credit card, use it for routine spending, always repay the whole balance in full every month, on time, without fail.

As ZX81 says, what you can do in preparation is make sure you're on the ER, and don't use your overdraft.

Using a debit card won't do anything to your credit history.  It won't do any harm, and if you like the cashback then that's great.  But in itself, it won't be doing anything to build up a credit history - because, by definition, you're not using a line of credit when you spend on it (other than if you go into your overdraft - which, apart from costing you money, will be viewed as a negative rather than a positive on your credit file).

If you don't actually need a credit card right now then just carry on using your debit card, keep out of your overdraft, keep your ER details up to date.  If you have mobile phone contract, that will go a small way to starting to build up a credit history (though don't go spending money purely for the sake of your credit history).  After a period of stability, you should be able to apply for a sub-prime credit card, use that responsibly for a year or two, then you'll be better-placed to apply for a mainstream card.