Does having basic accounts be frowned upon by lenders

Jammy79

Hi, i have a couple of basic accounts and a couple of current accounts. The basic accounts are from having bad credit in the past and nobody would give me a current account.

I now have current accounts with nationwide and Barclays. I'm hoping to get a mortgage within 12-24 months and was wondering if having the basic accounts on my credit files could be frowned upon by potential lenders as personally I see it as a giveaway of poor past credit management and was wondering if potential mortgage providers would think the same? 

Should I close them?

MorningcoffeeIV

No. They're fine.

Casskale

Jammy79 said:

Hi, i have a couple of basic accounts and a couple of current accounts. The basic accounts are from having bad credit in the past and nobody would give me a current account.

I now have current accounts with nationwide and Barclays. I'm hoping to get a mortgage within 12-24 months and was wondering if having the basic accounts on my credit files could be frowned upon by potential lenders as personally I see it as a giveaway of poor past credit management and was wondering if potential mortgage providers would think the same? 

Should I close them?

Basic accounts are not flagged as such on credit files so it won't affect your creditworthiness at all. They're just shown as current accounts with no overdraft, just the same as a full-fat current account with no overdraft.

Jammy79

I subscribe to Equifax and they show it as basic accounts for both nationwide and Halifax. 

MorningcoffeeIV

That's what you see on your files. Not what lenders see.

nyermen

As someone who has worked previously in credit scoring areas (mainly related to regulatory submissions), from my side no scoring model I've ever seen has had such information included (in fact, because it can't be provided to us, only negative balances - ie. current debts - are shown).  What we have received information on is types of DEBT (eg. Pay day loan vs "highstreet bank" lending).

Edit: Apologies, didn't spot that this was from a few weeks ago.  Another forum "random post appearing on the front page" issue

surreysaver

As a basic account cannot go overdrawn, would it even appear on a credit file?

MorningcoffeeIV

surreysaver said:

As a basic account cannot go overdrawn, would it even appear on a credit file?

Yes, as it can still go overdrawn.

fatbelly

surreysaver said:

As a basic account cannot go overdrawn, would it even appear on a credit file?

Yes - it appears as balance zero, as positive (i.e. savings) are not recoded on a credit file

Rob5342

surreysaver said:

As a basic account cannot go overdrawn, would it even appear on a credit file?

It can still go overdrawn. An offline payment on a plane or something like the London underground where the amount gets updated later can cause any current account to go overdrawn. When we opened a FlexOne for our 13 year old daughter they warned that going overdrawn was still possible.

I've had basic accounts before and they show on my credit report.