How bad does your credit score have to be to be refused a bank a/c?

Lions_89

I have only ever been refused an account at Santander (I was a previous customer in good standing and credit record was fine) I think a lot of banks want profit, above all else. If you seem like you won’t be profitable they probably are not interested. Other banks all took me back and I have been with all the big four back and forth over the years.

phillw

Volcane said:

HSBC declined me despite a clean and healthy credit report so I guess customer profiling has a large part to play.

Was that an advance account? That used to be based on income, I was rejected the first time and accepted the second.

phillw

buel10 said:

Hi all.
Best mate missed a few payments on credit cards before Christmas and tried to open a bank a/c with Lloyds last week but thinks he seen the message that he was refused due to his credit score? (he currently has two bank a/cs with HSBC)
I thought things have to be pretty damn bad before one is refused a bank account, as in CCJs, etc?

Now that banks are restricted to what they can charge you if you go into an overdraft, they are more careful.

Some will only accept you if they think you qualify for an overdraft of a certain amount, no matter how big an overdraft you want.

This is a red flag "thinks he seen the message that he was refused due to his credit score?", I doubt that message exists. Which makes me wonder if he even tried to open the account.

Why are you getting involved?

Bigwheels1111

Get him to look at say Chase, soft search only.
I have perfect credit, turned down for an O2 £5 a month sim only contract last week.

Volcane

phillw said:

Volcane said:

HSBC declined me despite a clean and healthy credit report so I guess customer profiling has a large part to play.

Was that an advance account? That used to be based on income, I was rejected the first time and accepted the second.

Yes it was the one I applied for. Should have met the income requirements although none are mentioned. Application rejected and said also couldn’t offer me their standard current account either. I have a well run bank account ( and credit card) with their First Direct banking division.

GeoffTF

Volcane said:

Application rejected and said also couldn’t offer me their standard current account either. I have a well run bank account ( and credit card) with their First Direct banking division.

Perhaps that was the reason. I do not expect that HSBC does not want First Direct customers to switch to branch based banking. All the banks are trying hard to get people to do the opposite.

WillPS

Bigwheels1111 said:

Get him to look at say Chase, soft search only.
I have perfect credit, turned down for an O2 £5 a month sim only contract last week.

What is "perfect credit", please? As far as I know there is no such thing in the UK and lenders each have their own ideas about what constitutes "perfect".

[Deleted User]

GeoffTF said:

Open a basic bank account:

https://www.moneyhelper.org.uk/en/everyday-money/banking/basic-bank-accounts

https://www.moneysavingexpert.com/banking/basic-bank-accounts/

He isn't entitled to a basic account if he has a standard account elsewhere (unless it being closed)

Volcane

GeoffTF said:

Volcane said:

Application rejected and said also couldn’t offer me their standard current account either. I have a well run bank account ( and credit card) with their First Direct banking division.

Perhaps that was the reason. I do not expect that HSBC does not want First Direct customers to switch to branch based banking. All the banks are trying hard to get people to do the opposite.

 Yes, perhaps, but unfortunately they never specifically tell you why so it’s speculation at best.