Current account - 6 years after bankruptcy

JamesPortal91

I am looking at getting a new current account in the new year as my bankruptcy is due to be removed from my credit file. Should this be straight forward or should I expect any issues?

I would then like to also get a joint account with my partner once I have been accepted for the current account. 

If anyone has done this, can anyone recommend the best bank to apply with?

retiredbanker1

Check your credit files with the main credit reference agencies once the bankruptcy has expired.

If you had old debts with any bank don't expect them to welcome you with open arms - you may have to get a basic account to start with and work your way up again.

IMO having a joint account is a bad idea - unless your partner's credit rating is already worse than yours you may drag down her 'score'.
You may not get any lending products for a while - if she has a decent rating then perhaps she could apply for you both.

WillPS

Agree on the joint account - avoid it until you're happy your credit availability is no longer affected, and perhaps even completely if your partner has accounts with banks who still aren't happy to have a banking relationship with you.

JamesPortal91

I use to bank with natwest and know they wouldn’t except me. I queried this last year as this would have been the easiest option for a joint account.

I’m hoping once the bankruptcy is removed next month, my score might increase. The score hasn’t changed to much over the last 6 years and I’ve been very good.

I currently have a basic bank account. I wanted to try a current account as an individual to ensure it’s approved. I would want the joint account rejecting and impacting my partner.

who would you  advise are a good bank to try? I know banks refuse whilst I’m bankrupt but thought they wouldn’t if my score was fair/good and I have missed any payments etc etc.

friolento

Starling Bank, may be? Just the other day, they advertised how easy it is to open a joint account with them

WillPS

JamesPortal91 said:

I use to bank with natwest and know they wouldn’t except me. I queried this last year as this would have been the easiest option for a joint account.

I’m hoping once the bankruptcy is removed next month, my score might increase. The score hasn’t changed to much over the last 6 years and I’ve been very good.

I currently have a basic bank account. I wanted to try a current account as an individual to ensure it’s approved. I would want the joint account rejecting and impacting my partner.

who would you  advise are a good bank to try? I know banks refuse whilst I’m bankrupt but thought they wouldn’t if my score was fair/good and I have missed any payments etc etc.

I'm not really sure but please ensure your partner is fully aware of the impact this might have on their own ability to get credit before jumping in to it. Is there something specific you want a Joint Account for? We might be able to suggest an alternative solution that wouldn't create a link between your credit profiles, but we'd need to know what the perceived benefit would be to you of one.

JamesPortal91

My partner wants a joint account as this would be our main account for all income and outgoings. She is aware of my history and suggested applying for one in the new year to allow additional time.

I have thought about starling in the past, but was hoping to go with one of the larger banks. I presume in the next 4 weeks things will be clearer in regards to my credit file.

I thought as it’s been 6 years and the bankruptcy would drop off, I might not have any issues with applying for a current account. I have credit cards which have been maintained and expect to my score to increase when this drops off.

WillPS

JamesPortal91 said:

My partner wants a joint account as this would be our main account for all income and outgoings. She is aware of my history and suggested applying for one in the new year to allow additional time.

I have thought about starling in the past, but was hoping to go with one of the larger banks. I presume in the next 4 weeks things will be clearer in regards to my credit file.

I thought as it’s been 6 years and the bankruptcy would drop off, I might not have any issues with applying for a current account. I have credit cards which have been maintained and expect to my score to increase when this drops off.

It's not so much the bankruptcy as the lack of a record on your side, AIUI. And of course regardless of the fact the bankruptcy no longer shows the lenders who lost out when you went bankrupt will know about that for longer, better to just leave the wall up a bit longer while you rebuild if you can.

You might be able to achieve what you desire using a Barclays account (in either one of your names) with the other party added as an 'Account supervisor': https://www.barclays.co.uk/ways-to-bank/authorised-users/

There are also prepaid products which might help.

JamesPortal91

I did suggest revolut as I don’t think that creates a financial link but seen a few issues with it recently. I will keep an eye out and have to go through my file against in the new year. The only current account involved was natwest. I did initially try a current account earlier before I knew I couldn’t have one. Presume I would have to avoid those as they will have on record that I’m refused. Shame I can’t remember who it was.

eskbanker

JamesPortal91 said:

I’m hoping once the bankruptcy is removed next month, my score might increase. The score hasn’t changed to much over the last 6 years and I’ve been very good.

[...]

I know banks refuse whilst I’m bankrupt but thought they wouldn’t if my score was fair/good and I have missed any payments etc etc.

Just to be clear, banks don't look at your 'score', which is basically a figure made up by independent agencies, but run their own proprietary algorithms to determine if you fit their profile, so don't rely on a number invented by someone else.  However, to do this the banks do get hold of your credit history, i.e. the underlying data, rather than the score - do your credit files show any recent experience of managing credit responsibly or have you not had access to any since the bankruptcy?

JamesPortal91 said:

I would want the joint account rejecting and impacting my partner.

Presumably that's missing a 'not'?!

JamesPortal91

Yes that should have read … I would not want the joint account refusing. I have had a loan and a credit card whilst bankruptcy is on my file and I have never missed a payment for anything. There are only 3 missed payments remaining from October 2017 and will be removed next month.

Everything has been positive. I will be checking my file mid way through October and raising any issues but as it stands, everything negative should be removed.