I can't even get a current account! (very long rant, need some good advice)

Coxy_2

Hi all, I'm new here and registered to ask for some advice on why I cannot get a current account.
Let me list my current (no pun intended ) situation to help with possible advice.

I am 21, I live with my parents.
I have lived with my parents in this house for at least 13 years
we are all british nationality, born and bred.
Non of us have ANY criminal records.
We have never had re-payment problems or such (I understand that if someone who has had repayment problems(credit cards etc) and they live under the same roof as you, that this can affect your status) but this is not the case

My mum owns a local business, and is full time employed, my father is full time employed as a local college teacher. I have started a new full time job(albiet just over a month ago) at norwich union as a personal incident manager. However I was at college previously with a part time job, so its not like I was doing nothing.

I have had a capital one card since march, its the one they give to people who can't get cards anywhere else, i'm hit with a 29.9% apr and only a £200 credit limit.(i applied for it when i was at college, at that time i couldn't get anything else because I wasn't in full time employment)

Needless to say i've made repayments on my capital one card, on time, EVERYtime, and always above the minmum, sometimes above the minimum by a few quid but most of the time by at least 30/40 quid.

Now I apply for a current account from smile about a month ago(now im in full time employment) and they turn me down, ok I think maybe they just have strict criterea, so I wait a while then I try for a cahoot account(just now) they only accept aged 21 and over so I thought that I could at least get one with them (I assume they only offer to 21+ because they are a lower risk)

But nope, Turned me down and said they could only offer me a savings account.

My dad has credit cards from a few banks and a couple with massive limits like his MBNA with a £35000 credit limit :eek:

I have my credit report from experian, and nothing shows up funny/dodgy.

I tried the free trial from equifax and it stated I had a FAIR credit rating.

I want to know

A: why I only have a fair credit rating, even though I always repay CC statements, and have no bad history regarding other such things.

B: Why I cannot get a current account ! I mean for christ sake, its just a current account!! :mad: :mad:

C: is there bank out there that is more likely to accept me for a current account than others ?

Many thanks for any reply/advice/comments/questions

and sorry for the long winded reply but this is finally the last straw for me and has really REALLY annoyed me.

Karnam

have you emailed smile to ask why you were turned down? maybe it's just smile (who I've heard are not brilliant at accepting people) try HSBC who will pretty much take anyone? did you ask for an overdraft?

Bossyboots

You only have a fair credit rating because you have not built one up.

My son had a student account and our family situation is pretty much the same as yours. However, when he needed to rent a flat he too only had a fair credit rating and I had to act as guarantor. He didn't have a credit card but he did have a well managed student account and no debts.

You may be better off trying to open an account in a branch. The banks use a system for scoring which they cannot override. This system takes no account of your history as such, nor your money management. Someone at the bank needs to put in a written request to someone or other (I can't remember what they told us they were called) for authority to open an account for you. That way your history is put onto the form and your reasons why an account should be allowed.

Coxy_2

They said I did not reach the required Criteria or whatever

The overdraft came standard but I didn't apply for the creditcard (which they try to push with the current account)

Coxy_2

Thanks bossy boots, thats kinda what I thought I would have to try but its just getting the time off work,

What sort of details/statments and such do you recommend I should take with me? should I bring my parents along?

How long is it before my good repayments and such start going to my advantage, IE how long before I have a good credit rating ?

Bossyboots

Take anything that shows how you handle your money. Any payslips you have along with your credit card statements that show you have paid off the amounts in full every month. Taking one parent along may show that you have a supportive family and that money matters are discussed. They can also back you up (or as in my case, cause a scene) to give some weight to your request.

Some of the banks have advisors available Saturday mornings although any requests will not be dealt with until Monday but hopefully you can find some time to get down to one although your choices may initially be limited.

My son hasn't applied for anything since his last credit check so I don't know whether his rating has improved.

jonesMUFCforever

If you were a student before starting your job ( congratulations on that) did you not have a bank account with someone which you forgot to mention in your initial posting.
Eric

Coxy_2

Natwest, savings account.

They said I need a letter from my employer before they'll open me a current account.

My employer is norwich union, I dont know who the hell do I go to to get a letter??
Its a massive company!

Thanks for the congrats by the way :-)

EDIT: BTW I hate natwest. It took me 3 months just to get online banking with them sorted... and even then it doesn't work right. I'd rather have a HSBC current account or first direct.

My fathers with HSBC and online banking is a breeze he says, In fact I might frog march him up to hsbc in town on saturday see if he can get it sorted with me? do you tthink that would hold any water?

jonesMUFCforever

I would have thought your line manager would be a start or just show them your contract of employment. It may be easier to start off with Nat West as an existing customer keep your nose clean say for 3 months and then transfer your account to somewhere else.
Eric

M_Thomson

Coxy wrote:

Hi all, I'm new here and registered to ask for some advice on why I cannot get a current account.
Let me list my current (no pun intended ) situation to help with possible advice.

I am 21, I live with my parents.
I have lived with my parents in this house for at least 13 years
we are all british nationality, born and bred.
Non of us have ANY criminal records.
We have never had re-payment problems or such (I understand that if someone who has had repayment problems(credit cards etc) and they live under the same roof as you, that this can affect your status) but this is not the case

My mum owns a local business, and is full time employed, my father is full time employed as a local college teacher. I have started a new full time job(albiet just over a month ago) at norwich union as a personal incident manager. However I was at college previously with a part time job, so its not like I was doing nothing.

I have had a capital one card since march, its the one they give to people who can't get cards anywhere else, i'm hit with a 29.9% apr and only a £200 credit limit.(i applied for it when i was at college, at that time i couldn't get anything else because I wasn't in full time employment)

Needless to say i've made repayments on my capital one card, on time, EVERYtime, and always above the minmum, sometimes above the minimum by a few quid but most of the time by at least 30/40 quid.

Now I apply for a current account from smile about a month ago(now im in full time employment) and they turn me down, ok I think maybe they just have strict criterea, so I wait a while then I try for a cahoot account(just now) they only accept aged 21 and over so I thought that I could at least get one with them (I assume they only offer to 21+ because they are a lower risk)

But nope, Turned me down and said they could only offer me a savings account.

My dad has credit cards from a few banks and a couple with massive limits like his MBNA with a £35000 credit limit :eek:

I have my credit report from experian, and nothing shows up funny/dodgy.

I tried the free trial from equifax and it stated I had a FAIR credit rating.

I want to know

A: why I only have a fair credit rating, even though I always repay CC statements, and have no bad history regarding other such things.

B: Why I cannot get a current account ! I mean for christ sake, its just a current account!! :mad: :mad:

C: is there bank out there that is more likely to accept me for a current account than others ?

Many thanks for any reply/advice/comments/questions

and sorry for the long winded reply but this is finally the last straw for me and has really REALLY annoyed me.

You are getting confused between credit ratings and credit scoring. When you apply for accounts each provider allocates you points for the answers you give on your application. An example of this is you may get more points with one provider if you own your own home with others you may not. Each provider has its own way of calculating points and this can change weekly, monthly etc or at certain times of year when they do specific marketing campaigns.

From your post it sounds like you have not had credit for very long. A Capital One card since march is not a very long time for a provider to assess your credit history. Have you never had a current account with any bank at all? Also are you on the Electoral Roll? This is a must when applying for a credit based product like a current account. Both of the providers that you have tried, Cahoot and Smile tend to have stricter criteria for applications then other lenders. To answer question B on your list you say that it is just a current account, but when you get a cheque guarantee card you can guarantee cheques for £100 each so the bank is giving you credit of either £2500 or £3000 depending on the size of the chequebook. Your best bet would be to go with a provider like HSBC or Natwest and open up a bank account with a Solo card which will not allow you to go overdrawn and you also get a chequebook and run it well for Six months to a year and then try again with someone like Smile or Cahoot.

jimclark1967

Cahoot are one of the hardest banks to get a current account with as they cherry pick customers with the best credit ratings. I was declined by them a couple of months ago despite having £25k sitting in one of their savings accounts.

JC