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Post by moonraker on Sept 17, 2016 15:49:04 GMT
Today's Daily Telegraph "Money" section has an article about a young lady with £40K to invest. It says that her applying to open a number of high-interest savings accounts had affected her credit rating and she had recently been turned down by Tesco and RBS.
The journalist, Amelia Murray, states that having a multitude of accounts should not affect a credit score too much as long as they are kept in order with little access to credit. "Opening accounts at the same time can have a short-term effect, though." These comments are in the context of savings accounts. (I could understand if someone was trying to open a number of credit accounts at the same time.)
This surprised me, as being able to afford a number of accounts suggests the person is solvent - or would money-laundering be suspected?
Any thoughts?
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ben
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Post by ben on Sept 17, 2016 15:57:33 GMT
A lot of the higher paying saving accounts are loss leaders at the moment for the banks, the banks make money when people use their other services. So chances are someone opeing multiple saving account is not going to go into there overdraft as they have sufficent funds, so there be turned down more as the bank does not really want them at that time.
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stevio
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Post by stevio on Sept 17, 2016 16:40:44 GMT
Increased number credit checks in short time period (even for bank account) look desperate
Also, some have overdrafts, so credit limit reached, even if not used
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spyrogyra
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Post by spyrogyra on Sept 17, 2016 16:42:27 GMT
Whether the bank loves or hates you for what you do with your surplus money, it shouldn't affect your credit rating. Imagine someone is cashing in investments and puts them into saving accounts short term hopeful to arrange a residential mortgage. If his/her credit rating is affected, he/she may be not eligible for the best deals on the market.
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spyrogyra
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Post by spyrogyra on Sept 17, 2016 16:43:54 GMT
It just shows how PARANOID institutions are.
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Post by dualinvestor on Sept 17, 2016 17:21:40 GMT
Today's Daily Telegraph "Money" section has an article about a young lady with £40K to invest. It says that her applying to open a number of high-interest savings accounts had affected her credit rating and she had recently been turned down by Tesco and RBS. The journalist, Amelia Murray, states that having a multitude of accounts should not affect a credit score too much as long as they are kept in order with little access to credit. "Opening accounts at the same time can have a short-term effect, though." These comments are in the context of savings accounts. (I could understand if someone was trying to open a number of credit accounts at the same time.) This surprised me, as being able to afford a number of accounts suggests the person is solvent - or would money-laundering be suspected? Any thoughts? Multiple applications to open accounts lead to money laundering suspicions and are nothing to do directly with credit also the person might have been the subject of identity theft. This will get reflected on their credit record but should not be too long lasting.
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Post by trentenders on Sept 17, 2016 17:43:40 GMT
They won't be savings accounts - They'll be current accounts instead (that are used for saving) and therefore capable of offering a credit facility.
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Post by moonraker on Sept 17, 2016 19:08:01 GMT
I've emailed the journalist asking for amplification.
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fp
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Post by fp on Sept 17, 2016 22:30:35 GMT
I have over 15 savings and current accounts, my credit rating is 999, so I find this inaccurate, clearly there is some other underlying factor not taken in to account
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Post by wildlife2 on Sept 17, 2016 22:39:24 GMT
I suppose it must be because of the age (21), no history yet.
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adrianc
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Post by adrianc on Sept 18, 2016 8:14:00 GMT
They won't be savings accounts - They'll be current accounts instead (that are used for saving) and therefore capable of offering a credit facility. There's also the possibility that somebody with malicious intent could be opening savings accounts to pass the identity requirements, then opening a borrowing-possible account off the back of already being a customer.
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Post by westonkevRS on Sept 18, 2016 18:58:54 GMT
I have over 15 savings and current accounts, my credit rating is 999, so I find this inaccurate, clearly there is some other underlying factor not taken in to account There is no such score as 999, sorry to upset you. This is a default score used by the rating agencies when they cannot provide a score, e.g. they cannot find your address or you have a thin file. Customers often claim when they are declined for credit, saying " but I've got a 999 score"....
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Post by westonkevRS on Sept 18, 2016 19:04:37 GMT
Increased number credit checks in short time period (even for bank account) look desperate Also, some have overdrafts, so credit limit reached, even if not used Much depends on how the search is registered, as it often it will not designate between a bank searching for credit or a savings account. Simply that a credit or ID search was made by a bank, and so when another credit company sees that they won't know the reason. So it could give the impression that they've applied for 15 loans - it depends on the banks registering the searches and if the company looking at the searches bothers to differentiate, or just counts them (as most financial services firms do). In reality though searches don't impact your credit score much, and only in the short term marginally. However financial organisations will have 'Credit Policy, i.e. a set of rules. So you could score well, but over 'x' searches could be a sign of desperation, fraud (you've had a take-over) or just someone shopping around. This could trigger an auto-decline or an underwriter referral. Kevin.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Sept 18, 2016 19:36:53 GMT
I have over 15 savings and current accounts, my credit rating is 999, so I find this inaccurate, clearly there is some other underlying factor not taken in to account There is no such score as 999, sorry to upset you. This is a default score used by the rating agencies when they cannot provide a score, e.g. they cannot find your address or you have a thin file. Customers often claim when they are declined for credit, saying " but I've got a 999 score".... Really, what do you need to do to get a credit rating then, given Ive lived at the same address for 30 yrs and have lots of entries for accounts, credit cards, credit checks and credit agreements. I also sail through nearly all AML/KYC checks without documentation requirements. That said I know the we've checked your credit rating excuse for declining applications is nonsense a lot of the time. It all depends on what you put in the salary box, too low and they dont even bother checking (no search registered) even if you have plenty of assets and non salary income, at least for mianstream banks. fp check what it is on Noodle, because Experian seem to be much less accurate, mines 999 on Exp so I guess Im in the default score group, not as high on Noddle (callcredit) but still good.
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fp
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Post by fp on Sept 18, 2016 20:11:39 GMT
There is no such score as 999, sorry to upset you. This is a default score used by the rating agencies when they cannot provide a score, e.g. they cannot find your address or you have a thin file. Customers often claim when they are declined for credit, saying " but I've got a 999 score".... Really, what do you need to do to get a credit rating then, given Ive lived at the same address for 30 yrs and have lots of entries for accounts, credit cards, credit checks and credit agreements. I also sail through nearly all AML/KYC checks without documentation requirements. That said I know the we've checked your credit rating excuse for declining applications is nonsense a lot of the time. It all depends on what you put in the salary box, too low and they dont even bother checking (no search registered) even if you have plenty of assets and non salary income, at least for mianstream banks. fp check what it is on Noodle, because Experian seem to be much less accurate, mines 999 on Exp so I guess Im in the default score group, not as high on Noddle (callcredit) but still good. Not quite perfect, but i'm not paying £30 to find out why! Cheers 
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