Just been turned down for a business account.....

[Morgan]

...on account of my credit score which I would have thought was excellent but what do I know. Their email doesn't go into any detail at all.

So I've registered (for free) with CreditExpert and on looking at the report, all looks fine to me? I've never been late to pay anything or missed a payment, nothing outstanding, I'm on the electoral roll etc. So I'm confused as to why I've been turned down.

What should I be looking for that explains their decision?

 

[Media inc]

...on account of my credit score which I would have thought was excellent but what do I know. Their email doesn't go into any detail at all.

So I've registered (for free) with CreditExpert and on looking at the report, all looks fine to me? I've never been late to pay anything or missed a payment, nothing outstanding, I'm on the electoral roll etc. So I'm confused as to why I've been turned down.

What should I be looking for that explains their decision?

Not enough money to be a business in your account.?

 

[Ashley_Price]

Surprisingly you good history could count against you!

I am turned down for credit cards because I have no credit history! My wife finds it difficult to transfer to another credit card because she pays her balance off at the end of the month - so the credit card company doesn't make any money from her.

How many banks have you tried? Don't assume every bank will treat you the same.

 

[Morgan]

Maybe Media but they've specifically cited my credit score as the reason?

Thanks Ashley that could be it. I do do Credit cards/loans at all but have had store cards/accounts ie Next and Monsoon but yes I pay them off straight away.

Tried another one today, my own personal bank, so will see how that goes. And hope they don't tell me off for using my own personal account for the last few years lol. I think applying for each one puts another cross on my account though doesn't it?

 

[Jason_Fisher]

How do they look at Business Accounts? I was accepted when i opened my account and my credit wasn't great to be honest. If you have a viable business plan and a little money to start an account, say £1,000 why would they reject you based on your previous credit? Surely its the potential of your business. Thats as long as you don't require a credit facility.

Sorry if i am wrong, i am just curious.

 

[Mike W]

I think applying for each one puts another cross on my account though doesn't it?

It doesn't put a 'cross' on your account but each time you have a credit check it is recorded. Ergo, if you are seeking a loan/opening an account a days after a previous check, they could conclude you were declined elsewhere before coming to them.

 

[MASSEY]

High street banks are picky. You can use your own bank account as your business account if your really struggling to get one.

 

[Mike W]

As for being declined, it could be any one of a number of things,including that their current policy could be not to take new business accounts.

Not wishing to broadcast that fact, they will hide behind the credit check line*.


*Credit checks are often score based. At times of looking to improve quality or turn away, they just raise the bar.

 

[Indigo Cherry]

If you apply for too many credit facilities within a small amount of time a footstep (record) is made on your credit file. Now, it doesn't say whether you have been granted credit or not, all it says is that a search was made.

Can I ask if it was a computer that rejected you? Or was it a human?

I only ask because a friend of mine works for a major high street bank lending department and their computers are set to automatically reject an applicant if there over so many searches within a set amount of time! But more often than not, the application is then handed to a human and they approve it.

Which bank was it?

Also, worth remembering that having too much available credit is almost as bad as having no credit! Lenders want to know that you can pay back any money they lend you and if they see you with a lot of available credit they sometimes see that as an option for you to get yourself into financial difficulty!

I found that LloydsTSB were the easiest business account to get.

Matt

 

[scothost]

Important to bear in mind when you register with firms to check your score you will get a view based on the way they (callcredit, experian, equifax, etc...)look at your history, so its their opinion, in the main banks dont use this.

What Banks and most lenders do is have their own scorecard. so they take the information that is provided by experian or whoever then put the info in their own systems to come up with a score. Now it really all depends on their criteria for that product as to whether you qualify.

I read a lot about people who say they have a score of 999/1000 on their credit report but cant get loans, that is why.

 

[MASSEY]

You can't fool banks anymore. Before the recession you could get away with things you can not now.

If your borrowing money they will check you at the time of the application and they will check you again before the transaction just to check you have not suddenly borrowed money from elsewhere altering your criteria / eligbility.

 

[Drpepper]

Double post, sorry..

 

[Drpepper]

Use your personal account (if you are a sole trader this isn't a problem), trust me - when you are turning over business amounts of money, and the number of transactions that come with that, they will insist you have a business account and the lovely charges that come with it.

 

[oldeagleeye]

Natwest do a non-status personal and business account. I believe however that you do not get a cheque book just a debit card although you can pay bills via the Internet or DD.

Incidentaly. Some banks as will other credit companies only check what are called the 'Traffic Lights' with the likes of Experian and they might show a red light due to a CCJ at you home that is not down to you and of course as someone stated too many credit applications in 6 months could do it.

If you do have a good credit rating the ask the bank to look again. Anything over 75 out of 100 is usually good enough.

Rob

 

[Morgan]

Thank you all. As I say I have been using a personal one (all be it set aside for business) for the past few years and I feel the time has come that I want a proper business account. Not least because I want to start taking payments over the phone so need a merchant account, business account etc.

It was a human, at least I assume they are human - the chap on the phone said it had gone to the underwriters and they had turned it down on account of my credit. The bank is Santander - I fancied their offer of free business banking for life.

I had ticked the box to request an overdraft but did say if that was the sticking point then I'd do without, I only ticked it as I thought it was wise to have one as a small contingency but it's not a biggie to not have one.

 

[in1980]

I was rejected from a high street bank similarly. Computer said no, basically. I've never been in debt in my life so I suppose that's why. Good payers aren't much use to lenders.