Reply to: Business Bank account.

[northernladuk]

Can SC be gotten where one had defaults on their credit file, and have now disappeared (over 6 years)?

There is not black and white but on this alone it is highly likely it won't be a problem. SC looks in to wether or not you are risk to security, can be blackmailed, untrustworthy etc. Current serious debt could make you open for blackmail but simple stuff this long ago should be ok.

There is an SC thread sticked with many of these questions already asked.

[kingcook]

You probably won't get high level security clearance or a job in a bank but other than that you should be OK.

Can SC be gotten where one had defaults on their credit file, and have now disappeared (over 6 years)?

[Wanderer]

I'm about to go contracting and will need a business account (also setting up a Ltd) but as my credit record is trashed (although no CCJ's or anything) will I be able to?

You probably won't get high level security clearance or a job in a bank but other than that you should be OK.

[Wanderer]

they have not given a reason but they will not be able to open an account.

The Bank manager did mention that it could be
something to do with the residential address and it's better that I Get that sorted out. He also suggested that I do a credit check with vendors like
Experian. If this bank is not going to open up an account for me, it is going to be the same issue with any other bank too.

1. Stop worrying
2. Follow Clippy's advice

OP, you can obtain a £2 statutory credit report for yourself from the three UK credit reference agencies:

Callcredit
Equifax
Experian

3. Figure out what the problem is and get it sorted out - it's most likely something simple/dumb that they have got their hooks into and you just need to set the record straight.

Don't go applying for accounts all over the high street, they will wonder why everyone else has done a credit search on you and you are still looking for an account then get suspicious and turn your account down for no other reason.

It's most likely something simple that you can put right but your credit search will reveal all.

[kingcook]

Exact same situation, with those two banks. Santander get some bad press, but the account was opened quickly and has worked without any dramas. Of course, most of the bad press comes from when you actually try and speak with someone at Santander, but if you bank online and your affairs are simple, then hopefully they should be fine.....

I know what you mean there. Account was opened without problems.

At that point i decided to move my personal current account aswell, as there was some offer of £100. What a nightmare!!

My details mixed up with my business account, then my application was lost, then they asked me to send in ID (again). At that point i stopped.

Still got my business bank with them though, like you say, only need to access it online now and again. No problems.

I hear that they are moving their call centres out of India due to all the bad press they have been getting. Hopefully things will get better for them!!

[Crack Addick]

I tried with HSBC, computer said no. Then Santander, computer said yes.

Try a few banks.

Exact same situation, with those two banks. Santander get some bad press, but the account was opened quickly and has worked without any dramas. Of course, most of the bad press comes from when you actually try and speak with someone at Santander, but if you bank online and your affairs are simple, then hopefully they should be fine.....

[SueEllen]

OP, you can obtain a £2 statutory credit report for yourself from the three UK credit reference agencies:

Callcredit

Equifax

Experian

It had been several years since I checked my credit history so I ordered these recently.

I didn't want to sign up for a month trial of a CreditExpert type service so ordered the statutory reports instead and either paid by cheque or made a one off payment online.

I received all three reports in the post within a week, some within a few days - obviously, this will be no good if you are in a rush.

You may also want to have a look at this if you have time - National Hunter

More information about them here - The Secret Credit Agency

[northernladuk]

Oh, I was not aware of that. My accountant said that it is just fine to have a 50/50 split. I will need to check on this then.

That is the problem, there seems to be differing opinions. Some say 50/50 is fine, others say it looks like incoming shifting. Doing a 70/30 split with you getting most of the divi because you are the earner looks better on paper and may be the difference between making yourself a target. At the end of the day you can take 30 odd K of divis before paying the upper rate. Will you really be earning enough to be able to give your other half another 30k?

The conversation is long and based on different opinions but it is worth a read so you are sure.

You might find that your accountants perception of what you pay yourself is different as well. Some say 7k some say 12k. Again there seems to be no right or wrong with each arguing their case.

[Clippy]

OP, you can obtain a £2 statutory credit report for yourself from the three UK credit reference agencies:

Callcredit

Equifax

Experian

It had been several years since I checked my credit history so I ordered these recently.

I didn't want to sign up for a month trial of a CreditExpert type service so ordered the statutory reports instead and either paid by cheque or made a one off payment online.

I received all three reports in the post within a week, some within a few days - obviously, this will be no good if you are in a rush.

[TraceRacing]

fortunately I don't have an IVA - the worst is that one of the creditors has a hold on our house (for some reason they targetted the missus as it was a personal loan on our joint bank account but she hasn't worked for years) so as and when we sell the proceeds will pay them off (it's my intention to pay them off long before I sell)...

I use a company called payplan who I make a payment to each month and they divvy it up and pay the creditors and as it's government funded there are no fees etc which makes it simple for me.

[JamJarST]

umm, embarrassingly this is pertinent to me.

Over the years I overspent and got into a position where I had to reach an agreement with my creditors (mainly credit cards) as I couldn't afford to pay them. I've had this agreement in place about 5 years now and pay religiously every month to clear off the debt. It will still take several more years before it's all repaid.

I'm about to go contracting and will need a business account (also setting up a Ltd) but as my credit record is trashed (although no CCJ's or anything) will I be able to?

I am the same, I have an IVA so a formal agreement with my creditors and very poor credit, I appear as a bankrupt, but I got a Santander Basic Business Account without any problems.

[SueEllen]

umm, embarrassingly this is pertinent to me.

Over the years I overspent and got into a position where I had to reach an agreement with my creditors (mainly credit cards) as I couldn't afford to pay them. I've had this agreement in place about 5 years now and pay religiously every month to clear off the debt. It will still take several more years before it's all repaid.

I'm about to go contracting and will need a business account (also setting up a Ltd) but as my credit record is trashed (although no CCJ's or anything) will I be able to?

In the current climate you won't be able to get a standard business account. However their are some banks (Natwest is one I think and co-op another) that offer business accounts without any debt facilities i.e. you cannot go overdrawn.

I suggest you check this out asap before you decide to set up a limited.

One thing is when you go into the banks be firm with them and do not let them do a credit check or push you into another sort of business account. Remember the staff get bonuses/incentives for pushing accounts on you where they may charge you loads further down the line.

[TraceRacing]

umm, embarrassingly this is pertinent to me.

Over the years I overspent and got into a position where I had to reach an agreement with my creditors (mainly credit cards) as I couldn't afford to pay them. I've had this agreement in place about 5 years now and pay religiously every month to clear off the debt. It will still take several more years before it's all repaid.

I'm about to go contracting and will need a business account (also setting up a Ltd) but as my credit record is trashed (although no CCJ's or anything) will I be able to?

[JamJarST]

No, this is for a free trial. And they want the card details to do the credit check. But wonder why they would need the CVV number?

Because if you forget to cancel the account, they charge you when the "free trial" is up. Experian do the same and it seems wrong that a company that pretends to want to help you with you credit rating would employ dodgy business practices like this.

[Bumble79]

While you are doing this make sure you get a good accountant that is aware of contractor ways. When you are discussing set up with him look very carefully at the input of your husband to your business and the split of dividends/payments to him. I mention this as there has been a very long and interesting discussion on it recently. 50/50 splits appear to be frowned upon with a 70/30 or something like that being preferred. Might just check this out before it disappears off the recent pages.

Oh, I was not aware of that. My accountant said that it is just fine to have a 50/50 split. I will need to check on this then.