Personal Credit Rating
You have a less than perfect personal credit rating and come across ready made companies with bank accounts. "The silver bullet" you think, "I'll buy one of those, have a company and get a bank account thrown it and then I'll be ready to go"
It is possible for company formation agents to form a business entity using nominee directors and secretaries and shareholder. On the basis that they have a strong relationship with their own bank, the formation agent can submit those companies to the bank and request that bank accounts are opened in the company's name.
The bank accounts come back and "hey presto" you have a ready made company with a bank account attached, fully equipped with a cheque book and online banking facilities. The companies then go on sale.
Bad Credit History
After having been turned down at several banks due to your bad credit history, (that dispute two years ago with your mobile phone company who sent you a phone which then stopped working after only two months. Endless calls to the customer support department were less than fruitful) you decide to buy one of these companies.
If you own the ready made company and it owns the bank account, then you're home free. Or so you think.
Purchasing a ready made with a bank account may mean that you get to own the company for life, but only get to own the bank account for two to four weeks, if that.
Banks Checking and Money Laundering Procedures
For each request for a person to be a added as a signatory to a specific company bank account, most banks will conduct their usually checking and money laundering procedures just as they would in cases where the account is being opened from scratch.
Within a matter of minutes, your credit history is presented by the bank manager's computer screen (with a big red "X").
Rejection is never easy to take and you experience again the disheartening woes as you walk out of the bank with a ready made company whilst the bank account stays in the mangers office.
Clean up a Bad Credit History
What can you do now?
Clean up your credit history is probably a good start.
Talking to (or perhaps writing this time) to your old mobile phone company to explain the issues of the past and the effect it is having on your present. See if you can come up with an amicable solution to resolve the matter. Once this is done, you can start pestering them to remove their adverse verdict from your credit scoring record.
They are also specialist credit advisers who claim to be able clear unsightly credit histories.
Perhaps just another silver bullet, pot of gold at the end of the rainbow and so on.