HSBC Basic Acc - upgrade? When?

ryuuoo · 31 August 2014 at 11:02AM

Hi all,

When I was 18 I opened my first bank account with Barclays with my parent's address. That was a year and a half ago now.

Last September (a year ago) my dad encouraged me to get an account with HSBC "because they were better..." (yeah right...!) So I did but only got accepted for a basic account which I have used as my main account since then.

I have now closed my Barclays account and only have the HSBC Basic account.

I have a job which pays a good 1200 a month in to the account, I have 3 direct debits, put all my spending either on the debit card or on my Barclaycard.

Back in May I wanted to upgrade the basic acc to a current bank account, so that I could start saving, get a contactless card etc... but got declined by HSBC because of my credit rating.

A few months have passed since then, Noddle says I've got a 3/5 and I don't see what could be wrong on my credit report, I'm on the electoral roll, same address for over a year, have had a credit card for 9 months now...

So I thougt as I am a student I would apply for a student account with them.

After being thrown around London one afternoon because no one could do it for me on the day because "I needed an appointment and the earliest is sept 12th"... (!) I talked to a guy in the warren st branch and said that I would need to open a student account and then close the basic as the couldnt just automatically change it as he thought he could. And that would involve a credit check.

What do you think? Should I leave it a few months for my report to smooth out from recent searches and everything? or should I change banks...?? I'm stuck with this HSBC basic account where I can't save or anything...

Thanks.

bengal-stripe · 31 August 2014 at 12:35PM

ryuuoo wrote: »

So I thougt as I am a student I would apply for a student account with them.

Just wait for "Fresher's week" at your university. All the banks are falling over themselves to sign up new accounts. Check them out and open an account with the bank that offers you the most incentives.

Even if you are not a first year student, there is no rule that you cannot sign up at fresher's week.

10pence · 31 August 2014 at 5:41PM

The guy at the Warren St branch is talking nonsense; you can upgrade a HSBC Basic to Student account as long as you meet the criteria and yes you will be credit scored.

When you tried to upgrade last time did it actually say you failed due to credit score, because if it did then HSBC would have told you which credit reference agency (CRA) they used. Or, was it failed due to you not meeting HSBC's criteria for the upgrade?

There is a very distinct difference between the two. Before attempting the upgrade find out which one, because if it's HSBC own internal score card the chance of upgrading are slim at best.

If you did what the chap at the Warren St branch suggests, the account will either reject due the BBA or require a referral to credit underwriter. Wouldn't surprise me if the chap said do it that way as only way for them to get points for target: last time I checked on points for upgrade from BBA to Student AC, possible some if credit card offered and taken but not as much as a new Stu AC and more with c/card.

ryuuoo · 31 August 2014 at 11:30PM

10pence wrote: »

The guy at the Warren St branch is talking nonsense; you can upgrade a HSBC Basic to Student account as long as you meet the criteria and yes you will be credit scored.

When you tried to upgrade last time did it actually say you failed due to credit score, because if it did then HSBC would have told you which credit reference agency (CRA) they used. Or, was it failed due to you not meeting HSBC's criteria for the upgrade?

There is a very distinct difference between the two. Before attempting the upgrade find out which one, because if it's HSBC own internal score card the chance of upgrading are slim at best.

If you did what the chap at the Warren St branch suggests, the account will either reject due the BBA or require a referral to credit underwriter. Wouldn't surprise me if the chap said do it that way as only way for them to get points for target: last time I checked on points for upgrade from BBA to Student AC, possible some if credit card offered and taken but not as much as a new Stu AC and more with c/card.

Last time I tried to upgrade they told me it was because my Experian score was not good enough, and was told to contact them. Is that somewhat better than being rejected by HSBC themselves?

I mean, I know HSBC are strict but I didn't know they were this strict. When I was with Barclays they automatically upgraded my Young Person's account to a Current Account without me needing to ask for it, they gave me a contactless debit card when I asked for it and got a Barclaycard Freedom Rewards credit card when asked for it too... It's a bit of a downer, especially since now my economical situation is much much better than when I was with Barclays and my student loan is to be paid in soon....

I don't get why HSBC wouldn't want my custom...

10pence · 1 September 2014 at 12:06AM

ryuuoo wrote: »

Last time I tried to upgrade they told me it was because my Experian score was not good enough, and was told to contact them. Is that somewhat better than being rejected by HSBC themselves?

I don't get why HSBC wouldn't want my custom...

Banks don't see you credit score or credit report; for HSBC at the decision screen it will say something long the lines of, "Experian Credit data used", or which ever CRA they've used - HSBC will use all three at various times and sometimes all at same time.

Sounds like you failed HSBC internal scoring system, as you mention a Barclaycard so must have a decent enough credit score. Unless, you're bouncing direct debits, going overdrawn or have other poor finances that will have a detrimental effect on credit score, I'd be inclined to think HSBC are at fault.
Unfortunately, people think that credit scores/reports are the only thing that matters when applying for financial products and they forget that financial institutions have their own internal score card you need to score against too: that's why you'll certain credit cards require an annual income circa £16k or £500/m deposited into a bank account or even no CCJs/bankrupts for savings accounts.

If you decide to stick with HSBC, make sure the bank clerk updates all you personal information screens before running the application. As these screens are the bits for the internal score card.

If looking at student accounts don't forget to ask about their graduate service as few banks offer them; really important if you take a big student overdraft.

pmduk · 1 September 2014 at 9:37AM

ryuuoo wrote: »

Is that somewhat better than being rejected by HSBC themselves?

You may have misinterpreted what HSBC told you. You haven't been rejected by Experian. They don't offer bank accounts.

HSBC take information held by Experian and this together with your application form is used to generate a score by HSBC. It's this which will determine if HSBC (or any other bank) will offer you a product.

Each bank generates it's own score differently and the criteria change frequently.

System · 1 September 2014 at 12:17PM

I'd vote with my feet once you become a student as you will instantly become more 'desirable' than a basic account holder.

HSBC Basic Acc - upgrade? When?

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