HSBC get my vote! Woo-hoo!

moneysavingallday

i opened an account at hsbc just under 3 months ago. i've had problems getting started on the credit ladder because i didn't have any credit history plus am not on the electrol register until december.

at account opening, even tho i had nothing on my credit file at all, hsbc gave me a plus account and an OD limit of over £1000. they were unable to offer me a credit card but said that if i handled my account well they might be able to lend me more in a few months time.

i really wanted a cc so yesterday i tried my luck with a couple of subprime lenders as i didn't think it was even worth applying thru hsbc yet because i'm not on the electoral register etc. monument card turned me down. barclaycard initial turned me down. i then called HSBC and spoke to Lending and asked if it was a complete waste of time for me to apply for a cc through them or not. the woman said i already had an excellent internal score with them and that she couldnt imagine i'd be turned down. i told her i'm not on the electoral roll and that i have no/v little credit history. she said that's not a problem.

she put through an applic for a personal loan and for a credit card. both of them got referred so i prepared myself to be very disappointed. lo and behold the underwriting team called me first thing this morning to say i am approved for a loan of £2500 and a credit card with a limit of £3100. I actually almost fainted. even the subprime card issuers wouldn't give me anything and now hsbc have. the underwriting guy said it was because of how i've handled my account with hsbc, never being overdrawn and always having a high balance left at the end of the month.

once the loan and cc start reporting to the bureau i am presuming i will finally be building a proper credit file with the CRAs

Sharon87

Congrats on getting credit, although be careful. Credit Cards can be useful... just don't get into too much debt with them! You'll have to be careful with the amount of available credit you have now! Do you NEED credit for anything in particular? Or just for emergencies?

moneysavingallday

@Sharon, I don't need credit, I'm just trying to build credit history really. The savings I have with HSBC are a higher sum than the credit limits. Also I enjoy shopping online and like the fact a credit card gives me more protection than a debit card.

sutton111

You must earn 70K per year, they probably love you.

grastgirl

I thought the plus account had a fee of £12.95 pcm, so they probably do love her, the next one up in the premier account and for that you do need to earn ~£75k py.

Moneysavingallday, did they tell you about the fees?

ShelfStacker_3

Yeah, the Plus has a fee, and there's no criteria for it other than ability to pay the fee (as well as qualifying for a Current Account, credit scoring wise). Wouldn't have affected the OP's ability to get credit with HSBC though... nice going though

moneysavingallday

grastgirl wrote: »

Moneysavingallday, did they tell you about the fees?

They did. It doesn't seem any more expensive than the other similar accounts out there like the Lloyds TSB accounts, Halifax Ultimate Rewards, Natwest Advantage Gold etc.

michaels

But why pay a fee for substandard insurance that can be bought much cheaper elsewhere don't forget you also pay by missing out on market leading interest rates such as the 8.5% you can get elsewhere on a current account. which adds up to another £200 on top of the fees

I would also recommend against HSBC as they are treating their loyal mortgage customers on their standard variable rate very poorly in comparison to almost every other financial institution.

ShelfStacker_3

michaels wrote: »

But why pay a fee for substandard insurance that can be bought much cheaper elsewhere don't forget you also pay by missing out on market leading interest rates such as the 8.5% you can get elsewhere on a current account. which adds up to another £200 on top of the fees

There's no way that 8.5% adds up to £200 interest on a current account, unless you're not using it as a current account. Also fail to see how the travel insurance offered with Plus is "substandard"...

I would also recommend against HSBC as they are treating their loyal mortgage customers on their standard variable rate very poorly in comparison to almost every other financial institution.

They're reducing their rate, starting December.

guli

michaels wrote: »

But why pay a fee for substandard insurance that can be bought much cheaper elsewhere don't forget you also pay by missing out on market leading interest rates such as the 8.5% you can get elsewhere on a current account. which adds up to another £200 on top of the fees

I would also recommend against HSBC as they are treating their loyal mortgage customers on their standard variable rate very poorly in comparison to almost every other financial institution.

I call bull. I know more banks with higher SVR than HSBC's.

moneysavingallday

I'm happy with my accounts. i like HSBC Plus. If others don't like HSBC Plus, then don't open a Plus account.