Student who can't get a student account!

sweetiepie2121

soz didnt read top thread thourly

squirrelchops

Halifax wouldn't give me a student account last year.

I'm 31, had a mortgage and several credit cards and excellent credit history!

No idea why they wouldn't give me one. Didn't bother looking itno it as only wanted the free NUS card!!!

noah271007

CLAPTON wrote: »

I wasn't aware that N/W do student a/cs.

But N/W are flooded with people opening a/cs because they are perceived as being very very safe in these troubled times so they can be very picky.

I think also Nationwide biggest selling point is no fees using the card aboard - but now Abbey zero credit card are FREE of fees as well and obviously for those reasons they will attract customers.

noah271007

ShelfStacker wrote: »

It's worth mentioning that Nationwide have a credit policy which appears to be based on drawing names out of a hat. People who don't pose any risk in the slightest get rejected, people who clearly do or might get accepted. They're weird.

Creditscoring is not just ABOUT RISK. It is more about PROFIT -
For those who pay off their credit cards bills in FULL every month or don't use credit cards much does not generate profits for lenders! I bet you a million dollars Nationwide have this formula in their creditscoring based more on profit than risk and thats why i see people including myself get declined for visa debit card, even though we have decent credit history/good income and gives out visa debit cards/credit cards willy nilly to 18 years olds!! I do agree with shelfstacker comments, they seem to pick names of a hat...like a lottery whoever get the visa debit card!

LouisCross

Well I hiked down to HSBC today, and they've converted my current account into a Student. They were willing to give me an overdraft but not a credit card, but the lady was friendly so she rang a number told them I dont really want an overdraft so surely it'd make sense to give me the money in the form of a cc - so now have signed up to a HSBC cc. Am planning on using this for a good 6months, so that I can get credit, apply to Abbey/ Nationwide in August and get one of their Free Use Abroad cards ready for Sep when I go to Brussels.

Extant

noah271007 wrote: »

Creditscoring is not just ABOUT RISK. It is more about PROFIT -
For those who pay off their credit cards bills in FULL every month or don't use credit cards much does not generate profits for lenders! I bet you a million dollars Nationwide have this formula in their creditscoring based more on profit than risk and thats why i see people including myself get declined for visa debit card, even though we have decent credit history/good income and gives out visa debit cards/credit cards willy nilly to 18 years olds!! I do agree with shelfstacker comments, they seem to pick names of a hat...like a lottery whoever get the visa debit card!

That makes no sense at all.

Take 100 people, and give them £1000 credit each. Assume that they're all on interest rates of 20% and pay it back in one year. If 25% of those people default, profit to the bank is £15,000 after the capital is repaid, and before any tax and other costs. The loss, however, is £25,000. If 20% defaulted, it'd be £16,000 profit to £20,000 loss, net -£4000. If you went down to a very low default rate of 10%, it'd still be a net of of only £8000. Really not worth it.
Last I checked, Nationwide wasn't too keen on the old sub 'n' near...

Sub- or near-prime lending is not even remotely attractive on unsecured debt. It's attractive in secured debt - mortgages etc. - because you're getting either a bucket load of interest or a property to sell.

Profit very rarely comes into it with unsecured lending, which is dangerous and much more open to loss. That's why 18 year olds do indeed get credit cards, but they get them with £260 limits and 30% interest rates.

ShelfStacker_3

BarclaysManager wrote: »

That's why 18 year olds do indeed get credit cards, but they get them with £260 limits and 30% interest rates.

My Barclaycard Initial tells me that it isn't just 18 year olds.

Extant

ShelfStacker wrote: »

My Barclaycard Initial tells me that it isn't just 18 year olds.

So you're what, like, 19...? :P

withnell

Barclaycard seem to approve everyone for their student credit card - use that for your spending for a while, build up your rating then apply for the Abbey / Nationwide cards.