I have been refused a student account?

Birch

Before applying for my student account I had a standard current account at HSBC with a solo card due to low income from work. Since being offered my place at University I have decided to apply for a student account. HSBC gave me a credit card but refused to upgrade my debit card which didn't offer me any overdraft facilities which really annoyed me and made me hunt around for alternative student accounts. I found that Halifax offered great overdraft facilities and rates therefore determined my decision to chose them. After providing my UCAS details and giving my personal details I was processed through the credit rating system and was shocked to find that this declined my application. Why is this when HSBC gave me a credit card and I have been using contract phones for the past few years and haven't missed any payments? :mad: This even baffled the Halifax accounts person. The Halifax employee was very helpful and wrote to their Specialist Customer Care Advisor but I have recently recieved another letter confirming my declined application. Has anyone experienced the same probelm or know what to do in this situation? I have applied and recieved a Capital One card to try and increase my credit rating but am a bit reluctant to use this because of the high interest rate. Thanks for taking the time to read this and I hope someone can help.

Lokolo

Halifax are strict with their applications. You need a resonble credit rating to even get anything.

In my second year I was accepted for £1k (and could have applied for more) with HSBC.

If you've been given a credit card by HSBC then they obviously see you have potential. You won't need your overdraft in the first 6 months of uni (if you do you need to budget a lot more!!!). By that time, if you have used your credit card more they will more than likely give you and overdraft. (as long as you pay off the credit card each month).

rb10

Birch wrote: »

I have applied and recieved a Capital One card to try and increase my credit rating but am a bit reluctant to use this because of the high interest rate.

Check the T&Cs, as long as it says something like 'up to xx (e.g. 59) days' interest free on purchases' (nearly all cards do say this) then you won't pay any interest provided you pay it off in full each month.

Phone them up, and ask to set up a direct debit from your current account for the full amount (make sure they don't just do the minimum payment).

Birch

Thanks for the replies they are appreciated, would you recommend trying a different bank? I agree with the fact that I shouldn't need the overdraft for the first 6 months of living away, but I still feel it is an attribute of student banking I should be allowed to use and surely having a student account with HSBC without a 0% interest overdraft isn't actually a student account?

Fire_Fox

Birch wrote: »

Before applying for my student account I had a standard current account at HSBC with a solo card due to low income from work. Since being offered my place at University I have decided to apply for a student account. HSBC gave me a credit card but refused to upgrade my debit card which didn't offer me any overdraft facilities which really annoyed me and made me hunt around for alternative student accounts. I found that Halifax offered great overdraft facilities and rates therefore determined my decision to chose them. After providing my UCAS details and giving my personal details I was processed through the credit rating system and was shocked to find that this declined my application. Why is this when HSBC gave me a credit card and I have been using contract phones for the past few years and haven't missed any payments? :mad: This even baffled the Halifax accounts person. The Halifax employee was very helpful and wrote to their Specialist Customer Care Advisor but I have recently recieved another letter confirming my declined application. Has anyone experienced the same probelm or know what to do in this situation? I have applied and recieved a Capital One card to try and increase my credit rating but am a bit reluctant to use this because of the high interest rate. Thanks for taking the time to read this and I hope someone can help.

I wonder if this is the problem. You have several recent credit searches on your file, and you have quite a lot of available credit yet a very low income. Have you checked your Experian and Equifax credit reports?

Birch

I will get them checked, how would this affect me and what will these checks show? Thanks.

Fire_Fox

Birch wrote: »

I will get them checked, how would this affect me and what will these checks show? Thanks.

http://www.moneysavingexpert.com/loans/credit-rating-credit-score

Don't pay for a credit score, each financial institution has their own system so this is meaningless. Just check for inaccuracies (e.g. not on electoral roll) or stolen identity.

mumps

Are you starting university this autumn? I don't think they will approve your overdraft until you start university, I think this goes for all the banks.

mcjordi

when you start is when the overdrafts are authorized

Birch

Thankyou for all of your responces and I have found them all helpful.

whitfreak

If its a conditional offer for a place at university, many banks will not authorise a student overdraft until you've got your results and can confirm your place.

If its unconditional offer, then they will probably still hold off as its currently May and you'll be presumably be starting in September and still 3.5-4 months until you start and there's a high risk that the overdraft would be spent before you even got to university. I'd wait until after results day, as thats when banks are expecting people to apply for new student accounts.