Low Credit Score Applying For Student Account.

Ruby44

Hi,

I've seen there are a couple of threads covering this issue, but I cannot find one less than 2 years old and they don't seem to completely cover my question, so I thought I'd start one myself.

I'm 22 and am going to university in September as a "mature" student (not that mature, I know!)

I have had issues with my credit and have a low score (about 446, I think). I had an issue with Barclays when transferring my account to HBOS. I therefore received a default from Barclays due to them refusing to admit that they were asked to cancel all direct debits and standing orders. Because of what they took from me and the position I was in, I was unable to do anything but admit defeat and pay them back. I have recently done so and have closed the account (this has yet to show on my account). I also have a credit card with Barclaycard which has about £400 on it and 1 missed payment, and a further card with MBNA (another £400, no missed payments). I intend to pay both of these at the end of the month. I have read that it might be a good idea to keep these open and active in small amounts (pay off the full amount monthly) to increase my score. Would this be the best choice?

Anyway, I currently have an HBOS current account and I work full time until I start uni. I applied for a Student account for which I was declined. I then visited experian.co.uk after being advised to do so by a member of staff (hence me knowing my score).

What are my options for a bank account? I don't intend to apply again until end of August or early September at latest.

If anyone can help, I'd be really grateful.

atypical

Ruby44 wrote: »

I have had issues with my credit and have a low score (about 446, I think).

You don't have a score like 446 attached to you, each institution rates you according to their scoring scheme.

I can only state the obvious by telling you that the best chance of you getting a student account is by improving your score which you can do using the tips listed here. There is no magical solution unfortunately.

Ruby44

Yes, that is my Experian score. I realise that there are several different ways of scoring and my score will be different with several companies. HBOS use Experian, which is why this is relevant.

What would be useful to know is which banks are more willing to accept low scores. I realise in this climate, not many. I know that from my own job.

Thank you.

Fire_Fox

HBOS use Experian to get your credit report, then use their own scoring system. Are you listed on Experian as being on the electoral roll? Do HBOS know the situation with Barclays being difficult? How did you ask Barclays to cancel the DDs, didn't you do it yourself with online banking? Have you taken your case to the ombudsman? Do you have a lot of available credit from the cards, hence lowering your score? How recent is the missed CC payment and the change of bank (both negatively affect your score)?

I would close the Barclaycard immediately - the missed payment won't fall off your credit report until six years after the date you settle the account. I would also suggest completing one of these and posting up along with the same query on the DFW board:
http://www.makesenseofcards.com/soacalc.html

Shiny.Side.Up

Just for the record, I'm in the same position as you. However, I coped without a student bank account and no overdraft - It is perfectly doable with a good budget and a part time job.

Wiggynut

I have a very low credit score too (had to get a guarantor to rent a new place too! very embarrassing as I've rented with out any aid for 22 years!!!!)
I'm not even sure how I have such a low grade as I havn't missed paying bills for 4 years - did have some debts more than 6 years ago so I think I might have to contact those two companies (experiean and I can never remember the other one!) to see what's going on.

well, I'm a student and I joined Natwest (free rail travel card for 3/4 years depending on your course) and they accepted me with the full overdraft too (which I've manage not to use so far but if I lose my job this summer then it will come in very handy!!)

Maybe it just depends on the bank?
I have heard of people being refused accounts with HBOS and Halifax (?) (or what ever the name of the bank that offers the highest overdraft for students - but lots of students doen't actually get that amount) I've never heard of anyone being refused a natwest account?!

good luck :-)

Ruby44

Thank you, guys. All helpful stuff.

Fire Fox, to answer your questions:

I am on the electoral roll. I'm about to move, but being the kind of person I am, that'll be one of the first things I do.

My last Barclaycard missed payment is 7 months ago according to my report. Which will mean 8 months ago, since it has yet to be updated for this month.

I opened my Halifax account in December 07. HBOS

I did tell Halifax about the situation, but they did not say anything.

The DD and standing orders were cancelled by Halifax, as part of their bank transfer. This is why I've no leg to stand on really.

My total used credit on experian is 77% (out of date by a month. Much of this is cleared).

Thank you very much for the link, I will look at that once I can fully work out my costs as a student again. I will do it now as a full time employee.

Shiny.Side.Up - Thank you for that, I find that very encouraging. Do you have a basic account?

Wiggynut - Thank you also. I am nervous about applying too soon and damaging myself any more than I already am. I will definitely bare this in mind. You're right, it is Halifax with the largest overdraft facility.

Vashda_Nerada

I had an absolutely atrocious credit rating when I started uni (defaults galore & 2 CCJs) but I somehow still managed to get a Royal Bank of Scotland student account with the full overdraft. I got signed up for that in Fresher's week when the bank had a stall at the uni. Don't know if they're maybe worth a go for you

Ruby44

Excellent idea, thanks.

Shiny.Side.Up

Ruby44 wrote: »

Shiny.Side.Up - Thank you for that, I find that very encouraging. Do you have a basic account?

I have a Lloyds TSB Select account that I had before I got into trouble. It has my basic Visa Debit card and a small overdraft. Trust me - You survive.

Ruby44

Maybe I'll keep my HBOS if everything goes horribly wrong. It's just scary to go against the norm! I want some kind of back up as I really want to do this off my own back. Thanks again.