Why has she been refused student account?

Jess

My daughter has been turned down for a student account by the Halifax because of credit scoring and I wondered if anyone could help explain why this might be and if she should be worried?

She is currently on a gap year with a guaranteed place in September for a four year degree course. She has no debts, has had a bank account (not with Halifax) for three years and is working to save as much money as possible before September.

All they will say is that she doesn't score enough and that means they are worried she will not be able to pay any debts. Surely if those are their criteria then they would never give a student an account.

I am worried that the fact she has been refused an account will haunt her in future financial dealings.

Any one got any advice and should I be worried?

wigginsmum

Has she ever had any debts like a credit card? If she's got no history of being able to responsibly manage debt, then she's a 'blank canvas' so to speak.

Jess

She has never had a credit card only a young persons bank account which was converted to a normal one whan she became 18

kar

Best bet is to speak to the bank where she already has an account asking them to make it into a student account.

Jess

I have spoken to my bank who say there would be no problem so the point really is not how to get her an account by why she has been refused by the Halifax and what that will do to her credit chances in the future.

Any one else out there who has been rejected because I understood from what Martin says in his article of student accounts that banks are falling over themselves to get students.

brains

Jess wrote:

I have spoken to my bank who say there would be no problem so the point really is not how to get her an account by why she has been refused by the Halifax and what that will do to her credit chances in the future.

Any one else out there who has been rejected because I understood from what Martin says in his article of student accounts that banks are falling over themselves to get students.

A friend got refused from the Halifax too for the very same reason. Yet he has had a credit card at a very high interest and finished paying it off with only one late payment.

I have a Natwest account, no problems so far, and a nice large (maxed out) £1250 OD.

chugalug

The Halifax have always turned me down for everything first time of applying. My ex and I had a joint current account with the Halifax. When we separated they wouldnt give me a current account of my own I had to have a cardcash account (like the children!!!) I've persevered with them and so far have been turned down for a current account, overdraft, credit card and student account. I always argue though, write a detailed letter to customer services (who must hate me) and have been successful on every occassion.

I was reeeaaaaaaaaaally miffed though when my daughter started working and they offered - literally shoved a current account with overdraft at her. Must be personal!

Jess

It's nice to know that my daughter's not the only one that the Halifax reject - although I'm sorry that you have had so much trouble.

They have now told us that there is nothing derogatory about her on credit checking but that she doesn't score enough and they are refusing her because she doesn't already have a Halifax account

it appears to me that unless you have a Halifax account then you are not going to get a student account as everytime they suggested a reason my daughter was able to 'tick that box'. She's 19, has a guaranteed place, has a bank account, lived at same place for 18 years etc.

We were given the option to appeal but frankly they have been such a pain - you can't call the bank direct, keep you waiting etc - that she's just going to wait and see what the other banks have to offer and what Martin's new best account is.

Have the Halifax offered a student bank account to anyone this year who is not a Halifax customer??

THIRZAH

They rejected my daughter and her boyfriend for a joint account- neither of them had any debt apart from a mortgage-they were both in "good" jobs and were each earning £25,000 a year!

clgreen_2

A similar thing happened to me. Despite having no debts and earning nearly 30 grand, I was refused a loan as I don't have a credit history (I've never had a credit card).

It seems that to improve your credit score you have to prove you can cope with being given credit, but to get credit you need to have a credit history - Catch 22!

Your daughter could take a look at the article on how to improve her credit score.

Roz_V

I was rejected for a student account from them aswel because I wasn't already a Halifax customer - so how do they expect to get new customers if they keep rejecting those who don't already have an account?! :rolleyes:

From the similar stories on here, I'd suggest that you forget all about Halifax and don't offer them any more of your custom.