Halifax Student account 2010/2011: We want your feedback

Former_MSE_Alana

Hi folks,

In our newly published Student Accounts 2010/11 guide, Halifax Student Account is one of the new top picks.

It offers 0% overdrafts of 'up to £3,000' for every year of study, and we're after feedback from people who have applied this year about what overdraft limit you are given to start with, and also whether this was upped if you requested more.

Thanks for all help in advance

Alana

Shazlaar

Beware of the Halifax student account. I went over my overdraft allowance by £8 accidentally and can not apply to have my overdraft increased for a further 6 months! No exeptions!

pat0411

My son, who is 21 and has had a Bank of Scotland account since he was 10 (a fairly basic one with an Electron card) applied to open a Student account as he is beginning his degree this autumn, and was turned down because his credit score was not good enough - at 21, he has never had any credit cards/ loans/ anything. how can he have a poor credit history when he has never had any credit?

atypical

pat0411 wrote: »

how can he have a poor credit history when he has never had any credit?

You answered the question. As he has no history of having used credit responsibly the banks have nothing to judge him on. It's not normally an issue for student accounts though. Is he registered on the electoral roll?

From this article on the site:

Credit scoring tries to predict your behaviour. If you've no credit history it's more difficult for lenders to do this, so you're more likely to be rejected. Therefore, both for those with poor and no credit histories, you need to build a good one.

One of the best ways to do this is by getting the right sort of credit card. By getting any kind of credit, and operating it perfectly (i.e never missing payments, always staying within limit), you can either build up a credit history from scratch, or remedy a tarnished one.

motoko

I opened a student account with Halifax when I returned to uni in 2007, as they were claiming to offer the highest overdraft then too. But I had no end of trouble with it.

The faster payment system doesn't work properly, it is totally random whether it processes your transaction by faster payment or BACS, even if the transaction is under the £1000 limit. I like to have two accounts, one for spending and one for bills so I don't accidentally spend money which is needed for direct debits. As my grant money was going into my Halifax account, I often found it was stuck there for several days after I was paid and I could only get at it by repeated trips to the cashpoint for £300 a day.

If you use your debit card in a shop when you don't have enough money in your account, every other bank I've used would decline the transaction, however Halifax authorise it then charge you around £50. They claim that this is because the transaction amount is below shop's floor limit, but I find this hard to believe, as I've never had the problem with any other bank and it still occurs for larger transactions which you'd expect to be above any floor limit. This is exacerbated by the fact that Halifax are very slow to update your account with recent transactions, typically taking 3-4 days for a debit card transaction, which makes it harder to keep track of your available balance. I did ask if I could have an electron / solo card which has to be authorised every time, but they don't offer it on the student account.

Eventually I switched to Natwest. The overdraft limit was £350 lower, so I had to find the money to pay this off in order to switch, but it was well worth it. I've had a couple of minor issues, but they are always resolved immediately when you call customer services, as opposed to Halifax who just tell you there's nothing they can do. The faster payment system works perfectly every time you use it. I initially asked for a solo card, as I was worried about bank charges after my experience with Halifax, and they gave me one with no problem. They have since replaced this with a visa debit card, but I still haven't had any issues, I'm pretty sure that's just a Halifax thing.

motoko

Regarding the limit Halifax gave me, it was £1750, a lot less than what they advertised. This was despite having worked for several years and having a good credit history with no missed payments etc. So I imagine someone straight out of school with no credit history would get less? Saying that I did have some existing debt, which most people straight out of school would not have, so this may have affected it.

rachel2812

I'm an 18 year old student, beginning my degree in October. I went into Halifax yesterday to open a student account. I've had a current account with them since April 2008, so a bit of history, and I also have an ISA and a savings account with them.
Before he did the check, he emphasised that a lot of people get rejected and don't be suprised if I do, even though I had history with them.
But I was accepted, and immediately given a £1000 overdraft, which I didn't even ask for. I questioned him and said I thought it was only £500 initially, and he just said no he could give me £1000.
I also applied for the student credit card and was rejected, apparently I should try again in 4-6 months once I've built up some history on the student account.
Slightly confused as to why I was accepted for the account, and with a bigger overdraft yet couldn't get the credit card but oh well!
I'll let you know in the future if/when I attempt to get a bigger overdraft!

rtc6

Hi, I have had student account for 1 year now, going into second. Limit was £500 from account opening, will go to £1000 as soon as first loan/grant payment is credited and then its a case of asking for an increase as and when you want it.

As long as the conduct on the account is okay, and you're asking for the increase for a valid reason, i.e. buying books, cost of living, moving into new rental property, the limit will be increased by the bank's underwriting team.

However, if the account goes past its agreed limit, or if transactions on the account show excessive and unjustifiable spending, ie on gambling sites etc, then the limit won't go up.

If you have savings 'collaterall' then the limit can go as high as the value of the savings - again assuming that you have a real need.

One tip would be to take advantage of what you can get, ie ask for increases even if you may not need them, and then don't use the extra, because when you graduate, whilst the overdraft stays free for a year, the limit cannot be increased, no matter what. I.e if you have managed for 4 years with just a £500 limit, and want an extra £100 to cover transport costs to a new job, it won't be possible - but if you already have the full £3000 limit, and are only using £500 of it, it won't be taken away from you.

WelshSun

Ive had a student account for the last year with Halifax and have had no problems.

I already had an account there and decided to upgrade there, as none of the free offers really appealed to me (Like a free rail card). I didnt have a problem getting the account and was given an initial £500 overdraft, upgrading to £1000 this year, which considering I havent ever been in the overdraft is quite good. Overall Id reccomend Halifax to anyone.

dunscrop

I'm starting a PGCE this year, and so went to my own bank, the Halifax for a student account, thinking the interest free OD could be a good fall back.
I have already banked with Halifax for 7 years (even used to work there!), so i have a full credit history with them. I have had a loan for the past two years which i have never defaulted on, i paid off my credit card with them last year, having had no defaults for at least a year before that. I do go into my agreed overdraft (and i'm overcharged for that anyway), but never exceed the limit.
I was disgusted to be turned down for a student account when i have so much decent banking history with them, as well as being able to prove i will be receiving over 1100 pound a month from student loans and burseries. I even appealed but was still told no.

However they did tell me i can definitely have their credit card if i want!!! When i said no, i will actually be taking my business elsewhere, the cashier told me snottily 'maybe you shouldn't cut your own nose off to spite your face'!

I'm fuming, but now on this site looking for better bank options for me.

WelshSun

You could be rejected from any bank. It seems somtimes they reject people for no real reason, and this happens with every bank, Natwest, Barclays Lloyds TSB, Santander etc etc etc.
I wouldnt let it put you down just find a different bank and apply.