Switching my current account

vstudio3d

Hi everyone,
I've been banking with HSBC for a while, but lately I've been quite dissappointed. I've got a credit card account with them and the interest rate has gone up twice in the past 12 months or so, first time they didn't even send me a letter to let me know about that, phoned them and of course they said they did.
This aside, I've tried to get a car loan with them twice (being my bank for quite a while, I thought it's probably the first choice...) and been refused, fortunately I have managed to get it from somewhere else in pretty much the same conditions as HSBC would have offered me.

I'm getting a bit fed up with them not being really helpful (I have to say I never miss payments, always in credit with my current account , always on plus with my savings - so not really a struggling customer situation) - every single time I have asked them for help with a loan/mortgage they haven't been able to sort out anything, even for small loans like 2-3k. But when it came up to increasing rates on my credit card...
I always pay more than the minimum on my credit card and as I was saying, I never miss any payments on anything (bills, credit card, loan, etc)

I'm not sure though that switching will be the wisest decision, but as many of you here are most certainly more experienced in these areas, what would your advice be?

many thanks and sorry for the long-ish email
best wishes!

YorkshireBoy

vstudio3d wrote: »

...the interest rate has gone up twice in the past 12 months or so, first time they didn't even send me a letter to let me know about that, phoned them and of course they said they did.

I assume you exercised your right to reject the second increase (ie, 'opt-out') and stopped using the card?...thereby remaining on the old, lower, rate. If not why not?

I'm not sure though that switching will be the wisest decision...

It may lower your credit rating if you've been with them for several years, and don't have any other long-held current accounts elsewhere. This is because 'time with bank' is one of the stability questions asked during applications for credit.

If you do decide to move banks, then just keep the old account ticking over for a few years.

gt94sss2

vstudio3d wrote: »

I always pay more than the minimum on my credit card and as I was saying, I never miss any payments on anything (bills, credit card, loan, etc)

Do you pay your credit card off in full?

If not, that is why you will be having difficulty getting a loan or mortgage - as it would come across to the bank as you were a higher risk customer.

If so, I would pay your credit card off first and then consider if you want to change banks..

Regards
Sunil

vstudio3d

hi, and thanks for your fast replies

Sunil, no I don't pay it in full, the current balance is about 60% of my limit. But I was saying that a loan HSBC refused someone else offered to me in pretty much the same conditions... and the risk would have probably been the same my bank would have known me for a longer time than the other lender, so it felt weird they did not wanted to do it while the others did.
thank you for your advice though!

YorkshireBoy: yes, that doesn't sound bad at all, and you're right, I am well aware of the credit score being affected by changing my bank.. but just wanted to know if it's worth it, all things considered...

thanks!

closed

You are saving and borrowing at the same time?

The interest rate should be on the statement.

gt94sss2

vstudio3d wrote: »

Sunil, no I don't pay it in full, the current balance is about 60% of my limit. But I was saying that a loan HSBC refused someone else offered to me in pretty much the same conditions... and the risk would have probably been the same my bank would have known me for a longer time than the other lender, so it felt weird they did not wanted to do it while the others did.

As I said, HSBC don't want to extend more credit to you as you are running a balance on your credit card - which is not normally a sign of good financial planning/distress.

Your other lender will not have as much detail on your finances as HSBC - otherwise you may find they have have denied you/offered you a higher rate - though HSBC have always been on the conservative side.

You can tell HSBC consider you a higher risk as they have increased your interest rate on the credit card.

As 'closed' says if you are paying interest on your cc, it makes more sense to pay that off instead of saving money..

Regards
Sunil