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Why would a bank turn down a new student account?

My son has just gone off to uni, today I have got a letter from LLoyds refusing to allow him an account due to his credit score. He has had a current account/debit card with Halifax for years, has never been overdrawn or in debt so why would this be? How do students who have never had an account get one in this case? What can we do about it, as this may affect his future credit score?
Also, now his UCAS form has been stamped by LLoyds, will Halifax let him upgrade to a Student ac or will they too decline him?
What redress do we have? Please help!


  • Someone in your household probably has a bad credit rating due to outstanding debts? and im not sure how long it takes to shift it. Try opening a HSBC account as they are usually quite lenient n they love students coz they will pay in a bit fat loan into their account!

    You can try halifax as they should let him have a student account but they dont have any opening deals. Natwest are offering a free railcard which should be of some help too!
  • jo_b_2jo_b_2 Forumite
    7.1K Posts
    If you want to sort a student account out quickly, your best bet would be to approach the existing bank. They are unlikely to refuse an existing customer, unless your son has debts that you are not aware of. :-/
  • Thats very true if you want an account sorted quickly but it would be better to wait and find better deals rather than default to halifax. Your son could still keep using his current account unless he is really desperate for the interest free overdraft facility.
  • What little I know on credit scoring, and I am no expert, only tried to get one of those free trials only to find out that you still had to pay a fiver to get the actual score.

    It tends to go on the address (i.e. household) rather than the individual, and loans, debts, store cards etc stay on their for around 6 years after they've been cleared/cancelled.
  • Comes across a bit random to me! I applied for both a Natwest and HSBC student account at the same time. Today I received a confirmation letter from Natwest and a rejection letter from HSBC.

    Nobody's in debt in my household and I've had no problems getting a credit card in my gap year. I've currently got a egg Card which has been paid off in full each month and a mint card which is pretty much paid off. Guessing that because I normally spend a grand and pay it back come payday (25th), my current balance of just over £1K wouldn't look too good on HSBCs credit scorng?
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