HSBC refused overdraft limit on student account.

GSDog

I have an HSBC student account with the standard £500 overdraft.

I have tried to increase the overdraft limit to £1,000 thinking it would easily accept it as my credit rating is far better than most students (I've been paying a mortgage, bills, etc. for the last 2 years and have no debts at all besides the mortgage). I was shocked to find that I was immediately rejected, and have since been rejected again for £750.

Is this normal? I guess my only option now is to change to a different bank which will perhaps offer a larger overdraft. I only really need to use the increased overdraft for 2 months because my car insurance has just come through which is a fortune.

I am also in my second year at University.

Any advice would be appreciated.

GSDog

I just checked my credit rating on Experian and it is:

983
Excellent

So it can't surely be to do with my credit report?

rb10

Is your credit report factually correct? Check it carefully - even just one or two missed payments can result in an overdraft being declined.

How much do you pay into the HSBC account each month? Overdraft limits are generally strongly correlated with the amount paid in to the account.

TheEffect

I have a £500 overdraft on my student account and any application to increase it has been declined also.

As others have mentioned, how much money is paid into the account each month? Do you have an excessive amount of credit searches? Many bank accounts on your file? A high amount of debt?

dr_adidas01

HSBC don't have to give you an overdraft increase if they don't want to, your not entitled to have one just because you think you are.

They also base decisions on your available credit to debt ratio, if they can see that your overstretched on your other credit commitments then they will also decline you.

pmduk

GSDog wrote: »

I just checked my credit rating on Experian and it is:

983
Excellent

Please be aware, these ratings aren't worth the electricity used in generating them. The only ratings that matter are those of the financial institution granting credit. They'll never tell you how they're created for obvious security reasons.