Alternative accounts if rejected

cosmicrichie

Hi,

From my experience when applying in branch for a new current account or credit card, they do a credit check first and then you have a list of accounts/cards to choose from to open (assuming you're eligible for each obviously). I was wondering, is the process similar online? I've never been rejected for a current account and always just see an acceptance offer in regards to the account I've applied for with no reference to the possibility of anything else.

The reason I ask is because my girlfriend is looking to open an HSBC bank account to get access to their regular savings. She's currently a student so is fearful she may be rejected. However if she did this in branch, as per what I've said above, she would probably still be offered the student account. If she applied online would she just be rejected with no offer of any other account?

Thanks for any help

pmduk

I know that Barclays offer their Basic account if you're rejected for their full account, however I can't speak for any other bank. My initial thoughts are that banks are reluctant to open basic accounts, however I can't speak with any knowledge about basic accounts.

Note that some staff are incredibly opposed to opening them as they don't earn commission. It's always best to ask for the account by name, frankly, that give you the ability to complain if they try upselling

cosmicrichie

Thanks. I was wondering mainly about the student account. She wants to open the HSBC bank account purely as it gains access to the regular saver, but she's a student so although her credit report is fine, I was wondering if she'd be rejected as they'd think she couldn't fund it with £500 a month. If we went in branch she'd probably still be offered a student account if she was rejected, which she'd accept as otherwise it'd be a waste of a credit search. She's looking for a student account too anyway and has a few possibilities, one of which is HSBC, so that's why she'd probably accept it if that was offered as an alternative.

However, I was just thinking how it compares by applying online i.e. would she be offered a student account as an alternative if she was rejected or would she just simply be rejected with no alternatives.

I know obviously she wouldn't be guaranteed a student account as an alternative but can't see any reason why she wouldn't be offered one as her credit report is fine.

Aquamania

cosmicrichie wrote: »

Hi,

From my experience when applying in branch for a new current account or credit card, they do a credit check first and then you have a list of accounts/cards to choose from to open (assuming you're eligible for each obviously). I was wondering, is the process similar online? I've never been rejected for a current account and always just see an acceptance offer in regards to the account I've applied for with no reference to the possibility of anything else.

The reason I ask is because my girlfriend is looking to open an HSBC bank account to get access to their regular savings. She's currently a student so is fearful she may be rejected. However if she did this in branch, as per what I've said above, she would probably still be offered the student account. If she applied online would she just be rejected with no offer of any other account?

Thanks for any help

I wouldn't have thought any reputable lender would extend credit to you without first checking you out, no matter how you apply ... and that's where a credit check usually comes in

Having said that, my experience with Lloyds is that their in branch staff are a seperate organisation to their online/postal service and so each 'division' may differ in what they offer.
It wouldn't surprise me if HSBC operated in a similar manner.

I've experienced this (and so was given an explanation) when Lloyds sent me a pre-approved invitation for a credit card stating the credit limit that would apply. That same day I visited a branch to do some other business and they too tried to get me to take out a credit card ... but with them the credit limit promised would have been higher.

innovate

A student account doesn't appear to be on the list of valid pre-reqs for the HSBC regular saver.

How old is your girlfriend? For under 24s, apparently there is no need to pay £500 a month into the current account.

Not sure they will offer any alternative if an online application gets turned down.

I wouldn't go to a HSBC Branch to open an account since they appear to have some weird rules, at least in some branches, and won't open an account for you unless you switch your current account to them.

There are other regular savers - presumably you have checked First Direct (more selective on who they accept than HSBC, I think), and last time I checked KRBS were offering a 4% reg saver. Also, some of the current accounts might be an alternative, e.g. Nationwide FlexDirect.

cosmicrichie

Aquamania wrote: »

I wouldn't have thought any reputable lender would extend credit to you without first checking you out, no matter how you apply ... and that's where a credit check usually comes in

Yes, sorry, didn’t word it very well. I meant in branch applications seem to be along the lines of:
Customer: “I want to open account A.” Then the credit check’s done


Adviser “Okay, it came back fine. You can have account A, or B or C if you wanted them instead” or alternatively “unfortunately you can’t have account A but can have account B or C instead.” (I’m sort of guessing at the second part as I’ve never been rejected, but based on my experience of being offered several accounts in branch when I’ve passed the credit check I assumed it’d be that sort of scenario).


Just wanted to know if the online scenario is similar or more along the lines of:


Customer: “I want to open account A.” Then the credit check’s done


Computer: “Okay, it came back fine. You can have account A” or alternatively “no you can’t have account A” with nothing being offered as an alternative even though you’re eligible for them (eg a student account). When I’ve applied online I’ve just been accepted for whatever I’ve applied for rather than it saying I could have anything else instead if I wanted.

innovate wrote: »

A student account doesn't appear to be on the list of valid pre-reqs for the HSBC regular saver.

Yeah. She wants to open the HSBC Bank Account (the account’s just called Bank Account) for the regular saver, and wants to get a student account as well at some point, so would just accept the student account if that was all that was offered and give up on the regular saver. She’s 24 and a student nurse. The £500/month funding would just be moved from my account to hers and back again.

I have a FD regular saver myself so yeah did think of that, but thought they’d probably reject her for it as they want £1000/month in it, so stand less of a chance than with HSBC. Have seen KRBS in the past, but don’t they have to be opened in branch? We don’t have any locally. Also looked at N&P BS but heard they’re a bit harder to get. We have a FlexDirect in her name and a joint one between us. I’ll open one in my name once I’ve built up £2500 in savings (c. end of April). We’ve opened them in that order purely because it’s more tax efficient.
Thanks for the information though. Interesting about the HSBC branch rules

zerog

I don't think she will be successful in getting the HSBC Bank Account.

She won't get their student account either unless she does a full switch from any existing student account she has

The HSBC reg sav is nothing special, if you haven't maxed out the flexdirects then you might as well do that, instead of wasting time with HSBC even if it could theoretically earn you a few tenners extra

Aquamania

cosmicrichie wrote: »

Yes, sorry, didn’t word it very well. I meant in branch applications seem to be along the lines of:
Customer: “I want to open account A.” Then the credit check’s done


Adviser “Okay, it came back fine. You can have account A, or B or C if you wanted them instead” or alternatively “unfortunately you can’t have account A but can have account B or C instead.” (I’m sort of guessing at the second part as I’ve never been rejected, but based on my experience of being offered several accounts in branch when I’ve passed the credit check I assumed it’d be that sort of scenario).


Just wanted to know if the online scenario is similar or more along the lines of:


Customer: “I want to open account A.” Then the credit check’s done


Computer: “Okay, it came back fine. You can have account A” or alternatively “no you can’t have account A” with nothing being offered as an alternative even though you’re eligible for them (eg a student account). When I’ve applied online I’ve just been accepted for whatever I’ve applied for rather than it saying I could have anything else instead if I wanted.


...

I'm not sure, but from my experience of applying to financial products online, there is usually a third option that is sometimes returned rather than the black or white Accept or Reject.

The third option is Referred - they cannot give you an immediate answer but will get back to you shortly.

Remember banks will try and sell you anything they can, assuning its an acceptable risk, and they won't usually pass up even the slightest nibble of interest.

Referred can mean any number of things. e.g. the credit reference is not available at the time (computer glitch) or there is something else that needs manual intervention/investigation.
With human intervention required to give a final response, I'm sure they will offer suitable alternatives (if available), especially if you are rejected for the particular product applied for.

If you were particularly wanting advice or options available to you, you would be better applying in branch or over the telephone.