Refused HSBC Advance current account due to failed credit check

Darkky

Hello all, some help will really be appreciated. This is my story:
I recently applied for a HSBC Advance account in branch. However, when the credit check was completed to my shock it was a fail and my application could not proceed. I did not ask what the problem is, although in retrospect i probably should have. Anyway, i when i got home i spent quite a good deal of time thinking what the problem might have been. The only thing i could come up with is the fact that i opened several current accounts in the past 3 months i.e. several credit checks were done. Is this a possible reason to fail their check? I earn more than enough to cover the Advance minimum pay in, don't have any credit cards, have never been overdrawn ( i am not sure how much overdraw do i have access to, but i have not applied for such on any of my other accounts ), do not have any defaults (haven't had any sort of recurring payment anyway, except for a stagecoach bus pass). Also, i am tempted to call them and ask for more information, what are the chances i might get useful information rather than the usual 'credit check fail' which i already know?

And secondly, i was thinking of applying for a First Direct current account as well but after this, but since they are owned by HSBC i am afraid i might get rejected there as well and +1 credit check on my file. Does anyone know whether they use the same scoring system as HSBC?

Thanks

eskbanker

If they've specifically said the decline is caused by credit check issues then check what your credit status is yourself with one or more of the rating agencies, as there may be something unexpected there, see http://www.moneysavingexpert.com/loans/check-free-credit-report for details.

YorkshireBoy

I was declined by HSBC for their Advance account last summer (when they had their last switching incentive offer). At the time I put it down to one of two things...either too many current accounts (maybe 30 or so at the time) or too many 3-6 month old searches on my credit file (for both credit cards and current accounts).

However, since I've just been accepted for the Advance account this time around, and because I still had over 20 current accounts and 10 credit cards at the time of application, I'd say last year's decline was due to the number of recent searches.

Darkky

How about first direct, do they use the same criteria as HSBC (don't want yet another credit check in vain)?

Dird

Credit checks are anal. I got refused for Barclay Rewards and yet I got accepted for the HSBC Advance account. I also got refused for First Direct; and M&S more recently but I may have been blacklisted there for opening & closing soon after getting the voucher.

There was no point you asking them for info, all they will say is "credit score didn't pass".

Hopefully in the new financial year after the electoral register has updated & my monthly mortgage is reduced (do they actually tell banks the monthly amount of the mortgage for scoring?) then maybe I'll have more luck

YorkshireBoy

Dird wrote: »

(do they actually tell banks the monthly amount of the mortgage for scoring?)

The monthly payment amount is recorded on your CRA files. If you can see it, so can the lenders.

bravotango

Regarding Credit Checks/Searches - This is probably one of the reasons I have not applied for any of the new current accounts that pay high incentives to join as I'm looking to apply for a mortgage in the next 12 months.

About a week ago, I had a quick chat with each of the "higher" paying current accounts Banks/Building Societies (in branch), and they all pretty much said they could not guarantee that you won't get credit search done (even if you have been an existing customer), and so their official line from HQ is to say you most likely will.

Obviously, in my situation I used to (10+ years ago) have a couple of current accounts, but since then I have closed down any dormant accounts (way before they gave incentives to switch), and now ironically it would have been great to switch one of these accounts as a donor account. Currently, I don't have any donor accounts to use (I've been trying to keep what I need now), and so I would have to open a new donor account, and then apply for the account I want, which probably will mess up my credit report in the short-term, and for me that is a big no-no.

Darkky

I also recently applied online for another barclays account (their stupid online banking is buggy and won't let me apply through it). In the end, i was given an application reference number but nothing more (no sort code and account number). I hope in this case no credit check has been done?

castle96

Yorkshireboy...

like you, refused 3 mths ago for Advanced. No reason given. I set up the £1750 payment in as suggested and "come back in 3 mths". Now I have a letter saying as I "have paid in £500 pm, I will be OK for Advanced"
but, at 4% (for £500 pay in), not 6% (£1750 pay in).
Which did you get ? 4% or 6%