HSBC conduct Hard search on just opening an account without overdraft. Rather than a soft search

Davis2012

I applied for the HSBC advance account as suggested by Martin Lewis to take advantage of the £175 to  switch accounts . I asked for a bank account only and was rejected and offered a basic account.

3 weeks later I checked my credit report and my score had decreased by 75 points and HSBC had conducted a Hard search on my credit file. 

I contacted HSBC to make a complaint regarding this and questioned why they had not conducted a soft search which would  have provided them with the information they would need to open the account without affecting my credit score.

 HSBC complaints team said that it was policy . I explained that I myself have worked in banking and that the only time a hard search  is conducted is when a customer is  asking for Credit, I had not requested an overdraft , loan , credit card or mortgage, just a bank account.

On the HSBC website it also states that hard searches will be conducted for loan, credit cards and mortgages.   

The complaints member of staff spoke to the underwriters to see if they would remove the search from my credit file and replace it with a soft search  and the answer was NO .. it our policy. 

Many soft searches get conducted on my  credit file such as utility,  clear score , Equifax , other credit card companies who want to offer you a product but a hard search was conducted only to satisfy the needs of HSBC to see if they could offer me credit on all their products. I never conduct hard searches as I am in the midst of applying for a mortgage in the next  2 months and I am upset that HSBC have acted in self interest.  NEW APPLICANTS  FOR BANKING BE AWARE.

marcia_

 I'd expect a hard search when applying for a bank account! 

Davis2012

Only for credit such as request an overdraft, credit card mortgage.  Soft searches can be used to show credit limit and appropriate types of account for customer  . Even on HSBC website it states hard searched are conducted for the above. I have not asked for financial credit . Just an account other banking providers are responsible and would not do this unless ur asking for a form of credit

marcia_

 But i thought the advance account you were applying for came with an overdraft?!

molerat

A current account has the ability to go into overdraft whether arranged / authorised or not so I would expect, and has been my experience over the years, any current account to come with a hard search to ascertain your full financial situation.

Sensory

Just because you don't request an arranged overdraft doesn't mean the account you're applying for  (HSBC Advance) cannot go into an unarranged overdraft, which is a form of credit, and hence the hard search.

MalMonroe

My bank account with Nationwide doesn't come with an overdraft and they conducted a hard search on that. It's what I've come to expect. Whether applying for bank accounts or credit cards or any other form of credit. When I applied for my car finance three years ago, same thing. Hard search.

Also, nobody else can see your credit score so you don't have to worry about that. And one hard search isn't too bad. Most people do expect it of banks because financial institutions have no idea how potential customers are going to handle their finances. Even if there is no agreed overdraft, customers often do go into overdraft. (As per Sensory's comment, above).

born_again

Davis2012 said:

I applied for the HSBC advance account as suggested by Martin Lewis to take advantage of the £175 to  switch accounts . I asked for a bank account only and was rejected and offered a basic account.

3 weeks later I checked my credit report and my score had decreased by 75 points and HSBC had conducted a Hard search on my credit file. 

I contacted HSBC to make a complaint regarding this and questioned why they had not conducted a soft search which would  have provided them with the information they would need to open the account without affecting my credit score.

 HSBC complaints team said that it was policy . I explained that I myself have worked in banking and that the only time a hard search  is conducted is when a customer is  asking for Credit, I had not requested an overdraft , loan , credit card or mortgage, just a bank account.

On the HSBC website it also states that hard searches will be conducted for loan, credit cards and mortgages.   

The complaints member of staff spoke to the underwriters to see if they would remove the search from my credit file and replace it with a soft search  and the answer was NO .. it our policy. 

Many soft searches get conducted on my  credit file such as utility,  clear score , Equifax , other credit card companies who want to offer you a product but a hard search was conducted only to satisfy the needs of HSBC to see if they could offer me credit on all their products. I never conduct hard searches as I am in the midst of applying for a mortgage in the next  2 months and I am upset that HSBC have acted in self interest.  NEW APPLICANTS  FOR BANKING BE AWARE.

Well in your case of working in Banking. You would know that the credit score is never seen by banks & is a meaningless figure made up by the CRA to get you to buy into the whole scam.

Bigwheels1111

When I opened my chase account, I called to make sure they only did a soft search.
On the other side of things, Nothing changed on my spending, banking and credit cards but my score dropped 43 points.

Alex9384

As far as I know, you can only get Advance account if you are eligible for at least £1000 overdraft.
They need to hard-search you for that. But almost all banks run a hard search for new current account.

That being said, HSBC probably do most hard searches of all banks. I'm glad they don't do a hard search every time you try to log in.
They wanted to do hard search when I tried to increase my credit card limit. None of my other banks ever wanted to do that for a limit increase. I rather closed down the card.

henm2

The Hsbc advance account always has a hard search as you have to be eligible for a £1000 overdraft limit to get it even if you do do not want the overdraft. If not credit worthy then no adance account given.