better chance with bank?

london1973

another question i’m afraid!

 don’t want to make multiple loan applications so trying to figure out best approach

The question is how much would my bank HSBC look at my account (and how it has been managed) when making a decision.. obviously other companies can pretty much only work off credit files but do banks where you hold an account operate differently. My account management has been fairly impeccable with decent and regular credits and never using the overdraft.. i have their algorithm is going to be the same as everyone else and decisions are basically based on credit score, but if they do
factor in account management i think i’ll
plump for them

Thanks again to anyone who
takes the time to read and respond 

Brie

Your credit score is meaningless.  Your credit history on the other hand is crucial.  Any bank can look at your credit history which will show you have an overdraft but aren't using it.  How much you have available as credit on any cards, any phone contracts that you're currently paying etc.  Whether you've ever missed a payment on anything, had a ccj, registered to vote, often something will be noted when you buy car or house insurance.

Your own bank in addition will very likely have something feed in from their own records that others can't see but that will only be significant if you pass the first hurdle of having enough income to service whatever loan you are applying for plus whatever credit you already have available.  So do you have enough income for the loan + continuing to make your phone contract payments + your overdraft (which you might use at any time) + all the credit available if you maxed all your credit cards?  If you get through that with flying colours then it's unlikely your account management will be that important.  If there's a couple of blips they might look at your account.  At least that's how I understand it.

MorningcoffeeIV

london1973 said:

 i have their algorithm is going to be the same as everyone else and decisions are basically based on credit score, 

Their algorithm will be different from other lenders and decisions will never be based on credit score.

If you're dealing with them show a positive story, then it may help you. But if it shows a lot of debt repayments and little disposable income, then it will have the opposite effect.

london1973

yes i realise credit scores are meaningless..its just a term i use for the lenders internal ‘scoring’ mechanisms, not the silly ‘scores’ you get on clearscore etc… which are obviously designed to get you to apply for stuff through their websites

Nebulous2

Brie said:

Your credit score is meaningless.  Your credit history on the other hand is crucial.  Any bank can look at your credit history which will show you have an overdraft but aren't using it.  How much you have available as credit on any cards, any phone contracts that you're currently paying etc.  Whether you've ever missed a payment on anything, had a ccj, registered to vote, often something will be noted when you buy car or house insurance.

Your own bank in addition will very likely have something feed in from their own records that others can't see but that will only be significant if you pass the first hurdle of having enough income to service whatever loan you are applying for plus whatever credit you already have available.  So do you have enough income for the loan + continuing to make your phone contract payments + your overdraft (which you might use at any time) + all the credit available if you maxed all your credit cards?  If you get through that with flying colours then it's unlikely your account management will be that important.  If there's a couple of blips they might look at your account.  At least that's how I understand it.

Have you any evidence to show that the credit you have available is considered? 

This has been touted on here before, but I think it is a minor factor. I've had over my annual income in credit limits for more than 20 years. At times I've had over twice my income. If anything it has seemed to help, lenders take some comfort from knowing that other lenders trust you. When I've had large limits and have applied for an additional credit card it has had a large limit as well.