Applying for a student credit card with an overdraft

Stan_555

Hi, I'm 18 and currently a student. I have a student bank account with HSBC, and currently have a £927 overdraft out of the total arranged £1000. This is because I've put it into a cash ISA to earn some interest on it - I'm very on top of my money, so I'm not worried about spending more than I owe. My question is: I would like to apply for the HSBC student credit card so that I can increase my credit rating. How likely is it that I will be accepted with this overdraft currently? I'm not bothered about how much credit limit I get, I won't be using the card for borrowing, just small transactions that I will be sure to repay. Thank you for any help or advice!

grumpy_codger

Just apply - you  have nothing to lose.

TadleyBaggie

Unless the overdraft is 0%, can’t see the logic of putting it into an ISA. 

grumpy_codger

TadleyBaggie said:

Unless the overdraft is 0%, can’t see the logic of putting it into an ISA. 

It's usually interest-free for student accounts: https://www.hsbc.co.uk/current-accounts/products/student/

flaneurs_lobster

I can't imagine that adding a credit card with a stated max credit limit of £500 to an individual who is already holding the necessary prerequisite current account (with overdraft) would be too much of an issue.

Maybe they'd like to see a full year's worth of current account usage but that's just my guess, can't see a downside to just applying.

Stan_555

Brilliant thank you for your responses - and yes the overdraft is 0%. 

retiredbanker1

Read the terms of the card you want to apply for - in response to what income you earn and what they will or not accept as income.
Do this as not to 'waste' a search on your credit file.

Gone are the days where banks threw money at students willy-nilly but some still accept students if they are earning a salary on top of Grants/Student Loans/ Bursaries etc. 

WillPS

retiredbanker1 said:

Read the terms of the card you want to apply for - in response to what income you earn and what they will or not accept as income.
Do this as not to 'waste' a search on your credit file.

Gone are the days where banks threw money at students willy-nilly but some still accept students if they are earning a salary on top of Grants/Student Loans/ Bursaries etc. 

HSBC are one of only 2 banks to still offer a Student Credit Card. Typically the only income expected is student loan payments.