Help! What am I doing wrong?

auburnette

Hi all,

I'm a student going to uni in September this year (I took a gap year after getting my a level results last year) and am trying to get a student bank account...

..problem is, i can't seem to get one!! what the hell is wrong?

I applied for HSBC's student bank account service in February, having no credit cards and no credit history (like most students). I got rejected. The letter said that my credit rating was not the reason I had been rejected.

Odd, I thought, maybe they don't like the fact that I basically put money in my account and took it straight out last year (i was in america and used it to transfer money)

I applied for a student barclaycard in March and was accepted, with a limit of £400 (pretty average for student credit cards).

Since then I've made all the payments on that card apart from one two days late (my cheque never arrived and I only noticed when logged on to internet banking to check it had been processed...I paid it straight away and Barclays never said anything, not even a letter, because I paid it before they had time to)

I applied again for HSBC's student service in June and was yet again rejected, for the same reason as above...so they say I didn't fail it on credit rating grounds...

I applied for Halifax/HBOS just now and have been rejected for that. I don't want to keep applying for accounts and being rejected because I know it affects your rating. Why am I getting rejected? I just moved house, which doesn't help, and have just filled in the form to get on the electoral roll here, which might help, heh. I also got a credit report from Experian, which is basically blank...my Barclaycard is the only thing on it, with my payment history detailed, and my old electoral roll stuff. Few searches on there but nothing excessive. I have added a note of correction to the late payment one.

What on earth shall I do now? I can't keep applying and being rejected, but I don't see why I AM getting rejected...No student has a credit history, after all!

I could try Barclays, as they provide my credit card, but you have to pay for the overdraft service (£30 a year).

That leaves RBS, Natwest, Smile and Lloyds TSB. It's ridiculous I can't seem to get an account...how the hell am I going to manage 4 years (am reading Law with French) on no overdraft whatsoever? Please help. I'm going out of my mind about this.

homersimpson_3

first of all make sure you are on the electoral register. secondly ask for the actual reason you were rejected. if it's not credit history, then what? if necessary request records under data protection act. this should not be necessary...they should be able & willing to tell you. did you put all money in bank account & take it out straight away and just live off cash last year? do you intend work whilst at uni? have you started applying for jobs? banks will only lend money if they think there's a realistic chance of getting money back.

Shadowplay_2

Hi,

This is my first post!

I just want to clear a few things up

1) have you visited the banks and spoken to an adviser or are these internet/postal applications?

2) are you applying for the 'Student Specific' accounts?

when i first started uni i applied for my student account a couple of months before my start date. i had no credit rating what so ever. you have to put your grant money directly into the account for it to become active.

banks really WANT students to bank with them because once you are hooked they know you are unlikley to leave (unless you read MSE!).

my advise would be to go into a branch and speak to an adviser, take in all your Uni documentation and discuss opening a student specific account.

one correction - i have a student account at Barclays and you DO NOT pay for an Overdraft. i'm unsure where the £30 a year figure has come from.

post more details and i'll try and help

thanks

Fatboy_NSS

Who do you bank with at the moment? Can't you just upgrade your bank account to a student account? Banks are less keen for students than they were as they know how easy it is to switch once they've graduated, so you could well find it hard to walk into a new bank and get a large free overdraft. If you've already got a relationship with a bank you're much more likely to be accepted.

AndyR_3

auburnette wrote:

I could try Barclays, as they provide my credit card, but you have to pay for the overdraft service (£30 a year).

There is no charge for an overdraft on a Barclays student account, and for your first year you can have up to £1000 interest free (subject to application, unlike some banks it is not automatic).

http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?task=articleFWgroup&value=6673&target=_self&site=pfs

Try to visit a city centre or university branch, as they will be more used to opening these accounts that a small branch. Make sure they know it's a student account you want. You will need to take ID, proof of address and proof of your university course.

The only issue may be if your credit file does show a late payment. This then becomes a "gray area" as to whether they can accept the account or not.