Need Student Account / have BAD Credit :-(

Jack21_2

Hi Guys,

First off, Good Luck to the rest of you who are off to Uni this year!

My situation is this -

My credit history is shot to pieces - in a nutshell, I went Bankrupt in Jan 2003..discharged Jan 2005, together with a cpl CCJs and a few defaults (which obviously were included within the B'ruptcy).

Therefore, I currently only have a basic account with HBOS - the Cardcash a/c with Visa Electron card and thats it.

The a/c has been great since my problems, and Ive actually had the card since it was just with BoS when I opened it in March 2001, just a no - frills basic a/c as I didnt want (and obviously couldnt get) any credit anyway.
I've always treated the a/c with respect, ok have gone o/d by a cpl of quid every so often, but Ive always rectified things and have probably only ever had 2/3 charges applied in 4 1/2 years.

Alas, fast forward onto the here and now...

I want to put my problems behind me, as Im off to Uni the 3rd of next month.

The place is guaranteed..I have the UCAS letter / Uni confirmation of full - time status letter, and ID, so paperwork isnt a problem

I just need a *student bank account*!

On Wednesday morning this week, I applied (online) for 2 seperate student accounts just to see how I get on, namely HSBC and Natwest, and since reading Martins excellent article / league table of the best of the bunch, I see that both of these seem pretty good bets.

I tried going for Halifax earlier on in the year, but after the guy tried to 'upgrade' my cardcash a/c to the normal student affair, "Computer says nooo!"

So, Im now waiting with baited breath to hear from these two.

Ill shut up and get to the point and ask..Have I got a hope in hell?!

Or will they take one look at my past credit rating and laugh me out of the joint? :-/

Do any of you know how strict they are when it comes to past credit problems re student accounts as opposed to 'normal' bog standard current a/c's?

I noticed from Martins table also, that HSBC say they "guarantee" the £1000 1st yr o/d, and yet there is no mention of "subject to status"...is this allowed? I always presumed they had to credit check everybody and that nothing was set in stone. However, I guess that in this case they'll see the student loan going in, thus they have some sort of security.

Anyway, I filled out both online forms to HSBC (which was pretty basic..hardly any mention of whether I'd had past problems etc), aswell as Natwest (which was rather gruelling, as it actually asked me outright "whether Id ever been Bankrupt.." I answered truthfully and said I had, but added in the box about my then health problems / debts which are now resolved).

I suppose I just need to sit tight and wait and see, but I would just appreciate any of your thoughts on this.
Perhaps some of you have had problems in the past credit - wise and have faced the same worry when applying for a student a/c..how did you get on?!

Im not really bothered about getting hold of credit per se, but it would be nice to have a half decent debit card for the first time in years!
An interest free o/d would be good as a buffer also..I may even stick it in a decent savings a/c ;-)

Anyway, Ill shut up now, and hope that some of you wiser guys n gals can help me re what to expect / how to go about things poss with another bank?

Many Thanks,
Cheers,

Jack

Savvy_Sue

I think going in and talking to people face to face is probably going to be a better bet, also if you haven't managed to open a student account before you get to Uni, trying to do so once you are there may be a possibility. Also even if it's not the best account, will HBOS upgrade you to student account? It seems to me you stand a better chance with a bank which has evidence of your more recent financial status than with one which doesn't know you.

But you're not the only one to be turned down for online applications, and in some cases it was because they had no previous financial history, as it were! How are you supposed to start, chaps?

Jack21_2

Hi Sue, and Thank You for your reply.

You're right in that Im probably better off going into the branch and speaking to a "real live human bean"

However, no news is good news at the moment regards HSBC / Natwest.

As for my current bank, the Halifax, I already applied to them for a student a/c back in early Summer, and was instantly declined (this was in the branch).

Alas, I applied yesterday online for the same, and was given the message "Decision Pending .. more processing needed and we'll get back to you within 48 hours" so at least this time, its not a straight rejection, so I was quite surprised.

What do ya reckon guys? Have any of you (who are already with the Bos / Halifax) applied to the Halifax, had this message online, and then had a good outcome a few days later?

I'm just a bit worried that it's just their polite way of letting you down gently..

On the online banking screen for my BoS a/c has appeared a temporary a/c for the Halifax application, alongside which comes up as "Application Decision".
However, it still appears as pending,so hopefully come Mon / Tues, I should know something

If anyone has any advice / experience of applying for the student a/c with the Halifax, let me know, as it would be most appreciated.

Cheers,

Jack :beer:

Robert_Sterling_3

The key question for a lender is will they make a profit from you in the long run.

Since your bancrupcy came to an end have you made any further repayments of your original debts?

dsk1980

Hi,

Sorry to put a dampener on things, but it is unlikely that you will be allowed a 'student bank account' at all during your time at University if you were only discharged this year.

I am a money advisor at a large university (and used to work for an international bank) and meet many students who are unable to get these accounts.

You could try speaking to a 'person', but most of these accounts are dealt with centrally and the 'people' have very little power to change decisions.

Had you conducted your basic bank account perfectly, you may have had a small chance (although it's unlikely) but as you have been overdrawn on this (whether you rectified it immediatley or not) this will show up on any credit search, and won't stand you in good stead, especially as far as overdrafts are concerned.

I would advise you to keep the account you have, and whilst at uni do your best to keep it in credit. Then when you finish uni you should be in a much better position.

Sorry (

elisebutt65

I've had this problem - not bankruptcy, but a crap Credit rating. Luckily I've been with the Abbey for about 10 years(originally N&P).

They upgraded me but won't give me any overdraft. At least they gave me a chequebook and £100 guarantee card and a Visa Debit card though. Also managed to get a Barclaycard student C/C and Capital One card.

I went in person to NatWest and HSBC to discuss this but again - as you say - "Computer says Nooo"

I've even paid up with Equifax and I can't see the problem - all my debts are now showing as satisfied, maybe I just have to bank responsibly for a few years???