Credit checking
Discussion
Can anyone explain something that happened last week?
My son attempted to open a current account and savings account with HSBC, they declined to open either after credit checking him.
We've looked on Experion and he scores 950 - he's 21, full-time employed with no loans/HP/credit cards.
His existing account (student current a/c) has a £1500 overdraft which has been unused for a year at least.
I'm just a bit unsure of why a bank would decline him, especially as their explanation was basically 'computer says no'
My son attempted to open a current account and savings account with HSBC, they declined to open either after credit checking him.
We've looked on Experion and he scores 950 - he's 21, full-time employed with no loans/HP/credit cards.
His existing account (student current a/c) has a £1500 overdraft which has been unused for a year at least.
I'm just a bit unsure of why a bank would decline him, especially as their explanation was basically 'computer says no'
Sharted said:
Unfortunately, lack of credit equals inexperience.
He'd be better off getting a simple credit card and using it then paying it off monthly to build up a rating.
This is what I did before getting a mortgage, used it to pay petrol and any minor repairs that may needed to be done. It then got paid at the end of each month. He'd be better off getting a simple credit card and using it then paying it off monthly to build up a rating.
As well as this I took out a small loan that I knew I could pay in full after a few months. This seamed to help with credit ratings.
It's crazy when you can't open a current/savings account, although they would say that you can run up an unauthorised overdraft so there is an element of credit.
I'd probably try somewhere else initially, I think HSBC are just touchy about everything - they were well-known as being the most difficult bank for mortgages, and there has been the money laundering questions in the news this week. Getting a credit card and always paying it off (or churning a small balance) is always recommended for building credit though, but you would expect that to be more difficult than opening a bank account!
I assume he is on the electoral roll at his current address?
I'd probably try somewhere else initially, I think HSBC are just touchy about everything - they were well-known as being the most difficult bank for mortgages, and there has been the money laundering questions in the news this week. Getting a credit card and always paying it off (or churning a small balance) is always recommended for building credit though, but you would expect that to be more difficult than opening a bank account!
I assume he is on the electoral roll at his current address?
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