HSBC Overdraft declined?

[SXGuy]

Re: HSBC Overdraft declined?

Think Barclays offer £300 overdraft at 0%

[Bosieb]

Re: HSBC Overdraft declined?

Just an after thought, when I applied for this rather small overdraft even though I've been with them about 8 months. I had only been putting my main money in for about 6 weeks. Maybe too new for them.
When the decline came just remembered it said not meeting credit scoring? They checked Experian and Call Credit, seems a lot for a small overdraft.

[Bosieb]

Re: HSBC Overdraft declined?

How long do you have to be with them to get an overdraft? I must not of scored high enough for an overdraft on opening the account
Oh and the behaviour thing I have asked but they refused to say!

[Never-In-Doubt]

Re: HSBC Overdraft declined?

How long do you have to be with them to get an overdraft? I must not of scored high enough for an overdraft on opening the account
Oh and the behaviour thing I have asked but they refused to say!

Its really weird with HSBC because unlike any other bank they penalise your internal score dependant on how you spend money that you have and strangely as it is, cash withdrawals go against you....

I'll try and explain;

Scenario A
Lets assume you have £1000 coming into your HSBC account via salary and then you pay all your bills by DD and literally use the debit card to spend - on occasion you may take out some cash to see you through etc - but in general, what does this scenario show to the bank?

Scenario B
Lets assume you have £1000 coming into your HSBC account via transfer from another account to qualify and you have limited or no DD's set up and you literally move money around or use the HSBC account as a spending account and thus withdraw cash mainly. What, do you think, this scenario shows the bank?

Ok, I'll help you out...

A - well quite plainly they know pretty much everything about you, where you shop, where you buy takeaways and what luxuries (if any) you purchase - pretty much offers an accurate audit trail of your life and thus you would be very low risk;

B - well this, as it appears is the reverse as the above because they cannot see anything about you and so although you meet their criteria for the account you will be classed as very high risk based on the bank having limited info about you.

So, once you have established 'how' the scoring works, you need to figure out how to use it to your advantage which is where the tricks come into play, basically try and use the account as your main account for at least 6 months and try and not to withdraw any cash - if you need cash do an online transfer to another account and withdraw from that - believe it or not that's a killer with HSBC (why? )

Then, give it 6 months of perfect banking and apply over the phone for an overdraft, they will approve you - without shadow of a doubt you will get accepted. That's you on the ladder, then every so many months just apply to increase via online banking. If it declines, send a secure message and appeal it - they usually come back with a yes if you've not done anything really bad such as get a default

All the above said, you do need a score of 60+ for any lending with the bank and if you do not pay £1000 per month in your score will always cap itself at 59 thus alleviating any lending unless you get a generous underwriter....

make sense?

I could go on for years but really, this tells you the main jist.......

[Bosieb]

Re: HSBC Overdraft declined?

Its really weird with HSBC because unlike any other bank they penalise your internal score dependant on how you spend money that you have and strangely as it is, cash withdrawals go against you....

I'll try and explain;

Scenario A
Lets assume you have £1000 coming into your HSBC account via salary and then you pay all your bills by DD and literally use the debit card to spend - on occasion you may take out some cash to see you through etc - but in general, what does this scenario show to the bank?

Scenario B
Lets assume you have £1000 coming into your HSBC account via transfer from another account to qualify and you have limited or no DD's set up and you literally move money around or use the HSBC account as a spending account and thus withdraw cash mainly. What, do you think, this scenario shows the bank?

Ok, I'll help you out...

A - well quite plainly they know pretty much everything about you, where you shop, where you buy takeaways and what luxuries (if any) you purchase - pretty much offers an accurate audit trail of your life and thus you would be very low risk;

B - well this, as it appears is the reverse as the above because they cannot see anything about you and so although you meet their criteria for the account you will be classed as very high risk based on the bank having limited info about you.

So, once you have established 'how' the scoring works, you need to figure out how to use it to your advantage which is where the tricks come into play, basically try and use the account as your main account for at least 6 months and try and not to withdraw any cash - if you need cash do an online transfer to another account and withdraw from that - believe it or not that's a killer with HSBC (why? )

Then, give it 6 months of perfect banking and apply over the phone for an overdraft, they will approve you - without shadow of a doubt you will get accepted. That's you on the ladder, then every so many months just apply to increase via online banking. If it declines, send a secure message and appeal it - they usually come back with a yes if you've not done anything really bad such as get a default

All the above said, you do need a score of 60+ for any lending with the bank and if you do not pay £1000 per month in your score will always cap itself at 59 thus alleviating any lending unless you get a generous underwriter....

make sense?

I could go on for years but really, this tells you the main jist.......

That's brilliant, yes it's clearer now at the moment I hardly use the atm with HSBC, normally cashback if I shop. Funny why you are sort of penalised for taking out your own money!
Can bank staff overide the computer? So if I use the same £1000 going through halifax would that help?
To be honest I like HSBC's online banking, even with the little pesky security key!
So the number to reach is 60 for behaviour, although their credit card I'm sure has an higher apr than the Clarity Card? I do all my online shopping with my HSBC card like Tesco, Amazon etc.
Great information

[Bosieb]

Re: HSBC Overdraft declined?

A little PS: I have 8 direct debits and a standing order with them too?

[Never-In-Doubt]

Re: HSBC Overdraft declined?

That's brilliant, yes it's clearer now at the moment I hardly use the atm with HSBC, normally cashback if I shop. Funny why you are sort of penalised for taking out your own money!
Can bank staff overide the computer? So if I use the same £1000 going through halifax would that help?
To be honest I like HSBC's online banking, even with the little pesky security key!
So the number to reach is 60 for behaviour, although their credit card I'm sure has an higher apr than the Clarity Card? I do all my online shopping with my HSBC card like Tesco, Amazon etc.
Great information

Hiya

Sorry, to get the bank account (ie external customer) you need 41+ which is basically a half decent credit file (for comparison 1st Direct acceptance trigger is 69 ) which gets you a current account, an OD with the account needs 51+ (if no salary +10pts) however if your credit is good then this opening score can be higher (or even lower) and it will never change until 6 months banking have passed then it gets updated on the first Monday of every month - so in essence, you can bank with them for 6mth then apply for an OD and you should get a yes, if it's a no wait a full 7 months before re-applying, if however its a yes you can change it every 3 months but then they charge that silly £25 so best to do it once a year.....

The scoring is weird to get your head round, basically pay a wage in and then keep an OD for 3-6 months and you should hit the magical 60 to apply for a credit card or get 70 for guaranteed acceptance on card and loan without a search....

remember HSBC will not credit search you if you are within the pre-approved limits (ie internal score) - so if they search you it is because they do not have enough info on you so start changing the way you use the account.

The way to beat the system is to go into branch once a year and request an account review - this does one search as an "account review" and at the end the bank will tell you exactly what they can lend you in bank account OD's, cards and loans.... Mine at one point showed

Overdraft max - £12,000
Loan Max - £7900
Card Max - £4,650

I only ever used £500 + £200 OD's and £2800 on a CC.... my score was always 65+ even though at the time I had over 30 defaults

(yes, your internal score can override the monthly CRA feed data) and yes in branch can override a decision but they never will.

[Never-In-Doubt]

Re: HSBC Overdraft declined?

p.s. HSBC use an interactive system so you can go from a grade A customer to a grade F overnight.... they get triggers whenever your credit files shows anything derogatory.

To be fair, HBOS use a similar scoring and internal score system but a lot easier to get accepted. I don't regret swapping (although my hand was forced)!

[Bosieb]

Re: HSBC Overdraft declined?

Hiya

Sorry, to get the bank account (ie external customer) you need 41+ which is basically a half decent credit file (for comparison 1st Direct acceptance trigger is 69 ) which gets you a current account, an OD with the account needs 51+ (if no salary +10pts) however if your credit is good then this opening score can be higher (or even lower) and it will never change until 6 months banking have passed then it gets updated on the first Monday of every month - so in essence, you can bank with them for 6mth then apply for an OD and you should get a yes, if it's a no wait a full 7 months before re-applying, if however its a yes you can change it every 3 months but then they charge that silly £25 so best to do it once a year.....

The scoring is weird to get your head round, basically pay a wage in and then keep an OD for 3-6 months and you should hit the magical 60 to apply for a credit card or get 70 for guaranteed acceptance on card and loan without a search....

remember HSBC will not credit search you if you are within the pre-approved limits (ie internal score) - so if they search you it is because they do not have enough info on you so start changing the way you use the account.

The way to beat the system is to go into branch once a year and request an account review - this does one search as an "account review" and at the end the bank will tell you exactly what they can lend you in bank account OD's, cards and loans.... Mine at one point showed

Overdraft max - £12,000
Loan Max - £7900
Card Max - £4,650

I only ever used £500 + £200 OD's and £2800 on a CC.... my score was always 65+ even though at the time I had over 30 defaults

(yes, your internal score can override the monthly CRA feed data) and yes in branch can override a decision but they never will.

They did ring me about 3 month's after opening the account but I was going on holiday and had to cancel! They said for a review, I personally thought flogging me something.
So they can see if there is anything approved on their screen?
Getting it a bit more now, if I manage 8 direct debits ok and no missed payments will help I guess.

Also regarding First Direct they seem extremely harsh in getting an account! I wonder what Halifax's scoring is like because I did Ok with them after 6 months?

Great info, my branch said they can't even divulge behaviour stuff - jobsworth person I got

[Never-In-Doubt]

Re: HSBC Overdraft declined?

Yes they can see what limits you're pre-approved for, for example it may read as follows;

CC-LIM - 1800 / OD-LIM - 600 / GL - 2500
LL - 2800 / 2950 LS

The above basically means that they will let you have 'up to' 1800 credit card limit, 600 in OD's or GUARANTEED loan of upto £2500 but the limit (Lending Limit / LL) is only £2800 with £2950 showing as the lending stream (LS) which means they would lend upto a maximum of this limit. So say you applied for an OD of £3000 it'd straight decline with no search. If you went for a loan of £3000 it'd do a search as you only have an guarantee of £2500. The higher limit code (LS) authorise any payments on your credit card or bank account till you reached the higher limit of £2950. Example, you had a limit of £2800 on a CC and wanted to buy a holiday at £3000, it'd decline. If it was however £2949 it'd authorise the payment.....

That's one example using older system codes (all changed now).....

The branch cannot divulge internal scores, you get your score from phone banking or if you don't want to apply you simply ask them 'can you tell me if I am pre-approved for any borrowing based on my internal score' - they will tell you if so.

Regards 1st Direct, lol, forget it if you have any baddies, the odd one slips through but in general they are very hard to get accepted with unless you have great credit.

HBOS are relaxed in scoring, always have been. Easy to play their systems as well.....

[Bosieb]

Re: HSBC Overdraft declined?

HBOS are relaxed in scoring, always have been. Easy to play their systems as well.....

That sounds interesting will give it another 6 month's..............
Wonder if HBOS have changed to LTSB system their scoring?

[Never-In-Doubt]

Re: HSBC Overdraft declined?

My HBOS - Opened the reward account last July so I'm what, 7/8 months in - see the overdrafts

[Never-In-Doubt]

Re: HSBC Overdraft declined?

That sounds interesting will give it another 6 month's..............
Wonder if HBOS have changed to LTSB system their scoring?

what do you have with HBOS at the moment? Want me to teach you their systems

specifically, who do you bank with (Lloyds/Halifax or BOS)

[Bosieb]

Re: HSBC Overdraft declined?

what do you have with HBOS at the moment? Want me to teach you their systems

specifically, who do you bank with (Lloyds/Halifax or BOS)

I have one halifax reward with a £300 o/d
1 x Clarity Credit card with a £2000 limit
1 x loan of £1300

yes would like to know their systems I'm a good pupil

[Never-In-Doubt]

Re: HSBC Overdraft declined?

I have one halifax reward with a £300 o/d
1 x Clarity Credit card with a £2000 limit
1 x loan of £1300

yes would like to know their systems I'm a good pupil

Haha

They updated their feed on Sunday through the night - feeling brave? Trust me here, it's fine....

Log-in to HBOS and then go into your bank account and opposite, on the right, you'll see a link for overdraft - click it.

When the new window opens just apply to increase it to £500. No more, just do that.....

Submit it and then come back and tell me what it says - TRUST ME - you will not get credit searched for doing this.

I'll wait here - go try it (stay logged in)......