Timeline for How can I open a student bank account when I am getting rejected for not having enough credit history?
Current License: CC BY-SA 4.0
14 events
| when toggle format | what | by | license | comment | |
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| Nov 6, 2023 at 6:04 | comment | added | dave_thompson_085 | @user71659: it used to be; the one BoA pushed on me was on my credit report for years. But on checking cfpb I see more recently the banks evaded TILA disclosure by changing to high fixed fees -- still heavily promoted and costly to consumers, but not formally credit. I guees it looks like a duck but doesn't quack. Sorry. | |
| Nov 1, 2023 at 20:07 | answer | added | Simon B | timeline score: 4 | |
| Nov 1, 2023 at 16:03 | comment | added | Marianne013 | When I was a new student in the UK each campus had a designated bank branch who would offer students accounts and who could deal with international students. This information was disseminated by the university. However this only worked at the start of term, outside this period it was basically impossible. I arrived outside this time period and had to make do with a non-student basic account. A lot less overdraft, but that wasn't an issue. | |
| Nov 1, 2023 at 3:44 | comment | added | user71659 | @dave_thompson_085 In the US, standard overdraft is not a line of credit on its own. If you do it enough, the bank will close your account. It is not something the bank advertises. In the UK, an overdraft line of credit is an line of credit you can regularly use, just like carrying a balance on your credit card. The reason why banks love it is 38.9% APRs. | |
| Nov 1, 2023 at 2:44 | comment | added | dave_thompson_085 | @user71659: US banks have also been pushing overdraft 'coverage' on checking since about 2000, enough so that regulators in 2009 required them to get consent -- which now they include (bury) in the 20+-page 'terms' you supposedly read and agree to. I haven't been in a position for decades to observe their handling of 'thin' (or poor) credit files though. | |
| Oct 31, 2023 at 16:14 | comment | added | top ROOKIE | @littleadv The staff members advised me to check with Experian and return in three months. That's exactly what she said. I will undoubtedly apply to another bank. But I believe I should begin building credit history using the secured credit card? | |
| Oct 31, 2023 at 13:42 | history | edited | JohnFx♦ | CC BY-SA 4.0 |
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| Oct 30, 2023 at 21:36 | comment | added | user71659 | @littleadv Dealing with smaller banks and building societies (credit unions) who will be more flexible and will open an account without overdraft. Like the US, there's poor credit bank accounts without checkwriting. Having utility bills, cell phone bills, rent, hire purchase agreements (installment plans) in your name. Borrowing cash is significantly riskier than other types of lines of credit. | |
| Oct 30, 2023 at 21:25 | comment | added | littleadv | @user71659 how would the chicken and egg problem be solved in the UK then? | |
| Oct 30, 2023 at 20:57 | comment | added | JayFor | You mentioned in your other question that you're an international student? HSBC has a specific account for international students, might be worth applying for this specifically if you didn't already hsbc.co.uk/current-accounts/products/international-student | |
| Oct 30, 2023 at 20:35 | comment | added | user71659 | @littleadv A fundamental difference in UK current bank accounts versus US checking accounts are in the UK, they are generally associated with an overdraft facility, a revolving line of credit. This is used in the same way that credit card borrowing is used. The interest on the overdraft is a significant revenue source for the bank, thus it is pushed onto as many accounts as possible. If you don't qualify for such a line of credit, the bank is far less interested in handling your money. | |
| Oct 30, 2023 at 15:32 | comment | added | littleadv | You're were advised by who? Credit score generally is not needed for a regular bank account. | |
| S Oct 30, 2023 at 11:39 | review | First questions | |||
| Oct 31, 2023 at 5:34 | |||||
| S Oct 30, 2023 at 11:39 | history | asked | top ROOKIE | CC BY-SA 4.0 |