Is the HSBC Student Overdraft a scam?

TL;DR: Has anyone ever actually been given the expanded HSBC 3000 overdraft and did you have to apply for it online or could you do it in branch? And if you were rejected, did HSBC ever give you an actual specific reason for why they couldn’t approve it?I've been calling HSBC now a number of times throughout the year to expand my overdraft, and they keep refusing me to do so. I'm not currently in my overdraft and always come out of it within a month of entering it, my Experian credit score is 998.So when I first called, they said that the only reason I was rejected was because I didn't have a letter of confirmation stating my current year of study (3rd year now). So I went and got that from my university and handed it in to my local branch, when I first handed it in they said it required a signature from the person who wrote it, so I had to go back and get that and then handed it in, which they accepted. When I then asked if I could also expand the overdraft there, in branch, they told me that I had to do it online, so I tried online and it said that 'Sorry we can't offer you an arranged overdraft limit at the present time.', not that my application has been denied or anything, just this hard to understand message.So I now have called up, only to be directed to a clearly foreign call centre, and when I asked what the reason was they primarily stated that it was due to my Experian score, which as previously stated is 998. So when I then say that my score is 998 to the call centre worker, they changed their reason to 'it's due to how I use my account', when I then pointed out that I've never over indulgently used my overdraft and that my account has always stayed level and been repaid, more importantly I pointed out that I have the funds to repay my overdraft, at all points in time, they finally said 'would you like me to call the expert banking team', she then puts me on hold for a number of minutes before getting back to me with the answer of ‘as it has been rejected online, we cannot expand it for you here’, which is an answer to a completely different question I didn’t ask.My question here is has anyone ever actually been given the expanded HSBC 3000 overdraft and did you have to apply for it online or could you do it in branch? And if you were rejected, did HSBC ever give you an actual specific reason for why they couldn’t approve it?

Reply 1

HoldThisL

i don't see the tldr but no it's not a scam. you're being sent on a wild goose chase by a disorganised customer support system

i recommend you go to an hsbc branch to speak with someone face to face or continue calling via different routes if you want an answer

i cannot say anything for sure but your experian score is irrelevant to hsbc - they look at your actual credit and bank history to make a decision. whatever is on there, i don't know, but information such as: how many bank accounts you have, how you use them; and how old they are - will all be factors that can affect their decision to give you a larger overdraft

once again, i cannot say anything for sure and i do not want to know any further details about your situation (i am not hsbc)

since you're at the end of your time studying anyway (i assume) have you considered leaving it as is? having an overdraft is risky business

Reply 2

yous urn aim

Original post by HoldThisL

i don't see the tldr but no it's not a scam. you're being sent on a wild goose chase by a disorganised customer support system
i recommend you go to an hsbc branch to speak with someone face to face or continue calling via different routes if you want an answer
i cannot say anything for sure but your experian score is irrelevant to hsbc - they look at your actual credit and bank history to make a decision. whatever is on there, i don't know, but information such as: how many bank accounts you have, how you use them; and how old they are - will all be factors that can affect their decision to give you a larger overdraft
once again, i cannot say anything for sure and i do not want to know any further details about your situation (i am not hsbc)
since you're at the end of your time studying anyway (i assume) have you considered leaving it as is? having an overdraft is risky business

Is it true that by being denied for overdraft, my credit score can decrease? The bank have just told me this but I'm not sure if it's an attempt to get me to stop asking for a concrete reason? They've still not given a specific reason for denying me the first time?

Reply 3

martin7

What month and year did you start your course (e.g. September 2022)? And are you doing a three-year or four-year course (or some other duration)?

Reply 4

HoldThisL

Original post by yous urn aim

yes. if a financial institution does a hard check on your credit report it temporary looks bad on you, but that stops being an issue after a few months/as long as you don't make repeated applications for credit/bank accounts/loans etc