How To Improve Credit Score As A Student - HSBC UK (2024)

FAQs

How To Improve Credit Score As A Student - HSBC UK? ›

Pay your bills in full and on time

For many students, uni is the first time you have to manage paying rent and bills. Your credit history and score will reflect how responsible you are with your bills, so make sure to start with the right habit by paying your utility bills, rent, and phone bills, in full and on time.

Pay your bills in full and on time

For many students, uni is the first time you have to manage paying rent and bills. Your credit history and score will reflect how responsible you are with your bills, so make sure to start with the right habit by paying your utility bills, rent, and phone bills, in full and on time.

There are multiple ways to start building credit as a student, such as becoming an authorized user, opening a student credit card or getting a cosigner. It is important to spend responsibly and maintain a solid payment history in order to keep a good credit score.

Pros of the HSBC Student credit card

The card combines a relatively low APR with a sensible credit limit to help foster good habits for first-time credit users. Purchases are interest-free for 56 days if you pay the balance off in full on time each month. No annual fee.

As a new arrival in the UK, you're not likely to have a credit score, and you can't transfer over your credit history from abroad. ¹ This means that there is a chance that the bank will see you as high risk, and reject your application.

TransUnion (formerly Callcredit) is the UK's second largest CRA, and has scores ranging from 0-710. A credit score of 566-603 is considered fair. A credit score of 604-627 is good. A score of 628-710 is considered excellent (reference: https://www.finder.com/uk/transunion).

That often goes hand-in-hand with increased borrowing, whether via a student loan, overdraft, or credit card. While not necessarily a bad thing, it's vital to know how this impacts your credit score, and what you can do now for a healthier financial future post-uni.

Paying on time every month, keeping your credit utilization low and having a mix of different credit can help build your scores over time. If you have little or no credit history, it may take three to six months of credit activity to get your first credit scores.

Is HSBC good for students? ›

Our Student Bank Account helps you boss your budget while you're studying, so you can enjoy student life to the full. With no monthly account fee. To apply, you'll need to be 18+ and have a confirmed place on a qualifying course at a UK university or college. T&Cs and other eligibility criteria apply.

HSBC Bank Account for International Students

Do keep in mind that this account doesn't give you access to any credit facilities, including an overdraft or loans. If you're already an HSBC customer, you can even set up this account before you arrive in the UK. If you're a new customer, you can open an account in the UK.

Your credit score will not follow you to another country, but your financial situation, including your debt levels and income, will still play a pivotal role. Creditors cannot share your financial information abroad and different countries have different standards for assessing creditworthiness.

We have established that having a good credit score is important, but keep in mind that most international students who are non-US citizens will not have a credit score as they may have limited or no financial information to review in the US.