HSBC: the first bank to offer overseas credit history

May 11, 2007

HSBC has become the only bank to offer overseas customers the chance to get a loan and transfer their credit histories to over 25 different countries. Usually people who move to Western countries find it really difficult to obtain credit or even simply open a bank account because they do not have the means of transferring their credit history. So with HSBC offering this new service, it will be a large help to many people.

There is just one catch with the new HSBC service and that is the fact that it offers the service to richer customers only. This means that unless you earn a lot of money per year, you will still have the same difficulties opening a bank account and getting the credit that you need when you move.

At the moment it is mainly India which HSBC is helping and it has a total of 50,000 high profile customers there. So if they need to relocate for whatever reason they can get the finances that they need quickly and easily.

However the system has been criticised saying that it will not really help many people, Due to the fact that HSBC are only providing the service to high profile customers, it will only really help a very small amount of people. Most banks look at cash flow instead of credit history and so it is thought that the system is mainly irrelevant.

Overall there are some people who will love this new system because it does give them a chance to transfer their credit history and get the financial help that they need. However there will always be others who will say that the system is a waste of time. Either way HSBC win because they still have 50,000high profile people who sue their services frequently.