The Student Room Group

Are there any student accounts which will accept a poor credit rating?

Hi all :biggrin:

I was rejected from Santander today due to credit rating :frown: I think it's due to having to live off my overdraft for 10 months whilst at college doing my Access to HE Diploma.

I'm very fortunate in my first year of university with my student loan / grant and further bursaries offered by the university I will be attending. After budgeting meticulously I expect to have between £2,000 - £2,900 left over at the end of my first year - that's before including any money I hope to earn in a part-time student job.

Has anyone had any experience with applying for student accounts with bad credit? I heard Barclay's is good and judge on more than just credit rating. The more I apply for and the more I get rejected, the worse my credit score will get though so I'm a little stuck.

Thanks!
Reply 1
Who do you bank with currently?

They are probably your best bet, as you have an existing relationship with them - yes, you may have been living in your OD which isn't great, but hopefully you have a history of remaining within it (ie. not bouncing payments, exceeding your limit etc.). Yes they will likely look at your external credit reports too, but their internal scoring will carry a lot of weight.

That said, do you need a specific student account? If you are in a strong financial position, and expect to have a surplus as mentioned above, then it seems unlikely you would need the use of the interest free OD facility - so perhaps your existing account will cover what you need?
Reply 2
I bank with Nationwide building society, unfortunately it doesn't have a student account :frown: The overdraft facility on the Flex account which I use is £300 max. and for 12 months.

I was hoping for a student account because whilst I'll be financially strong in my first year my student loan will decrease in my second year, as does my universities bursary reduce from next year. An interest free overdraft is always good for any emergencies that may pop up or unexpected expenditures.

Although I suppose it may be best I stick with my current account. As I said I hope to get a student job and any money I earn will be offset for my second year, so less ability to go overdrawn means leaving University with less student debt I suppose.

I'm going to order my credit report to see how I can at least improve it in the long-term whilst at Uni.
You know you don't *have* to have a 'student account.' I don't - just a standard Nationwide current account. I'd always banked with them and I knew how the online system worked. Plus, it was fairly soon after the banking crash and I wasn't sure if I trusted 'the banks' with my money.
Reply 4
True, although I was hoping for the additional financial security an interest free overdraft offers for any short-term needs. Plus in my third year I will be taking a year abroad and the perks of certain student accounts such as commission free currency, discounted travel insurance, etc. is very tempting.
Reply 5
Original post by LiamTSR
True, although I was hoping for the additional financial security an interest free overdraft offers for any short-term needs. Plus in my third year I will be taking a year abroad and the perks of certain student accounts such as commission free currency, discounted travel insurance, etc. is very tempting.


I'm with RBS and couldn't recommend the student account highly enough - it's the same as the natwest one.

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