Overdraft & Poor Credit History

Hi,

Does anyone know whether students with poor credit histories are entitled to overdrafts and how much they would be limited?

Experian says my credit score is 'very poor'.

Overdrafts on Student Accounts DO go through Credit Checks, but they do tend to be more favourable as it's a temporary overdraft and you have guaranteed money going in. I'd apply for 2 Student Accounts if I was you. One should be approved.

Thanks man, any particular recommendations for banks? I'm thinking Santander and Co-Op.

Hi,

Does anyone know whether students with poor credit histories are entitled to overdrafts and how much they would be limited?

Experian says my credit score is 'very poor'.

Overdrafts on Student Accounts DO go through Credit Checks, but they do tend to be more favourable as it's a temporary overdraft and you have guaranteed money going in. I'd apply for 2 Student Accounts if I was you. One should be approved.

Have you looked into why your rating is poor? Have you defaulted in the past?

Not if someone has credit defaults again there name, regardless to say its done on a credit scoring system. Certain banks wouldn't entertain the thought of it once you've developed a relationship with a bank it says on the screen in the branch whether or no that person is eligible for certain products. Its there to prevent someone going through the hassle of pitching to a potential client x, y and z. Late payments on credit cards, overdrafts and late payments to credit facilitated institutions,they have a 0-9 on scoring. Now certain banks will look on credit files to see if you've borrowed off payday institutions and they won't lend to you (high risk borrower).

I know, I said they were "more favourable" to accept Students.

I didn't say they blindly accept them or that it's incredibly easy.

I have never had credit or a loan in my life so my credit history is non-existent which is sometimes as bad as a poor credit history. However I got accepted by two banks out of two for a Student Account and they told me because I'm a Student the underwriters would be more favourable to accept me.

Yeah, 1 default I'm still repaying. May be multiple instances of missed bills (phone contract) though as well as a bankrupt parent.

Credit score is apparently 381 with Experian.

700 is average, that is terrible, you can look on there it will tell you what you are eligible for on the offers and services. If you have another credit check it will go down further! That credit default stays on there for 6 years, if you still owe the money you might as well speak to then to pay it to get it updated to "satified".

I did say it was very poor. Would be helpful if you could give me some advice instead of telling me what I already know?

Oh you should get a student account, do you have a current account with any bank at the moment. Is a simple upgrade, no credit check! As for the overdraft very unlikely, but least you get the benefits of it.

The bank I'm with only offers a "customized card" as the benefit

If you want to move bank, the main thing is you have never had an iva or been bankrupt. So you could try to apply for them anyway, if you really want to move bank. The Natwest deal looks good, there few others out there with good perks, just try! Nothing ventured, nothing gained!

Oh you should get a student account, do you have a current account with any bank at the moment. Is a simple upgrade, no credit check! As for the overdraft very unlikely, but least you get the benefits of it.

Its not a simple upgrade, they credit check at Lloyds.

Not if they don't offer you an overdraft and then, they do it without a credit check as it's based on past history with the bank. I got a loan to build my credit profile to the highest it can be) from Lloyds not long ago and it was an internal check rather than a credit profile check.

As with all things, a good relationship with a bank can make your life easier as they'd do internal checks not external checks. HSBC were for a responsible lender, quite irresponsible when they lent to me with my student account, in 3 years I'd only missed one payment, it was when I opened a credit card account with Halifax and didn't realise that I'd gone past my limit and got charged a **** lot did my credit profile suffer and has been suffering since! I really need to close that account, more hassle than it's worth.