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Best way to obtain a loan? Watch

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    Dear All,

    I'm writing here to get students' opinions on what the best way is to obtain a loan of roughly £500. I am in my 3rd year at UCL and I am worried that my student loan will have been depleted by the last month or two of my enrollment. Does anyone know the best route to take? Ideally, I'd like a year to pay it back (or possibly slightly longer), as I'd need time to find work once I graduate. Does anyone here have any experience with this? If it helps, I'm currently with Halifax and do not have any bad track record and I have not borrowed any money as of yet (disregarding Student Finance England, of course).

    Thanks.

    Oh, another detail: I have never borrowed money from a bank or company before, so I am entirely ignorant of the process and how best to borrow. Would it be best to go straight to Halifax? Or would I end up paying extortionate interest?
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    You could request and overdraft from the bank.
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    (Original post by Kabloomybuzz)
    You could request and overdraft from the bank.
    Forgive me for my ignorance :P But how do I go about doing that? Do I have to pay back a lot of interest? Also, do I have to have a job before I can actually borrow? The point of the loan would be to see me through while I look for work.
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    If you have a student bank account, the overdraft (as long as it's been agreed) is interest free.
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    (Original post by McMurdo)
    Forgive me for my ignorance :P But how do I go about doing that? Do I have to pay back a lot of interest? Also, do I have to have a job before I can actually borrow? The point of the loan would be to see me through while I look for work.
    Check the terms and conditons and any other information you can find about your bank account, the information should be there. Alternatively just call into branch or ring up and ask, they will be able to give you all the information. If your account is a student account, it will most likely be interest free... if not, agreed overdrafts are one of the cheapest ways to borrow money.
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    (Original post by OU Student)
    If you have a student bank account, the overdraft (as long as it's been agreed) is interest free.
    Excellent. Thank you for that. I will go to Halifax and request to convert to a student account, as I should have one anyway.
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    (Original post by Kabloomybuzz)
    Check the terms and conditons and any other information you can find about your bank account, the information should be there. Alternatively just call into branch or ring up and ask, they will be able to give you all the information. If your account is a student account, it will most likely be interest free... if not, agreed overdrafts are one of the cheapest ways to borrow money.
    Hey, thanks for the response. Do you know if it's possible to change an account to a student one if I provide appropriate evidence of enrollment?
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    Been to the bank and am changing my account to a student one, so that the overdraft has 0% interest. Thank you to everyone for the advice.
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    (Original post by McMurdo)
    Been to the bank and am changing my account to a student one, so that the overdraft has 0% interest. Thank you to everyone for the advice.
    Please do be aware that the interest rates can often jump when you graduate, so try to minimise how much you take out, and consider using a 0% credit card, as you'll be graduating soon.
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    (Original post by Origami Bullets)
    Please do be aware that the interest rates can often jump when you graduate, so try to minimise how much you take out, and consider using a 0% credit card, as you'll be graduating soon.
    Thank you for the advice, and yes, I understand that. I'm not taking out much - just enough to see me through till I get my job. I've spoken to my bank about how the interest rates oscillate. If I take the loan before the end of May, I have a year to pay it back with 0% interest
 
 
 
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