Uni Student - How does an overdraft work?
Hi there,
I’m sorry if I come across as stupid, but I’ve never taken out an overdraft before. For context, I’m with TSB and I have a student account.
My third term rent is due 1st April, but my Student Finance doesn’t come in until later (I think it’s first of May?), so I’m going to struggle paying the rent. I’m very thankful that my parents are going to help me pay some of it and I can pay them back when my SFE comes in and I’ve saved some money from my part time job but I’ll still be a little short (I’ll be working during March but only once a week as I’ll have exams in May and want to spend time prepping for it). I will most likely need to take out around £500.
My friends suggested that I look into getting an overdraft but I’m not really sure how and when I’ll have to repay. Do I repay the overdraft monthly? How long do I have to repay the overdraft back?
Honestly, I feel very stupid for not saving more money because I knew this was coming. I’m going to work all summer and save most, if not all of the money so I can avoid a situation like this from happening again.
Kind regards and many thanks to anyone who can help.
I’m sorry if I come across as stupid, but I’ve never taken out an overdraft before. For context, I’m with TSB and I have a student account.
My third term rent is due 1st April, but my Student Finance doesn’t come in until later (I think it’s first of May?), so I’m going to struggle paying the rent. I’m very thankful that my parents are going to help me pay some of it and I can pay them back when my SFE comes in and I’ve saved some money from my part time job but I’ll still be a little short (I’ll be working during March but only once a week as I’ll have exams in May and want to spend time prepping for it). I will most likely need to take out around £500.
My friends suggested that I look into getting an overdraft but I’m not really sure how and when I’ll have to repay. Do I repay the overdraft monthly? How long do I have to repay the overdraft back?
Honestly, I feel very stupid for not saving more money because I knew this was coming. I’m going to work all summer and save most, if not all of the money so I can avoid a situation like this from happening again.
Kind regards and many thanks to anyone who can help.
(edited 4 years ago)
Original post by closure
Hi there,
I’m sorry if I come across as stupid, but I’ve never taken out an overdraft before. For context, I’m with TSB and I have a student account.
My third term rent is due 1st April, but my Student Finance doesn’t come in until later (I think it’s first of May?), so I’m going to struggle paying the rent. I’m very thankful that my parents are going to help me pay some of it and I can pay them back when my SFE comes in and I’ve saved some money from my part time job but I’ll still be a little short (I’ll be working during March but only once a week as I’ll have exams in May and want to spend time prepping for it). I will most likely need to take out around £500.
My friends suggested that I look into getting an overdraft but I’m not really sure how and when I’ll have to repay. Do I repay the overdraft monthly? How long do I have to repay the overdraft back?
Honestly, I feel very stupid for not saving more money because I knew this was coming. I’m going to work all summer and save most, if not all of the money so I can avoid a situation like this from happening again.
Kind regards and many thanks to anyone who can help.
I’m sorry if I come across as stupid, but I’ve never taken out an overdraft before. For context, I’m with TSB and I have a student account.
My third term rent is due 1st April, but my Student Finance doesn’t come in until later (I think it’s first of May?), so I’m going to struggle paying the rent. I’m very thankful that my parents are going to help me pay some of it and I can pay them back when my SFE comes in and I’ve saved some money from my part time job but I’ll still be a little short (I’ll be working during March but only once a week as I’ll have exams in May and want to spend time prepping for it). I will most likely need to take out around £500.
My friends suggested that I look into getting an overdraft but I’m not really sure how and when I’ll have to repay. Do I repay the overdraft monthly? How long do I have to repay the overdraft back?
Honestly, I feel very stupid for not saving more money because I knew this was coming. I’m going to work all summer and save most, if not all of the money so I can avoid a situation like this from happening again.
Kind regards and many thanks to anyone who can help.
https://www.lloydsbank.com/current-accounts/all-accounts/student-account.html
Pretty straightforward. I will assume you are a first year.
You just apply as per the link or go into a branch or do it online or telephone banking.
Should be automatic as you have a job and seem to be using your account responsibly.
I believe you are on the cusp of being able to apply for a £500-£1000 overdaft.
Basically apply- they check against criteria how you have run your account- should be fine they give you the facility.
So if you had a £500 balance but needed to pay £750 rent and agreed a £1000 overdraft.
You would pay the £750 and it would first take any money in the account then start to use the overdraft.
£500 in account and £250 from the overdraft, so your account would be £250 overdrawn (which is ok because its agreed the bank will let you borrow some money from them) and with £750 of your od left.
If when your loan comes in and its £1000, then it would be used against the od first and the balance would show as £750.
If you are od then its a debt to the bank.
You dont have to repay monthly and its interest free until the end of the degree at least.
You will have to pay back at some stage as its their money, so best to remember that and use it as a facility.
Any money paid in will be applied v anything overdrawn first. They are unlikely to ask for it back till you graduate, then its a gradual repayment as they reduce the facility. Lloyds are quite mean with the od.
The link explains everything else.
Basically call tsb up on phone or book an appointment and apply for a student overdraft. (You normally get it on the day)
You normally get an overdraft limit of £500 for your first term. If you want you can increase it up to £1000 in the second term.
It is a fee-free overdraft and once you receive your student loan it automatically cancels the overdraft that you were in but you are still able to use the overdraft if needed
although u can use if for your rent, after that, I don't recommend you use too much of the overdraft
You normally get an overdraft limit of £500 for your first term. If you want you can increase it up to £1000 in the second term.
It is a fee-free overdraft and once you receive your student loan it automatically cancels the overdraft that you were in but you are still able to use the overdraft if needed
although u can use if for your rent, after that, I don't recommend you use too much of the overdraft
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