Do student overdrafts affect your credit score

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theeetimdoherty
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I am planning to get a student interest-free overdraft with Nationwide to pay for one-off investments. This would allow me to borrow £1000 in first year, and an extra grand each year until it reaches £3000. The plan is to pay things like a language courses (£315 a year at my uni), suits for internships and other things which would be helpful long-run but would otherwise leave me impoverished if financed from my maintenance loan. I plan on not paying it back until after I graduate. Would it negatively affect my credit score to have such a large overdraft balance for 3 years without paying it off month after month? Is there anything else I'm missing? Thanks in advance
Last edited by theeetimdoherty; 1 month ago
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IWMTom
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(Original post by theeetimdoherty)
I am planning to get a student interest-free overdraft with Nationwide to pay for one-off investments. This would allow me to borrow £1000 in first year, and an extra grand each year until it reaches £3000. The plan is to pay things like a language courses (£315 a year at my uni), suits for internships and other things which would be helpful long-run but would otherwise leave me impoverished if financed from my maintenance loan. I plan on not paying it back until after I graduate. Would it negatively affect my credit score to have such a large overdraft balance for 3 years without paying it off month after month? Is there anything else I'm missing? Thanks in advance
It'll make you very unattractive to some lenders, and very attractive to others.

Your "credit score" is a mythical made up number.
Last edited by IWMTom; 1 month ago
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Big White Choco
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these banks shouldn't be allowed to snoop your personal info
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IWMTom
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(Original post by Big White Choco)
these banks shouldn't be allowed to snoop your personal info
Why's that then? How else are they supposed to lend responsibility and protect themselves if you turn out to be riddled with debt?
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Big White Choco
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(Original post by IWMTom)
Why's that then? How else are they supposed to lend responsibility and protect themselves if you turn out to be riddled with debt?
our right to privacy is more important than the so called rights of these banks to continue making billions in profits every year by screwing the rest of us
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IWMTom
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(Original post by Big White Choco)
our right to privacy is more important than the so called rights of these banks to continue making billions in profits every year by screwing the rest of us
You quite literally haven't got a clue, have you?
Give your little head a wobble.
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Jack22031994
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(Original post by Big White Choco)
our right to privacy is more important than the so called rights of these banks to continue making billions in profits every year by screwing the rest of us
No it isnt

Not only do banks etc have to follow strict regulations they can be heavily fined for breaking. They are also the ones lending you the money. If you were lending someone money, you would want to know how reliable they are at paying it back wouldnt you? If not, please give me £10,000 - you'll get it back at some point.

Does your 'right to privacy' argument also cover not bothering with preventing Money Laundering and Fraud etc because of 'privacy?'
Last edited by Jack22031994; 1 month ago
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chatsmilady
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Well usually student overdraft is interest-free so as long as you pay back before your student account disappears then I don't think it would negatively affect your credit score.
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Hellllpppp
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(Original post by chatsmilady)
Well usually student overdraft is interest-free so as long as you pay back before your student account disappears then I don't think it would negatively affect your credit score.
Will they give you £2000 in year 2 even if you haven’t paid back the £1000 from year 1 that just seems really weird
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martin7
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(Original post by Hellllpppp)
Will they give you £2000 in year 2 even if you haven’t paid back the £1000 from year 1 that just seems really weird
With a student account you're typically expected to pay in your income; different banks have different terms, but they usually include things like "you need to pay in at least £500 per term", or "you need to use this as your main account".

If you don't comply with those terms, a bank can choose not to offer some of the facilities -- for example, they might decline or withdraw an overdraft facility, or ultimately decide to close your account completely. So if your plan is to just withdraw £1000 at the start of year one, not pay anything back, and then try to extend your overdraft limit to £2000 at the start of year two, then be aware that the bank might just say "No".

A bank isn't likely to expect you to repay the whole of the first year's overdraft facility over the summer, but would probably expect to see at least some of the money repaid.
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