Im a student but can't get a student account...

★jennaphoenix★

Sorry to post a new thread but I've looked around and can't seem to find much relating to this. Please bare with me on this long post! I am a full-time student on a course that started 1st Oct and will run for 2 (possibly 3) years.

I have received the first payment of my student loan into my current account (Barclays) however I don't want to keep my loan here and would prefer to use the method suggested on this site:

What about ‘in-credit students’?

Even that rare student breed - those likely to be in credit - should opt for the biggest 0% overdraft, and use a budgeting technique I call ‘deficit banking’.

The premise is to keep as big a negative balance within your 0% limit as possible and put most of the money in a high interest savings account (tax-free for most students). See my article Where to start with savings?

This means interest is earned on money the bank lends for free. Doing this could add nearly £300 to a student's coffers over the time of their studies (and similar tricks are possible with student loans, though not as lucratively).

This way I have my loan put into a savings account and monthly pay X amount into a student account which has an interest free overdraft that I will use as my spendings account, this way to stop me going over the overdraft and to earn interest on the loan in the first place while it sits and gradually leaks from its savings account into the student account. Hope I'm making sense!

I was hoping to get a student account and took this sites advice by trying the best suppliers. So first I applied to Halifax but was turned down. Apparently I failed their credit check. I found this odd and didn't really know what to think of it. I went on to apply for Natwest next and again was turned down (although they never had the decency to let me know, I had to ring after not hearing anything, thanks Natwest).

I figured I must apparently have a bad credit history, but when consulting a bank adviser and my mum they said it was more likely I have no credit history for them to go by rather than a bad one.

I was told to sign up online to get myself registered and get a copy of my credit history, however none of these credit history companies seem to accept Debit cards and every things automated, I had no opportunity or way of talking to a real person regarding possibly getting my credit history file.

I then tried applying for a Smile bank account, and although turned down once again one of their operators suggested I could send off supporting documents of proof of address, bank accounts, passport etc that may help sway the application. However these did not support my application in any way and they stayed with their decision to turn me down due to my non existent credit history.

The operator I last spoke to at smile suggested that I not apply for another account for a few months now as it will look bad that I have applied for quite a few in the same month and even that could lower my chance of getting an account, as it doesn't look good. He also said the credit history companies update their files every 3 months and so hopefully I may have a file on their next update.

And now for my rant...

How the HELL are students getting their student accounts!?!?! Am I the only one who finds it incredibly unfair that they judge mainly on a credit history?! Especially when most students are 18 and have had little chance to even start a new credit history file?

I have no credit history and yet can't get hold of one? (some people may see this as a blessing in disguise)

I could also put down my lack of credit history due to the amount of times I've moved house. I have moved houses a lot in the past 6 years and my previous address more than likely has probably had it's share of tenants with bad credit history, and so I could be labeled with it just for living in a flat that has had bad previous tenants?!

I think I also made a mistake in giving different addresses to the banks when applying. When applying to Halifax and Natwest I was honest and gave them my previous addresses. Because I was fed up of being turned down and paranoid my previous addresses may have been affecting me, when applying to Smile I gave my mums home address as a previous address as her house is likely to have had a better history than my previous address.

I feel like I'm stuck and have no chance of getting a bank account. And I can't even try another bank now in case it will look bad that I've applied for so many?

Is there any way around this?

My money is running out and I know by December I am going to be broke. My current accounts overdraft is £5 (yeah, a pathetic £5). I am trying to find a weekend job but that won't be enough to support me when my loan money for this 1 third of term is run dry (I receive my loan in 3 payments during the year, the next one will be in January).

If you've managed to read this whole post then I really do appreciate your time in doing so. If you think you may be able to offer any useful advise or ways to point me in the right direction I would be so grateful as I really do feel like I'm at an unfair dead end here, where as other students around me are easily getting student accounts and credit cards (not that I want a credit card).

Of course I'm interested in these interest free student overdrafts and would like to take advantage of it, as by the time my course is up I'll be a pile of debt, I don't want more debt by having to give into a overdraft account with interest rates just because I was unable to open a student interest free overdraft account that I should be entitled to take up. I am so fustrated by this!!

Well, thanks for reading, and I look forward to any replies!

gizmoleeds

★jennaphoenix&#9733 wrote:

How the HELL are students getting their student accounts!?!?! Am I the only one who finds it incredibly unfair that they judge mainly on a credit history?! Especially when most students are 18 and have had little chance to even start a new credit history file?

You are by no means the first person to post with this problem.

Logic dictates that if a student fails the credit check then the bank should give them the account but without the overdraft (as they are still a potential future high earner). Yet it seems they just say no full-stop.

It is like in Little Britain: "Computer says no" ... *cough*

Karnam

Check in Credit cards and Loans forums as a lot of people seem to have this problem.

Pretty much everyone i know though seems to get their Student Accounts by converting thier Current Accounts/Young People accounts that they've had during Sixthform and school. Although not the best way to get a student account, it does mean that the bank you're with has a credit history and will more likely 'score' you against your account history rather than an external credit check.

If you have a current account why not see if they'll convert? Esp as it sounds like generally you've bee nquite good with your account in the past and even have (albiet very very limited) borrowing ability in the form of your £5 overdraft which has been managed well.

Savvy_Sue

Would agree with trying to change your current Barclays a/c into a student account. Even if it's not offering the best freebies, you'll be entitled to whatever it is offering.

BTW some people suggest that you sign up for student accounts during freshers week as the banks are falling over themselves to sign you up and not so fussy then. Not sure how true this is, and of course freshers week is over now, but could be worth going into university branches and asking what criteria are.

LB1985

I had a similar problem, HSBC wouldn't give me a student account back in 2003 due to me failing my credit check (age 18 with no credit history). I opened an account with Lloyds TSB without any problems and they gave me a £1000 overdraft. Hope this helps!

benhill

With Barclays you can have more than one account that you can easily switch money between. I have four, one of which is my student account, the other three serve other purposes (unlike the people banks seems to advertise to, I like to keep my finances seperate for seperate purposes!).

This way you should be able to get what you want, and be able to control money online without having to use an independent website that invalidates your online fraud guarantee.

Hope this helps; I must say I'm quite surprised - I thought banks literally tried to throw money at students!

★jennaphoenix★

gizmoleeds wrote:

It is like in Little Britain: "Computer says no" ... *cough*

Lol yes, it feels just like that sketch!!

I will try with my current bank Barclays then. Although I heard somewhere that their overdraft wasn't interest free?!

Thank you all for replying!