We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

student account with bad credit history

after a few months of countlesss problems with my student loan application i have finally been told to expect it within two weeks. unfortunately due to a break in my degree (and failure to repay my student overdraft which was unfairly demanded immediately)my account was downgraded with barclays to a basic account...with no cash card whatsoever. they have told me that this is now frozen until i repay the money so i have nowhere to deposit my cheque when it comes...and i cant pay the bank back until it clears obviously. for some reason barclays refuse to accept it and told me to open an account elsewhere......strange that a bank would refuse money!......natwest and abbey ahve rejected me for a student account (which im worried has further damaged my credit file). does anyone know of a bank that doesnt perform credit searches for a student account?advice much appreciated.
Membre Of Teh Misspleing Culb

Comments

  • In these days of anti money laundering checks, FSA rules, etc, etc, I would be absolutely gobsmacked if any bank opened any account without doing credit checks.

    Have you tried a personal visit & discussion with one of the 'second tier' lenders who offer a basic bank account, e.g. Co-op, Nationwide, etc.?  Have you tried speaking to your parent's bank?  What about the Student Union - have they some form of financial counselling service?  Need to think laterally to find a solution maybe.
    Ethical moneysaver
  • (and failure to repay my student overdraft which was unfairly demanded immediately)my account was downgraded with barclays to a basic account...with no cash card

    Please note that a bank offers an overdraft to a customer on ITS terms which includes the term that it can ask it be repaid immediately. Fairness does not come into it.
    Eric
  • Woby_Tide
    Woby_Tide Posts: 5,344 Forumite
    Combo Breaker First Anniversary First Post
    come of it, surely the banks should be paying us to put our money with them :-/

    (I'd imagine they are pretty quick at calling in overdrafts of 'students' who drop out to prevent them constantly being stuck with people who may attend a course for x weeks, get an overdraft then quit and aim to keep the student perk of the cheap overdraft for a extended period which I guess could happen occasionally)
  • starlite_2
    starlite_2 Posts: 2,428 Forumite
    probably true...but my overdraft was only £200 and i was in the second year of my degree at the time....ho hum
    anyway, good news as i asked my student support advisors and they managed to get the on campus natwest to open me a basic account, which i can upgrade to a normal one once they see that my loan and other money is going into it.......hoorah. thanks
    Membre Of Teh Misspleing Culb
  • Woby tide
    They do!!!
    An interest free overdraft for 3 or 4 years and then if you graduate more free borrowing on graduate terms - what else do you want. There is nothing stopping you maxing out your student o/d as soon as it is confirmed to you and sticking it the highest interest savings account that you can find!
    Eric
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 346.1K Banking & Borrowing
  • 251.1K Reduce Debt & Boost Income
  • 451.1K Spending & Discounts
  • 238.2K Work, Benefits & Business
  • 613.2K Mortgages, Homes & Bills
  • 174.5K Life & Family
  • 251.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.