student account with bad credit history

starlite_2

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.

realaledrinker

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.

jonesMUFCforever

(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

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

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

jonesMUFCforever

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