Benefits of Student Accounts

Morn

Having been a student who has been in full time University education for a long period of time now, I have found that debts has slowly accumulated on credit cards without my noticing.

Getting fed up with being rejected for new 0% credit cards to transfer the balance to, and getting hit with interest payments I decided that there must be an alternative.
This is the solution that I came up with.

Most student accounts from any bank that I have come across have 0% overdraft facilities. Naturally the amount of overdraft that the bank gives you is based on the credit scoring techniques that they employ.
Over the course of one year, I opened three student current accounts using the new banks switching process as an incentive for them to give me a new account.

Once the account is opened I simply do not send the final notification of closure to the old bank thus leaving me with an account at £0 and a overdraft of around £1500 which is interest free for the remainder of the course so long as I remain a student.

Once I am in this position I pay any amounts off of my CC using the old banks overdraft limit, and there you have it 3yrs of interest free credit.
It is worth noting however that you have to make a regular payments into the account as the banks computers throw out errors if the account is not having money paid into it regularly. This is normally due to the fact that student support is supposed to paid into this account. In my experience however as long as there is a constant supply of funds going into the account you should be ok. (I put £30 in a month as this is similar to paying a minimum amount on a credit card)

So if you are stuck with high rate credit cards then utilize the Student accounts while you can.

Good Luck and dont tell the banks!