Advise on bank account with interest free over draft

Less_than_jake

Hi, new to the forum after a little advise on which bank account to go with.

Basically I race motorcycles which is a costly sport. Alot of other racers use credit cards and pay them off in winter when the race season isnt on.

I'd rather say find a bank account where I could put my race budget (£2000 saved up) and hope for maybe a £1000 over draft if it was needed throughout the season, then pay back the over draft when the season finishes.

I'm in no other debt, no bad credit scores im aware off. Always paid phone bill/ life insurance on time. What do the money experts here recommend? thanks alot

Cash-Strapped.T32

I know a few people who also race (cars in this case) that do a similar thing; A mate of mine who races Minis also runs a car for his niece & nephew to enter junior races, all on a very small wage (I know because I do his payroll).

So, in principal I say good plan! Also I'm a biker so I'm bound to say that..


What little I know of accounts I will try & help with - I'm sure loads of more informed posters will be able to help out after crimbo dinner though.

So, an account where you can deposit about 2k, and draw upon maybe 3k, with a repayment window of winter?
My first thought was a current account because they often provide hefty overdrafts, but then again, I think they calculate things like how much O/D you can have by how much income you declare upon opening..

Do you run an O/D on your personal current account? If so, I thin it comes down to if another bank will give you a large enough O/D, and it'll probably base it's reckoning on the same info your current bank does - At least, that seems likely to me.


Would a 0% interest for however-many months card be suitable?
In theory, you might be able to take one out mid-season, when the expenses start racking up again? (maintenance & replacement parts/consumables after a few races, topping up all the prep-work you did before the season, etc..)

That would of course mean you need to time it such that the 0% repayment window extends past the end of season & well into your repayment window.


I know this might be a big ask, but is it not at all possible to save up a full season's expenses, and then run yourself one season ahead?

Use your off season "repayment window" to save up for the next-but-one season, and run the next coming season on what you've saved?

Hmm, I seem to have raised more questions that answers - oops

Well, I hope some of this helps mate, or at least opens up a few more avenues of thought. Best of luck with it.


(ps: just on a 100% purely selfish line, a quick pic of your bike would not go amiss if it were to appear in a subsequent post or land in my pm box hint-hint - what can I say it's Christmas & I'm a bike-perv )

Less_than_jake

Hi thanks for the reply, appreciated! I have a current account with RBS which entitles me to £150 over draft. I also have an RBS savings account which I pay money into as I please / when possible. I've asked rbs for a larger over draft incase I need it there reply was in the past you havent use the over draft why want a bigger one. I explained and they werent keen. So really I'll try and switch banks and see who could help most.
I thought about interest free credit card with say a £1000 limit but that was my last option, I dont want to end up running up that £1000 and then asking for more and more then before I know it in serious debt.

Taking a year out isnt really an option just now im afraid ! :A

thanks again

ps I cant upload photo's of my bike I dont have enough posts

Nothanks

Hmmm. A grand interest free seems very unlikely, especially if you walk into a new bank, it looks a bit sus. "hey mr bank manager. I want to borrow a grand with no repayment schedule and no interest, and my current provider doesn't want to" - this is a hard sell for you mate! Good luck though! Generally only students get big interest free OD. And the rate on an overdraft will often be even worse than a credit card (18-20% as opposed to 16-18%), so i'd concur with the other poster that a 0% on purchases carefully timed might work best.

Good luck either way!

pinkteapot

Agree with Nothanks - £1k interest free overdraft is unlikely unless you're a student. We have an HSBC Premier Current Account and get a £500 interest-free overdraft, but obviously that requires qualifying for HSBC Premier. Also agree that a credit card is the more likely option. You're aware of the risks of running up debts so as long as you keep an eye on the balance and are disciplined about your budget/spending (and don't get tempted to raise your credit card limit) you should be fine.