Multiple student accounts and credit checking

trellis_2

I'm in my fourth year at uni, my advice: Don't get more than one student account, because you will be tempted to use it.
Only if you are actually quite clever about it, such as taking one of the OD's and sticking it in an ISA is it worth it.
I've got two maxed out overdrafts and a CC and i'm suffering because of it...

michael_iain_elliott

trellis wrote:

I'm in my fourth year at uni, my advice: Don't get more than one student account, because you will be tempted to use it.
Only if you are actually quite clever about it, such as taking one of the OD's and sticking it in an ISA is it worth it.
I've got two maxed out overdrafts and a CC and i'm suffering because of it...

This is what happened to me in my first year, and it woke me up to reality. I got a job over summer, working 84 hour weeks as a security guard (12 hour night shifts are *not* fun by the way but pay well), and managed to pay off the 2500 or so I owed. Now theoretically 'in the black' (the OD is out in regular saver/web saver), but I still have the money to cover the OD to get back to a positive balance.

You do have to have restraint, and as a student that's hard sometimes (especially in the first year/two years (in Scotland) as you have more spare time to party etc.). I'm in fourth year of a five year course, and I've woken up to the fact that I can't go out every night, and I can't have the latest technology on credit - not just for lack of money, but time too (essays are getting harder/longer, dissertation looming... eurgh!). I don't have a job at the moment, and I surviving quite well on the Student Loan and my parent's contribution (totalling around 4500 p.a.) - gives me about 225 quid a month to play about with after rent. True, I don't get out a lot, but I had plenty of time to do that in the 1st two years.

If you have self-control, the option is a good one. If not, steer well clear!

HTH

techno_geek

I only have the multiple student accounts (and multiple overdrafts) to pay my accommodation fees - about £3500 remaining to pay this year.

My approach is to put each overdraft in a high-interest savings account until I need it, and so I avoid having the funds available to spend!

I realise how the situation can spiral out of control at the sightest provocation... it nearly happened when I ordered concert tickets for myself and seven others. Instead of paying the money I collected into my main account to pay off my credit card, I ended up spending half of it!

Apart from the above lapse, I think I'm pretty good with managing the situation - I have stuck to my monthly budget, save for overspending during freshers week (but who doesn't?! lol), and I never spend on my CCs what I don't have in my accounts
:beer:

si1503

trellis wrote:

I'm in my fourth year at uni, my advice: Don't get more than one student account, because you will be tempted to use it.
Only if you are actually quite clever about it, such as taking one of the OD's and sticking it in an ISA is it worth it.
I've got two maxed out overdrafts and a CC and i'm suffering because of it...

This is quite an important point to make. All of my overdraft funds are invested in the stock market and I stick to a very strict spending budget. I would not advise anyone to take out any more that one student/interest-free overdraft unless they know exactly what they are doing, and have extremely good money management skills, as the temptation to spend more due to having that extra money sitting in the bank is overwhelming (trust me coz I did it last year, despite telling myself I'd save it all!).

Best bet is to do as the above poster has said and transfer the bulk of it into an ISA, leave a couple of hundered to move in and out and play about with. And make sure you never go over your limit! Any charges you incur will cancel out the money you are making through intrest, and in some cases you might actually be left worse off as a result, so make sure you leave a little room in there to be safe.

A cash ISA is an obvious choice, not only will the savings be tax-free but it will allow instant access to your money just incase you need to pay it back on short notice. I wouldn't recommend investing the money into equity unless you know exactly what you are doing.

Gearoi

Wow I didn't check back for a couple of weeks and all you great people have commented - thanks for your help I shall be looking around and changing from Barclays who I am convinced are evil.

Anyone know a student account with a decent overdraft AND decent customer service by the way?

I've had enough of talking to people in India who have never been into a UK bank, don't have a clue what it's like to be a student over here and I'm sick to death of waiting 5 full minutes of tapping in buttons just to speak to them!!! :mad:

So - any ideas people?

Thanks again for all comments

:beer:

techno_geek

Well if you want UK call centres, your only bet for a student account is NatWest!

I bank with them (and halifax, hsbc, first direct, and nationwide... lol) and I haven't had any problems with NatWest - their staff, in university towns at least, have been very helpful, the online banking service is excellent, and you can talk to someone at any time of day or night (though if you want specific student-related services or an overdraft extension, the usual 9-5 applies).

Halifax are quite good as they offer the large overdraft eventually, but I had to fight to get my overdraft from £1000 to £2000, and they never return phonecalls...