Multiple Bank Accounts....Is it allowed?

methodicalmadness

Hi there all, so I am a student with an overdraught in one bank. However, I am just wondering if there is any reason why I can't open up other student accounts with other banks to take advantage of their overdraughts aswell. Thoughts?

So yes, if I did this, I'd have a fair chunk to pay off in a year after i graduate if I maxed out all the accounts, and I would have to open them over a period of time to avoid being denied at the credit checks, so there are disadvantages. But is it possible? And if so, is it advisable?

Cheers!

Lokolo

It's not advisable.

Why get an overdraft if you don't need it?

And read banks T&Cs as a lot will n ot allow it.

methodicalmadness

Hmm....yeah the thing is, in a couple of years I may well need it. This is my second degree, and even though this is a Masters undergrad course, which is a level higher than my previous degree, I still have to pay my tuition fees up front from my own pouch. No tuition fees loan, tiny maintanance loan (under 25, parents earn too much), and as I cant get the max loan, alot of other sources of cash are closed down. The course is full on, making looking for a job a little hard (still lookin though, and believe me, im not being picky!).
One way or another, I'll make it work. Perhaps this is not the way though!!

Lokolo

FYI a bank can withdraw an overdraft at any point and unless you can pay it, it will go to debt plan or debt collectors.

methodicalmadness

I'd be able to pay it. I have an emergency contingency. Im not looking to do anything that could compromise my situation, if the T&C's say I cant do it, then I wont try and get away with it anyway. Still I'll check them out.

What would you recomend? CDL's? Should I perhaps contact SAAS? A few of my friends recon I should be getting more through them, but they aint experts. :P

Fiddlestick

methodicalmadness wrote: »

I'd be able to pay it. I have an emergency contingency.

So why not use this "emergency contingency" to pay for your living expenses rather than taking out multiple overdrafts and getting into huge amounts of debt?

methodicalmadness

It is there for unforseen circumstances, I'd really rather not touch it unless I really have to. Besides, even if I did use it, it wouldnt cover what I'm going to need in the future.
If say, I dont have anything in place by the time my back is against the financial wall, then sure, I'll use it to stay afloat.

I am cautious about debt, but I am not scared of it. I'm scared of not getting through this degree, and into the excelent career it leads too.
Overdraught debt is not as bad as CDL's, hence why I started this thread.

zppp

methodicalmadness wrote: »

Overdraught debt is not as bad as CDL's, hence why I started this thread.

Overdrafts can be recalled at any point, i.e. the bank can request you pay the whole thing off with no notice. Therefore CDLs are actually safer, as long as you keep up the monthly repayments.

katie89

Most banks wont let you open a student bank account if you have one with another bank. When I first went to uni I wanted to get a natwest one for the railcard incentive, but they insisted I closed my other account first. Same for my partner and Lloyds.

methodicalmadness

Thanks folks. Sound advice!

skater_kat

i tried to open a student account at Lloyds today and was refused without even doing the application - they say they have a set amount of student accounts to allocate each year which usually runs out by November. So you might find you can't even open an account at this time of year anyway!