Overdraft

Tiggy10

Like all students I got sucked in by the large amount of interest free overdraft my bank (Natwest) were willing to give me.

Recently ive started to panic and im trying to pay it off before the interest kicks in.

BUT ive been told its good for the credit rating to have a small overdraft that is managed??? i need all the help i can get with my credit rating, is this true or have i just been told a load of rubbish?

CLAPTON

not all students get sucked into large interest free ODs

and no, it's bad for credit rating to have interest bearing ODs

but that's the least of the problems

paying the debt of asap is the problem

Tiggy10

CLAPTON wrote: »

paying the debt of asap is the problem

Thanks! luckily i have about 17 months until the interest kicks in so my aim is to pay it off before then!

but they are not happy i am doing it so early, i was given the third degree the first time i tried to reduce it!

CLAPTON

Tiggy10 wrote: »

Thanks! luckily i have about 17 months until the interest kicks in so my aim is to pay it off before then!

but they are not happy i am doing it so early, i was given the third degree the first time i tried to reduce it!

I don't understand that

izools

They want the overdraft balance to be as high as possible when the account reverts to a Graduate or Current Plus account so they can get as much interest out of Tiggy's salary when (s)he finishes Uni as possible. Simple

You're doing the right thing though Tiggy, good luck getting it down as much as you can :beer:

ironlady2022

Can't believe they even dismayed the fact they werent happy about you paying it off early!

rb10

As long as you have a little self-discipline, then you don't have to reduce the overdraft limit each time you pay a bit off.

Tiggy10

Thanks everyone, that is exactly it! when i said i was reducing it the lady asked me loads of questions why and once i had answered them she just said ' well you wont get it back again if i do this'!

and we wonder why our country is in financial crisis?!

DrSyn

1. Not good for you! Only the bank charging you interest!

2. See if joining a "Credit Union" would be of any help to you. The banks for sure wil never tell you about them!

www.moneysavingexpert.com/banking/credit-unions

maddocks_2

CLAPTON wrote: »

not all students get sucked into large interest free ODs

Yes, some of us students already had a history that prohibited a student account when starting their course...

(now ex-student - yippee)

cmatt

pay off and reduce is the best policy. no matter how much you promise yourself that you won't spend that OD... you very may well find that you dip into it *just this once* and get back to square one.

2 years down the line and like me - you are only just paying it off!