Student Credit?

Scrubs90

Hi,
I'm a university student. I have two bank accounts, both with an authorised overdraft that I use during the year, then over the summer, try to bring them up into the black. (Both are interest free student overdrafts, I don't pay anything monthly etc, and they're available until I graduate).
I was given a Natwest student credit card when I signed up two years ago, but haven't used it (I don't think I activated it).

Basically, I want to buy a piano, I can afford it all in one go, but would rather spread the cost. I applied for 0% credit over 9 months (easily be able to pay that off) and it's been rejected.
I checked my credit report with Experian which shows 'excellent' (although I'm aware their score means nothing), but I can't work out why I've been rejected.

My report shows that I have never missed a payment, all my lenders show as satisfactory.

The only two things I can think of are, my 'outstanding debt' shows as £2500 - one £1000 overdraft and one £1500 overdraft, although in balance on one of them.
The other thing shows my credit available as £500 - which I'm assuming is my Natwest Credit card.
Could these two things be affecting my credit score?
How am I supposed to build up good credit if I can't get a basic 0% loan...

Thanks!

CLAPTON

0% BT cards are usually only give to people with excellent credit records, good salaries and evidence of handling credit well


as you haven't used your existing credit card it does not show you have handled it well and two overdrafts even a 0% aren't a sign of a financially well managed life.

I would suggest you start using the CC for everyday things and set up a DD to pay in full each month and that will build a credit history

Scrubs90

Thanks for the reply. I didn't apply for a BT card, it was 0% with the store on the purchase of the item. I've not applied for a credit card.
On the point about the overdrafts, regardless of whether they are a sign 'of a financially well managed life' (which I disagree with) does this actually affect a credit rating? Can lenders see this and is it a negative.

As a student, I'm virtually guaranteed to go into overdraft territory during the year.

Edit: Forgot to add, I have a mobile phone contract which is paid on time every month (since last June).

CLAPTON

Scrubs90 wrote: »

Thanks for the reply. I didn't apply for a BT card, it was 0% with the store on the purchase of the item. I've not applied for a credit card.
On the point about the overdrafts, regardless of whether they are a sign 'of a financially well managed life' (which I disagree with) does this actually affect a credit rating? Can lenders see this and is it a negative.

As a student, I'm virtually guaranteed to go into overdraft territory during the year.

Edit: Forgot to add, I have a mobile phone contract which is paid on time every month (since last June).

you misunderstand me; I'm not making a personal judgement on the matter, I'm telling you how a potential lender will see the issue

and yes of course they can see the ODs on your credit report.

why not get copies of the credit reports and then you will see what they see

and my comments on a 0% BT are equally appliable to any 0% finance deal although store finance deals tend to be easier to obtain.

if being a student makes going into an OD inevitable then lenders will note this too

Scrubs90

Sorry for being short, this whole thing has really annoyed me. I've been careful with my money, I haven't used credit cards or credit (I thought they were the root of all evil), so when I finally come to purchase something I get rejected.

So in essence, I need to get rid of the overdraft (which I do during the summer months when I work) and start using my credit card for small purchases.

Thanks for the help.

rb10

The lender wants to be satisfied that you'll be able to make the repayments.

What they see is someone with:

- little or no regular income - so for all they know you may end up unable to meet your financial commitments
- and two overdrafts - so if you did struggle financially at any point, there would be other banks trying to recover money from you as well.