Student Accounts and Bad Credit

Chelski

Hi all,

My friend has just been accepted into university and wants to open a student account just for the obvious benefits that comes with it.
As she's not the typical 18-21 year old young student she does have a history of bad credit so would she even be able to access these types of accounts?

We've been looking on this site and all the banks websites but they dont go into specifics so without the hassle of going into several banks and applying (which will hurt her credit score more if she is rejected) I wondered if you guys knew anymore or know people who have been in this situation?

Just really want to know if she is eligible for a student account, the benefits that come with it such as the overdrafts, credit cards, travel passes, freebies etc because what the banks offer students is a lot better than what they offer us!

Thanks in advance

Sharon87

Depends on what the bad credit means and when it was. Was it defaults that were recent or a few years old? If they're over 6 years old they wont show on credit reports. Steer clear of the banks and linked banks that she's had bad credit with previously. There's no harm in applying for 1, as long as she hasn't had loads of recent credit searches. I'd say 2 would be maximum to apply for.

She may have to settle for just using her own account, if she's got a good history with her current bank it may be worth asking them to convert her account to a student one.

But having a student account with overdrafts could cause more problems as it's very difficult to get out of for some people when you graduate (like me for example). Just think does she need more debt?

Chelski

I dont think she should go for more debt but having been a student I know that no matter how hard you budget there just sometimes isnt a way of paying for things without dipping into an overdraft occasionally. I didnt do too bad getting out of my student overdraft (but then I was lucky once I graduated)

the bad credit is just defaults there arent any ccj's or iva's or things

Sharon87

Chelski wrote: »

I dont think she should go for more debt but having been a student I know that no matter how hard you budget there just sometimes isnt a way of paying for things without dipping into an overdraft occasionally. I didnt do too bad getting out of my student overdraft (but then I was lucky once I graduated)

the bad credit is just defaults there arent any ccj's or iva's or things

Recent defaults or over a few years old? If they were in the past 1-3 years she's less likely to get it. I know someone who had defaults 4-5 years ago and is now getting accepted for credit.

Chelski

does a default on a payday loan count? if so then she's had one within the last 18 months and the rest were nearly three years ago

Chelski

she's just applied to the co-op and got rejected straight away so theres the answer! thanks anyways

jonesMUFCforever

In that case the chances of getting a student account are about 50 -50 - the chances of getting any kind of overdraft - under 0%!