Changing Bank Accounts with Overdraft

jammy1000

I have just finished Uni, got a job and am looking to get myself out of my overdraft.
I have noticed that my account isn't the best Graduate account, so would like to change. I am currently £700 into my £2000 overdraft.

If i apply for a graduate account, will I get it and be able to transfer the overdraft across. It won't increase the overdraft, but will give me longer to pay back.

Also will a credit check be done like to get a credit card etc.

Thanks!

dtsazza

You can definitely apply for other accounts, mention your current overdraft and ask them to match it. The other bank will take your existing overdraft into account, but at the end of the day if they don't want to offer you a £2,000 overdraft then they won't do so.

You might find it tricky to get a large overdraft like that on a new account; at the moment you have an overdraft on the basis of your old student account, rather than because you earn enough to "naturally" qualify for one. A new bank will likely assess you on your financial situation and turn down the overdraft application.

A credit check would certainly be done when applying for a credit card, as well as for the overdraft itself (in all likeliness).

If you do get one however, "transferring" the overdraft is easy and requires no specific actions while applying - just pay £700 from the new account into the old one.

jammy1000

The reason I am looking at a similar size overdraft is that the Graduate account I look at Guarantees one for £2000 on the account, interest free, but automatically reduces it every year. It was more if they would need me in credit.
I missed a credit card payment, by accident, and I was more concerned that this would effect if I could get one. I have since rectified the issue and paid. Worried it will massively count against me.