Silly mistake?

Willow_K

When did you graduate? Student overdrafts often stay 0% for 12 months after graduation - mine Barclays one did. After 12 months, they will most likely convert the account to a graduate account which will carry a lower overdraft APR than other current accounts and certainly less than credit cards.

Rather than trying to mess around with credit cards and risking building up a big balance that you cannot pay back, open another bank account for your day to day banking, work out your outgoings every month and transfer any extra to the account with the overdraft. It will soon be paid off.

Willow_K

x-posted - ignore the bit about overdrafts being cheaper - obviously not with the Halifax.

Tomo8281

Willow_K wrote: »

When did you graduate? Student overdrafts often stay 0% for 12 months after graduation - mine Barclays one did. After 12 months, they will most likely convert the account to a graduate account which will carry a lower overdraft APR than other current accounts and certainly less than credit cards.

I did a 3 year BEng degree, lasted from 2007 to 2010. Then I did a 1 year MSc (at a different university) from 2010 to 2011. If they run on the same system as Student Loans, they will think I graduated last year as I did my MSc at a separate university (not as a continuation of my first degree).

Rather than trying to mess around with credit cards and risking building up a big balance that you cannot pay back, open another bank account for your day to day banking, work out your outgoings every month and transfer any extra to the account with the overdraft. It will soon be paid off.

Good idea, but the point of the credit card was to kill 2 birds with 1 stone. I have no credit history, so why not get a card and pay it off with no charges while also getting rid of my overdraft.. win win (until I realised no transfers)!

Willow_K

Tomo8281 wrote: »

I did a 3 year BEng degree, lasted from 2007 to 2010. Then I did a 1 year MSc (at a different university) from 2010 to 2011. If they run on the same system as Student Loans, they will think I graduated last year as I did my MSc at a separate university (not as a continuation of my first degree).

Good idea, but the point of the credit card was to kill 2 birds with 1 stone. I have no credit history, so why not get a card and pay it off with no charges while also getting rid of my overdraft.. win win (until I realised no transfers)!

They must know about you MSc otherwise you OD would have reverted by now - if you do get a letter saying they are going to start charging interest less than a year after the end of your MSc, go into branch and tell them about it (with evidence) and ask for an extension up to 12 months.

As for building your credit score, paying off the overdraft with the credit card would have only had limited effect as it would have only been one spending transaction - to get the most benefit you need t be both spending and repaying over time.

To get the best out of both the overdraft and the credit card, treat them seperately - re: the overdraft, do one of the suggestions below - either pile the money into a savings account and then pay as much off as you can when the 0% ends OR if you don't trust yourself not to dip into a savings account, open another account for day to day use and pay monthly amounts direct to the overdraft.

Use the credit cards for day to day spends such as grocery and clothes but pay off the full balance each month - this will build your credit score quicker than loading it with debt and paying it off over time.