What can banks see when I'm applying for a student account?

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When I was a student myself and my compatriots had up to 15 or so accounts. To not do so would be foolhardy.

As a prospective student you must remember one thing. If you owe them a little then you are beholding to them but if you owe them a lot, they are beholding to you. Not quite so easy now that cheques and guarantee cards have gone but the principle remains.

lolavix

I would be careful if you are planning to lie, as if you let on when you go in about having another account, they may withdraw your overdraft - which would be a slight problem if you were using it.

Why do you need 2 overdrafts? You'll have to pay them back when you finish studying, and to me student loans are expensive enough! :eek:

meer53

Savvy_Money wrote: »

Not my opinion Meer53 but a bank employee. However I do think banks take occupation (and potential occupation) into consideration. Otherwise why ask on application forms? Personally makes no odds to me but I think Natwest will know that the student has another account with an overdraft. Therefore honesty still remains the best policy.

I work for a bank too. I deal with customers who are barristers and customers who are window cleaners. How they operate their accounts is the main criteria when it boils down to it, not what their occupation is, or how much they earn. Banks like details on application forms because they need information about their customers, not to make predictions about how much they will earn in the future.

It's not really possible to lie these days about your financial situation, a quick search of your credit file will soon show the true picture. It then looks even worse for you if you've not mentioned everything.

callum9999

lolavix wrote: »

I would be careful if you are planning to lie, as if you let on when you go in about having another account, they may withdraw your overdraft - which would be a slight problem if you were using it.

Why do you need 2 overdrafts? You'll have to pay them back when you finish studying, and to me student loans are expensive enough! :eek:

Because you need/want more money?

As an example, throughout the year I broadly spend what I receive, but during the Summer I spend far more than I have (while spending far less than I receive during the rest of the year). As such, I can always do with more access to money during those 4 months, but by the end of the year it evens out and I have no net debt with them. Plus you generally get at least a year to pay it off after you finish studying anyway.

Savvy_Money

I can only assume some banks are a bit fussier than others Meer53. As I said in my previous post makes no odds to me, I'm not lending the money.

lolavix

callum9999 wrote: »

Because you need/want more money?

As an example, throughout the year I broadly spend what I receive, but during the Summer I spend far more than I have (while spending far less than I receive during the rest of the year). As such, I can always do with more access to money during those 4 months, but by the end of the year it evens out and I have no net debt with them. Plus you generally get at least a year to pay it off after you finish studying anyway.

We would all want more money :-)

If the majority of students can manage on one overdraft, or no overdraft at all, I don't understand the need to take on more unneccesary debt, but obviously everyone is different.

TheEffect

The bank would be able to see you hold an account elsewhere, the amount of credit available on that account and the amount owed, along with how long it's been open and whether you've missed any payments.

Banks cannot tell what type of account it is, however in most, if not all, you must pay in your student loan and hold no other student accounts. Whilst it's hard to check this, it's possible and the bank can demand the overdraft back at any time.

stclair

Why? do students think they will automatically get an overdraft as this is not always the case.