Never had any debt-will i be disfavoured?

popadom

Hi,

Looking at student loan accounts, and more importantly, overdrafts. Ive never had any debt, so not sure if i would have a credit rating. Would this affect the amount i could get a loan on?

Also, how long after do you have to pay a student overdraft back? each year or after three? -I know this question may need to be put in the "student money" section.

Thanks

nomoneytoday

It will be harder to get a loan with no previous history, as the company have nothing to base their opinions on. Maybe try your bank, as they can see your account history?

AFAIK Student overdrafts conversion to normal overdraft differ by bank. My sisters LTSB one was 3 years after graduation for example

Tixy

Often with a student overdraft the limit will increase each year of uni. After you finish Uni most banks give a period of time to repay, often reducing the limit down by say £500 every 6months, so you have some time to start earning to pay it back.

You say you've never had any debt - have you had any credit accounts, such as a mobile phone contract or similar?

popadom

Tixy wrote: »

Often with a student overdraft the limit will increase each year of uni. After you finish Uni most banks give a period of time to repay, often reducing the limit down by say £500 every 6months, so you have some time to start earning to pay it back.

You say you've never had any debt - have you had any credit accounts, such as a mobile phone contract or similar?

Hi,

No, no phone contract or anything like that. If i want anything i save up and get it rather than credit. This is what im worried about.

YoungBaker

Is there a reason you need a student overdraft now then if you have managed on saving before? Is it for a particular purchase - if so, do you really need it? Or is it for a safeguard for monthly expenses?

It would be interesting to find out why you need the overdraft and we could maybe make some alternate suggestions - but would recommend maybe even getting some form of credit to build your score such as an affordable mobile contract.

gary_d_a

i was under the impression that there were little things that you could do to build your credit rating from none existent to better.

get a credit card, use it once for one small transaction, even £5 or something in tesco, pay it off in full, cancel the account. take out a 1 month minimum term contract, do the 30 days, put the 30 days notice in as soon as you have, pay the bills (both of them) and cancel it. its cost you what £20-30 you would have spent anyway and then you are doing positive things. credit ratings care about are you paying when asked and of course by doing those things yes you are

geoffky

Stay as you are ..i am 48 and still never looked at my credit score or had debt.It is a lot less stress.

CLAPTON

gary_d_a wrote: »

i was under the impression that there were little things that you could do to build your credit rating from none existent to better.

get a credit card, use it once for one small transaction, even £5 or something in tesco, pay it off in full, cancel the account. take out a 1 month minimum term contract, do the 30 days, put the 30 days notice in as soon as you have, pay the bills (both of them) and cancel it. its cost you what £20-30 you would have spent anyway and then you are doing positive things. credit ratings care about are you paying when asked and of course by doing those things yes you are

this is complete nonsense

CLAPTON

popadom wrote: »

Hi,

Looking at student loan accounts, and more importantly, overdrafts. Ive never had any debt, so not sure if i would have a credit rating. Would this affect the amount i could get a loan on?

Also, how long after do you have to pay a student overdraft back? each year or after three? -I know this question may need to be put in the "student money" section.

Thanks

It's not very clear what you are asking.

Do you actually want a loan or overdraft or are you asking about how they work and how to get one in the future if you need one?

blogs

You say you've never had any debt - have you had any credit accounts, such as a mobile phone contract or similar?

Peelerfart

blogs wrote: »

You say you've never had any debt - have you had any credit accounts, such as a mobile phone contract or similar?

Read post #4