Could I invest my Lloyds overdraft to a savings acc?

Ultrasonic

I did exactly what the OP is proposing when I was a student in the late '90s and I've never had any problem getting credit. Although I haven't applied for a mortgage yet I guess.

As for where to put the money, if (as is likely) the OP's earnings are below the income tax threshold then the money wouldn't really need to be in an ISA, whatever the highest paying savings account they could find would be best. Although looking quickly this probably will be an ISA. I'd just make sure whatever account the money goes into gives instant access.

lzcook

Take the free money.

I was another who did this as a student and it hasn't stopped me being offered credit cards or getting a mortgage. If you get turned down for a mortgage its going to be because you can't afford it, not because you used your overdraft as a student.

Three years' interest on £1000 (I think I had interest free overdraft for my next two years after graduating as well, so it might even be longer than that) is worth the effort of opening a savings account in my books.