Student account overdraft help!

cjcw21

Hi,

I currently have 2 accounts at the same bank, a regular current account and a student account. I've just finished my first year at uni but because it took so long setting the student account up at the start of term, I just used my current account as my primary account (student loans, bursaries, direct debits, general withdrawing etc...) and decided I'd transfer everything over to the student account this summer and use it from then on.

So the student account comes with a maximum £1000 overdraft, which you have to apply for seperately, it doesnt come automatic. I went into the bank last week to enquire about applying for it but the woman told me I wouldnt be approved the overdraft because (a) I had used wonga, and (b) I had went overdrawn a few times, both on my current account. She did advise me to close the current account and begin using the student account as my main account, which I have just done.

A friend told me that once the current account (the wonga'd and overdrawn one) was closed, I could then apply for the overdraft on the student account and it would be likely to be approved as the evidence was gone, wiped. Has anyone else had any experience with this sort of thing? Im starting to wonder if the bank woman was trying to indirectly tell me to close the current account and then apply for the student overdaft... she was really helpful and even removed an overdrawn charge which would have been due this week.

Opinions, advice would be greatly appreciated

MoneySaverLog

You've had good advice from the lady in the bank, which bank is this?

Using Wonga or any other pay day loan company, as well as being expensive, is not good. The bank see this and they think you cannot manage your money. Confirmed further by you going into an unauthorised overdraft.

None of that looks good when you apply for any legitimate credit, like a student overdraft, from the bank does it?

cjcw21

Yes I know it looks bad, and she did tell me it was bank policy that any sort of payday loan history would result in an overdraft request being declined. And I totally understand that. But it was my first year away from home (and in another country), and I had no job... so at times it was tough to manage my money. Trust me, if I dont learn from this then I never will lol I regret now not applying for the overdraft before I had to borrow from such websites but sure, hindsight is a great thing.

As for going into an unauthorised overdraft, it was literally no more than £10 each time. Even the smallest of overdraft limits would help.
I have my first rent installment due at the start of July, and although I've had 2 summer job interviews this week, I'll not have the money in time. I do have a genuine need for it. I will have an income this summer, and then my student loans will be going into the same account at the end of the summer. Im just wondering whether once that current account is closed, is it properly gone or will they still be able to check up on it some way.

It's Ulster Bank by the way

cjcw21

Anyone?

callum9999

I don't know if they'd have it on record that you've still used Wonga, but they'd have a record that you went into an unauthorised overdraft on several occasions.

It may be worth just opening a student account elsewhere if they aren't going to give you the overdraft in time.