Extending my Overdraft Come September

spamurai

Hi there,
I figured this was a good place to start with looking for advice regarding my finances as a Mature Student.

I'm about to go into my second year at University come September. I currently have a £1000 overdraft with a Student account with Halifax at 0% interest for 6 years.

Since i got my Student account last year, i have defaulted on an old loan and i'm paying £00.01p a month through CCCS.
This will obviously affect my credit history and ability to get credit.

Halifax Student accounts allow a Student overdraft of £0-£1000 in the first year, £1000-£2000 in the second year, £2000-£3000 in the third year.

So my question is, if i went into a Halifax branch, and asked to extend my overdraft for my second year, would i get refused because i defaulted on a loan?
Or worse, get my current overdraft retracted/withdrawn?

Incase you were wondering, i had no choice but to go through the CCCS with my loan. I became a mature Student after being forced to leave my job and after spending way too long applying for work and getting no where. Further education seemed to be the only way i can make it anywhere in the future.
I also appreciate, most of you will say don't even extend my overdraft as its just more debt, but as a mature student i'm not entitled to grants etc, so living/travel costs are stupidly hard to manage and the overdraft would help a lot.

Thanks for reading, i look forwards to your thoughts and advice.

zerog

1p a month?

6 years? Are you studying medicine?

If they didn't refuse you for the student account itself, then if you use the account properly I don't see why you should get declined to extend the overdraft.

spamurai

zerog wrote: »

1p a month?

6 years? Are you studying medicine?

If they didn't refuse you for the student account itself, then if you use the account properly I don't see why you should get declined to extend the overdraft.

Yes 1p a month as i'm on a tight debt management scheme.
Yes 6 years, (up until 3 years after you graduate).

Well i hadn't defaulted on my loan when i was granted a student account last year. Hence why i'm wondering if it would be a problem now since i have...

No i'm not studying medicine...

My main concern is going in to get my overdraft upgraded and them doing a credit check (procedure) and then finding i've defaulting on my loan making me not eligible for a new overdraft, then worse, withdrawing my existing overdraft (due to the newly bad credit history)... I hope this is clearer...

the-mango

zerog wrote: »

If they didn't refuse you for the student account itself, then if you use the account properly I don't see why you should get declined to extend the overdraft.

Yes, I agree, as my reply in your other thread.

opinions4u

spamurai wrote: »

Yes 1p a month as i'm on a tight debt management scheme.
Yes 6 years, (up until 3 years after you graduate).

Well i hadn't defaulted on my loan when i was granted a student account last year. Hence why i'm wondering if it would be a problem now since i have...

No i'm not studying medicine...

My main concern is going in to get my overdraft upgraded and them doing a credit check (procedure) and then finding i've defaulting on my loan making me not eligible for a new overdraft, then worse, withdrawing my existing overdraft (due to the newly bad credit history)... I hope this is clearer...

Their website says you only get 12 months interest free after graduation.

http://www.halifax.co.uk/bankaccounts/current-accounts/student-current-account/

spamurai

the-mango wrote: »

Yes, I agree, as my reply in your other thread.

Yes, but you said you "don't see why", i was simply explaining "why".

I was indeed granted the account, and have been using it correctly, but as to why they might consider retracting the current overdraft is because i have since defaulted on my loan (between them giving me the account and now), therefore now having a bad credit history (unlike before), in turn, the bank now feeling i don't meet the criteria to have an overdraft and withdrawing it all together as they may feel i might not be able to pay it back when it comes to having to....

It wouldn't have even crossed my mind, but i read it in a student booklet somewhere about having overdrafts withdrawn if, for some reason, they feel you wouldn't be able to make payments to it.
(being in a debt management scheme and relying on my o/d being mine)...

opinions4u wrote: »

Their website says you only get 12 months interest free after graduation.

Fortunately my paper work says different :j