Advice on graduate overdrafts

cat22fish

Hi

I am after some advice, throughout my studies I had a Halifax student bank account and had an overdraft limit of £3000 (which I still have and is at its maximum every month). I have kept it on a year after graduation because Halifax let you have the overdraft at 0% interest for another year. That year is now coming to an end, and my account is still maxed out (not through lack of trying to bring it down, but through various jobs falling through etc). I have seen that you can get graduate accounts which offer 0% interest on overdrafts (max £2000) which gradually reduce over three years. Halifax want to charge me £2 a day for my £3000 overdraft. What I'm wondering is if I can open two graduate accounts to clear the debt with Halifax?? ...

red_carpet

I am in the same situation. Apparently the rbs and Santander grad accounts are allowed as well as another bank account, so I'm thinking of using the two side by side and closing my halifax account. I'm going to rbs to discuss with the today so I will let you know how I go on.

I think the other option is probably a 12 month loan if I can only get one grad account. Has anyone else been in this situation?

Sharon87

I would suggest you reduce your overdraft to under £2500 with Halifax if you can't get it all onto a 0% overdraft, because that's only £1 a day then. And £30 or £31 a month is cheaper than having a 19.9% interest at that amount of money.

But I would go round to the banks and inquire about graduate overdrafts. Natwest and HSBC do them. HSBC in the 2nd year after you graduate offer £1000 I think. Natwest are the same, but they offer an interest free period in the 3rd year of £500.

Halifax are clever, offer the largest student overdraft to entice people in, change the system from interest to daily charges and watch the money roll in when the graduate account turns to a regular account.

I would strongly suggest moving that debt to 0% overdrafts or credit card if possible. For credit cards you need to ones that allow money transfers like MBNA (inc Virgin) cards do, but you need a really good credit record (and employment) for this.

Also if you get rejected for an overdraft/credit card. I would only apply for 2 in the space of 6 months (or is it 3?) I think it is without it adversely affecting your credit score.