Student Overdraft? Pay off or no need?

hardleyouth

Hi all,

I have a NatWest Student Account with an interest free overdraft of £750, I'm still a student and it's going to be interest free for years yet that's not the issue.

What I wish to know is should I make sure I am not overdrawn by the end of each month? I.E. If I am overdrawn going into the next month, will this be a negative mark on my credit history? Or does that only apply if it attracted interest and I failed to pay the minimum repayment?

Thanks,
Chris

YorkshireBoy

hardleyouth wrote: »

What I wish to know is should I make sure I am not overdrawn by the end of each month?

I don't know for certain if student current accounts are reported to the CRAs, although I'd expect them to be.

So that just leaves the question of when, exactly, they report account status. Is it?...

The last day of the month
The last working day of the month
The statement/billing cycle end date
The last Sunday of the month
Some other date in the month

Or maybe it's none of the above! Maybe they report the highest it's been during the calendar or statement/billing month?

Perhaps you should clarify with NatWest (or view your credit report) before jumping through unnecessary hoops?

I.E. If I am overdrawn going into the next month, will this be a negative mark on my credit history? Or does that only apply if it attracted interest

Your credit report will show:

The overdraft limit
The current debit balance (if you're in credit this will show as £0)

and I failed to pay the minimum repayment?

You don't generally have to make a minimum payment on an overdraft. Minimum payments are generally associated with credit cards.

hardleyouth

YorkshireBoy wrote: »

I don't know for certain if student current accounts are reported to the CRAs, although I'd expect them to be.

So that just leaves the question of when, exactly, they report account status. Is it?...

The last day of the month
The last working day of the month
The statement/billing cycle end date
The last Sunday of the month
Some other date in the month

Or maybe it's none of the above! Maybe they report the highest it's been during the calendar or statement/billing month?

Perhaps you should clarify with NatWest (or view your credit report) before jumping through unnecessary hoops?Your credit report will show:

The overdraft limit
The current debit balance (if you're in credit this will show as £0)You don't generally have to make a minimum payment on an overdraft. Minimum payments are generally associated with credit cards.

Ok thank you. I'm going to apply for their student CC tomorrow anyways So I will speak to them and ask. Thank you for your answer

hardleyouth

YorkshireBoy wrote: »

I don't know for certain if student current accounts are reported to the CRAs, although I'd expect them to be.

So that just leaves the question of when, exactly, they report account status. Is it?...

The last day of the month
The last working day of the month
The statement/billing cycle end date
The last Sunday of the month
Some other date in the month

Or maybe it's none of the above! Maybe they report the highest it's been during the calendar or statement/billing month?

Perhaps you should clarify with NatWest (or view your credit report) before jumping through unnecessary hoops?Your credit report will show:

The overdraft limit
The current debit balance (if you're in credit this will show as £0)You don't generally have to make a minimum payment on an overdraft. Minimum payments are generally associated with credit cards.

Hi again! Just to let you know incase you were curious or if any others have this question - I spoke to NatWest and he said it won't necessarily negatively affect my credit profile but it will show as overdrawn on the Credit Report (as you said), and he also said he believes they send off the account status' to the CRA's on the 1st of every month.

AND, I was approved for my credit card! So, happy days and thanks for your help!