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Gap year payment postponements

Richard_Gates
Posts: 1 Newbie
in Credit cards
Hi anyone who has an idea!
My daughter has just returned from her gap year after uni. She has been asked back to work there for three months in the summer but has a student overdraft (very cheap) and a credit card with £500 on. She wants to earn here to save enough for the return trip but wants to clear both of these to a 0% card so she can see how much she has. Is this a good idea? Which of Martin's card groups does she belong in so that we know which card to get? Any ideas.
richard
My daughter has just returned from her gap year after uni. She has been asked back to work there for three months in the summer but has a student overdraft (very cheap) and a credit card with £500 on. She wants to earn here to save enough for the return trip but wants to clear both of these to a 0% card so she can see how much she has. Is this a good idea? Which of Martin's card groups does she belong in so that we know which card to get? Any ideas.
richard
0
Comments
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Student overdrafts should be 0%, even after graduation on the student/graduate accounts. These usually start with high limits (say £2,000) and work their way down in steps of £500 to £1,000 a year for 3 or more years. If the overdraft isn't 0% then get switching on that too!
I'd seek out the best graduate account overdraft possible to start with; with the highest limit at 0% for the longest amount of time. It would then be possible to clear the credit card with the overdraft and close the credit card account down.
It would also be a good idea for her to obtain a copy of her credit file from Equifax and Experian to see which of the accounts she holds is listed on there (ie. is the overdraft on her credit file). She can then also check repayment history to ensure its correct. An existing clean repayment history is probably very important in order to qualify for most credit cards at 0%, and lenders will probably be looking to see if graduates and young people are overstretched before allowing more borrowing and credit cards to be opened...
Also, if the current account isn't listed on there... she could probably just go and open another graduate account with 0% overdraft too!0
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