Daughter refused student a/c overdraft because of my bad credit record

sahararose

My 20 year old daughter recently asked for her overdraft to be activated on her existing student account as she needs a new car. No car - no uni.

She was turned down and not told why. She has a clear credit history and obtained an Experian report stating this. However I have a bad history due to various circumstamces over the years so we're concerned that she has lost out because of me.

Is there any way she can apply to another bank and obtain an interest free overdraft? She's far more organised with money that I've ever been.

Regards.

Voyager2002

sahararose wrote: »

My 20 year old daughter recently asked for her overdraft to be activated on her existing student account as she needs a new car. No car - no uni.

She was turned down and not told why. She has a clear credit history and obtained an Experian report stating this. However I have a bad history due to various circumstamces over the years so we're concerned that she has lost out because of me.

Is there any way she can apply to another bank and obtain an interest free overdraft? She's far more organised with money that I've ever been.

Regards.

Does the Experian report show her as being "financially linked" to you? A link usually arises when two people share a joint account or some other financial product.

If she is "linked" with someone with a poor credit record then she is unlikely to get an overdraft anywhere. If such a link is shown in error then there are ways to remove it from the record. If there is no link, then that is not the problem.

Remember that banks prefer to get to know a customer before giving them a large overdraft. Perhaps her problem is simply that she does not have a record of borrowing small amounts and repaying them on time. If so, moving to another bank is unlikely to help.

GwylimT

When my son started university his bank (halifax) wouldn't issue a student overdraft until the first loan installment was in his student account.

The only way your credit history would effect her is if you are linked, e.g. have a joint account etc, if this is so it will show on her experian account.

Fluff15

Unfortunately you can't have two student accounts open at the same time, and so to open a student account with an overdraft at another bank she will need to change her account currently back to a standard one.

I don't think your credit history impacts on hers, as it is no longer allowed for credit agencies to base their credit ratings on households. (Somebody may correct me on this, but I'm 99% sure I'mm right) She may have been refused as it's an automated system and it's based on the fact she has NO credit rating, not a bad one.

I think Natwest student account overdrafts are guaranteed, but the customer is expected to use the account as a main current account by: depositing at least £750 every 6 months and making at least 3 debit transactions every month. (source: http://www.moneysavingexpert.com/students/Student-bank-account)

Which bank is she with now?

sahararose

She's with the Natwest, and has been for about six years. There's nothing on the Experian report to say that she's linked to me but that's the only thing we can think of.

She's had credit contracts before eg contact lenses, mobile phone, car insurance so I would have thought that these things would have helped to build up a credit record.

Her full student grant/loan and her wages all get paid into her main account.

I've heard that you can 'disassociate' yourself from someone if their credit record impacts on yours - is that someone we should look at just in case?

Thanks for your replies

x

shop-to-drop

Is it the size of the overdraft she is asking for that is the issue do you think? Maybe ask for a smaller amount can she get a cheaper car with just money saved from job? Is a car absolutely essential, what about coach or train to get to Uni?

GwylimT

sahararose wrote: »

She's with the Natwest, and has been for about six years. There's nothing on the Experian report to say that she's linked to me but that's the only thing we can think of.

She's had credit contracts before eg contact lenses, mobile phone, car insurance so I would have thought that these things would have helped to build up a credit record.

Her full student grant/loan and her wages all get paid into her main account.

I've heard that you can 'disassociate' yourself from someone if their credit record impacts on yours - is that someone we should look at just in case?

Thanks for your replies

x

How can she disassociate with you on her credit rating when you are on it in the first place?

You say she has a job, is she unable to use the wages she has saved to fund a car purchase and then pay her insurance in monthly installments?

sahararose

She lives at uni, but her part time job (12 hours a week) is here at home which is about a 40 minute drive away. She works in a supermarket and does mainly evening shifts. She constantly tried to get a transfer/ dual store to the branch close to her but to no avail. She currently has a car which has given up the ghost so needs replacing. She only just breaks even on living costs including her loan and job - I really don't know how students can manage without a job!

I'm not listed on the Experian report as being linked, but that's such a worry for me 'just in case' my bad record has cocked things up for her.

She asked for £800. She's not after a Porsche, lol.

Maybe as you say it's a lack of previous borrowing.

:-(

Fluff15

Oh no! That's rubbish, sorry sahararose.

I would ring and check with the credit agencies that your names aren't linked, but I think this would have shown on the initial report. Try looking at the Equifax report too - they do a 30 day trial and that may show something that the Experian one doesn't.

Did she go into the branch? Did the manager offer any explanation as to why she was refused or was it done online? Is she on the electoral role and has been for over a year?

Edited to add: Natwest may be more keen on giving her a student credit card, as that way they make money off her rather than the interest free overdraft - the limit is £500, would she be able to borrow the remainder until she's back on her feet again?

sahararose

Fluff , she went into the bank to activate the overdraft and was just turned down. No reason given.

They did suggest applying for a credit card, but she refused. Thank god.

She's working a lot of overtime this summer holiday but all of that money is going to pay off bills for her car repairs.

shop-to-drop

I think she should give up the job and the car at the beginning of term. Look for a job at Uni or see if her supermarket will take her back during holidays only. Which supermarket is it? Tesco keep students on the books while at Uni and give them work during holidays as long as they have availability.

Surely anything she earns term time going back and forth will all be used for car related expenses and paying off the overdraft plus be taking away time from her studies.