When do I ask for an overdraft increase?

kkid

I have just opened a Santander student account.

I read that there can be up to £1500 free in the first year. I am initially given a £250 overdraft. When do I ask them for an increase on this li-mit?

marlewuk

http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1210610632421&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateW2

according to website, you need to credit £500.00 into the account each term to be able to increase the overdraft from the initial £250.00.

dezza

You need to leave the £500 in there for up to two weeks, within that time the increase should be applied automatically.

mgdavid

you should not increase the overdraft; you need to learn the early lesson of how to live within your means, and accumulate some savings, however small. If you can crack this, you've got it made for life.

pinkdalek

mgdavid wrote: »

you should not increase the overdraft; you need to learn the early lesson of how to live within your means, and accumulate some savings, however small. If you can crack this, you've got it made for life.

Ok correct but perhaps before you take this point of view ask yourself...

1) Why do you need an overdraft for £1500?
2) What do you intend to use it for?
3) Can you get the monies by other means e.g. part time work/family/savings?
4) How to intend to repay the debt if you do borrow it?

Hominu

mgdavid wrote: »

you should not increase the overdraft; you need to learn the early lesson of how to live within your means, and accumulate some savings, however small.

Whilst I agree, student overdrafts are typically interest and fee free for the first 12 months, so if you needed new equipment such as a laptop, it would make sense to use the overdraft as long as it can be paid back and could be cheaper than using a credit card.

The alternative of saving up the cash typically doesn't work as you'll constantly borrow from it for other things. Sometimes having a debt that you know needs paying back forces you to budget better.

pinkdalek

Hominu wrote: »

Whilst I agree, student overdrafts are typically interest and fee free for the first 12 months, so if you needed new equipment such as a laptop, it would make sense to use the overdraft as long as it can be paid back and could be cheaper than using a credit card.

The alternative of saving up the cash typically doesn't work as you'll constantly borrow from it for other things. Sometimes having a debt that you know needs paying back forces you to budget better.

Yes I agree with your points, however my post was really to raise the issue of just because a bank is offering £1500 overdraft fee free does not mean it is essential to have it.

Bloomberg

mgdavid wrote: »

you should not increase the overdraft; you need to learn the early lesson of how to live within your means, and accumulate some savings, however small. If you can crack this, you've got it made for life.

What fantastic advice. I could not agree with you more.

kkid

---

ses6jwg

Pay in £500 and it should be increased within 14 days.

kkid

ses6jwg wrote: »

Pay in £500 and it should be increased within 14 days.

Should be easy enough, accommodation money will go from that account so will easily be met