Using 0% student overdraft for cash ISA

canucrackit

I've read past threads that are old about using the 0% student overdrafts to put the money into cash ISA's.

From what I can see is, keep using the accounts so they don't recall your 0% overdraft money back.
Put the money into easy access cash ISA's so even if they do ask for the money back you can get at it quickly.
And some banks don't like multiple student accounts (I'd only do this with one or two).
Check t&cs for any other clauses.
Make sure you don't need to dip into the overdraft as it will already be maxed out (I don't need it)

But will this affect my credit rating that I've maxed out the overdrafts, or will it work in my favour once I've paid them back in full?

rb10

canucrackit wrote: »

But will this affect my credit rating that I've maxed out the overdrafts, or will it work in my favour once I've paid them back in full?

There will be a very small short-term negative impact.

The only time it might become an issue is if you apply for a mortgage whilst having (or up to a few months after) having your account overdrawn.

But provided you stay within the limit, it'll be reported to the credit reference agencies as 'good'.

IronWolf

canucrackit wrote: »

I've read past threads that are old about using the 0% student overdrafts to put the money into cash ISA's.

From what I can see is, keep using the accounts so they don't recall your 0% overdraft money back.
Put the money into easy access cash ISA's so even if they do ask for the money back you can get at it quickly.
And some banks don't like multiple student accounts (I'd only do this with one or two).
Check t&cs for any other clauses.
Make sure you don't need to dip into the overdraft as it will already be maxed out (I don't need it)

But will this affect my credit rating that I've maxed out the overdrafts, or will it work in my favour once I've paid them back in full?

You credit worthiness will be worse while the outstanding loans appear on your credit file, as companies are less willing to lend to people already in debt.

But as soon as you pay them back your credit file will be fine again.

Unless you plan on applying for a big loan then the short term effects wont matter at all.