Will Parents Bad Credit Effect Student Bank Account Application

dreamon_3

Hi, Can anyone help?

Regret that I have a bad credit history and I am worried that my son will be refused a student bank account with overdraft/credit card with Nat West on the basis of our credit history.

He goes to Uni in September has a unconditional offer, student loan and accomodation all in place. Unfortunatley he needs the overdraft amount offered to assist him with budget as I am unable to offer any financial help.

Would anyone know if Nat West or Banks in general for student accounts take family credit ratings into consideration and if they do is there anyway around this ?

Feeling guilty, worried and very sad about the whole situation :embarasse

kingmonkey

Dont worry

I'm pretty sure that they do not take into account the parent's credit history. I have found that banks are more than willing to offer overdrafts to all students.

someone

Unless you have a financial connection your action will not affect your son. A financial connection is if you have a joint account with him. I doubt this is the case

Gemmzie

Following on from this a slightly complicated situation. I have a joint account with my mum (which runs the household in's and out's), she has joint acounts with my dad.

Will his credit affect mine?

Blacksheep1979

It shouldn't unless there are any CIFAS (fraud warnings) linked to the address. You can get student accounts with fairly bad credit (defaults etc).

moonpixiewitch

my husband and i have both been declared bankrupt and my daughter has just opened an account with the full overdraft with Natwest to start uni in sept.
I would say don't bother with the Halifax though... they told her she did not have a sufficient credit rating for their student account and then tried to get her to apply for an ordinary current account! they were not user friendly at all ! Als have been reading lots of not so good things about them on various threads on here.
Natwest , however, were brilliant and really quick with all the paperwork and freebies . :T

dreamon_3

HELP:(

Update on the above

My son was given a Nat West account a few weeks ago and today applied for an overdraft. He was as I feared turned down by them, computer said ‘NO’, he asked them if it was because of his parent’s bad credit rating and they said ‘probably’?

He is already in a negative situation as his student loan/maintenance loan doesn’t cover his rent and was relying on this overdraft to live on. He has now said he doesn’t want to go anymore if our bad credit history is going to follow him through life.

I am so upset this has happened, especially in view of the above posts that have been made. I understood that credit rating was done on the individual and not by address or association?

My son did apply for an account with the Halifax (who we have a basic account with) who immediately refused his application. I wasn’t surprised by the Halifax, but would the search that they did (although he only applied for an account with them and not an overdraft at that stage/online and shouldn’t have done a search? – or maybe they do a search anyway on applications?) have affected the search done today by Nat West ?


Can anyone give advice or suggestions ?

seaweasel

While few banks will give you their maximum overdraft limit on a new student account, they should give you at least something. I've found RBS (who own NatWest to be good with ODs in the past) and while HBOS can be a bit annoying I'm surprised that he was refused. His parents finances have nothing to do with his own.

I'd just escalate the complaint. Hassle them and if they don't yield then move to another bank

dreamon_3

Thanks for your quick reply.

Are Halifax and Nat West connected?

My son just got a bog standard letter from Halifax advising that his application had been declined and gave him details of credit reference agency if he had a problem with their decision?

Nat West wouldn't give any overdraft at this stage and only suggested that he applies in six months time and they would process the application again ? I don't see how things can be changed in that time.

I fear that he keeps applying for overdrafts with other banks it will make things worse as surely they all work by the same rules and regs ?

Rikki

With students accounts they say there is an automatic overdraft but you have to be using the account for a while before you can use it.

My son will have to work while he is a university as his maintenance loan/grant won't cover his living costs, books etc.

dreamon_3

He would be getting a job even if he was approved for an overdraft, you can't live on a £1200 overdraft through his term at Uni. My problem and concern is that my bad credit rating is being passed on to the family and surely that is not right.