Student overdraft

Tazadoobii

I'm likely to be getting the maximum loans and grants, + some more from my university, meaning I'll be able to cope, especially if I end up working part time (which is likely).

I have just under a years worth of credit card history, my total credit limit will be £1900 by the 21st September, meaning I should be able to keep to a 30% usage.

I should then, be accepted for a student account.

Rather than just letting the overdraft sit there unused, would it adversely affect my credit score withdrawing the entire amount and putting it into one of my other accounts, (I have 2 TSB accounts both on 5%).

I am just looking at maximising the money I am both entitled to, but also using that money to get a little bit more where possible, as circumstances might change and I might need the money more than I did before.

[Deleted User]

It doesn't look good to be living in your overdraft, but it depends on whether you have need for further credit in the next few months/years.

Personally, I would leave it unused.

Tazadoobii

Deleted_User wrote: »

It doesn't look good to be living in your overdraft, but it depends on whether you have need for further credit in the next few months/years.

Personally, I would leave it unused.

But are student accounts seen the same?

SuperHan

I withdrew my whole £1,250 of student overdraft I was offered on day 1 of my course and threw it in to a savings account.

The only time the account tipped over zero was the week of student loan payments.

I also had a student credit card which I used and paid off in full each month.

I was accepted for an iPhone contract while still at Uni and also an interest free finance on a £400 ish laptop.

It stayed the same way for the full 4 years of my course. After Uni, it took me about 3 paydays to pay off the student loan, and I took out a joint £190k mortgage less than 6 months after graduating. In the 3 years since, I'm yet to be declined for a credit card or student account (I have opened at least 6 CC accounts - all prime lenders - and probably more than 10 current accounts with almost all high street banks).

So, in my experience, I would say the sensible thing to do is to earn interest on the cash! It's not had any perceivable negative impact on me.

That said - the 30% balance you mention - are you going to pay this in full each month then spend 30% each month. If so, fine. Otherwise pay the card off with the overdraft first.