Student Bank account Benefits?

LeonAccount

Hello, I've heard several stories that simply having an overdraft can help boost your credit score in the future.


While i don't want and won't use a overdraft, i was wondering if there is any benefit to getting a student bank account with an overdraft and not using it?
or would you need to use it in order for your credit score to increase?
:think:


Thank you.

Dobbibill

You want to build a credit history. True, an overdraft will show on your credit report as being available and not used but nothing more than that.
The easiest, cheapest way to evidence you are responsible with credit is to use a credit card, put your grocery shopping on it and pay off in full every month. (Paying off in full will avoid any interest)

Credit facilities show on your credit report so things like a standard/student bank account, a mobile phone contract, any credit card, catalogues, energy bills etc (although I would avoid catalogues as they are generally overpriced). All of this plus time will provide evidence on your credit report for any future lending.