Student Overdraft and Credit Rating

thecynicalasian

Hi all,
Have been doing some reading and I plan to max out (or nearly max out) my 0% student overdraft and deposit it in the highest interest savings account I can find. I think I am quite disciplined with my money and will always make sure I have enough to pay back the overdraft if needed, but will being continually overdrawn negatively affect my credit rating?

Thanks,
Jason

[Deleted User]

Lenders will generally consider you to be much higher risk if you live in your overdraft, although this is slightly offset by it being 0%.

mwarby

As a student your ability to get credit will be mostly down to your low income as a student. Once you graduate and pay down the debt and move up payscale your ability to get credit should improve

Ben8282

A rather foolish move. Just how much interest do you expect this savings account to pay these days? How much is your overdraft? How much to you actually imagine that you will make?
Yes, being constantly overdrawn will have a negative effect on your credit rating and your ability to obtain credit.