RBS Declined student overdraft and not sure why

ellejaymac

I'm currently in the middle of a two year masters degree and recently opened up a student bank account with RBS. The benefits available with it seemed good and I thought since I'm eligible, may as well take advantage of the offer. I was able to open the account no problem, and a few weeks later I requested an interest-free overdraft of £500 in line with their offer. I was declined and they said it was because of my account activity? I have no black marks against my credit history except that I don't have much of credit history beyond my phone contract which I've never had a late payment on. Never gone over and overdraft limit or anything like that. I'm wondering whether it might have been because I hadn't used the account at all yet, and had been mostly using my select current account?

For context, I also had my old student account with RBS when I was an undergraduate, and that account went through being a graduate account and is now a standard current account, with a £2000 overdraft limit that it's had since I was a student. But that interest rate is high so I thought I'd try and get some interest free overdraft too. Income-wise, I work part time while studying and earn about £14k/year doing so.

[Deleted User]

A lack of history coupled with existing OD facilities and tightened lending criteria are likely to explain it.

Fortunately, as you'll want to always stay out of your OD, having it or not doesn't make a huge difference, compared to other forms of credit building.

born_again

Do you still hold the current account with them, with thar £2K o/d limit?

sheramber

I was declined and they said it was because of my account activity? 

I was declined and they said it was because of my account activity? 

i would say that was exactly the reason. You opened an account, didn't use it and then applied for am overdraft.

[Deleted User]

You need to build six months of activity and then re-apply. I.e use the account. Get your wages paid in, spend on the card, keep it in good standing. Then they will probably give you it.

Banks are weird in their refusals. When I had not a penny to my name Santander gave me a full current account. After 7 years I left the bank. The other year I tried to open a new account with a decent wage, computer says no!