0% overdraft approval when moving to grad account (with already very high credit utilisation)

TheFrugalFrugler

I joined university late and so when I opened my student account I didn't get an overdraft like most other students for some reason. In my final year I got an 18 month 0% credit card with £4K limit which I have had to use as I got minimum student loan and no help from family. 

Next month my student current account is being upgraded to a graduate account with Lloyds which means I could get up to £2000 0% overdraft for a year, which decreases by £500 each year. I was hoping to utilise this to reduce the credit card debt and consolidate my overdraft (32% APR ish).


Current finances:
CC: £3550/£4000     0% until 2027
Overdraft: £400/£450.   ~32% APR 

I'm just worried that they won't approve me for the 0% overdraft, as obviously they perform credit checks and mine is poor at the moment due to over utilisation of my credit card. It would be really useful to clear the overdraft and then begin to work away at the 0% CC. I'm doing teacher training this year with full funding / scholarships so my income will be £3950 per month (tax free) for 10 months starting in September/October. 

What are my chances they give me £2K 0% grad overdraft given my current circumstances, and would they be likely to give me anything at all? 



Note: 

No missed payments ever. I'm in my early 30s and before going to uni to retrain my credit score was very good. 

eskbanker

TheFrugalFrugler said:

What are my chances they give me £2K 0% grad overdraft given my current circumstances, and would they be likely to give me anything at all?

I don't think anyone can offer any meaningful guidance as to your personal chances, given that such decisions are driven by underwriting algorithms that aren't transparent, so all you can do is wait and see.

However, if your monthly earnings will be the same as your debt, you'll hopefully be able to pay off the interest-bearing part and start to save towards repaying the interest-free one by 2027?

TheFrugalFrugler

eskbanker said:

TheFrugalFrugler said:

What are my chances they give me £2K 0% grad overdraft given my current circumstances, and would they be likely to give me anything at all?

I don't think anyone can offer any meaningful guidance as to your personal chances, given that such decisions are driven by underwriting algorithms that aren't transparent, so all you can do is wait and see.

However, if your monthly earnings will be the same as your debt, you'll hopefully be able to pay off the interest-bearing part and start to save towards repaying the interest-free one by 2027?

Yeah I suppose I was just hoping to get an idea as a £2000 0% overdraft next week would really help me out to have a housing deposit etc 

eskbanker

TheFrugalFrugler said:

eskbanker said:

TheFrugalFrugler said:

What are my chances they give me £2K 0% grad overdraft given my current circumstances, and would they be likely to give me anything at all?

I don't think anyone can offer any meaningful guidance as to your personal chances, given that such decisions are driven by underwriting algorithms that aren't transparent, so all you can do is wait and see.

However, if your monthly earnings will be the same as your debt, you'll hopefully be able to pay off the interest-bearing part and start to save towards repaying the interest-free one by 2027?

Yeah I suppose I was just hoping to get an idea as a £2000 0% overdraft next week would really help me out to have a housing deposit etc 

Just to be clear, you're presumably referring to a deposit for a rental rather than a purchase?  Borrowing to fund the latter wouldn't be a good idea!

TheFrugalFrugler

eskbanker said:

TheFrugalFrugler said:

eskbanker said:

TheFrugalFrugler said:

What are my chances they give me £2K 0% grad overdraft given my current circumstances, and would they be likely to give me anything at all?

I don't think anyone can offer any meaningful guidance as to your personal chances, given that such decisions are driven by underwriting algorithms that aren't transparent, so all you can do is wait and see.

However, if your monthly earnings will be the same as your debt, you'll hopefully be able to pay off the interest-bearing part and start to save towards repaying the interest-free one by 2027?

Yeah I suppose I was just hoping to get an idea as a £2000 0% overdraft next week would really help me out to have a housing deposit etc 

Just to be clear, you're presumably referring to a deposit for a rental rather than a purchase?  Borrowing to fund the latter wouldn't be a good idea!

Yeah - so gonna need about £600 liquid cash by mid August so interest free overdraft would have helped a lot. 

Looks like I’ll have to clear out my old stuff in the attic to put towards it