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Overdraft increase on a student account.
bengal007
Posts: 3 Newbie
Hello,
I would appreciate some advice on how to best approach an application for an overdraft increase.
I have a Student Account with LLoydsTSB, with 0% overdraft facility. Since this is interest free, overdraft is a much cheaper form of borrowing that the Credit Card (15.9 APR, currently: £1100/£1250), which is why I would like to take full advantage of this.
At the moment, I have an overdraft limit of £1000, temporarily with £970 of this used up. As I only switched to the Student Account three months into my first year of studies, I am only be able to apply for the £1500 limit as of 1st of July. I have, however, successfully applied for an increase from £500 to £1000 at the beginning of last month, which might make the second request appear rather desperate.
Hence and my question. Although the bank made possible overdraft increases quite clear, they are of course, subject to their approval.
First, as the amount of overdraft will be reduced to £450 by the end of the month, would it be better to postpone the application (with a provisional application made yesterday) until then, or is LLoydsTSB likely to accept my request anyway, as they would expect this kind of cashflows on a Student Account?
Second, when providing a reason for increased overdraft, is saying that this would be used to pay off the Credit Card a sensible idea ?
My concern with this degree of honesty is, that, in the end, interest fees make up 30% of banks' income, and so, LLoydsTSB might not be overly excited about essentially allowing one to avoid potential interest charges using bank's very own money.
Your input on this would be much appreciated.
I would appreciate some advice on how to best approach an application for an overdraft increase.
I have a Student Account with LLoydsTSB, with 0% overdraft facility. Since this is interest free, overdraft is a much cheaper form of borrowing that the Credit Card (15.9 APR, currently: £1100/£1250), which is why I would like to take full advantage of this.
At the moment, I have an overdraft limit of £1000, temporarily with £970 of this used up. As I only switched to the Student Account three months into my first year of studies, I am only be able to apply for the £1500 limit as of 1st of July. I have, however, successfully applied for an increase from £500 to £1000 at the beginning of last month, which might make the second request appear rather desperate.
Hence and my question. Although the bank made possible overdraft increases quite clear, they are of course, subject to their approval.
First, as the amount of overdraft will be reduced to £450 by the end of the month, would it be better to postpone the application (with a provisional application made yesterday) until then, or is LLoydsTSB likely to accept my request anyway, as they would expect this kind of cashflows on a Student Account?
Second, when providing a reason for increased overdraft, is saying that this would be used to pay off the Credit Card a sensible idea ?
My concern with this degree of honesty is, that, in the end, interest fees make up 30% of banks' income, and so, LLoydsTSB might not be overly excited about essentially allowing one to avoid potential interest charges using bank's very own money.
Your input on this would be much appreciated.
0
Comments
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I've not got direct knowledge about the Lloyds student account (may be a good idea to post on the student board) however with my student account (Halifax) they didn't ask why I wanted to increase my overdraft so I didn't tell them.
If they do ask, it may be worth simply saying that you noticed that you were eligible to apply for the increase and would like to have it as a backup.
Providing you've been putting money into the account and abiding by their T&Cs I doubt they'd have much issue with increasing your overdraft.0 -
When i had a halifax account they didnt need a reason xD0
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