Student overdrafts
After you turn 18, you can usually apply for an optional overdraft. This is a type of borrowing that lets you spend more than you have, up to a limit set by the bank. There’s normally no cost to use a student overdraft while you study, but it’s not free money. You’ll have to repay everything you spend.
Here’s how they work:
- you need to pass a credit check – see how to improve your credit score
- overdraft limits are typically £500 to £3,000, and either:
- guaranteed – all accepted get the advertised amount
- up to – you could get less depending on your credit history
- your overdraft limit might increase each academic year, either:
- automatically, so you don’t need to do anything, or
- by applying to the bank.
Your student bank account is normally changed to a graduate account automatically at the end of your course. This usually keeps your overdraft interest-free for at least another year, helping you budget to clear it.