Ulster Bank Student Overdraft Increase?

ShaShaBear

In a spot of bother with my banking finances as a student, and now have no income. Mabs advised that I apply for my Year 3 extension in my overdraft when I get my new student card in August, and I can use the money to get my credit card back to an acceptable amount. Just wondering if anyone knows what UBs overdraft for a third year student is, as I'm still on the €650?

Nervous Wreck

I doubt they'll let you use your overdraft to pay off your credit card. In general, using a credit facility to pay off a credit facility is a no no... You're probably best ringing them to see if it's feasible.

ShaShaBear

Nervous Wreck wrote: »

I doubt they'll let you use your overdraft to pay off your credit card. In general, using a credit facility to pay off a credit facility is a no no... You're probably best ringing them to see if it's feasible.

Originally the monthly payment for my credit card was coming out of my overdraft every month, but due to unforseen circumstances I had to pretty much max out the overdraft, which left the credit card going into arrears. I assumed since they take it automatically from my bank account, that increasing the overdraft would simply leave it available to be taken again? The lady I spoke to recommended this since my overdraft is interest free while I am a student, and it would be better to have the card clear and owe them the overdraft?

unclebill98

Overdrafts on student accounts are graded upwards depending on your year. However they are subject to approval.

So in theory you can have a higher overdraft. If you are in 2/3/4 year and during the summer you failed to reduce the overdraft back to zero then you will have no chance of getting it increased as that would be one of the requirements of the student overdraft. Also, there is no such thing as a 3 year extension, its reviewed annually around september.

It is common place to use a loan(credit facility) to repay debt within the same bank. Getting that approved is another thing.

Its best to come to some agreement to repay the CC balance that is acceptable to you, not the bank. I would also advise sitting down with a customer advisor and telling them what you want/need etc.

ShaShaBear

unclebill98 wrote: »

Overdrafts on student accounts are graded upwards depending on your year. However they are subject to approval.

So in theory you can have a higher overdraft. If you are in 2/3/4 year and during the summer you failed to reduce the overdraft back to zero then you will have no chance of getting it increased as that would be one of the requirements of the student overdraft. Also, there is no such thing as a 3 year extension, its reviewed annually around september.

It is common place to use a loan(credit facility) to repay debt within the same bank. Getting that approved is another thing.

Its best to come to some agreement to repay the CC balance that is acceptable to you, not the bank. I would also advise sitting down with a customer advisor and telling them what you want/need etc.

I meant Year Three extension, as in the increase to the amount for being in third year of college. I sat an interview for my Year 2 one and they said that it being maxed out wasn't a problem for getting approved, once I could prove I was still a student.

As for the credit card, I've sat with them a few times - the first time they agreed to reduce the payment, then proceeded to take the payment from the wrong bank account - twice. Once at the old payment and once at the new. I sat with them again and asked if there was anything they could do about freezing the interest, so they removed the card from my online banking so I had no way of paying it from home or even viewing it online. It's a bit of a nightmare to be honest.

unclebill98

Sounds like a typical UB thing to do. The removal of the card from your online banking sounds like the card has gone into their collections department, so its a normal move etc.

With the information you just gave there is very little hope of upping any limits. Its clear you've no capacity to repay and your best course of action is to chip away at the debt.

They can tell you in an interview they can increase limits but they don't make the final decision on it.

unclebill98

Sounds like a typical UB thing to do. The removal of the card from your online banking sounds like the card has gone into their collections department, so its a normal move etc.

With the information you just gave there is very little hope of upping any limits. Its clear you've no capacity to repay and your best course of action is to chip away at the debt.

They can tell you in an interview they can increase limits but they don't make the final decision on it.

ShaShaBear

unclebill98 wrote: »

Sounds like a typical UB thing to do. The removal of the card from your online banking sounds like the card has gone into their collections department, so its a normal move etc.

With the information you just gave there is very little hope of upping any limits. Its clear you've no capacity to repay and your best course of action is to chip away at the debt.

They can tell you in an interview they can increase limits but they don't make the final decision on it.

I have the capacity to repay one or the other, not both (since the credit card payment keeps coming out of the overdraft), that's why I wanted to know about the overdraft limits, I was advised that it was my best course of action in the short-term. Just wanted to know how much the limit actually was for a third year student so I could figure out if it were worth my while attempting to apply for it.

unclebill98

http://www.ulsterbank.ie/roi/personal/daily-banking/current-accounts/student-youth-accounts/student.ashx