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Can I get finance whilst I have a student overdraft?

Hi, I'm 20 and looking to get a car in finance, ideally an Audi A1. I am currently a student and in my student overdraft of £1500 and struggling to get out of this at the moment. I have no idea what my credit rating would be but I am wondering if I would be able to apply for a car on finance whilst being in my overdraft? All of my direct debits are paid on time each month to my knowledge.

Asked by Abigail M

Dear Abigail, thank you for your question.

As far as I’m aware, with most banks a student overdraft doesn’t affect your credit rating. Usually you have a few years to pay this off post graduation before it impacts upon anything, so on that front you may be ok.

When you say you pay all of your direct debits on time, does this include a mobile phone contract? Do you have a bank account? Also, are you on the electoral roll? If so these things will help us to find you an approval.

If you are concerned, or do not fit the criteria outlined above, you could always apply with a guarantor. This is likely to increase your chances of approval. The guarantor must have lived in the UK for 3+ years, be a home owner, and have excellent credit.

Please make an application when you're ready and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

Tim Carpenter
Answered by Tim Carpenter Car Finance Expert Edited on

Liked by 8 People

£
5 Years
Total cost of credit £ XXX.XX
Total repayment £ XX,XX.XX
48 monthly
payments of
£ 245 98

Rates from 6.9%: the exact rate you will be offered will be based on your circumstances

Representative example: borrowing £6,500 over 5 years with a representative APR of 27.4%, an annual interest rate of 27.4% (Fixed) and a deposit of £0.00, the amount payable would be £188.74 per month, with a total cost of credit of £4,824.37 and a total amount payable of £11,324.37

Rates may differ as they are dependent on individual circumstances. Subject to status.


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