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Things you should know before looking for bank accounts for students in 2014

If you’re a student and you haven’t got a student bank account, it’s about time that you did. If nothing else, a student account opens you up to an overdraft. The best bank accounts for students in 2014 offer 0% on overdrafts, so that’s something to look out for. But what else should you consider before taking out a student account?

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Freebies

The only thing that should push you away from the bank offering the biggest 0% overdraft is freebies that are worth more to you. Some banks offer a student rail travel card as part of the package. That always sounds like a great idea, but work out whether you’re getting a brilliant deal or not by calculating how much that’s worth to you. If you’re not going to use the train much, then perhaps a lower interest rate or a 0% rate on an overdraft is a better deal.

Don’t go over the overdraft limit

The overdraft is the main benefit of taking out a student account but it can be a problem if you go over the agreed limit. If you go overdrawn on your overdraft, you’ll be charged which will put you further behind. Even if you have a part time job, getting behind is hard to recover from so make sure you’re aware of your limit and stick within it.

Credit scoring

You might not be aware that taking out a bank account with an overdraft means you’ll be credit scored. Lenders have to check your credit worthiness and as a student, presumably one without much of a working background, your credit rating won’t be all that high. You may find that your application for an account is rejected because of this or that the bank will open the account but not offer you an overdraft facility. If that’s the case, check out our guide to improving your credit score, and then reapply.

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