Student overdraft

Student overdrafts can sometimes come in handy. It isn't always easy to balance your finances when you're already trying to balance university work, a part-time job and a social life. Some months you can find yourself dipping into your student overdraft or taking out a bank loan for purchases or costs you weren’t expecting.

Instant cash from a student overdraft - read the small print!

When you're short of funds and need some instant cash, Wonga can help. Wonga.com is for those odd times when you need some instant cash and know you can repay it within a month. What's more, it could work out cheaper to get a short term loan with Wonga than going into an unauthorised overdraft. That’s because bank charges are notoriously high for such unplanned actions and then there’s interest on top if you don’t repay it quickly.

How does Wonga compare to a student overdraft?

One of the advantages of being a student is that you escape a lot of charges when it comes to banking and you may well be able to get a student overdraft without any fees. But Wonga is different from an overdraft because essentially it's a fast, short term loan. You can borrow between £50 and £750, depending on your trust rating, and you repay it within 30 days on a date that suits. Put simply, the interest rate is £1 per £100 per day. Select how much you would like to borrow and the date you promise to pay it back and Wonga calculates exactly how much the repayment will be before you apply.

Student overdrafts: is there a catch?

Depending on your bank, you could be entitled to a free overdraft, but remember it's only free of charges if you arrange it with your bank first and stick to the limit they set for you. Go over your student overdraft limit or overdraw without approval and you'll attract some pretty high charges. Not only that, but there’s always the temptation to keep using an overdraft and worry about paying it off later. Things can easily get to a stage where you’ve borrowed more than you can easily or quickly afford to repay and it’s another debt you’ll potentially be stuck with after graduating.

Overdrafts can be convenient at the time, but remember that as soon as you graduate your account will change and you'll be paying charges and interest. If you’ve got a large overdraft it may prove tricky to repay in full. The great thing about Wonga is that you pay off the loan within a month. All we ask is that you only borrow what you can afford to pay back.

Wonga it!

Don't get stung by your student overdraft after you graduate. By the time the fees and charges come in, you'll have long forgotten what you spent the money on! Use your student overdraft with care and next time you've got too much month at the end of your money, try using Wonga.com instead. Borrow only what you need and can afford to repay within 30 days – and settle the cash advance with your next payday or cheque.