halifax reward overdraft buffer

I have the Reward account with no planned overdraft - so my OD limit is £0.

However, I noticed that there's a £50 overdraft buffer that comes with the account, can I benefit from that - just in case I ever need it? This is what their website says:

£50 overdraft buffer
If you are overdrawn by £50 or less our overdraft buffer means you won’t pay any planned or unplanned overdraft fees.

Comments

  • opinions4u
    opinions4u Posts: 19,411 Forumite
    edited 6 June 2013 at 1:19PM
    If you use it you'll lose your £5 reward for that month.

    You'll also lower your internal score with them, as you'll be in unauthorised overdraft with them. If they report it to the CRAs you'll also have a higher chance of being declined for credit elsewhere.

    So it's there for if you make an error, but don't use it.
  • alecsa
    alecsa Posts: 28 Forumite
    Thanks yes I knew about the £5... but if it's an agreed buffer, why would it be reported to CRA as 'unauthorised'?
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    alecsa wrote: »
    Thanks yes I knew about the £5... but if it's an agreed buffer, why would it be reported to CRA as 'unauthorised'?
    The "buffer" isn't an agreed overdraft.

    It's an unauthorised overdraft that they don't charge you for.

    Big difference.
  • alecsa
    alecsa Posts: 28 Forumite
    Thanks that makes sense. My two DDs are fixed amounts so hopefully it will never be the case -- but good to know anyway.

    On a different note, I'm puzzled as of why Halifax declined to give me a small ovedraft. I have a Halifax Clarity CC with a decent limit and a mortgage with them... and green credit history otherwise, with no loans and no CC debt, just the mortgage.
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    alecsa wrote: »
    Thanks that makes sense. My two DDs are fixed amounts so hopefully it will never be the case -- but good to know anyway.

    On a different note, I'm puzzled as of why Halifax declined to give me a small ovedraft. I have a Halifax Clarity CC with a decent limit and a mortgage with them... and green credit history otherwise, with no loans and no CC debt, just the mortgage.
    Credit scoring systems can be a great mystery.

    Maybe they just want to see you run the account well first. I'd hazard a guess that they'll be throwing four figure sums at you towards the end of the year!
  • dr_adidas01
    dr_adidas01 Posts: 2,136
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    alecsa wrote: »
    Thanks that makes sense. My two DDs are fixed amounts so hopefully it will never be the case -- but good to know anyway.

    On a different note, I'm puzzled as of why Halifax declined to give me a small ovedraft. I have a Halifax Clarity CC with a decent limit and a mortgage with them... and green credit history otherwise, with no loans and no CC debt, just the mortgage.

    They may have declined to give you a small overdraft due to factors on your credit reports and the way you run your existing accounts with them.
    Time is a path from the past to the future and back again. The present is the crossroads of both. :cool:
  • innovate
    innovate Posts: 16,217
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    alecsa wrote: »
    I have a Halifax Clarity CC with a decent limit and a mortgage with them

    May be their systems decided that they have given you as much credit as they are prepared to give you for now?
  • alecsa
    alecsa Posts: 28 Forumite
    Yeah, I make mortgage overpayments and I only use the Clarity card for traveling and pay it in full right away...

    Now that I think of it, it is likely that my 'score' was affected by fairly recent CC applications (I got the Clarity card and a Tesco CC in the past six months). Other than that my credit history is squeaky clean. It's annoying though, as it's the first time ever when I was declined credit and it was a small amount, I believe I requested £300, if that.
  • innovate
    innovate Posts: 16,217
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    edited 6 June 2013 at 2:42PM
    It's not the amount of credit you use but the amount that is available to you. The more credit is available to you, the more likely a further request will get you over a limit they may have.

    I am only speculating, got no insider knowledge.
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