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halifax reward overdraft buffer
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# 1
alecsa
Old 06-06-2013, 2:05 PM
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Default 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 wont pay any planned or unplanned overdraft fees.
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# 2
opinions4u
Old 06-06-2013, 2:16 PM
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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.

Last edited by opinions4u; 06-06-2013 at 2:19 PM.
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# 3
alecsa
Old 06-06-2013, 2:22 PM
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Thanks yes I knew about the 5... but if it's an agreed buffer, why would it be reported to CRA as 'unauthorised'?
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opinions4u
Old 06-06-2013, 2:28 PM
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Quote:
Originally Posted by alecsa View Post
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.
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# 5
alecsa
Old 06-06-2013, 2:40 PM
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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.
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# 6
opinions4u
Old 06-06-2013, 2:50 PM
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Quote:
Originally Posted by alecsa View Post
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!
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# 7
dr_adidas01
Old 06-06-2013, 2:57 PM
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Quote:
Originally Posted by alecsa View Post
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.
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# 8
innovate
Old 06-06-2013, 3:09 PM
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Quote:
Originally Posted by alecsa View Post
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?
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# 9
alecsa
Old 06-06-2013, 3:16 PM
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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.
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# 10
innovate
Old 06-06-2013, 3:35 PM
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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.

Last edited by innovate; 06-06-2013 at 3:42 PM.
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