Nationwide reduced overdraft

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Comments

  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Can a bank do an unauthorised by you credit search as this may affect any future borrowing you may want to do,

    perhaps authority is burried in the small print somewhere
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    BBH123 wrote: »
    Can a bank do an unauthorised by you credit search as this may affect any future borrowing you may want to do,

    perhaps authority is buried in the small print somewhere

    Yes, they can run credit checks, as others have said they get a monthly update from the various credit agencies so it usually isn't necessary.

    It's only a small reduction in the limit amount, so I wouldn't personally be concerned, they will be expecting you to reduce it over time.

    If you have expenses then you really need either a card from your employer or a credit card yourself. Using an overdraft isn't a long term fix.
  • dunstonh
    dunstonh Posts: 116,357 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Most banks review an overdraft facility nowadays. It can be reduced if you dont use it enough too.

    Also, when a bank says that is down to credit scoring, don't assume that is similar to looking on noddle. The bank will have its own criteria and systems and credit score internally without running an external check.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • buttonmoon
    buttonmoon Posts: 152 Forumite
    First Anniversary Name Dropper First Post
    I'm only using the overdraft, as it was fee free overdraft for 12 months as it was offered as one on the advertised benefits of the account otherwise I would have got used a 0% credit card. Credit card companies can also reduce limits at any time the want to as well.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Name Dropper First Post First Anniversary
    buttonmoon wrote: »
    I'm only using the overdraft, as it was fee free overdraft for 12 months as it was offered as one on the advertised benefits of the account otherwise I would have got used a 0% credit card. Credit card companies can also reduce limits at any time the want to as well.
    True. But what they cannot do* is call in any debt for immediate repayment on demand like banks can, and do, with current account overdrafts.


    * Except under certain circumstances, typically if you commit fraud, if you repeatedly breach the T&Cs, or if you die!
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