How does a bank decide if you can have an overdraft?

schuey87

What are a bank's criterai for deciding whether you are eligible for an overdraft or not and if so how much? Would it make any difference if you took money out and then paid it back in, to make it seem like your monthly income is higher?

What about if you apply for one and get rejected, would that stand against you if you were to reapply a few months, say 6 months down the line. Or stand against you with other banks if you tried with them?

BenL

I used to work for a bank and could see on the system som of the reasons.

Each month a score was made of customers bank accounts.

The amount of money put through the account was displayed as was maximum and minimum balance for the previous calendar month.

At the bottom it would say if the customer should be offered a Credit Card or unsecured loan amount.

This was also used to upgrade customers from Electron cards to full Visa debit cards.

Ben

M_Thomson

A bank decides wether to grant an overdraft using credit scoring and how you have run your account with them. They take into account things like the amount of charges you have had as well.

schuey87

Ok thanks guys. New question. I bank with Natwest. I just did an online application ofr an overdraft of 300 pounds, after I gave it all the information and the like, it said thankyou, your overdraft will be available within 48 hours. Does that mean I got an overdraft? It didn't say plainly you have been successful or you have failed, it just said it will be available within 48 hours. does that mean I got one. I didn't put a finish date on the application either, so does that mean I have a 300 pound overdraft to use when I like now? Any natwest customers know if thats right?

M_Thomson

schuey87 wrote:

Ok thanks guys. New question. I bank with Natwest. I just did an online application ofr an overdraft of 300 pounds, after I gave it all the information and the like, it said thankyou, your overdraft will be available within 48 hours. Does that mean I got an overdraft? It didn't say plainly you have been successful or you have failed, it just said it will be available within 48 hours. does that mean I got one. I didn't put a finish date on the application either, so does that mean I have a 300 pound overdraft to use when I like now? Any natwest customers know if thats right?

Hi,
If that was the precise wording on the website, then yes you have got an overdraft to use in 48 hours from the date of the application.

BenL

Looks like you were eithin the value the bank would have allowed you to have for an overdraft so the computer was able to set it up no problems.

It will probbaly become active overnight during the end of day processing they will do.

48 hours at the most to allow for a weekend application maybe.

Ben