Unbelievable - Pre approved overdraft

Kavanne

I went to see what my preassessed overdraft limit was with halifax today and it's 9500!!!! What?!?! Credit crunch, what credit crunch?

I only have 2500 paid into this account every quarter. What is up with them? I could get myself into a lot of trouble with that.

moneysavingallday

That is really strange.
how long have you had the account with them and what is your current OD limit?

scooby359

Occasionally, anomalies like that pop up, not sure why. Most customers can get an overdraft equal to their usual monthly income, but they're being a lot stricter on that lately.

Obviously they trust you a lot!

Kavanne

moneysavingallday wrote: »

That is really strange.
how long have you had the account with them and what is your current OD limit?

Had it since I turned 18 so nearly 3 years now and I've got it set at 2250 atm but I never use it (well i did once for 1 day when I bought a bed)

Up til recently I had my ISA (about 3k) with them but I switched it during this month so perhaps that will drop significantly in Jan?

JaRocks28

Your lucky you got this information, I work for a bank and this type of information is disclosed.
Obviously Halifax don't follow bank procedures.

Kavanne

JaRocks28 wrote: »

Your lucky you got this information, I work for a bank and this type of information is disclosed.
Obviously Halifax don't follow bank procedures.

It's on my online banking when I click on 'apply for an overdraft' says I can have up to 9500 straight away but if I want more they will need further info to assess my app

Oh and on my joint account it says we can have 7750!! So I could get both and get myself into more than 16k of debt today.

opinions4u

Kavanne wrote: »

I went to see what my preassessed overdraft limit was with halifax today and it's 9500!!!! What?!?! Credit crunch, what credit crunch?

I only have 2500 paid into this account every quarter. What is up with them? I could get myself into a lot of trouble with that.

Well, they have scored your relationship with them and like you.

You're right, you could get yourself in to trouble with it, but then you understand that the individual has a duty to borrow prudently. So it isn't a problem.

If you applied for a £9,500 loan would you expect to get it? If the answer is "yes" then what difference is there between this and the overdraft?

If yes, then you would probably expect to see the overdraft reduced a little after the loan commences!

Kavanne

No, the thing is I wouldn't meet affordability for a loan!! That is because my boyfriend is currently a student so technically it looks like I am paying full mortgage + bills on my own (he has irregular employment and student loans coming in only)

ShelfStacker_3

Halifax are taking the p*ss, surely? Overdrafts are for when you know you have money coming in but need to spend it now - surely giving people limits of thousands of pounds more than they're likely to get in in a typical month is reckless in that respect?

opinions4u

Kavanne wrote: »

It's on my online banking when I click on 'apply for an overdraft' says I can have up to 9500 straight away but if I want more they will need further info to assess my app

Oh and on my joint account it says we can have 7750!! So I could get both and get myself into more than 16k of debt today.

I reckon the total limit for you as an individual is £10k.

You have £2,250 on one account, they will allow £7,750 on the other. As one increases the other will reduce.

Do you currently have £500 on the other? If so, the £10k minus £500 would explain the £9,500 offer.

moneysavingallday

It certainly isn't anything to worry about as far as I can see.