Halifax Bank of Scotland Overdraft

sscott5581

I have a Halifax Account with £300 overdraft which I have had for one year and a Bank of Scotland Account with £100 overdraft which is recently opened. The Halifax account has no guaranteed limit while the Bank of Scotland has a £100 guaranteed limit as shown below. How is this limit worked out and why after one year of excellent account conduct with Halifax is this guaranteed limit zero and the recently opended account showing £100 guaranteed limit, very confusing?

kaisersoze_2

My GF has had this happen to her, her current limit is £1250 but her guaranteed got reduced to £1000 for a couple of weeks then raised back up to £1250, has now been reduced again to £850 a couple of days ago but the limit has remained the same.

madtay

Mine changes all the time too.. sometimes its been as high as £5000.00 guaranteed and other times as low as £0.00. Seems to change on the 2nd sunday of every month from what ive worked out so far but how they work out your guaranteed limit is beyond me.. perhaps someone could shed some light on it

TheEffect

The feed from the CRA each month, along with your account conduct, will result in the guaranteed OD limit changing each month.

sscott5581

Thanks for your comments, any other advice

naijapower

TheEffect wrote: »

The feed from the CRA each month, along with your account conduct, will result in the guaranteed OD limit changing each month.

Are you sure this is the source. Perhaps any HBOS staff online can help confirm

sscott5581

All I know is that I have operated the Halifax account with no issues since opening over a year ago and never has my guranteed overdraft changed from 0 despite the overdraft being increased from £100 to £300 on request.

However I have just opened the Bank of Scotland account and the guranteed overdraft is £100.

knowledgepower1

Mine just got increased from 250 to 1250 about 3 weeks ago.Day before yesterday,they increased it again to 2000.I think they adjust it based on the account conduct and internal rating.

sscott5581

Does anyone have an other comments as to how Halifax/BOS work out guaranteed overdraft.

I have checked both my accounts today and both guaranteed limits are now zero.

I have no adverse on my credit files and have operated both accounts with no problems with one credited with my salary and other credited over £1000 and used for day to day spending.

Thanks

jambosans

You're never going to know exactly how a bank works out your available limit. Lending criteria is a banks best kept secret, as I would imagine for competitive reasons, the information is classed as commercially sensitive.

At a guess however, perhaps your internal score with HBOS is not as good as your external credit history. So when you were credit checked on the new BoS account the external information supplied by the CRA allowed for a higher available overdraft. Now the BoS account has been open for a bit the guaranteed limit has fallen in line with your Halifax account based on internal score.

This is absolute speculation, and even someone's best guess could be way off. Most people will agree internal scoring is based on account conduct, level of indebtedness, ability to repay, etc. And well, external checks provide your credit history which is used with HBOS's lending criteria to help make lending decisions.

I'm afraid the long and short of it is, you are never going to get a definite answer. Unless someone from the Lloyds Banking Group Risk or underwriting wants to loose their job.