What's the best way of increasing my overdraft limit?

borgmanjayce

I've had a current account since July last year and even though I get my main benefits [DLA due to my Grand Mal Epilepsy] and JSA paid into it, I still only have a overdraft of £100 even though I have over £500 paid into my account per month [and when I sold items through eBay last year, I had slightly more].

Things went downhill with my applications for a overdraft upgrade thanks to Orange f-ing things up with a DD payment which they took out without my permission even though I had cancelled it and paid by debit card a few days previously and as a result I went overdrawn even though I didn't know they would take out a second payment. [Personally, I think it shouldn't take up to 14 days for a organisation to set up a DD but then again, this is the UK which has a backwards banking system unlike certain other countries and must be the only country where it can take up to 10 working days for a cheque to clear!] I managed to get things sorted out with Orange in the form of a refund of my bank charges although I was told by my local bank that this would affect any future applications for a upgrade to my overdraft for a while.

Recently, a organisation that I'm paying a debt through made a error on their part concerning a DD payment and even though it's taken practically 2 months to sort out [and some of the staff there have been quite helpful in refunding the bank charges into my account], I explained the situation to my local branch and once again I was told that this would affect any future upgrades.

At the end of the day, I feel that even though I'm giving this bank my loyalty especially as I've had other accounts with them for practically 25 years [in fact, some of the staff call me by my first name whenever I'm served at the counter by them which is really good customer service!:D], I feel at the same time that said loyalty is worth nothing even though the incidents that I mentioned weren't of my own making.

I'm also planning on attending University next year and I know that my student account definitely won't be with the bank concerned.

In the meantime, I'm looking for any good advice on how I can increase my overdraft to something like £200 as I'm worried that if I apply for a increase again at the end of July then I'll get rejected and the same thing will happen 2 months later and so on...

If I could switch current accounts then I would, but there's none out there that interest me and I definitely wouldn't open one with a member of Groupe Santander due to their arrogance towards their customers.

simax

It all goes on credit score, nothing else. I have £1,200+ a month going in per month and have a very very high balance with LTSB, and they won't even give me a Gold account. LOL

Extant

simax wrote: »

It all goes on credit score, nothing else. I have £1,200+ a month going in per month and have a very very high balance with LTSB, and they won't even give me a Gold account. LOL

Actually, account trends are very important in a lot of lending decisions, especially for overdrafts and such. It's why you find that most banks either won't give you any credit on joining, or give you limited credit if you have a good file with the CRAs.

You could have the world's best credit score, but if we see half a page of entries to Ladbrokes online, we're not going to give you an overdraft. Credit score is a huge part of it, yes, but not enough to over ride poor account behaviour and trends.

Also, high balances mean nothing - you're talking about unsecured debt. If you were in financial troubles, you're likely to just fritter away those savings before we even got involved.

Extant

borgmanjayce wrote: »

Things went downhill with my applications for a overdraft upgrade thanks to Orange f-ing things up with a DD payment which they took out without my permission even though I had cancelled it and paid by debit card a few days previously and as a result I went overdrawn even though I didn't know they would take out a second payment. [Personally, I think it shouldn't take up to 14 days for a organisation to set up a DD but then again, this is the UK which has a backwards banking system unlike certain other countries and must be the only country where it can take up to 10 working days for a cheque to clear!] I managed to get things sorted out with Orange in the form of a refund of my bank charges although I was told by my local bank that this would affect any future applications for a upgrade to my overdraft for a while.

Anything can "take up to" X to complete - it depends on how fast any given company acts. You can set up a direct debit and request it same day, meaning that it can go as fast as four days.

Cheques, however, shouldn't take more than six days to clear for fate (i.e. cannot be returned excluding fraud) and no more than 4 days to be available to withdraw cash (this is called the 2-4-6 proposition and is followed by all banks in the UK).

Orange refunded your bank charges as their error caused them, yes - however, they cannot fix your position with the bank. Ultimately, the bank holds you responsible for your financial dealings, so yes, it may cause you problems.

More likely to cause you problems, though, is your situation as a whole: you are not a desirable lending candidate if a payment being made twice sends you overdrawn.

Recently, a organisation that I'm paying a debt through made a error on their part concerning a DD payment and even though it's taken practically 2 months to sort out [and some of the staff there have been quite helpful in refunding the bank charges into my account], I explained the situation to my local branch and once again I was told that this would affect any future upgrades.

Same as above, really - it's concerning that you are this close to the line, before you even look at your statement of "[an] organization that you're paying a debt through."

At the end of the day, I feel that even though I'm giving this bank my loyalty especially as I've had other accounts with them for practically 25 years [in fact, some of the staff call me by my first name whenever I'm served at the counter by them which is really good customer service!:D], I feel at the same time that said loyalty is worth nothing even though the incidents that I mentioned weren't of my own making.

Again - the bank really has no way of knowing if they're incidents of your own making or not, and I don't mean this in a critical way, but that's what everyone says.

Loyalty is fantastic, and banks love it - any business does. That said, there is absolutely no point lending allegiance, as a customer, to any particular bank. You can be the most loyal customer in the world, but it won't change your credit score or account trends - and ultimately, how credit safe you are.

In the meantime, I'm looking for any good advice on how I can increase my overdraft to something like £200 as I'm worried that if I apply for a increase again at the end of July then I'll get rejected and the same thing will happen 2 months later and so on...

Applying every two months isn't helpful - especially if you're credit scored each and every time.

You're also, as said, living close to the line - one direct debit taking you overdrawn isn't going to work well for you. Nor is this organization you mention.

dc110

excellent post BM

in fact, some of the staff call me by my first name whenever I'm served at the counter by them which is really good customer service!:D

I hate that

borgmanjayce

I'd like to thank everybody sincerely for the advice offered; especially BM in particular. I do have a question for him though.

If it's bad to apply for a upgrade every two months, when should I look at applying for a upgrade again?

On another note, it's a shame that the bank still holds me responsible for what happened with the DD incidents even though they weren't of my own making.

Calchas

BarclaysManager wrote: »

If you were in financial troubles, you're likely to just fritter away those savings before we even got involved.

You are a supercilious turd! You do Barclays no favours with your ridiculous assumptions.

simax

BarclaysManager wrote: »

Actually, account trends are very important in a lot of lending decisions, especially for overdrafts and such. It's why you find that most banks either won't give you any credit on joining, or give you limited credit if you have a good file with the CRAs.

You could have the world's best credit score, but if we see half a page of entries to Ladbrokes online, we're not going to give you an overdraft. Credit score is a huge part of it, yes, but not enough to over ride poor account behaviour and trends.

Also, high balances mean nothing - you're talking about unsecured debt. If you were in financial troubles, you're likely to just fritter away those savings before we even got involved.

FWIW, there are no gambling entries on any of my statements since I opened the account, not even the National Lottery, and I am more than solvent thank you.

Extant

Calchas wrote: »

You are a supercilious turd! You do Barclays no favours with your ridiculous assumptions.

How is that a ridiculous assumption?

If you have an overdraft, the bank is unlikely to become concerned until you have exceeded your limit or been close to it for a long time.

So, if you have £10,000 in your account and then a £1,000 dr limit, you're going to have to spend that money to get to your limit or near. If you haven't, then we set off your debt and the problem goes away.

It's no ridiculous assumption, it is the reality for the vast majority of people. I am sorry if said reality offends you in some way.

Extant

simax wrote: »

FWIW, there are no gambling entries on any of my statements since I opened the account, not even the National Lottery, and I am more than solvent thank you.

Well, it was no comment about you personally, merely an example of how it works as a whole.

And as I said, being solvent isn't always the biggest worry.

Calchas

BarclaysManager wrote: »

I am sorry if said reality offends you in some way.

The very fact you consider it realistic that people squander their money when they face financial difficulty shows you have no right to lecture anybody about reality.

There is a difference between helping people and judging them. Can you not keep your pomposity to yourself?