Increasing overdraft

book12

I would like to increase my overdraft, which I haven't used yet.

I want to increase it, as I will want to use it sometime next month. Also, my savings and wage combined together is not enough to pay for what I want to buy.

I have regular income into the account too.

I have no credit history, but was successful in having an overdraft with the account.

I will be paying the overdraft immediately when my wages go into my account.

What is my chance of having the overdraft limit increased?

jambosans

book12 wrote: »

What is my chance of having the overdraft limit increased?

Does your online banking not show a guaranteed limit? Failing that I would contact your bank and ask, most overdraft increases are subject to qualifying internal lending criteria, so there's not an external check.

fstillgoe

I agree with the previous reply, banks generally give you about the first £300 interest free but do you really want to start using an overdraft? Although I know you have said that you will pay your overdraft off next payday its very easy to slip into the borrowing more and more from your overdraft - I speak from experience.

book12

jambosans wrote: »

Does your online banking not show a guaranteed limit? Failing that I would contact your bank and ask, most overdraft increases are subject to qualifying internal lending criteria, so there's not an external check.

It shows a limit. I asked for £100, and they gave me it.

fstillgoe wrote: »

I agree with the previous reply, banks generally give you about the first £300 interest free but do you really want to start using an overdraft? Although I know you have said that you will pay your overdraft off next payday its very easy to slip into the borrowing more and more from your overdraft - I speak from experience.

The account I have supposed to be £200 interest free at account opening, and could be increased to £1500 (interest free as well). I decided £100 is enough. I changed my mind now, and want more.

I'm just buying a one off thing.

JuicyJesus

Call the bank and apply, or do it via Internet banking. Virtually the only people I can think of who won't apply it instantly if you're approved are RBS - Halifax will even tell you how much you're eligible for, and HSBC will tell you before you even get to the application stage if you're not eligible for an increased limit based on internal criteria alone.

jambosans

book12 wrote: »

It shows a limit. I asked for £100, and they gave me it.

So, just to confirm, I assume the current limit is less than you want to increase your overdraft to?

book12

jambosans wrote: »

So, just to confirm, I assume the current limit is less than you want to increase your overdraft to?

Yes, that's right.

book12

My account can be eligible for up to £1000 interest free. Anything above that needs to be charged interest. I don't want to have an overdraft above £1000.

Since I got a £100 overdraft already (and paid it off), does that mean I can only be eligible for up to £900? £900+£100=£1000

jambosans

book12 wrote: »

Since I got a £100 overdraft already (and paid it off), does that mean I can only be eligible for up to £900? £900+£100=£1000

Yes, I would guess so. Remember an account being eligible for a certain level of interest free overdraft does not guarantee you that limit. Like any amount of overdraft, it's still subject to status.

Also, which bank and account is this? £1000 interest free overdraft?

cottager

book12 wrote: »

I will be paying the overdraft immediately when my wages go into my account.

Just a thought. Do you have a credit card? Given you intend paying the increased amount of your overdraft off immediately, couldn't the card be a better option; as (depending on timings of the purchase, the c/c statement and when you're paid) you may well be able to pay off the c/c in full when due, thus incurring no interest at all.

focae

book12 wrote: »

I want to increase it, as I will want to use it sometime next month. Also, my savings and wage combined together is not enough to pay for what I want to buy.

Then why not go for the sensible option...........wait until you have the money.