Which bank would be the most generous in granting a small overdraft?

Paul1987

Hey guys, i'm in need of a small overdraft of £250 at the moment, and was wondering what my chances would be of being accepted.

Im 22, earn around £16,000 a year and have never borrowed credit. I hold one bank account and its always been handled well. Ive never been overdrawn. Im guessing my credit rating would be about fair.

Anyone from their own experience, with similar statistics to mine, been granted a overdraft by a bank? Which bank is known to be the most generous in granting small overdrafts when opening an account with them?

Any help would be appreciated. Thanks :beer:

stella2009

Surely you would stand the best chance at present with your own bank??

Have you asked them??

karatedragon

stella2009 wrote: »

Surely you would stand the best chance at present with your own bank??

Have you asked them??

Agree :T:T:T

paulmcerlean

If your account with your current bank has always been handled well then you should have no problems getting an overdraft of that size. It should also be handled internally without the need for a credit check, depending on who you bank with.

This would be the first port of call. Going to any other bank would require credit checks as you have no history with them, and an overdraft is credit.

book12

I think you will get a chance of having that amount of overdraft (on your existing account or a new account), as you got a decent income and run the account well.

Paul1987

Sorry, i forgot to add this in my initial post. I asked my current bank (Coventry BS) for an overdraft and i was rejected. Ive been with them for four years, handled the account perfectly well, and all i asked for was an overdraft of £250 and they refused it. Bit bemusing.

That's why i ask if there is a bank out there known for their generosity in granting overdrafts. Maybe with a less strict criteria...

System

I can not see any bank willing to give an overdraft as soon as an account is opened. Most want some evidence that you can handle the account correctly before even considering it - normally at least 6 months without problems

stella2009

Paul1987 wrote: »

Sorry, i forgot to add this in my initial post. I asked my current bank (Coventry BS) for an overdraft and i was rejected. Ive been with them for four years, handled the account perfectly well, and all i asked for was an overdraft of £250 and they refused it. Bit bemusing.

That's why i ask if there is a bank out there known for their generosity in granting overdrafts. Maybe with a less strict criteria...

Banks will give you one based on your credit score etc from account opening.

It will depend on your credit history/score etc.

System

I would suggest a NatWest Current Plus or RBS Interest Paying Current.
You can apply on-line or in-branch for account /overdraft.

Paul1987 wrote: »

Hey guys, i'm in need of a small overdraft of £250 at the moment, and was wondering what my chances would be of being accepted.

Im 22, earn around £16,000 a year and have never borrowed credit. I hold one bank account and its always been handled well. Ive never been overdrawn. Im guessing my credit rating would be about fair.

Anyone from their own experience, with similar statistics to mine, been granted a overdraft by a bank? Which bank is known to be the most generous in granting small overdrafts when opening an account with them?

Any help would be appreciated. Thanks :beer:

stella2009

You may come up against a problem if you have no credit history.

karatedragon

Paul1987 wrote: »

Sorry, i forgot to add this in my initial post. I asked my current bank (Coventry BS) for an overdraft and i was rejected. Ive been with them for four years, handled the account perfectly well, and all i asked for was an overdraft of £250 and they refused it. Bit bemusing.

That's why i ask if there is a bank out there known for their generosity in granting overdrafts. Maybe with a less strict criteria...

I do not understand this. I am with them too. The Coventry First Account comes with a £250 interest free overdraft as standard. It is the ONLY account they offer with an overdraft. You can extend this to £1000 (exactly that sum nothing less) on application when you have been with them for quite a while.

Any overdraft over £250 is charged a flat fee of £5 PCM.

You must have had the £250 interest free overdraft as they do not open the account unless you qualify for all the services. Debit Card and Overdraft. If you did not pass for any of the services you would not have got the account full stop.

The account was introduced in 2006. I was one of the first to apply for it and its selling point was the automatic £250 interest free overdraft and at the time generous interest on credit balances.

They would only take the overdraft away if you have done something wrong.

Further to this you cannot possibly have had the Coventry First Account for 4 years. The account can only be opened by people over 21 years of age and you say you are now 22. Four years ago you would have been 18 ish.

Are you sure you did not ask for an overdraft on a Savings Account with them?? You would not have been rejected. They do not offer that facility on a savings account.

Lastly, if you do want a bank (or in this case a Building Society) to have relaxed and un-strict criteria then don't waste your time (or a credit search footprint) even trying to get a Coventry First Account. It is credit scored extremely highly. Forget that it is a "current account". It is a Hybrid Savings Account and by the word "savings" that tends to mean not "languishing" in the interest free overdraft for months on end and be in credit most of the time.

I have a VERY high credit score and got declined for the account in 2006 and had to appeal with pay slips and old bank statements to get accepted for Coventry First.