Overdraft Review question

brungle

Hi all.

I have a £1520 overdraft with lloyds TSB, and I currently have saved around £1000 in removing this, which is in a savings account (also with the same bank) to avoid me spending this.

I am putting away around £100 each month. I have never gone over the o/d limit, and they gave me a 12 month extention last year, which is now up for review 11 July 2010.

Is there any way to ensure that I will get another extention?

Many thanks.

hohum

I just asked a question about paying back overdrafts too! My question to you is why not pay back the £1000.00 from your savings into your overdraft, and reduce it to £520 now? Am I right in assuming you are in the overdraft? Is it interest free?

I don't know about ensuring an extension, but I'd assume they'd use credit scoring to look at continuing the overdraft: as long as that's OK, they'd grant it?

husemin

If they dont grant you an extension they will start charging you interest on the OD, pay the OD off with your savings to reduce the charges.

H

brungle

What i mean is, if i pay off 1000. would that mean the bank would extend the overdraft period for another 12 months for the remaining 500?

Sharon87

It depends. Do you regularly use your overdraft? Ever go over the limit? If you use it and not go overdrawn over your limit chances are it will be renewed whether you pay the £1000 in or not.

I'm currently trying to do this, as my Graduate account is up for renew in September, currently £1000 out of 1500 is interest free. Soon it will all be interest payable if they renew it (I'm sure they will)

pjread

unless it's interest free I'd pay what you can off it