Refused Overdraft With RBS, Perfect Credit Rating

Crea

Hi all,

I've recently been refused a fairly modest overdraft with RBS. I was a little worried about this. I've got no black marks against me credit-wise (that I knew about, anyway), so I thought that perhaps the case may have been a LACK of credit history, rather than any particular negative - I've always steered clear of debt, never had a credit card, and the only debt I've got is a joint mortgage. I have a good salary coming into the account in question every month - the overdraft request was more of a contingency to cover very short term high expenditure (we're moving house).

Anyway, I registered with Experiens Credit Expert, viewed the report (all fine), and got the score - 999 (i.e. perfect).

So, I'm a little at a loss. I will speak to RBS again and try to ascertain why exactly they refused.

Can anyone enlighten me? I believe RBS use Experien as their primary credit referencing agency, my wife (who I share the mortgage with) also has a good rating. No debt other than a mortgage. Anyone had any experience with such a situation and could give some advice about what to do next? I don't particularly need the overdraft, but it would be nice to have an explanation.

stclair

RBS use equifax too as a CRA so you may want to check with them aswell.

If everything is okay you could appeal theres no harm.

You may want to ask your other half to check there reports too.

mclaren32

What was the facility you requested?

If you do online banking with them then you may wish to try an application online, as part of the process it will sometimes give an indication of the facility available to you.

There tends to be a reason for the decline in my experience, did they give you an indication of what the reason was for the decline or was it the standard "credit history" reason?

Crea

I actually initially asked for £100 via the online digital banking form, did that about 6 months ago. It was rejected, I put it down to computer error and thought nothing of it.

I asked for £500 the other day. When they called to refuse, I wasn't given a particular reason, simply that I'm not 'eligible for any overdraft lending', and she offered to send me out a letter advising on 'how to improve the chances of lending'.

I just got my Equifax score there - 517, which is another 'excellent' rating, according to the report. The only 'amber' warning is that they can't find me on the electoral register at my previous address 3 years ago, though Experiens didn't seem to have that problem - they have me on the register for the past 4 years plus.

Sigh.

callum9999

I won't be much help on this, but for future reference, 999 and 517 are completely meaningless - stop buying them.

Crea

Noted, for future reference

Putting aside the numbers themselves, there's nothing negative in any of the reports. Perfect payment history with a number of accounts, going back a number of years, no late payments, on the electoral register, low number of searches against my history etc.

Guess I'll have to speak to RBS some more, and perhaps move my account elsewhere if they're not accomodating.

Olipro

Crea wrote: »

Guess I'll have to speak to RBS some more, and perhaps move my account elsewhere if they're not accomodating.

I suggest you use this against RBS; tell them that in no uncertain terms, if they are going to insist on refusing you an overdraft, you will move elsewhere.

stclair

Olipro wrote: »

I suggest you use this against RBS; tell them that in no uncertain terms, if they are going to insist on refusing you an overdraft, you will move elsewhere.

They probably would not care to be honest bearing in mind all england customers are going to be flogged to santander anyway.

The OP may as well just apply for an account with santander and take advantage of there £100.00 switching offer.

Crea

stclair wrote: »

They probably would not care to be honest bearing in mind all england customers are going to be flogged to santander anyway.

The OP may as well just apply for an account with santander and take advantage of there £100.00 switching offer.

I'm a Scottish customer, in a Scottish branch. It'll be interesting to see if they even give a s**t, but worth a try

bendix

Olipro wrote: »

I suggest you use this against RBS; tell them that in no uncertain terms, if they are going to insist on refusing you an overdraft, you will move elsewhere.

I can't see that RBS will be bothered with this. A customer wanting an overdraft threatening to leave - isnt that what banks ACTUALLY want?

People seem to think the banks need to give them a reason for refusing credit or loans or overdrafts. They don't. It is quite within their rights to turn away customers - either good ones or bad ones - anytime they like.

YorkshireBoy

Crea wrote: »

Guess I'll have to speak to RBS some more, and perhaps move my account elsewhere if they're not accomodating.

If this is your only current account, and/or you've held it a long time, then doing so could negatively affect your credit rating. This is because lenders like stability, and 'time with bank' is almost always a question on credit application forms.

Suggest you leave the old account open and ticking over until you've assembled some history with the new provider.