Are overdrafts credit checked?

Legacy_user

Been with A&L 5 years, when I applied I decided I didn't want an overdraft but since then I've wanted a small overdraft just in case, only of about £50, but any time you phone its an instant no without as much as even going to check, I assumed this was because I claimed back bank fees for an old account I had with them its like they had a black mark beside my name or something but now that they have been taken over by Santander they do exactly the same thing. My pay is in regularly every week, I have some ££ in savings, I've not had a charge in 5 year so I'm curious as to how they decide on who gets over drafts? Its not really a necessity as such but just would like the buffer there just incase

ses6jwg

the short answer is yes

HappyMJ

they don't decide....computer says no

System

ses6jwg wrote: »

the short answer is yes

Well how do they do it so quick?

I ask can I have an overdraft an almost immediate answer is NO

ses6jwg

they do an internal credit assessment and also an external one

it may be that you fail the internal and so it goees straight to decline

System

ses6jwg wrote: »

they do an internal credit assessment and also an external one

it may be that you fail the internal and so it goees straight to decline

Well what would make up the internal? Maybe they want people who regularly rake up charges etc

YorkshireBoy

nirelandguy wrote: »

Well what would make up the internal?

Throughput, a low ratio of outgoings to incomings (DDs/Bill Payments vs salary etc), other products (eg credit card), the monthly CRA feed (including CII data), etc, etc.

Have to say though, that if my bank wouldn't give me a £50 overdraft facility I'd be moving elsewhere.

AnonymousForObviousReason

Out of interest did you have a bad credit rating when you joined? If so it may be a hang up from that and maybe moving would be an idea as YorkshireBoy says - you may want to get a credit check done on yourself to ensure it's all good now. Alternatively get a meeting with a manager to see what they say.

I used to be able to apply via my internet account and it was in a few seconds so not human and not an external credit check.

I never used my overdraft after the year interest free period was over (before that I was always 100 away from my OD maximum, the rest getting interest in the linked savings account - yes I am that cheap). Then I noticed the option to apply for an increase online, it was so quick that I started to do it for fun, adding a bit extra each week. Before I got tired of it I had it over triple my monthly wage - this was pre credit crunch.