Santander and Overdraft reduction

paulmcerlean

baileysonice wrote: »

Does anyone know if this affects your credit rating and will closing the account before the reduction takes place stop the credit file record being added to? I don't see why they have reduced my overdraft, never use it and regularly pay in at least £2k pm!! Sounds like you don't get anywhere with the bank itself! Moving my Direct Debits today!

Never use it?! There lies your answer. They dont deem you to need the service and would rather lend the money elsewhere.

Amazes me how people think that in order to keep an overdraft you must NEVER use it. Use it, pay the interest and it will stay.

DeeMarie89

My husband had the same problem, he had a £900 OD with Abbey at the time. Apparently, after 12 months, the OD is reviewed, and despite him running the account well, he revived a letter saying that the whole OD was being removed within 6 weeks. We phoned up, and were told that if we were using the OD at the time, we could have it reduced monthly on a payment arrangement. However, if you're not using the OD, then there'd be no point in doing that for you.
If you're keeping the OD limit for emergencies, you could withdraw it all, put it in a savings account, and then make a payment arrangement to repay the £1500. It has not negatively impacted my husbands credit rating by doing this, and no interest is charged on the temporary overdraft.

KingElvis

Yep if you're not using it they'll give it to someone who will and make them some money.

baileysonice_2

I have had an account with another bank with an o/d facility of a similar amount, and have had £7 in it for the last 5 years, no silly letters from them!
an overdraft facility is simply that - a facility.
Yes you are right Dee, I was keeping it for a rainy day, so as the account is no longer fit for purpose (mine anyway) I'll go back to the original account I have.

Nahhah

Well I just applied for the Santander Preferred Current Account, which was advertised on this site as the best deal for a current account WITH an overdraft. I currently have a huge £2000 overdraft with HSBC which I don't really use. I was under the impression that Santander would give me the same overdraft or at least maybe £500 - £1000. I was told I would get no overdraft at all following a credit check which has me stumped as I have a good credit rating!!

I've cancelled the switch and am having to get all my direct debits transferred back to safe old HSBC hastily! That's the last time I get lured by a free £100 and an impressive interest rate!!!

MyKeey

Agh - Don't use Santander - have you not read the horror stories on the forums. Try giving First Direct a call - they're part of HSBC, but a seperate entity, they should know about you on Credit Scoring terms too!