Natwest Overdraft limit increase letter

techno_geek

The first £100 of your NatWest overdraft is interest-free - it's useful if you miscalculate your outgoings or need a temporary buffer-zone. Personally, as I rarely use my NatWest account, I go £99.99 overdrawn on my £1400 overdraft and earn interest on that with my e-Savings account!

I am the sort of person that takes all the credit I can get when it's available, despite being good with money nobody's perfect. I'm a student, and my bank balances fluctuate wildly... I take the maximum overdraft and credit card limits I'm offered just in case I have to use them at some point. I am aware that this "temptation" factor is always present, but I am sensible enough to know that I can only live within my means... I never spend more on my credit cards than I have in my bank accounts, etc.

Chances are that if, for example, I only went for the bare minimum overdraft I would need to have the higher limits at some point due to some unforeseen expense or emergency (and wouldn't be able to get them because I was already overdrawn to my limits).

It's always nice to know you do have some form of financial safety-net just in case. I'd say take as much overdraft as they'll let you have, especially as natwest overdrafts don't show up on credit reports.

oscar52

Phoenix79 wrote:

My Dad has 3 Natwest current accounts (one with a £3.5k overdraft) and a Natwest Mastercard (£15k limit i think) and none of those show on any of his reports.

Are Natwest lapse at reporting in to the credit agencies?

Natwest is not lapse, not all banks report an overdraft facility (or even use of one) Barclays is another (or at least used to be) these banks only report the overdraft if you default on it.

jennilb

Hi

I used to bank with Natwest and I never went overdrawn. They kept upping my overdraft and I asked them to stop so that it was less tempting and less available money if someone stole my card and went shopping.

Natwest will report to the credit referencing agencies but only if you instruct them to. I had to do this because I applied for a loan (you've guessed it - with Natwest) and they refused because I had no record of managing money on experian etc. I pointed out that this was because they don't register account management or credit card management and I only had accounts with them but it made no difference!

Hope this helps
Jenni

specs_3

My 2 Natwest accounts (both with overdrafts) don't show on any of my credit reports. My HSBC acount that I hardly use does show.

My Dad has 3 Natwest current accounts (one with a £3.5k overdraft) and a Natwest Mastercard (£15k limit i think) and none of those show on any of his reports.

Are Natwest lapse at reporting in to the credit agencies?

Depending on when you opened the account, it is possible that your bank do not report it to the credit reference agencies.

Unlike yours, my HSBC account does not show on my credit reports, my Halifax account opened about 6 years ago does. If I ever need to dip into my overdraft I make sure it's the HSBC one.

greyteam1959

Mmmmmm I personally dont like this constant upping of limits on anything bank accounts or credit cards it only tempts the weaker ones of us and those that dont understand what is actually being offered.
Some banks do give a 'fee free' and interest free overdraft of up to £500.00 which is very useful if you have the odd hiccup in payments or fund movements.

disciple

Thanks for the help Jenni, very good point, I hadn't thought about the aspect that if someone stole my card and went shopping, of course they would have the opposite agenda to myself i.e. spend as much as they can without getting noticed.

missk_ensington

I could be mistaken but I think it also shows up on your credit file, and gives you a more extensive, good quality credit history. You may want a loan or mortgage or Buy to let or something in the future, so take any facility they will offer you (just don't actually use it!)

I do this with my credit cards, I put on things like petrol even sometimes when I have money in my purse, because I want to show on my credit history that I use it and repay it all every month. This practice put me in good stead for getting my mortgage as I needed to get a Self-cert mortgage which is dependent on a good credit rating, and as I was only 20 if I hadn't had an unblemished credit score it is likely Id have been refused.