Nationwide Overdrafts

izools

Having just opened a Nationwide bank accuont I have two questions about their overdrafts. I left HSBC - and I had a £500 OD limit on that account.

Interestingly, Nationwide happily provided me with a credit card (£3,200 limit) but didn't agree an Overdraft on the Flex account (although they did agree a chequebook and full debit card).

Now with HSBC, irrespective of how well you run the account (I had a £2,000 ~ £4,000 monthly turnover and £1,000+ average balance, account behaviour score in the low 80s, never even come close to incurring charges), any overdraft requests are subject to a full credit check.

Two questions:

1) At any point, do Nationwide pre-approve overdraft limits, or do they leave a footprint when requesting one?

2) How long does it take with Nationwide to have pre-approved limits set, if they do them? My experience with various banks suggests this will be either 3, 6, or 12 months after opening the account.

If anyone knows this will be very helpful. I don't need an overdraft, as I've only used my HSBC one for what, 1% of the time I've held the account? If that. Just very nice to have a safety buffer then in case something so catastrophic happens I deplete all my rainy day money and max out my credit cards sorting it out...

Not that it will, but y'know.

Dr_Cuckoo3

Nationwide used to display a pre-approved overdraft limit in internet banking


This has been replaced by a "reserve" amount (they will honour transactions upto this amount) and I think it can be converted into an agreed overdraft

"The reserve limit is the amount up to which we are prepared to pay transactions above an agreed overdraft limit. Beyond this point items are returned unpaid. Payments above the agreed overdraft limit will incur the relevant unarranged overdraft charges. applicable to items paid over your agreed overdraft limit but within your reserve limit"

http://www.nationwide.co.uk/search/DisplayArticle.aspx?article=1744

My reserve has always been £500 , I had better pre-approved limits under the previous system


I suspect that a search is conducted , Santander do not perform a search for overdrafts though

izools

That's what I want to avoid really, if it means a search even if I wait until I've had the account for 12 months I'd rather do without tbh. It isn't worth that much to me.

Ah well, we will see!

Thanks for the advice

James129

May not be of much help, when I applied for mortgage with them, I was preselected for their flex account along with £1250 overdraft. I decided not to open flex account but then later applied anyway. As the account has now been opened for 2 months, I get same message that they can't agree to an overdraft on my online banking.

Interesting how they are going to perceive me in a months time when my Halifax and Marriott cc and Halifax overdraft appears on my credit profile with cumulative limit of £11,000. Before that I only had £2000 available.

izools

Hmm. Well it seems they review accounts every six months so will apply then.

The thing that really bugged me about HSBC is they not only consult the credit reference agencies when you request amendments to overdrafts, but they leave a full footprint suggesting to other creditors that you've just applied for a new bank account - when you havent.

I suppose I wouldn't mind Nationwide doing further searches but I interpret the the rules surrounding credit searches to mean that those relating to existing accounts are unrecorded. Nationwide can do unrecorded enquiries on me till the cows come home. Just no footprints like HSBC

callum9999

izools wrote: »

Hmm. Well it seems they review accounts every six months so will apply then.

The thing that really bugged me about HSBC is they not only consult the credit reference agencies when you request amendments to overdrafts, but they leave a full footprint suggesting to other creditors that you've just applied for a new bank account - when you havent.

I suppose I wouldn't mind Nationwide doing further searches but I interpret the the rules surrounding credit searches to mean that those relating to existing accounts are unrecorded. Nationwide can do unrecorded enquiries on me till the cows come home. Just no footprints like HSBC

I've upped my Nationwide overdraft a couple of times with no credit search (I've had it for almost 3 years + a childrens account for another 12 years though). Are you sure they definitely do the search - sometimes banks seem to mention it as a standard clause on their website just in case they might need to.

izools

callum9999 wrote: »

I've upped my Nationwide overdraft a couple of times with no credit search (I've had it for almost 3 years + a childrens account for another 12 years though). Are you sure they definitely do the search - sometimes banks seem to mention it as a standard clause on their website just in case they might need to.

Oh that's good to know. I've had a read through their FAQs and any time credit searches are mentioned it's alongside words like "may" so it does indeed seem they don't do it all the time - i.e. they may pre-approve you, but if not it's not all bad as they'll still consider a full application sort of thing.

One thing that is certain from reading their website is that accounts and overdraft allowances are reviewed every six months, so I won't ask for one until I've had my sixth statement.

Thanks for the input Callum. By the way, how do you find them as a bank, generally?

callum9999

izools wrote: »

Oh that's good to know. I've had a read through their FAQs and any time credit searches are mentioned it's alongside words like "may" so it does indeed seem they don't do it all the time - i.e. they may pre-approve you, but if not it's not all bad as they'll still consider a full application sort of thing.

One thing that is certain from reading their website is that accounts and overdraft allowances are reviewed every six months, so I won't ask for one until I've had my sixth statement.

Thanks for the input Callum. By the way, how do you find them as a bank, generally?

I was a bit annoyed when they got rid of the foreign purchases (the only reason I upgraded to a Flexaccount in the first place) but I can't say I've ever had a problem with them. Their overdrafts seem pretty reasonable as well which was pretty handy as when I've had to go into it it's only cost me a few pounds in interest, whereas with Halifax and the like it would have been something like £20!

Nationwide_company_representative

izools wrote: »

Having just opened a Nationwide bank accuont I have two questions about their overdrafts. I left HSBC - and I had a £500 OD limit on that account.

Interestingly, Nationwide happily provided me with a credit card (£3,200 limit) but didn't agree an Overdraft on the Flex account (although they did agree a chequebook and full debit card).

Now with HSBC, irrespective of how well you run the account (I had a £2,000 ~ £4,000 monthly turnover and £1,000+ average balance, account behaviour score in the low 80s, never even come close to incurring charges), any overdraft requests are subject to a full credit check.

Two questions:

1) At any point, do Nationwide pre-approve overdraft limits, or do they leave a footprint when requesting one?

2) How long does it take with Nationwide to have pre-approved limits set, if they do them? My experience with various banks suggests this will be either 3, 6, or 12 months after opening the account.

If anyone knows this will be very helpful. I don't need an overdraft, as I've only used my HSBC one for what, 1% of the time I've held the account? If that. Just very nice to have a safety buffer then in case something so catastrophic happens I deplete all my rainy day money and max out my credit cards sorting it out...

Not that it will, but y'know.

Hello. It's Anthony here from the Nationwide press office.

We do calculate pre-approved limits and don't leave a footprint at any point after the initial credit check.

At the moment, you wouldn't be eligible for an overdraft but the situation will be reviewed after six months.

I hope that helps.

Thanks