Natwest Overdraft

telboy83

Hi there money savers,
Firstly I would like to say sorry if this post is in the wrong place. It concerns an overdraft so I guess it could be classed as a loan.

Heres my story,
I have a Natwest basic account which does not have an overdraft facility. After being told that the account is changing and I will only be able to withdraw money from Natwest machines I decided that I should upgrade the account.

I then got myself a select account with Natwest which has £700 overdraft and I am able to withdraw cash from anywhere.

I have only just informed work that I now want my wages going into the new account and as soon as this is done I will close the basic one. I have had the new account for 3 months and have used the £700 overdraft without going over the agreed limit. I have moved money from one account to another to show the bank that the new account is being used.

Work have told me that as of my next month all my wages will go into the new account which is great.

My concern is that the bank may look at the new account and see I have had it for 3 months and that my wages are not going directly into it. I'm worried they may turn around and say they want the full £700 overdraft paid up as soon as possible.

Now baring in mind in 4 weeks time my wages will start going into this account, the fact I have banked with natwest for 2-3 years and have not ever had a single charge and the fact I've only had the new account for three months is it likely they will turn around sometime soon and request full payment????

my plan as of next month is to left £100 left over each month to gradually reduce the overdraft and get rid of it. If they turn round and say they want the full amount now I'm stuffed. but how likely is this based on the information ive given you?

sorry its long winded am just trying to paint the picture.

thanks for taking the time to read my post

Terry

cooltt

It's not a loan it's an overdraft so when your pay goes into the account it will show you as in credit less the amount of the overdraft.

telboy83

I know that. But that wasn't what I was asking

cooltt

The only way you'll be stuffed is if they cancel your overdraft after your wages have gone in but they won't, they've got no reason to. So not spending 100 of your wages every month will eventually bring it back to zero yes.

Is that better?

Mara69

Turm around, touch the ground....Poor old Natwest will be getting dizzy with all that turning around...

CLAPTON

seems very unfortunate to overspend by 700 in as little as three months

telboy83

cooltt cheers for that. Thats what Im worried about that they may cancel it and request full payment. what makes you think they wont do that in my case?

Only I've read some nightmare stories online whereby they have all of a sudden cancelled the overdraft and requested payment.

malkyh

I suppose you are entitled to use money available to you, however I can't help wondering why after having a nil overdraft account for 2-3 years you suddenly decided to blow the entire £700 overdraft on your new account leaving you now technically £700 a month worse off.

Apples2

How come you can save £100 a month now but you couldn't before?

If you do, why not carry on saving the £100 a month, open an ISA and create a Standing Order to send £100 on the first of each month.

Remember overdrafts are not your money, it is the banks, far too many people see it as their own and end up within it from one month to the next.

As for your concerns about the bank retracting it, I can't see any reason to think it would happen.

pcrosland

How long do you need to be out of your overdraft to improve your credit rating? I also have a NatWest OD and was in it since uni, I'm finally about to get out and hopefully it will improve my credit score to allow me to get a mortgage etc.

Also I have been in my overdraft for years struggling to keep afloat whilst at uni, and the still upped my overdraft in that time and never had a threat of closing my OD, so I wouldn't worry about that. But try your best to get out of it...

bbfc

My HSBC OD (on my Student/Graduate account) was NEVER listed on my Credit Report, but a one I had with Natwest (that I never used) was.

I very much doubt they will ask for the money back, and even if they do it's unlikely they will ask for it all back in one go. Usually they will reduce it each month.