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Need advice on having two current accounts and overdrafts
moontree
Posts: 39 Forumite
I've just got back from an appt at the bank and am feeling very confused.
Once upon a time I had a current account with Halifax. I then became ill and was on and off benefits for two years. During this time my account was downgraded to a Cardcash account, which basically means a Visa Electron card and no cheque guarantee card - they let me keep my overdraft, though.
I've now been in full-time employment with a reasonable salary for about three years. The other day, I went into my branch to pay a cheque in and was told there was a "guaranteed upgrade" on my account, and I just needed to make an appt to have the account upgraded back to a standard current account.
Well, I went in for this appt today and the upgrade was declined. The lady couldn't give me a reason, but said often upgrades are declined, but opening a brand new current account is accepted. So we tried that and I can open a new current account with them. However, the overdraft limit is only £200 - my current overdraft is £1250.
I explained this and she said they couldn't match that, but I could keep the old account open too and pay off that overdraft in my own time. (Though I don't have any intention of paying it off just yet - I have credit card debts which I'm paying off first as the interest is higher.)
What I'd like to know is if I have two current accounts as she suggested, will that cause any problems? I have to pay my salary into the new one but she said they "wouldn't touch" the overdraft limit on the old one - I'm wondering if I can trust that given an upgrade was supposedly "guaranteed" but got rejected.
To be honest I'm not hugely bothered about getting a cheque guarantee card etc, as I pay for everything with cash where possible - I find it's easier to keep track of my spending that way.
All advice gratefully received.
Once upon a time I had a current account with Halifax. I then became ill and was on and off benefits for two years. During this time my account was downgraded to a Cardcash account, which basically means a Visa Electron card and no cheque guarantee card - they let me keep my overdraft, though.
I've now been in full-time employment with a reasonable salary for about three years. The other day, I went into my branch to pay a cheque in and was told there was a "guaranteed upgrade" on my account, and I just needed to make an appt to have the account upgraded back to a standard current account.
Well, I went in for this appt today and the upgrade was declined. The lady couldn't give me a reason, but said often upgrades are declined, but opening a brand new current account is accepted. So we tried that and I can open a new current account with them. However, the overdraft limit is only £200 - my current overdraft is £1250.
I explained this and she said they couldn't match that, but I could keep the old account open too and pay off that overdraft in my own time. (Though I don't have any intention of paying it off just yet - I have credit card debts which I'm paying off first as the interest is higher.)
What I'd like to know is if I have two current accounts as she suggested, will that cause any problems? I have to pay my salary into the new one but she said they "wouldn't touch" the overdraft limit on the old one - I'm wondering if I can trust that given an upgrade was supposedly "guaranteed" but got rejected.
To be honest I'm not hugely bothered about getting a cheque guarantee card etc, as I pay for everything with cash where possible - I find it's easier to keep track of my spending that way.
All advice gratefully received.
0
Comments
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You don;t have 2 current accounts
You have a basic account - Visa electron, card cash
and a new current account - visa debit card.
new account has better facilities0 -
Cardcash is still classed as a current account if you are downgraded. It still shows on your credit report.0
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yes but it is no longer classed as a current account at the bank0
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