Closing an Account while in an Overdraft?

Leon_Telford

What are the options?

Would the bank close the account if I asked and then we agree a monthly repayment for it?

Is that possible?

Advice please.

camuk81

Is it the interest you are worried about or debts.

In theory you could do a DIY version, move all the credit and debits away. Make sure you are within a agreed limit with a buffer, cut the card up and then repay from another bank.

Are you going over any set limit at the moment?

Leon_Telford

Well its around £1600 Overdrawn, interest is roughly £20(ish) a month, had already set up a different bank account where my wages are now paid into and for example this Month have paid the money into it to cover the interest only........

Interest only bothering but wanna get that OD reduced as well.......

Leon_Telford

And no not going over it as cancelled all DD's and S/O's, the account is basically just 'dead'

camuk81

Leon, speak to the bank and find out if they credit check you for reducing the overdraft. This can sometimes happen.

If you haven't defaulted that they be less likely to freeze it, my concern is if you keep reducing and they credit check you for a reduction (in my mind is madness but some have stated their banks do this!)

Otherwise it will be a manual call to reduce the overdraft each month. You can't really close an account with money owed on it, from what I've seen on here

Leon_Telford

Credit check for a reduction?

Why would they do that?

Cheers 4 advice so far

camuk81

Some banks do check your credit score to reduce your limit. No idea why as to me it seems madness.

Double check. Some banks will allow you to set a monthly reduction but if anything goes wrong i.e. you are over your limit you may get massive charges for this.

So far I think I have seen Barclays & Natwest check for this. Better be safe before you leave a lot of searches on your file as you have come so far already

Leon_Telford

Hi

I can do that online as done that a year or so ago........

camuk81

Just check on the credit check first, that would be my only concern for you otherwise go for it

TeamNicholson

They wont allow you close an account that is in debit, but do ask if they can freeze interest (unlikely tho)

LittleMissGiggles123

I wanted to reduce my overdraft limit on my HSBC account & was told by the bank that they will credit check. I left it as it is for now because I just don't want that extra search on my credit file every time I reduce it. I'm just paying it off & will reduce it to zero once I'm there