Refused overdraft with new Santander account

SR1

Just applied and been approved for a Santander 123 account, I asked for a £500 overdraft facility(I have currently two natwest accounts with £500 & £1500 overdrafts plus c cards). I have been declined for the overdraft having had my credit file checked with experien. I am very puzzled as to why and although I have never checked my credit file I can't think of anything that would have affected it I have never been refused credit before. Does anyone know why this might be and if I can reapply for the overdraft once my account is up and running.

grumbler

SR1 wrote: »

...I have never checked my credit file I can't think of anything that would have affected it I have never been refused credit before. Does anyone know why this might be

It makes not sense to guess without checking the file(s).

and if I can reapply for the overdraft once my account is up and running.

Of course you can, but every application is likely to leave a search record in your credit file(s).

Credit Ratings - Martin's article.

YorkshireBoy

They may well think you have access to enough credit already.

Alternatively, if you're heavily using the existing facilities they may not like that.

Suggest you remove the NatWest facilities (or close the accounts) and try again once Santander have seen some throughput (salary) and good account management.

SR1

Hmm I do use my overdraft but I don't generally live in it. Mayb once I pay my cash in every week and my husbands wage goes straight in I may be able to sort it?

opinions4u

How long have you been with Santander?

How much do they know about you?

Would you lend a complete stranger £500?

ses6jwg

It is not unusual to be declined for an overdraft facility if you are a new customer and have no existing credit relationship with the Santander Group.

After 3 months of credit turnover it's likely you will be allowed an overdraft.

jen245

Funny, because when I applied for a Santander account, I didn't ask for an overdraft, I actually ticked no on the application, and they gave me a £700 one anyway! And they didn't even do a full credit search, only a soft ID search.

Wentthedaywell?

I've been with Girobank>A&L>Santander for almost 30 years. I have a reliable salary, never get overdrawn (except once or twice overnight for 30 quid if a DD's was taken out at an odd time), have a savings and ISA account with them. Santander has just removed my overdraft facility by a rather shirty e mail notification.

The staff at the contact centre or branch can't say why as I am a good customer and I have to appeal to head office. I sharn't bother, this is the last nail in the coffin and I'll tranfer to a better bank.

Such a shame, Girobank and A&L were great banks, Santander is the pits.

JuicyJesus

Wentthedaywell? wrote: »

I've been with Girobank>A&L>Santander for almost 30 years. I have a reliable salary, never get overdrawn (except once or twice overnight for 30 quid if a DD's was taken out at an odd time), have a savings and ISA account with them. Santander has just removed my overdraft facility by a rather shirty e mail notification.

It's probably because you don't use it. Banks have to keep capital on hand to cover any overdraft facility granted, even if it isn't used, and a massive limit that isn't used could be better allocated to someone who will use it.