Halifax Overdraft Query

brettmanchester

Hello All,

Firstly let me start by telling you I'm a worrier!

I have an ultimate reward current account with Halifax, I've had it for going on a year now and I've had an overdraft on my account of £250 on the account for long then a year.

I've always been trying to increase the overdraft online and never been able to do so, in the week however I was able to increase the overdraft up to £1500.

Now I've been reading horror stories about banks just taking overdrafts away from people without warning and this is got me worrying, I only intend to use £500 of my overdraft and that isn't going to be straight away and will be paced until I get paid.

I've been reading about annual reviews whether thy would increase overdrafts?? I take it this is why mine has been? And does anyone know why they would take an overdraft off someone??

Thanks

Brett

Gromitt

Overdrafts are meant as short term loans repayable on demand. They can at any time give you notice to repay the overdraft. Normally they'll only do this if they feel the overdraft is getting too large (going into unauthorised overdraft), going on for too long, and/or sufficient credits are not being paid into the account.

If you intend to use your overdraft for long term, then a loan might be a better option.

pinkdalek

Yes as Grommit as said overdrafts are for a short term fix. Think of them as a payday loan, money to tide you over until your next salary for something that crops up e.g. essential car repair.

Overdrafts are repayable on demand, and a bank can demand it to be paid back.

If it is more longer term borrowing you need consider a credit card at 0% or a loan.

Check out this link to their website.
http://www.halifax.co.uk/HelpCentre/borrowing-options/

pqrdef

One possibility is to get a credit card, not to use, but just to pay off the overdraft if you need to pay it off in a hurry.