Help! Halifax Overdraft Issues

kg87

Hi, Halifax's Student Account claims to give you an interest free overdraft of £2750. I got the account in September 2006 and my overdraft limit is still £1000. I've tried to get my overdraft limit raised on two previous occasions but I've been declined. I have now tried again today. My account balance is practically -£1000 and I really need some of the extra overdraft it claims to give. I've been told I have to wait 48 hours for a reply, but I'm pretty certain I'm going to get declined again, there surely must be something that I can do to get it raised. My student loan comes into this account as will my wages.
Is there any way in which I can complain or appeal? The site clearly states that students in the 1st year can have an interest-free overdraft of £2750. I'm not even asking for the full £2750, I've asked for an increase of £500 to £1500 just to tide me over until my pay comes in, in approx. 6 weeks or so, as I have direct debits coming out of the account and that will charge me another £28 for going over the limit.

I'd be very grateful for help from anyone whose got their overdraft increased, works for a bank, or has any ideas at all.
Thanks

Compound_2

kg87 wrote: »

My student loan comes into this account as will my wages.

I think you're going to have to wait until the wages go in, which should improve the account's credit rating. I don't think it's going to be easy getting more cash in a very short timescale. You can't complain, but you might be able to internally appeal by producing new information, such as evidence of your income. However, it's best not to make too many declined applications as this might hurt your credit score.

kg87

Compound wrote: »

I think you're going to have to wait until the wages go in...

Yes, I understand what you mean, however, when my wages come in, I won't then need the overdraft extension, I just need it tide me over until I actually do get my wages...

saver2006

why don't you get a pay-day advance- plenty of shops do it (i think you can do it online as well)

CrispyUK

Halifax branches can't apply anything greater than a £1000 overdraft in branch, anything greater has to be done via application to Head Office hence the 48hr turnaround. They were happy to increase mine to £1750 once the first student loan instalment had hit the account, they're not very useful at providing information on why your applications are rejected or what you can do to help get them accepted though!

Rejected overdraft increase applications with Halifax shouldn't affect your credit score as I believe it's all just internal decisions rather than them credit checking you each time

CrispyUK

saver2006 wrote: »

why don't you get a pay-day advance- plenty of shops do it (i think you can do it online as well)

I'd avoid this if at all possible, just going from a top Google result:

Typical example: Payday Loan £100, Interest £29, Total Repayable £129.

Seems an expensive way of doing it!

Compound_2

CrispyUK wrote: »

Halifax branches can't apply anything greater than a £1000 overdraft in branch, anything greater has to be done via application to Head Office hence the 48hr turnaround. They were happy to increase mine to £1750 once the first student loan instalment had hit the account, they're not very useful at providing information on why your applications are rejected or what you can do to help get them accepted though!

Rejected overdraft increase applications with Halifax shouldn't affect your credit score as I believe it's all just internal decisions rather than them credit checking you each time

Branches can apply limits over £1000 if the computer has pre-approved it, but they have no discretion. Requests for amounts up to the pre-approved limit are not credit checked, but requests over may be (it might be different for student accounts). Ideally, you should be told before a search but banks sometimes fail to do this. To avoid a search, it’s best to find out your pre-approved maximum before requesting a specific amount.

I think the £2750 intrest free is something of an illusion. To qualify for this you'd have to run your account so 'well' that it's unlikely you'll need an overdraft.

kelloggs36

Open another student account - I have 2, one with HSBC and one with Halifax. I told Halifax I already had one and they never batted an eyelid! I get my student loan paid into 1 account and then transfer it into the other, thus satisfying the conditions. The OD on HSBC is 1500 and Halifax is 1000 (I haven't bothered asking for more), so total is 2500. nOt bad.

regularsaver1

Yeah the increases are based on the credits - how many installments of the student loan have you received?

moonpixiewitch

my daughter will be studying a long way from home she will be entitled to full maintenance grant and loan + possibly 2 dyslexia bursaries , she also hopes to get a job whilst at uni . She applied for this halifax account on saturday and was told she does not have a sufficiently good credit rating to open an account with them despite running her own bank account (with a rival bank) since the age of 11 with no problems (she has never gone overdrawn) and has had a 100 cheque guarantee/debit card and an isa for the last year! - so she went to Natwest today - applied on line - approved straight away!- after reading this thread I am so glad she didnt go with the Halifax! She could end up stuck 300 miles from home with no money to live on at the whim of the halifax .
thank you to the OP for raising this point

Compound wrote: »

Branches can apply limits over £1000 if the computer has pre-approved it, but they have no discretion. Requests for amounts up to the pre-approved limit are not credit checked, but requests over may be (it might be different for student accounts). Ideally, you should be told before a search but banks sometimes fail to do this. To avoid a search, it’s best to find out your pre-approved maximum before requesting a specific amount.

I think the £2750 intrest free is something of an illusion. To qualify for this you'd have to run your account so 'well' that it's unlikely you'll need an overdraft.

moonpixiewitch

http://forums.moneysavingexpert.com/showthread.html?t=179491
hoping this link works ? I have not posted a link before